Hurricane Energy Share Discussion Threads

[gary38] 13/3/2017 13:13

Lancaster CPR due at the end of Q1 2017 will quantify the resources ahead of FID for the Early Production System due at the end of H1 2017 plus Halifax well results.

[laserdisc] 13/3/2017 13:10

Nao Viking has now left the rig due Aberdeen 9am tomorrow comes off hire tomorrow

[gary38] 13/3/2017 13:00

JimI was using the two points that l saw as important to make my point.

[terry hardacre] 13/3/2017 12:46

Gary38, to many other factors involved to compare like for likeBut isn't that exactly the point - too many other factors involved here to make a straight judgement on our prospects based on PoO alone!Hence why we have only a modest decline in the share price - imo

[jimarilo] 13/3/2017 12:41

"Oil price down has not stopped LGO moving up on drill results"

Gary38, to many other factors involved to compare like for like

[zztop] 13/3/2017 11:45

Bitcoin doing well..

[rayrac] 13/3/2017 11:09

And if you were blues, you could do a red!

[rayrac] 13/3/2017 11:07

Not liking it one bit tbo. The price of oil is a bother...big!

[zztop] 13/3/2017 09:47

Could be up an audi q7 by the weekend?

[bloodhound] 13/3/2017 08:50

Anyway, I'm already down a Dacia Sondero this morning on paper, sh*te start to the week!

BH

[gary38] 13/3/2017 08:48

Oil price down has not stopped LGO moving up on drill results.

[gregpeck7] 13/3/2017 08:46

Ca need to stop selling

[bloodhound] 13/3/2017 08:45

3p up from the Lincoln discovery is derisory in its own right, Halifax aside!

BH

[1solon] 13/3/2017 08:19

Saudi will be doing its upmost to reach $60 pb in the near future with the upcoming IPO of Aramco, the yanks will not play ball aka swing produce instead letting mkt forces win the day.

[bloodhound] 13/3/2017 08:18

Agnabeya - I'm expecting good news. I should have said: No news is good news!

BH

[jimarilo] 13/3/2017 08:17

I think the price will slide and maybe pick up towards the weekend

Punters hoping for a Monday morning rns

[agnabeya] 13/3/2017 08:11

BH.....
No news is just no news. Nothing else.
I've never known late news to be good news, ever.
However I don't think our awaited news is late. During the next week perhaps would be my guess.
Good news leaks,or is announced as quickly as possible.

I'm holding for now. No cause for alarm :)

[jimarilo] 13/3/2017 08:08

Discovering something that's worthless is not a good business plan lol

[whiskeyinthejar] 13/3/2017 08:06

This I think is the issue:



So opec cuts are to reduce inventory, but Saudi are saying they dont want to extend cuts just because shale is rising.

This may be brinkmanship to get some shale companies to rein in their plans. But market wants opec cuts extended. Obviously it will take longer to reduce inventory if shale ramps up.

Its a short term problem then with too much oil in storage, rather than too much supply.

So it's is a buying opportunity for oil shares.

It shouldnt be so much about hurricane though imo, because we aren't producing and upside is about oil discovery etc.

[bloodhound] 13/3/2017 08:00

No news is good news right?

Just a thought, any chance of adding a PoO chart to the header?

BH

[phowdo] 13/3/2017 07:52

Probably need Brent sub $50 and the financial press to come out with more negative articles to set up a great bear trap in the oilprice.

[the guardian] 13/3/2017 07:45

What gets me is that last week, the USA imported 8 million barrels of oil. It's inventories rose by 8 million barrels and so everyone focussed on the number of wells coming back on line.

[idleduck] 13/3/2017 07:45

Terry Hardacre ... that's what has been said about US shale all along. Pundits have said shale will fail. Really? G check out wolf camp ... a new play now opening up that is reckoned to be larger and more prolific than the Marcellus, etc, etc. This appeared in The Press and Journal's Dec 16 edition of Energy: Cheap shale oil & gas production in
North America may be about to take a
leap forward with the US Geological
Survey declaring that the so-called
Wolfcamp shale play is almost three
times the size of the Bakken.
However, according to at least one
media source, the estimate lends credence
to a claim by Pioneer Natural
Resources’s driving force, Scott
Sheffield, that the Permian’s shale
could hold as much as 75billion barrels,
making it second only to Saudi
Arabia’s Ghawar field.
Leaving aside the Sheffield claim, if
even the USGS estimate proves somewhere
near correct, and with the
newly-elected Trump administration
soon to take the reins in Washington
favouring hydrocarbons production,
then any future efforts by Opec to stabilise
oil prices could be shattered.
If Sheffield turns out to be right, the
US might seriously challenge Saudi
Arabia as the global swing producer.
The news about Wolfcamp broke
just days before the latest attempt by
the Organisation of Petroleum
Exporting Countries to set a cap on
production, and rein it back in order
to drive prices back up and reverse the
current downturn that has hit offshore
provinces, like the North Sea,
especially badly.
Learning how to produce the tight
Bakken shale in North Dakota became
the game-changer for US domestic oil
& gas, reversing long-term decline and
pushing the States towards self-sufficiency,
and even exporting LNG
cargoes.
As early as the Hart’s Developing
Unconventional Oil Conference 2010,
Continental Resources stated: “The
Bakken is certainly a game-changer
for independent E&P companies
working in the play – but it is also
helping America reduce its dependence
on foreign oil.”
Compared to the Bakken, Wolfcamp
is a monster It has been worked conventionally
since the 1980s, and more
recently became recognised as a producible
tight oil & gas resource.
Moroever, some producers have already
got drilling and completion
costs down to less than $10 and production
costs below $5 per well.
However, even Pioneer acknowledges
that the US shale industry currently
needs $55 to $60 oil to keep production
flat, while the Wolfcamp average
is around $38.
It is only now that the gigantic scale
of the Wolfcamp resource has become
apparent, at least formally.
According to the USGS, this play,
located in the Midland Basin portion
of Texas’ Permian Basin province, contains
an estimated mean of 20billion
barrels of oil, 16trillion cu.ft of associated
natural gas, and 1.6billion barrels
of natural gas liquids.
This estimate is for “continuous221;
(unconventional) oil, and consists of
undiscovered, technically recoverable
resources.
It roughly equates to the perhaps
remaining recoverable resources on
the UK Continental Shelf.
The estimate of continuous oil in
the Midland Basin Wolfcamp shale
assessment is nearly three times
larger than that of the 2013 USGS
Bakken-Three Forks resource assessment,
making this the largest estimated
“continuous oil accumulation”
that USGS has assessed on its homeground
to date.
“The fact that this is the largest assessment
of continuous oil we have
ever done just goes to show that, even
in areas that have produced billions of
barrels of oil, there is still the potential
to find billions more,” said Walter
Guidroz, coordinator for the USGS
Energy Resources Program.
“Changes in technology and industry
practices can have significant effects
on what resources are technically
recoverable, and that’s why we continue
to perform resource assessments
throughout the United States
and the world.”
Although the USGS has assessed oil
& gas resources in the Permian Basin
province, this is the first assessment of
continuous resources in the Wolfcamp
shale in the Midland Basin portion of
the Permian.
Since the 1980s, the Wolfcamp
shale in the Midland Basin has been
part of the “WolfberryR21; play that enc
o m p a s s e s M i s s i s s i p p i a n ,
Pennsylvanian, and Lower Permian
reservoirs.
The Wolfcamp shale is also present
in the Delaware Basin portion of the
Permian Basin province, but was not
included in this assessment. The
Permian Basin province includes a series
of sub-basins and other geologic
formations in West Texas and southern
New Mexico. It is one of the most
productive areas for oil & gas in the
entire US.
Continuous oil and gas is dispersed
throughout a geologic formation,
rather than existing as discrete, localised
occurrences, such as those in conventional
accumulations.
Because of that, continuous resources
commonly require special
technical drilling and recovery methods,
such as hydraulic fracturing.
Undiscovered resources are those
that are estimated to exist based on
geologic knowledge and theory, while
technically recoverable resources are
those that can be produced using currently
available technology and industry
practices.
Whether or not it is profitable to
produce these resources at Wolfcamp
has not been evaluated, though companies
are already producing cheaply.
Among companies leading exploitation
at Wolfcamp is Pioneer, which
only recently reported its Q3 results
for the current year. Another participant
is Apache, operator of the Beryl
and Forties fields in the UK North Sea.
Dallas-based Pioneer is the largest
acreage holder in the Spraberry/
Wolfcamp, with 600,000 gross acres
in the northern portion of the play
and 200,000 gross acres in its southern
Wolfcamp joint venture area.
During Q3, Pioneer placed 46 horizontal
wells on production in the
Spraberry/Wolfcamp.
“Produc tion data from IHS
Performance Evaluator (a third-party
source) continues to show that
Pioneer is consistently drilling the
most productive horizontal wells in
the Midland Basin,” the company said.
Wolfcamp dwarfs prolific Bakken shale play, says USGS
Wolfcamp – gigantic new shale oil resource in the US already being exploited by Pioneer Natural Resources
For the period from September 2015
through June 2016, Pioneer’s threemonth
cumulative oil production averaged
approximately 55,000 barrels
per well from the approximately 150
wells.
For the same period, the average
three-month cumulative oil production
for 14 peers operating in the
Midland Basin ranged from approximately
25,000 to 50,000 barrels per
well.
Overall, this year, Pioneer expects to
place about 230 horizontal wells on
produc tion in the Spraberr y/
Wolfcamp area this year.
The current cost to drill and complete
a horizontal well has been reduced
to about $7million on average
for all intervals, reflecting average
perforated lateral lengths of approximately
2,740m (9,000ft).
Production costs are stated to average
$4.00 per barrel oil equivalent
(including lease operating expenses of
about $2.00 per boe and production
and ad valorem taxes of around $2.00
per boe).
The drilling programme in the
northern Spraberry/Wolfcamp area is
expected to continue to deliver internal
rates of return, ranging from 50%
to 65%.
Chairman/CEO Sheffield announced
in May that he was standing
down, but the company’s website still
lists him as holding the position. He is
credited with building Pioneer as the
US’s first pure-play shale E&P
business.

[terry hardacre] 13/3/2017 07:22

Shale can't fill the looming supply deficit caused by the slashing of investment after the last slump, and if Trump fulfills his promise to tax foreign imports it'll intensify their domestic supply issue and drive up prices.The consensus of analysis I've read thus far is a rebound after a correction - and even if that correction takes us to the low $40s, then we're still operating in an oil price environment similar to that of much of last year.If you think the crisis will be terminal (which is promised every time the price plummets) then it rather suggests this is the last place you want to be!