Thanks Robert, took the words out of my mouth. The actual exit target was 2,000 to 3,000BOPED for 2012 as per 18/7/12 presentation. However in the South Antelope sale presentation they state 5,000BOPED within 24 months, page 15.
There is always risk and it depends what they do with the money. $145m does not give you certainity, it gives you options and the ability to grow shareholder value, with no dilution or debt issues. It is going to drill you a lot of wells.
2 weeks ago everyone was complaining they had no cash now they have more cash than their market value of 2 weeks ago by selling 41% of their Bakken acerage alone. The SP may drop again (not expecting it to), as obviously the mkt can apply the wrong value to the company. If the SP drops again I will be buying again at this stage.
If you look back part of the reason that they did not previously meet targets was due to weather and operators change of plans (such as EOG). This is what they are trying to avoid in future by being in control.
For example, this is the current status of EOG drilling of Bear Den Wells from the following ND O&G link:
https://www.dmr.nd.gov/oilgas/findwellsvw.asp - select EOG as operator.
The codes are: DRL = Drilling, A = in production, LOC = Permitted to drill, Confidential = Confidential (you will see these on last June report as wait frac). Date is the status date.
If I take the last A wells drilled by EOG which were SEA wells these are the IP date and rates as per ND O&G Website:
19341 08/10/11 Bear Den 05-31H - 645BOPD, 870BOPED 19157 04/03/11 Bear Den 04-20H - 1,476BOPD, 1809BOPED 19170 07/01/11 Bear Den 07-17H - 1,882BOPD, 2,290BOPED
This is the current stauts of Bear Den Wells from the above link (remember dates are month, day and year):
23267 3305304222 OG DRL 8/5/2012 SESW 16-150-94 EOG RESOURCES, INC. BEAR DEN 17-16H SPOTTED HORN
23268 3305304223 OG DRL 7/24/2012 SESW 16-150-94 EOG RESOURCES, INC. BEAR DEN 25-16H SPOTTED HORN
23269 3305304224 OG DRL 7/22/2012 SESW 16-150-94 EOG RESOURCES, INC. BEAR DEN 24-1621H SPOTTED HORN
23270 3305304225 OG DRL 7/20/2012 SESW 16-150-94 EOG RESOURCES, INC. BEAR DEN 8-1621H SPOTTED HORN
19170 3305303186 OG A 1/6/2011 16235 SESE 17-150-94 EOG RESOURCES, INC. BEAR DEN 07-17H SPOTTED HORN
23064 3305304173 OG DRL 7/11/2012 SESE 17-150-94 EOG RESOURCES, INC. BEAR DEN 108-1708H SPOTTED HORN
23065 3305304174 OG DRL 7/14/2012 SESE 17-150-94 EOG RESOURCES, INC. BEAR DEN 20-1708H SPOTTED HORN
23066 3305304175 OG DRL 7/16/2012 SESE 17-150-94 EOG RESOURCES, INC. BEAR DEN 102-1708H SPOTTED HORN
19157 3305303184 OG A 3/4/2011 16416 SESE 20-150-94 EOG RESOURCES, INC. BEAR DEN 04-20H SPOTTED HORN
23061 3305304170 OG LOC 6/4/2012 SESE 20-150-94 EOG RESOURCES, INC. BEAR DEN 23-2019H SPOTTED HORN
23062 3305304171 OG LOC 6/4/2012 SESE 20-150-94 EOG RESOURCES, INC. BEAR DEN 101-2019H SPOTTED HORN
23063 3305304172 OG LOC 6/4/2012 SESE 20-150-94 EOG RESOURCES, INC. BEAR DEN 100-2017H SPOTTED HORN
20577 3305303523 Confidential NWNE 21-150-94 EOG RESOURCES, INC. BEAR DEN 19-2116H SPOTTED HORN
20578 3305303524 Confidential NWNE 21-150-94 EOG RESOURCES, INC. BEAR DEN 18-21H SPOTTED HORN
21688 3305303823 Confidential NWNE 21-150-94 EOG RESOURCES, INC. BEAR DEN 103-21H SPOTTED HORN
21689 3305303824 OG DRL 4/28/2012 NWNE 21-150-94 EOG RESOURCES, INC. BEAR DEN 104-2116H SPOTTED HORN (this is waiting frac on June 12 operations report)
19341 3305303221 OG A 10/6/2011 16075 SESE 31-150-94 EOG RESOURCES, INC. BEAR DEN 05-31H SPOTTED HORN
The last time they drilled a well was October 2011. They decided mid 2011 to change drilling techniques. They now have ramped up as follows:
June 12 - SEA Operations Report 4 of the wells above were waiting frac (in total 23.77% WI to SEA), July 12 - 6 wells started to drill August 12 - 1 well started to drill, with another 3 permitted to drill.
All of them closer to the higher producing wells from 2011. Where is the Phoniex landholding located, next door to South Antelope.
Just my thoughts, please do your own research.
SEA Price at posting:
77.0¢ Sentiment: None Disclosure: Held
