SI
SI
discoversearch

 Strategies & Market Trends | 50% Gains Investing


Previous 10 | Next 10 
To: Schnullie who wrote (107961)5/16/2012 1:02:31 PM
From: Dale Baker
of 118431
 
Did it not occur to you that MHR was buying current production and acreage for future production? What else does an oil exploration company do, make smoothies on the side in drugstores?

The info you are pounding the table for is all in the PR's about the acquisitions. Evans bought assets with current or future production value. Some folks think he bought too much in a short time, fair enough. We won't really see how the cash flow works until everything is integrated in Q3 and Q4.

But to write it all off now without evaluating the actual purchases is just hysteria. Go back and read the tone of your post, c'mon.

Final note - since he became CEO, Evans has executed on everything he promised and did, AFAIK. I can't even recall any dry holes mentioned in his drilling reports. And for that the common gets knocked around like the proverbial red-headed stepchild.

Frustrating market this year - again.

Share Keep | Reply | Mark as Last Read | Read Replies (2)


From: rllee5/16/2012 1:06:44 PM
of 118431
 
Repsol REPYY.PK is trading at it's lows ($17+) due to YPF nationalization and Spanish fiscal concerns. Book value is $24+ and dividend about 9%. Anyone think that the bad news has been mostly factored in and interesting as a long term buy?

Comments welcome.

Share Keep | Reply | Mark as Last Read


To: Schnullie who wrote (107961)5/16/2012 1:11:38 PM
From: Micawber
of 118431
 
Pretty much explains why we have gone from $6.50 to $4.00- and dropping- in the blink of an eye. That, coupled with the fact that pretty much anything to do with oil is getting killed.

Seems to me the bet going forward is: Do you believe he is finally done doing acquisitions and diluting the h*ll out of current shareholders? Will he now just focus on developing what he has and pumping oil like crazy? Will crude prices and demand stabilize?

I'll be watching the short position for insight on the first two questions.

Share Keep | Reply | Mark as Last Read


To: Dale Baker who wrote (107962)5/16/2012 1:13:22 PM
From: KaiserSosze
of 118431
 
Dale,

The only thing I'm pissed about with MHR (besides the stock price) :-) is that in the previous conference call, Evans implied (if he didn't outright state) that they had enough acreage for now, and anything additional would be small bolt ons. And as such, no further dilution was necessary (and he was very emphatic about that)!! Then he turns around a short time later and drops $300 large on some new property and not much bopd. That (to me) is not a bolt on, and that dilution pisses me off. And now I'm still scared that he'll do the same thing again!! I think this was a knee-jerk reaction to MHR being too gassy and not oily enough. I'm done ranting. I'm pissed, but at this point I think it would be biting my nose to sell, so I'll hold.

Good luck.

Share Keep | Reply | Mark as Last Read | Read Replies (1)


To: Dale Baker who wrote (107962)5/16/2012 1:21:51 PM
From: Sam
of 118431
 
Right now, we are depending on the judgment of Evans and Glenn Dawson as to what their Williston properties are worth.

Mr. R. Glenn Dawson has been President of Williston Hunter Inc. since May 2011. Mr. Dawson has been the Chief Executive Officer and President of NuLoch Resources Inc. since October 2007 and August 23, 2007 respectively. Mr. Dawson was a co-founder of TriLoch in 2001, which ultimately became NuLoch Resources, Inc. Mr. Dawson served as an Executive Vice President of Nuloch Resources Inc. until August 23, 2007. Mr. Dawson is a geologist with 20 years of experience in oil and gas exploration in North America. He served as a Vice President of Exploration at Panatlas Energy, Inc., since 1999. He served as an Executive Vice President of Triloch Resources Inc. His principal responsibilities involved the generation and evaluation of drilling prospects and production acquisition opportunities on behalf of TriLoch. From December 1985 to September 1998, he held a variety of managerial and technical positions with Summit, including served as its Vice President of Exploration, Exploration Manager and Chief Geologist. Mr. Dawson served as an Exploration Geologist of Sundance Oil and Gas Inc. Mr. Dawson has been a Director of Nuloch Resources Inc. since June 2005. He served as a Director of Triloch Resources Inc. He holds a Bachelor of Science Degree in Geology from Weber State University of Utah in 1980 and an Masters of Science Program in Geology from University of Calgary from 1980 to 1982.

investing.businessweek.com

In a Reuters article about the transaction, BMO Capital Markets-Canada analyst Gordon Tait was quoted as saying Baytex got good price for the assets: “They got $327,000 per flowing barrel of oil equivalent and Baytex is currently trading at $144,000 per flowing boe.”

A flowing barrel of oil equivalent, Reuters explained, corresponds to a production rate of one barrel of boe per day.

Significant growth platform

“This strategic ‘bolt-on’ acquisition in North Dakota increases our technically focused acreage position to a 125,000 net mineral acreage blocks located in the Williston basin. We will be transitioning from a previously minor working interest position into a significant growth platform targeting the prolific Sanish-Three Forks Reservoir and emerging middle Bakken trends in this region,” Glenn Dawson, president of Williston Hunter Inc., the Magnum Hunter subsidiary that operates in the Bakken, said in a prepared statement. “Increased capital allocation combined with advancing drilling and completion technology will propel oil production growth for the remainder of 2012 any many years to come for our division. Williston Hunter’s recently executed third party midstream contract to gather and process natural gas liquids will also create current hidden value through material production, reserve and cash-flow additions in 2013,” he said.

http://www.petroleumnews.com/pntruncate/620233741.shtml





Share Keep | Reply | Mark as Last Read


To: KaiserSosze who wrote (107965)5/16/2012 1:39:05 PM
From: Dale Baker
of 118431
 
I certainly agree with that sentiment - saying he wouldn't add much more then doing just that was not a good faith step with shareholders, the first one that I can think of.

Evans is guilty of being too ambitious, perhaps. We'll find out this year if he can make the whole big machine work. If he can, it will be quite a prize for a buyer who wants a quick 18-20K bbl/day operation in the top drilling areas.

Share Keep | Reply | Mark as Last Read | Read Replies (1)


To: Dale Baker who wrote (107967)5/16/2012 1:42:47 PM
From: KaiserSosze
of 118431
 
On the plus side, NG back to $2.60. Seeing it get above $3 would certainly help alleviate some of that risk.

oil-price.net

Share Keep | Reply | Mark as Last Read


To: Dale Baker who wrote (107951)5/16/2012 2:17:02 PM
From: KaiserSosze
of 118431
 
WOW...Coastal under $13...the nut-house is open!!

Share Keep | Reply | Mark as Last Read | Read Replies (1)


To: KaiserSosze who wrote (107969)5/16/2012 2:21:00 PM
From: Dale Baker
of 118431
 
Yeah, it's either a great time to load up the truck or run for cover to dodge the falling knives. Take your pick.

Share Keep | Reply | Mark as Last Read | Read Replies (1)


To: Dale Baker who wrote (107970)5/16/2012 2:28:03 PM
From: KaiserSosze
of 118431
 
I'm not adding ANYTHING right now, thank you very much! :-) This smells like a repeat of last year...sell in May...

Share Keep | Reply | Mark as Last Read | Read Replies (2)
Previous 10 | Next 10 

Copyright © 1995-2014 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.