My boss read this same thing because he is a big Elon Musk fan and he told me about the Solar City being a startup by Elon's cousin and that their model was to pair up with Tesla to do free installs for solar paneling on homes and provide electric cars. The solar paneling would be "free" because they would install and any power put back to the grid they would recoup the money on in lieu of you paying for the install.

My boss was intrigued so he called Solar City for install and they told him it was $46k and didn't seem to know anything about a free deal for put backs to the grid....

So it would seem there is not a system (yet) for payback overtime via put backs to the grid.

quote:

---

My boss read this same thing and he is a big Elon musk fan..... Got a quote for the solar install and it $46k.... Not a system (yet) for payback overtime via put backs to the grid.

---

Could you make this a little more clear?

Better?

Anyone going to summer NAPE this week?

quote:

---

Anyone going to summer NAPE this week?

---

meh, ill go down and walk the floor for a bit on Thursday. The general concensus for Summer NAPE is that it is one big ol' turd. Seems like the URTeC show last week is becoming the Summer show to attend.

quote:

---

quote:

---

Anyone going to summer NAPE this week?

---

meh, ill go down and walk the floor for a bit on Thursday. The general concensus for Summer NAPE is that it is one big ol' turd. Seems like the URTeC show last week is becoming the Summer show to attend.

---

SM buying Rock Oil's (Riverstone backed PE company) holdings in Howard County for $980 million:

http://ir.sm-energy.com/phoenix.zhtml?c=90687&p=irol-newsArticle&ID=2193624

quote:

---

SM buying Rock Oil's (Riverstone backed PE company) holdings in Howard County for $980 million:

http://ir.sm-energy.com/phoenix.zhtml?c=90687&p=irol-newsArticle&ID=2193624

---

$980MM - ~$175MM for the existing production (4900boe/d) = $805MM

$805MM/24,783 acres = ~$32,500/acre.

Even if you add in some production for the 2 news wells coming this month, looks like between $28k-$32k/acre.

quote:

---

WSJ reporting that OPEC members are reviving production freeze rumors (pretty much the same ones as last spring), nobody seems to be biting this time around.

---

Well scratch this thought, looks like the jawboning is helping push crude up this morning. The news came out on Thursday but it seems like traders didn't catch on until the weekend.

Wouldn't mind seeing it continue so I can get out of a few positions this week.

quote:

---

quote:

---

SM buying Rock Oil's (Riverstone backed PE company) holdings in Howard County for $980 million:

http://ir.sm-energy.com/phoenix.zhtml?c=90687&p=irol-newsArticle&ID=2193624

---

$980MM - ~$175MM for the existing production (4900boe/d) = $805MM

$805MM/24,783 acres = ~$32,500/acre.

Even if you add in some production for the 2 news wells coming this month, looks like between $28k-$32k/acre.

---

For those of us that don't deal with on land projects, is what high / low?

It's been interesting around here in the past week to say the least.

$30,000/acre is in line with previous Howard County transactions. For the Midland Basin, the current high mark is either the PXD/Devon deal of $28K/acre for Wolfcamp B and below or the QEP/RK deal at ~$60,000/acre. On the low end, I'm sure there are small ground-level leases happening at $500-$1500 per acre, but the cheapest, large scale deal for good acreage I've heard of is Qstar/Endeavor at $17,500/acre. I think that deal came with a lot of litigation and title issues, otherwise it probably would have brought ~$30,000/acre.

What part of Howard county is this acreage in? I can't find any maps and can't find anything on Drilling Info for where Rock Oil's production is.

They operate under JPM EOC.

Central Howard mostly. Spans North-South. I have minerals in 2 rock units that are doing pretty good both from the Wolf A. Wish I could get that much per acre. I imagine they are getting credit for more than one bench with that price tag.

quote:

---

They operate under JPM EOC.

---

Excellent, thank you sir.

Spoke with a friend from New Braunfels over the weekend. Sounds like there are fewer rigs in the storage yard there than even just a month ago.

quote:

---

SM buying Rock Oil's (Riverstone backed PE company) holdings in Howard County for $980 million:

http://ir.sm-energy.com/phoenix.zhtml?c=90687&p=irol-newsArticle&ID=2193624

---

Thanks for the info. We deal a bit with Rock and I currently have a couple projects pending with SM so I'm curious to see how this shakes out in the coming months.

quote:

---

Spoke with a friend from New Braunfels over the weekend. Sounds like there are fewer rigs in the storage yard there than even just a month ago.

---

Because they are out working? Or did they get sold/scrapped?

He made it sound like they were getting mobilized, not scrapped.

So Mike Rothman is calling for $75 oil within about six months. The Raymond James analysts are in support, maybe higher by the end of 2017.

Apparently demand worldwide is stronger than previously expected. While US inventories are high, that is only about 10% of worldwide inventories. Thus, U.S. oil and gasoline inventories don't really tell the whole
global oil supply/demand story.

quote:

---

So Mike Rothman is calling for $75 oil within about six months. The Raymond James analysts are in support, maybe higher by the end of 2017.

Apparently demand worldwide is stronger than previously expected. While US inventories are high, that is only about 10% of worldwide inventories. Thus, U.S. oil and gasoline inventories don't really tell the whole
global oil supply/demand story.

---

I've heard it before, but I'll believe it when I see it. (I'm definitely hoping for it)... Consistent and reliable worldwide demand and supply numbers are so hard to track down/believe for a number of reasons. Tough to gauge the overall market, so we will just say I am cautious here.

That would be nice. I know we always joke about it but I really would like a new truck. $75 oil would help make that come true.

I'm cautious as well.

But I do have a theory that Saudi convinced the other OPEC members last year to hold their fire regarding the declining price of oil while Saudi flooded the market. Now the day has come to reward their patience and cooperation.

It now seems obvious that a lot of US shale players have been destroyed, employees moved on, and creditors too scared to fund aggressively in the sector. So soon Saudi does its buddies a solid, withdraws a bunch of its supply, and sends oil screaming higher?

That would serve several purposes:

1) Help the budgets of Saudi and other OPEC nations;
2) Leave non-OPEC producers with a painful reminder that Saudi will rinse and repeat the process if they (non-OPEC producers) get too frisky with production again.

Posting this here, saw this on linkedin:

quote:

---

Newfield Exploration is hiring. Reservoir Engineers, Geologists, Geophysicist, OpenText & Records SME(Records Principal), Sr Legal Counsel, Office Services/Facilities Lead to name a few. Please go to our website for a complete list of opportunities

---

I'm in the finance world and I wouldn't say creditors are scared. There's a lot of private money just sitting on the sidelines waiting to hop on the wave. Lot of people got hosed, but those same people know they can make it back by jumping back in at the right time. And as far as big lenders go, there's definitely going to be a much slower process, but the overall exposure to energy is minimal so it's not like they have damaged balance sheets now. If the market gets hot again, they'll be ready to play too.

The Saudis really just killed off the large off-shore projects, but the fracking industry is just evolving into something that will survive in the new market that is being created. It's not going away and it is only going to bounce back faster once the price gets back to $50.

quote:

---

quote:

---

SM buying Rock Oil's (Riverstone backed PE company) holdings in Howard County for $980 million:

http://ir.sm-energy.com/phoenix.zhtml?c=90687&p=irol-newsArticle&ID=2193624

---

$980MM - ~$175MM for the existing production (4900boe/d) = $805MM

$805MM/24,783 acres = ~$32,500/acre.

Even if you add in some production for the 2 news wells coming this month, looks like between $28k-$32k/acre.

---

Not sure where else they picked up acreage but doesn't look like they made much a return in the Linn acreage they acquired.

I was told by an insider that the Linn acreage made up about 5,000 acres of the 24,000 and was valued higher than the rest of the acreage. Also, I was told the PDP value isn't as high as the typical metric as it's largely flush production right now. The acreage price averaged out to $32,500 per acre. Something surprising about this deal is it all developed in about 10 days as the result of an effort to raise private capital.

I'm not sure what their average cost per acre was, but I know a fair amount of their acreage was acquired for less than $2,500 per acre.

I was told river stone had about $120mm of equity in the deal so unless they had s ton of debt, riverstone just made a ton on the deal.

quote:

---

I was told river stone had about $120mm of equity in the deal so unless they had s ton of debt, riverstone just made a ton on the deal.

---

Riverstone had around $400MM into it, plus a small amount of debt (<$50MM).

A little over a 2 bagger in a year.

Interesting, I'll have to ask this guy where he came up with $120 ($116 was actually the number he gave me).

Where did you get $400?

Was it this thread where a guy started his own pipeline compliance company? Need his info asap.

quote:

---

Was it this thread where a guy started his own pipeline compliance company? Need his info asap.

---

Pretty sure his user name is Talon2DSO...paging Talon

^^^