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Brian,
Don't know what this guy knows but he would like you to think he knows a lot. He has been bashing MNLU since day 1. Pigroast 11 is another basher on Yahoo.
If you have not been there already go to the following website and read the MNLU thread. For the most part these posts are written by oil and gas professionals and land owners. There are some naysayers there as well but most are knowledgable people.
Xylan,
A lot of people on this board including myself have a plan.
DUNR is drilling a deep oil well here in South Louisiana with TD expected in the next few weeks. When results are announced the stock is expected to jump up quite a bit. The plan is to take profits at this point and put it into MNLU.
MNLU's stock price is not expected to escalate until this fall when hopefully we will be selling some gas.
Right now construction and well testing is shut down because of Miss. River flooding. The BV well is on the river side of the levee.
Both of these wells are expected to produce very large amounts of hydrocarbons and command large share prices for the companies drilling them.
Xylan,
Hello from me too. I still have a bunch of that other stock but now own a small chunk of this one. Jump in, hopefully we will recoup some losses here,it certainly is looking like a winner and you are getting here very near the low.
Aquired small position today.
Copied this interesting post from HotStocked.com, thought I would share it.
EAGLE1
Guest
Posted: Mon Feb 21 Post subject: Dune Energy ( DUNR ) Facts and Projections
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I have been ask here and on other message boards to comment and give my thoughts on Dune Energy. Let me give you a breif introduction about myself. I have held executive positions with several different energy companies, I currently serve on the board of directors of a well known regional bank and two well known energy companies. I have been involved in investing at a high level most of my adult life. I want to share with you my thoughts on and how I view Dune Energy.
First, I bought a nice position when Dune was delisted from the exchange for a price of .08. I had followed this company for some time and also knew of the potential projects that were lined up. The risk reward for SPECULATION was perfect ,as I saw it. I also had a feeling ( from my knowledge of e&p joint ventures) that some high impact deals were in place. Just a few months later my thoughts and suspicions were confirmed and verified. Joint ventures at Garden Island Bay, Leeville and Bateman lake were announced. Iam very aware of the debt levels that the company has and that is why I still say this is a speculative investment to this point, ( but one I feel very comfortable in making. ) Here is why:
The number one reason that the company is not making money is the interest that it is paying on the 300 million notes at 10.5 percent. that adds up to 31.5 million in interest payments alone. The company had made a determination to sell the Barnett shale properties and concentrate on the bayou properties when they realized what they had bought in the Goldking deal, so revenue dropped from 147.2 million to 64.9 million and the markets crashed through that period. It put Dune in a bad position.
Now the good news! Dune has some very exciting properties to develop, game changer ,company maker properties with big reserve , big return possibilities with joint ventures in place. Lets just look at the near term picture and be optimistic that the plan comes together, I mean being a speculator / investor thats what concerns us the most... Can this ship be saved and what is the new course??? Right??
Dune currently has about 7 million barrels of crude if all goes well, best case they could exit 2011 with close to 70 million barrels. That is quite an upgrade. Their revenue will jump from 64 million to around 83 million till the end of this year. Looking ahead with just the projects online for this year , best case projection of 5,000 barrels a day at 90.00 a barrel, that puts next years revenue at 164,250,000.00 an increase of 2.5 times that of last year. I know at some point there will most likely be an issue of new shares, most likely around 25 - 30 million new shares at around 3.00 - 4.00 per share and the share total with the new shares would still not be out of line with most E & P companies, examples Brigham Exploration, Energy XXI, Kodiak oil and gas, Abraxas Pete etc. That will eliminate 90 - 100 million in debt and with the increased revenue the rest of the debt load can be serviced, very little doubt in my mind. I want to also point out that the other joint ventures will proceed at very little cost to Dune and revenues will continue to escalate if the projects can be developed. I do want to point out that they all have the potential to be high impact projects and production should be able to be increased another 1,000 - 1,500 barrels per day in 2012, which would yeild revenues for the year at and around the 200,000,000 million mark. I do not have rose colored glasses on and I know things can happen, all Iam saying is...I like the chances this company has, I love the properties ( most companies would kill for these high impact plays. ) I also like how they are fighting off the wall. There have been several very shrewd moves here made by Dunes management that the market has not noticed. I still say it is a great case for speculation, but it could turn into a long term holder as well. Things today are a little brighter than a year ago and if these projects are brought online, the balance sheet will get restructured and the company will prosper. Take it to the bank!
ElHeffy,
Your posts about the combination of HP,HT,CO2 and Water are accurate. It is a combination that makes carbon steel pipe look like a board infested with termites, the only difference is it round.
In similar offshore applications the use of Duplex and Super Duplex steels are common. They are stocked in Tube Supply warehouses but not in the amount required for this project. It is common to go directly to the pipe mill for a "mill run" on large orders of a certain size and steel grade.
The H2S is not as big of an issue. All steel materials have to be ordered to meet the requirements of NACE MR 0175.
TJ4,
It could be this one.
http://finance.yahoo.com/news/Sun-River-Energy-Inc-prnews-3797470844.html?x=0&.v=1
A video to watch about horizontal drilling and fracturing while you are killing time.
http://www.northernoil.com/drilling.php
Geopressure,
I'm still here and just waiting on developments like everyone else. Bought some shares at .54 recently and will buy more next week at whatever the price is at the time. I can't pick the highs and lows so I just buy when I have funds.
As far as the guy that spoke to the pipeline company with two 13 inch pipelines. I am guessing that they are 12 inch pipelines ( 12.75 inch outside diameter ) and the number of 800 thousand standard cubic feet per day is just the spare capacity they have in the pipelines.
Geo,
You might want to look at WPRT as well. They convert diesel engines to natural gas.
GASFRAC ENERGY SVCS (GSFVF.PK)
Never mind, they want you to pay to view this.
A lot of good info in this old magazine article ( 9 months old ).
Remember we still have our mineral rights above the Haynesville on our lease up there.
http://www.worldoil.com/Mergers-and-acquisitions-support-sustained-Haynesville-drilling.html
My best guess is after Spring flood. Probably June at the earliest. I don't see much construction work going on while the river is that high.
It will be a one time deal though if they elevate the wellhead above the high flood level. It will be like an offshore well where the wellhead is above water and the flowline/pipeline is below the mudline. The only difference is the offshore pipelines are under water 100% of the time. Ours will be under water a few weeks a year.
I forgot about that. It will be a while before that plant is up and running. We should be producing gas before the end of this year.
Geo,
Good DD. I have no doubt this well will do 50 mil. In fact I think 50 mil is conservative.
The restrictions are going to be the sizing of surface facilities. (these rates and pressures are pushing the extreme in piping design)
I envision an API 30,000 LB dual wing valve tree with dual 4 9/16 30,000 LB chokes (back to back) to get the downstream piping to around 10,000 psi working pressure. This piping would probably be dual 6" or 8" ASTM A519 Gr 4130Q&T mechanical tubing or 25% Chrome (Super Duplex) to a gas cooler then a multi-slot manifold for future wells. Then more choking to get the system down to 2220 psi working pressure (ASME Class 900) so that the downstream equipment can handle the pressure (separation,metering,pipeline). This design will handle up to 100 mil a day but now comes the question: where are we going to put all this gas??
An old article but sometimes it's good to refresh our memories.
http://www.energydelta.org/mainmenu/edi-intelligence/latest-energy-news/analysis-mainland-seeks-untapped-potential-of-haynesville-shale
Geologically speaking no additional perspective.
I bought my first shares of MNLU on 9/15/09 at $1.40 sh. and continue to buy when I can (avg. .50 now).
I also owned Gastar when their only play was the Deep Bossier in East Texas. They are into the Marcellas as well now.
Gastar is working the same general area in the Deep Bossier as Leor Energy was. Leor Energy sold their properties to EnCana but before they did they were bringing in wells in excess of 50 mmscfd.
MNLU has stated from the very beginning that they were patterning the Burkley-Phillips after these Deep Bossier wells in East Texas and now according to their 2/23/11 press release they have hired the very same individual that designed the fracture stimulation of LEOR's wells to do ours.
http://www.encana.com/news/newsreleases/2007/P1194231494365.html
Our well is a copy of this well. It will make 20-30 mmscf/d from 130 ft of pay. We have around 2000 ft in our well.
This is the area of East Texas MNLU was referring to in it's 2/23/11 press release.
Texas: Hilltop well cuts Lower Bossier pay
Mar 8, 2011
By OGJ editors
HOUSTON, Mar. 8 -- Gastar Exploration Ltd. said the Belin-2 well in East Texas cut 130 net ft of pay in five sand intervals in Jurassic Lower Bossier.
The well went to a total depth of 19,650 ft in a nonproducing fault block on the Hilltop structure in Robertson and Leon counties. It confirms the presence of high-quality reservoirs in the downthrown fault block.
Gastar, with 67% working interest before payout, plans to complete the well in two initial zones and, depending upon the availability of frac stimulation services, expects the first of these initial completions to be on line by the end of April. Projected completed well cost is $11 million.
The company plans to drill the Belin-3 well while continuing to focus on exploitation of the shallower Eaglebine and Glen Rose oil formations on this same acreage.
Oil & Gas Journal Topic and Resource Categories:
Regional view of the area.
http://www.ameliaresources.com/documents/tuscaloosatrend/Amelia%20Resources%20Tuscaloosa%20Marine%20Shale%20PLAY%20BOUNDARY%20MAP%20FEB%202011.pdf
More Information.
http://www.ameliaresources.com/tuscaloosa-trend.htm
http://clients.weblink.com.au/clients/pryme/article.asp?asx=PYM&view=6531615
http://www.gohaynesvilleshale.com/forum/topics/austin-chalk-in-louisiana?xg_source=activity&id=2117179:Topic:1676420&page=6#comments
Article about activity in the area.
http://www.investorvillage.com/groups.asp?mb=16083&mn=15739&pt=msg&mid=10174837
Wilkinson County map.
http://www.gomdot.com/Divisions/IntermodalPlanning/resources/Maps/pdf/CountyHighwayMaps/Wilkinson.pdf
Fords Creek Road runs due North from Woodville. The road is not very long so I assume MNLU's lease is near Woodville.
LXRP.OB is drilling shallow formations due West of Woodville on the river at Palmetto point.
POGLY.PK is drilling in the deeper Austin Chalk to the South-West in Avoyelles Parish, LA. The well has mechanical damage but is still producing over 600 bbl oil/d. Their next well will be 1 mile to the East (toward our lease) and is due to spud in May. Other operators are making wells with IP rates as high as 2500 bbl/d in the Austin Chalk in this area. There is a silent leasing campaign going on in this area.
HANG ON TO YOUR MNLU SHARES LONGTERM!!!
Yoy guy's seen MNLU's investor presentation on their website? I just noticed it today.
Geo,
I know that most of the drilling in that area is shallow (Frio around 3000 ft and some Wilcox around 10,000 ft) but that area is in the heart of the Tuscaloosa Marine Shale. I think horizontal drilling and fracturing is coming to the area. It is already happening just to the East in Avoyelles Parish, La. in the Austin Chalk (POGLY.PK). I think there is a possibility the Austin Chalk could extend into Miss.
I am always looking for early plays in the oil patch. Several companies came across my radar that are working in this area and have large land holdings (Lexaria,Cheetah,Brinx).
I did pretty well getting in on early shale plays in the Bakken and Niobrara. KOG,SSN,SDCJF (I still own some shares of these). My major loldings are MNLU and AEXP.
I am also following some companies in the Aberto/Montana Bakken. A couple of these had news out today. PETEF.PK., ROAOF.PK
LXRP.OB (.30) finding oil at Palmetto Point.
40% working interest in 130,000 acres in Wilkinson County.
Thanks for your response guys. As far as liquids are concerned even if there are none in the Bossier/Haynesville I think it is likely there are some in the shallower formations.
The link here is a company that I have been watching for a while. They are working an area to the west of us in Avoyelles Parish La. at shallower depths than 22,000 ft. They recently completed a well in the Austin Chalk that is presently producing 600 bbl oil a day with only part of the horizontal fractures working. They are currently planning an acidizing program to correct this.
The point I am trying to make here is that these shallower formations are huge, covering multiple states, they could be in our area too.
http://clients.weblink.com.au/clients/pryme/article.asp?asx=PYM&view=6529555
Just a thought guys.
Everyone is assuming that the gas value = $4 (+ or -) on the NYMEX.
Isn't it probable that the gas at this depth is more thermally mature and will have a higher BTU content thus making it more valuable than $4.
Anyone have any thoughts about this?
Geopressure,
My e-mail is "donniewood1967@yahoo.com" if you have info. on Horizon you'd like to share. T.I.A.
Finding out the true results of drilling this well is going to be exciting!!!
"the Buena Vista field is a billion dollar company maker"
Could be multi billion dollar field.
Massive Sand alone=
50 ft x 18,000 acres x 250 bbl per acre/ft x $75 bbl x 10% PV = 1.6875 billion dollars
Wishful thinking ??????
Bound to go up now that we have a basher onboard!!
Popo1,
I think there are liquids "uphole" as well. Remember the 50 ft in the Massive Sand. That is only one of many producing formations drilled through on this well.
Popo1,
I think there are liquids "uphole" as well. Remember the 50 ft in the Massive Sand. That is only one of many producing formations drilled through on this well.
Is the "Brown Dense" layer of the Smackover what we are after in the Jasper County well?
Permalink Reply by Electro on July 3, 2010 at 11:30pm
The brown dense when found within the smackover is layered deeper within in the formation and will reflect a deeper depth than the 9,000 ft. to the smackover in some areas. The smackover formation can be very thick.
In the area of NW La. & SW Ark, the shallowest the smackover has been drilled & cored in Arkansas was around Snow Hill Arkansas and was at the depth of 4,500ft. The deepest the smackover in the area we are talking was around Lisbon LA and the depth cored there was 11,840ft. In the Fouke area the smackover was cored at approx. 9600 ft. Magnolia Ark was around 7,500 ft. In Haynesville it is around 10,020 to 10,800 ft. The brown dense within the smackover will vary accordingly.
Most geologist concur that a lot of the oil and gas found in the upper layers of the smackover actually may have migrated from the brown dense over millions of years where there was no capping of the non-porus oolitic lime. It is under this capping that could possibly be what is stirring interest now.
Saying this, it is easy to understand how the depths of brown dense can vary so widely in the geographic area that I mentioned above.
The smackover formation can have a shale base. It is from the Jurassic age. I have broken down the 3 major layers of the smackover below:
The upper layer is usually between 450 & 900 feet thick and is hard grey dolomite then a layer of brown very hard oolite lime of appros. 30ft.
The mid layer is usually between 120 & 200 ft of a softer brown oolitic lime that some consider the brown dense. There can be various white dolomite limes mingled in with this mid zone.
The lower layer is usually between 200 & 450 ft. and consists of gray - brown hard limes. These can grade into a grandular and chalky banded limestone and even into a harder shale.
Below the Smackover you will have the Louann Salt (Werner), Morehouse Shale and the Eagle Mills. In that order.
http://www.gohaynesvilleshale.com/group/arkansasshale/forum/topics/xto-alternate-unit-wells-1
This question is for anyone who knows.
Can the workover rig be used to set the Whipstock to divert the well laterally?
I hope so, we know that the Smackover was productive at that depth.
gasman,
They may be just using the workover rig to pull the existing production tubing and getting the well ready for the drilling rig?