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The Casper WY Tribune kept up with the bond issue as it didn't happen. Casper Tribune
A good source for keeping up with the coal bed methane news.
Ed had landowners and the state hoping. Cementing the wells in will come from state funding and the landowners will get zip of the money owed and no future revenue on the horizon. I drove by the old Hettinger/High Plains facility yesterday. Liberty Oilfield services is hanging the sign on the building now.
Pretty well most of the gathering and midstream compressors have been pulled from that area of WY that High Plains was operating in. The buildings been getting removed and things have tightened up. *Not just High Plains wells. Many other companies have been shutting in that area.
The big focus is the Douglas WY and oil. Lots of "wet gas" coming with the oil. Plants being built to process the liquids associated. Large seismic studies and steady growth. Price of oil is the wild card.
Natural gas production also comes with oil production. "Wet gas" particularly is produced from oil wells as a "byproduct".
Things are gearing up for natural gas exportation.
The infrastructure to utilize natural gas in municipality vehicles is growing also.
Hey NYBob- hope the Holiday season treated you well! What are your thoughts on platinum, palladium and rhodium? A friend of mine is holding the physical product of each of them.
At this point, IMO ONLY, an RS would be a welcome vs the alternative.
And it's going to be hard to swallow
Strange things going on with the commodity markets. In regards to platinum, price has been weakening but the demand for the actual precious metal seems to be increasing.
Seems something is not jiving with the platinum price and the reality of demand.
I just received a notice that catalytic converter prices would be seeing an increase over the next month due to platinum costing more. Doesn't seem quite right with the "spot" price of platinum not moving too much. The company I buy from said their price paid for the physical product (platinum) is going to increase.
*Seen 3 price drops throughout 2012 and this is the first increase.
Do you DD very carefully! Recent "coffee shop talk" brought up Miller Fabrication. I would advise caution in thinking Miller Fabrication is going yield large profits.
GLTA
Latest Market Glitch Shows 'Trading Out of Control':
http://www.cnbc.com/id/48443271
Until manufacturing comes back to the U.S, you won't see any significant change in natural gas demand.
Even if production draws down in a cold winter, production decreases to limit supply etc.., it will only create short term spikes in price.
Manufacturing is the solid driver of natural gas.
All IMO only.
PPS tells the undeniable truth. This was at best a lotto play that turned into a pig. Anyone in this, me included, lost their ass and it will not turn around. With the overhead and cost of operation even 30 million in gross revenue will not offset 1/2 a billion,or so, shares IMO
Likely Mark Hettinger will skim off MF miller fabrication for himself and a few partners.
100% my bad thinking the pumpers would give a dang about specifics and legit issues.
I did buy some of this as a lotto play. *Not too deep but thanks for the concern.
I was gambling that HPGS would come out with a bunch of bs surrounding the Big Cat Oil Tool as well as using Luca Technologies microbes to rejuvenate an old piece of .... liability- I mean gas field.
*Not knocking on Luca. They were trying to do some legit things but have been subjected to some government red tape. Really don't know how much success Luca did or didn't have.
Honesty, openness and specifics really confuses some of you in the penny chat boards lol.
Go on and dodge the specific questions and pump, pump, pump and knock anyone that brings up specifics lol.
*Any idea how much the Gillette Miller Fabrication building is for sale for?
*If there aren't any signs for High Plains Gas- is High Plains Gas going away and only leaving Miller Fabrication in existence?
Alrighty- elude, huff puff or whatever. How about specifics?
What is-
The liability of the reclaim and maintenance of the old field that hasn't been profitable for years?
How many total shares are out ther?
What is the net profit?
What is the return on investment?
What is the overhead in terms of equipment, wages and various financial obligations?
Why is there a real estate sign in front of the Gillette property?
Really want to address specifics or continue to dodge the questions you really don't want answered?
Went by the Gillette facility today. Not a single sign of "High Plains" anywhere. "MF/miller fabrication" was all that was on the doors and equipment.
Earlier in the year I visited with a guy that claimed High Plains was only producing 300 mcf or so a day. Coffee shop talk said approximately half of that gas was being burned in the initial boost compression of the pipeline.
I haven't visited with Ty nor Levi Miller in quite awhile (years). I personally know them as well as their Dad Bill Miller. Levi, specifically, is as sharp of guy as you will meet. He has an engineers mind and ability but lacks the degree. Hard working guy.
That being said, Mark Hettinger put together a company of the same type as Miller Fab and dumped it on a bunch of investors. Mark knows the boom bust cycle and how to take care of himself.
Regardless of contracts and gross revenue all the above does not equate to a viable publicly traded company.
Net profit is what is eluded to but never specified with this bs game of a company IMO.
Do not forget that with the old junk field Marathon dumped that significant maintenance/reclaim liabilities go along with it.
Question for the HPGS cheerleaders- how many shares are out there? What is the gross revenue per share? Net profit per share? When is the rs coming? HOW LONG CAN YOU PUMP WITHOUT THOSE SPECIFICS?
High Plains shuts down natural gas production.
http://trib.com/business/high-plains-gas-shuts-down-gas-operation/article_0af45f74-f130-5b93-8e31-20badbe09b6f.html
Must have shut in all 300-500 mcf of daily production.
I'm not sure about the areas that they are mining but the areas I was in was a comfortable temp. About 65 F give or take a little.
In the maintenance areas I was in, they have air flowing in and taken back out via a piping system. My understanding was that the mine shafts were a fairly constant temperature year round.
If you get the chance and end up in the area, I'd sure try to go take a look. I don't know if I could work underground like that but going and seeing it was well worth the experience.
Butte is a neat area. I've been through it many times but hadn't been off the interstate until this year. Lots of interesting history. I hope to get back up there soon.
Made the trip under ground. Was interesting! The mine is a little over 3 miles deep.
I didn't get down to any of the mining areas that had the actual drilling/mining activity. I made it approximately 7500 ft under. I was working with the maintenance dept and providing some basic combustion analyzer training. (emissions). I was able to see a few of the various maintenance areas. Overall it is relatively tight quarters. We drove a small pickup into the side of the mtn and went down from there. Lots of shafts and it sure didn't take much for me to get disoriented lol.
Not sure how hard it would be to get a tour but they have given tours to college students. The miners can take their family members on a tour. I'm sure if it was planned through an appropriate contact that a tour could be arranged.
Natural gas storage facility info:
http://205.254.135.7/naturalgas/data.cfm
*due to be updated 6/29/12
http://www.nationalgrid.com/uk/Gas/Data/storage/
Here is a link with info people may find interesting:
http://oilprice.com/Energy/Natural-Gas/Natural-Gas-Storage-is-Vital-for-Future-Industry-Growth.html
Overall- I agree natural gas is the energy of the future. It will take some time IMO.
Natural gas storage level links:
http://ir.eia.gov/ngs/ngs.html
http://www.zacks.com/stock/news/77292/another-soft-natural-gas-injection
If you could dig that link up about the storage not as full as previously thought I'd appreciate it. I know a small company that would really be interested in that. They had been told that the gas they produce with their oil may not be able to go in the pipeline- at any price this fall. (due to nowhere to ship it)
As far as North Dakota- you may want to do a bit more DD. The pipelines are being built but far more gas is being flared than is being shipped. The infrastructure isn't there yet.
With oil dropping, the ND play stands a good chance of slowing up a bit. Heard a rumor that Schlumberger laid off 100 or so up there recently.
Without manufacturing coming back anytime soon and storage levels nearing capacity gas will be tough for at least the next 10-12 mos IMO.
*those coal companies idling mines that produce the metal oriented coals or having large layoffs is a spooky indicator IMO. when they idle mines or have huge layoffs that indicates they don't anticipate business picking up anytime soon. It costs a lot of $ to idle a mine, lay off people, buyout retirements, rehire etc
The coal mine activity I indicates the steel mfg is not looking good. (a steel mill burns a lot of natural gas)
All my opinion and time will tell
Agreed! That being said- I am open to other view points but do appreciate supporting info to back it up.
Don't take it wrong. Nothing personal and I am far from all knowing lol
A question, since you disagree. Being that it's easily verifiable that storage facilities are nearing capacity and production is outpacing consumption-
Even at $4 an mcf- if the production is still outpacing consumption and storage levels are at or near full capacity, why would a given gas company put in a large drilling program in place if there is no where to send the gas?
Until the reserves are drwn down and demand exceeds production, not many companies are going to bail into an aggressive drilling program in my opinion. At current day price per mcf isnt the complete issue.
Some drilling going on in the front range of CO, Vernal UT etc.....
Highly unlikely that High Plains gas can turn a profit at $3 an mcf. Most likely needing at least $4.50+
Met with a guy that has been in China, Australia, Japan, Thailand etc.. recently. Long term projections is that natural gas will not be back until 2015.
Take a look at this report on 6/29/12 (next update). Hard to believe that we are importing so much natural gas.
http://www.eia.gov/dnav/ng/ng_move_impc_s1_a.htm
Many of the coal companies that produce various grades of coal used in metals have shut down and/or are having significant lay offs. Talked with a guy that said that coal they used to get $300 a ton for is now bringing $25 a ton.
Why is that significant? Manufacturing, particularly steel, is a huge driver of natural gas demand.
GLTU
I will check on public tours and let you know in 10 days or so. I know I have to get there several hours early for various training before we go down into the mine.
Looks like I will get to into a few underground mines in the SW corner of Wyoming. Emission issues with underground equipment and vibration analysis.
As far as the share price- it wouldn't surprise me if it dropped a bit more. Catalyst elements just seen another price drop.
Get to go down in the mine in the next few weeks to provide some training. I won't be getting a big tour or anything but will in the underground portion of the mine. Should be a good trip!
Averaged down all I'm going to. Going to let it ride and see what happens.
Careful to not fall prey to the political propaganda put out by the mainstream media.
A few facts-
Gasoline storage levels are up
Gasoline exports are up
Gasoline demand in the US is down
Why? Maybe currency and trade wars with China? Drive commodity prices up by weakening our dollar in order to pay our debt with over valued commodities?
Keystone Pipeline is meant to get Canadian oil to the Gulf Of Mexico. Putting that pipeline in does not guarantee that the US has first opportunity for that oil. Behind the scenes, some of the Keystone opposition was based on our politicians wanting to have first opportunity at the Canadian oil.
Sure the pipeline would have created competition for the US exports but if we are already in a situation where we are exporting more of our oil, with a supply surplus and shrinking demand- what is the real agenda?
Central West is booming on some level but I guarantee you that boom is very fragile. Some "quiet" layoffs are happening.
FYI- legit producing oil and gas companies have no problem attracting private investors. Even when prices are down, private money will fund a field that is known to produce.
Be very cautious of the ones that can't get private funding IMO.
Sooooo many things behind the scenes. Keystone XL is a political distraction and not much else.
Currency wars, gasoline storage levels high, exportation of gasoline growing due to less US demand, coal crashing, natural gas crashing etc.....
Your focus on cold winters is understandable but you have to look at the manufacturing. Large manufacturing facilities is a larger factor than weather, when it comes to natural gas and/or coal prices.
Regardless what you are seeing at the pump and watching on Fox News/CNN/MSNBC etc... US energy demand is down and supplies are up.
This stock is nothing more than a typical penny play. Old dead field that Marathon wanted rid of.
Hettinger Welding was a good sized company that was built to unsustainable level. Is that good business? *Mark Hettinger sold out but the company eventually went broke.
Does building such a company as Hettinger Welding equate to understanding how to build a natural gas company trying to be built on an old dead field?
Again- a typical penny play. You may want to actually hope for market maker manipulation that will create some up trends as well as the naked short selling.
Why would you want MM manipulation? Maybe because the likely hood of legit profit is not anything that will be seen in the near future. *All in my opinion only.
The real question is- what is the chance of a reverse split occurring within the year?
Old dead field owned by HPGS and it costs more to produce the gas than it is selling for. Why would drilling under those circumstances drive the pps up?
Interesting. Can you provide a link that shows the storage levels decreasing? Everything I've seen show storage levels are nearing capacity and production is still outpacing demand.
My DD indicated The "big companies" are cutting back in an attempt to keep some storage available for the leases the government forces them to produce.
I'd sure appreciate that link to the info you referenced. I know of a small producer that was told that likely they couldn't send their gas down the pipeline this summer- at any price (free included). Thanks
Remember- storage levels are nearing capacity and it's plausible that small producers will not be able to ship their gas to anyplace.
Remember- shutting in wells can result in some wells not coming back or cost a lot to bring back online. They are not light switches that are shut on and off easily. That's why producers are hesitant to shut them in
Platinum, palladium, rhodium etc.. are all off their 2008 highs.
I just ordered some large (19.5 in round x 3.5 in thick to 47 in round x 3.5 in thick) catalytic converter elements. I don't use the elements with the palladium blends (too many things in exhaust alloy with it).
Platinum for "lean burn engines" and rhodium for "rich burn" engines.
The supplier has been cutting costs and sees another cost cut coming due to the projection of these precious metals being down.
I did buy some more SWC though today and may add some more if it continues to drop.
Very vague. A 4 in line 1/2 a mile long? 24 in line 100+ miles long? Details lacking and transparency lacking. Will have to look up Ty and have a beer with him in the few weeks.
If ya get a chance- take a look at the Oil Card book.
If the facts presented can be readily verified, I don't consider it a conspiracy theory. That doesn't equate to taking something as accurate neither.
Facts can be creatively spun and stats can be manipulated to say whatever wants to be said.
Global demand for oil is up but also falling.
The U.S playing in the global economy has lead to our dollar being brought down in value, industries being exported to other countries etc....
Off topic of oil but a couple years ago I caught an interesting report on Idaho potatoes. The price was down due to an issue with a trade agreement with the number one buyer of those potatoes (foreign country).
Mexico was the number one importer of Idaho Potatoes. McDonalds was the number one buyer of those potatoes in Mexico. How in the world can an Idaho farmer be expected to make a legit profit if Mexico is able to be the largest buyer?!
I understand there are many other factors but there is no doubt that American producers of many products have been turned into a welfare industry. Farmers are supported by the government so they can produce cheap food. The government then manipulates the imports/exports for many other reasons. Good or not? I don't know.
As our industries have been exported and our dollar is manipulated in the interest of global competition a quote comes to mind.
When you see that trading is done, not by consent, but by compulsion - when you see that in order to produce, you need to obtain permission from men who produce nothing - when you see that money is flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed.
So as our domestic supply increases and our demand drops- is it our dollar being devalued against the world economy that is causing the prices to remain stagnant in the U.S.?
The "Oil Card" and "Confessions Of An Economic Hit Man" by John Perkins both have a take on the situation that varies quite a bit from what the news reports.
Economic warfare, I believe, is very real and virtually unreported by the networks. Perhaps it simply doesn't get the ratings that political propaganda gets.
I agree with the natural gas projection. I know several ports are gearing up for liquifying natural gas for exportation.
Sooo much of it with not much market. The flares in some fields is amazing.
I've seen a field in Colorado that looks like a city at night(from a distance) because of all the gas being burned off. I've been told satellite pics show the same thing in North Dakota.
Certainly taking it personal. Once again- I apologize for engaging with you on something you obviously know a lot about.
Again- last few years of increasing supply, lesser demand and growing gasoline exports combined with painful pump prices in America remaining stagnant (not dropping while supplies increase and demand drops) indicated to me that there is more to it than the Fox News, CNN crowds etc.. report.
Supply up + Lesser Demand = higher exports and no price reduction at the pump. Unusual?
EDIT: Awwe my bad! LOL Silly me for thinking that the price at the pump has been unusually high for the last few years. Never mind inventory levels increase and demand drops but painful pump price remains stagnant.
Sorry I don't have a fancy chart that would illustrate it as a means of validation
Like I said- I apologize for expressing interest beyond the news media/propaganda.
Continue on with the Fox News, CNN, Hannity, Maddow (whatever suits you) etc talking points.
Can't see the forest for the trees?
Exporting gasoline due to demand drop and bad economy yet the price of oil/gasoline is abnormally high at the pump isn't odd to you?
Usually lower demand, excess inventory etc.. results in a product dropping in price. Increasing exports and supply without much of a price drop indicates other factors. Incorrect?
Oil/gasoline exports and inventories are increasing yet politicians spin the "Keystone Pipeline" as job creation and a means of increasing supply.
I apologize for looking into things a little deeper than the typical spin. I pay attention to the global activities as well as the local news/propaganda.
Ironic that gasoline is one of our fastest growing exports due to increasing levels and lower demand in the U.S. all the while gasoline is higher at the pump!
People get emotional and take the bait of talking points from MSN, Fox News, CNN, Hannity, Maddow etc... and never really look at the facts that are available.
We are an energy rich nation and there are many other factors that come into play.
Ever read the following?:
The Oil Card
Global Economic Warfare in the 21st Century
By James R. Norman
Challenging the conventional wisdom behind oil pricing, this compact book sheds an entirely new light on the workings of "free" commodity markets and oil industry supply and demand "fundamentals." Its purpose is to look at the use of oil as an economic weapon.
The book assembles a now well-documented chronology of how the US and its allies, including Saudi Arabia, pushed down oil prices dramatically in the 1980s, and kept them low for a decade. It was a concerted and stunningly successful effort to break the former Soviet Union by depriving it of desperately needed hard-currency income.
It then raises the question whether those same price-control levers have lately been pushed in the opposite direction to rein in another target: the oil-short Peoples Republic of China. Contrary to popular perceptions, media commentary and official explanations, the book methodically lays out the geopolitical logic and the market mechanisms behind the stunning 12-fold run-up of oil prices from 1998 to mid-2008. It also offers an explanation for the sudden price drop from almost $150/barrel to under $100 as Russia again flexed its muscle by invading Georgia.
This timely and unorthodox analysis offers a clear and compelling explanation for the huge and otherwise unjustified gyrations in oil and other commodity prices in recent years. It also contains unique viewpoints on the reasons behind the US invasion of Iraq in 2003 and the fall of Russian oil major Yukos. The book will appeal to a broad audience—from students and practitioners of geopolitics to hard-pressed consumers and energy producers wondering how long windfall prices can defy gravity.
cont... http://theoilcard.com/
I had some very large catalytic converter elements quoted for a project. Platinum prices being down resulted in a recent price drop in the elements.
Evidently the manufacturer is getting looking at the prices being at these levels or less for at least a few months.
"alrighty" then- I will ask you a question. HPGS is pushing little gas, currently.
They own an old field that is fading fast. Gas is in the "tank" and HPGS likely sees a production cost that is equivalent of a Henry Hub reporting price of $3.50+ an mcf.
How many millions in reclamation and liabilities does that old field come with?
I've been lurking and holding. Waiting for an opportunity to trade a few shares for a profit. Will try to not be so greedy this time around lol.