Really???!!!!
Glad that you are aboard this now PR fact from HMGP!!!
I just knew that you would come around sooner or later....... :0)
Kels
Message HMGP #30889
From: Kelseyf To: 1581
1581, think about the HMGP business strategy from this angle and work this Texas lease development as an option, to what HMGP is doing in Southeast Kansas (SEK). HMGP is proving up the CBM nat gas and leaving it behind pipe. As HMGP is ramping up the oil production , it is currently paying the bills. Oil production is good for today and increasing... but IMO it is the CBM nat gas reserves that offer HMGP the business opportunity to be sold for the big $$$ tomorrow.
XTO Energy, in it's recent earning release last week, said proved natural gas resources rose 32% to 11.29 trillion cubic feet equivalent in 2007.The company is targeting 15 trillion cubic feet of reserves by the end of 2009.
You don't just find an additional 3.7 trillion cubic feet of gas laying around just anywhere here in the USA, especially in less than 18 months.
I am not saying anything will come from this XTO PR... but the point I am trying to make is the same one I have been trying to make since HMGP announced on 12/18/07 its entered the Barnett Shale/Tarrant county... and what HMGP has stated as one of its long term business objective.
As HMGP drills each southeastern Kansas (SEK) CBM zone core, it is logged and tested and then booked as RESERVES. The CBM is documented by HMGP to industry standards, left behind pipe unmolested and then is is very easy for a gas company to come in behind HMGP, perf the casing and complete the CBM zones. HMGP has already done the heavy lifting and has nuetralized the exploration risks. Meanwhile the other part of the HMGP business model is to keep producing from the oil zones... and keep increasing the oil production from the zones while adding new ones.
XTO is not the only O&G company employing this buy reserves strategy, one of the points for wanting to know the weekly drilling activity in Tarrant & Johnson County... actually XTO is the smaller of the companies and IMO it is worth keeping an eye on these O&G activities that are engaged in the Barnett Shale development...........
One might also want to look at Chesapeake Energy earnings release, from earlier this month and updated business intentions too.
And what better way for HMGP to do this by jumping into the bigger O&G companies play yard and............be noticed.
Just maybe with enough "checker boardering" HMGP gets a full blown review by one of these O&G companies.
As I said and posted earlier; the XTO PR was very interesting and a good example of the going forward business intents of these larger O&G companies and even though HMGP, being a smaller emerging O&G company, their interests are in the same arena.
Finally, also take into consideration the amounts of $$$$ that these Big O&G are looking to vest during 2008 alone for their continued expansion, acqusitions and drilling activity.......BILLIONS............ this is also stated and documented by these O&G companies.
And as far as:
What type of food complemented each drilling foreman's coffee this morning?
There is a great little "Hole in the Wall" breakfast place in Fort Worth, not far from The StockYard - HMGP HQ, where the O&G "old timers" and "current timers" are known to stop in each morning, but you need to there early.
My understanding is if you want to know anything about the Fort Worth O&G market this is the place, discussion is good and I'll bet you'll find out what type of food complemented each drilling foreman's coffee too.
Kels
Kels
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