Concho acquired approximately 12,400 net acres with an average 100% working interest in Andrews and Martin counties, Texas. The acquired properties include approximately 3 MBoepd (73% oil) of legacy production. The acreage is contiguous with the Mabee Ranch leasehold Concho acquired from Reliance in the fourth quarter of 2016, enhancing the assets for large-scale, long-lateral development. The purchase price was $600 million, and the transaction was funded with cash on hand.


http://www.rbcrichardsonbarr.com/IndustryResearch/News.aspx?a=news&ticker=a&w=&story=201708bwire02006414r1.xml

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We're in an era of abundant resources.

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Water included? Because in Houston, I pay about 1.5 cents per gallon. How much do fracking operations pay?

94chem said:

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Quote:

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We're in an era of abundant resources.

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Water included? Because in Houston, I pay about 1.5 cents per gallon. How much do fracking operations pay?

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Depends on the area. In the Permian it can be as little as $0.35/bbl or as high as $3/bbl

Plains (PAA/PAGP) going to get smoked tomorrow...

Missed the quarter, lowered 2H17 and 2018 guide... plus they are alluding to cutting the distribution and doing equity (making a decision in the next 60 days).

Stock down 12% after hours... probably ends down 8-9% is my guess

Thought that was the old Oxy Mabee Ranch acreage.

Paid upwards of 35k / acre so CXO is still a believer in the NAV model.

Damn.. DRQ down 25% since their 2nd qtr numbers announced. Looks like the market has finally woke up to the truth about that house of cards . 100% deepwater offshore with outdated failing manufacturing equipment and a mature product line , no real R&D and no hope for any recovery for years.

Thoughts on APA? They've taken a beating since their earnings release, but I suspect that with them getting things moving on their Alpine High play they'll be bouncing back.

The offshore drilling market continues to consolidate with Transocean announcing acquisition plans for Songa Offshore

https://www.oilandgaspeople.com/news/14895/breaking-transocean-acquire-north-sea-drilling-firm-songa-offshore/

That market continues to struggle. BP put on hold two projects while continuing two smaller ones. Prices need to be around $55-$60 for a period of time before it picks back up.

nu awlins ag said:

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That market continues to struggle. BP put on hold two projects while continuing two smaller ones. Prices need to be around $55-$60 for a period of time before it picks back up.

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Which projects? Mad Dog 2 still going.

Don't get your hopes that Alpine High is going to save APA, everyone working the Permian has known that they overestimated oil recovery and it was all just wet-gas. I heard they pitched a cooling tower to turn the gas to liquid and management laughed.

Shot in the dark, but are any of y'all planning on going to the SPE Kickoff at Oxy on Friday? I'm a recent grad that has been lurking this thread for months, and I'm going looking to network and learn how I can be involved in 2018.

What do we think about the San Andres horiz play in west texas?

As in? Seems folks like Ring, Forge, Parallel etc have finally figured it out. Been interesting to observe the last couple years.

DadsanAG said:

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As in? Seems folks like Ring, Forge, Parallel etc have finally figured it out. Been interesting to observe the last couple years.

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Always pay attention to what small operators are doing, they don't have enough capital to drill uneconomic wells like the big independents with their Wolfcamp & Bone Spring wells. Forge has been killing it.

chuckd said:

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nu awlins ag said:

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That market continues to struggle. BP put on hold two projects while continuing two smaller ones. Prices need to be around $55-$60 for a period of time before it picks back up.

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Which projects? Mad Dog 2 still going.

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I didn't ask, it's just what he told me. 2 still on going and 2 put on a shelf for now.

MrYakamoto said:

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DadsanAG said:

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As in? Seems folks like Ring, Forge, Parallel etc have finally figured it out. Been interesting to observe the last couple years.

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Always pay attention to what small operators are doing, they don't have enough capital to drill uneconomic wells like the big independents with their Wolfcamp & Bone Spring wells. Forge has been killing it.

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What I'm looking at is the amount of water production from these wells. It also looks like some have injection wells in close promoxity along a lateral. Wolfcamp and Bone Springs are a whole other reservoir.

MLP are susceptible to dividend cuts

Dont mean to get off topic, but does anybody have any contacts at the Statoil Austin office? Im applying for an entry level geologist position and was wondering if someone could get my resume in the right hands.

Does anyone know why the EIA shows higher oil production for Texas than the RRC?

I think their production numbers are significantly inflated right now, but I don't know why. Going off data I know to be true internally. It just doesn't add up right now.

PeekingDuck said:

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I think their production numbers are significantly inflated since 2014, but I don't know why. Going off data I know to be true internally. It just doesn't add up right now.

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FIFY.

This entire downturn has the potential to be just as criminal as the subprime mortgage implosion and just as artificially made.

I don't know if I'd go back that far. I'm just talking trends I've seen since the collapse.

https://www.wsj.com/article_email/elliott-management-wants-energen-to-explore-sale-options-1502978202-lMyQjAxMTI3MTE1ODQxMjg4Wj/

Who are the logical buyers of Energen?

Anadarko, Concho, maybe Shell, maybe Oxy?

Seems like there's a ton of money about to be made exporting LNG: Big Bucks

Is there a favored LNG mutual fund for ordinary folks to safely invest in what's coming?

Cheniere Energy?

The issue with US LNG is do you have a buyer? You can buy the gas somewhat cheap in the US, but if you can't sell it, you are out. Most traditional plants were long term, guaranteed purchase contracts. Only way to get the $5-$50 billion needed.

Generally, costs have been about $2-$4 per MMBTU for processing. Shipping to Europe is about another $2 or so. Start doing math to see the revenue. JTK is going to be about $4-$6 shipping (per MMBTU).

US was really good looking when EUR was $12/ MMBTU. JTK was $18. JTK is now about $9 (IIRC).

Europe has pipelines from Russia and while dealing with them can be crazy, Russia can't really turn off the taps without doing damage to the wells. Europe can pay a premium for some stability, but won't 100% replace Russian gas.

US LNG would look good to new markets, if they can get into them (S. America, Africa, etc.)

~egon

All true, but the big energy companies wouldn't be rushing to complete five new export terminals at a cost of billions if they didn't see a robust overseas market for LNG. In addition to strongly growing demand in China, South America (both facilitated by the new Panama Canal) and non-pipeline countries in Europe (which is adding LNG import terminals), US domestic gas consumption appears to be growing by leaps and bounds, too: GAS

74OA said:

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All true, but the big energy companies wouldn't be rushing to complete five new export terminals at a cost of billions if they didn't see a robust overseas market for LNG. In addition to strongly growing demand in China, South America (both facilitated by the new Panama Canal) and Europe (which is adding LNG import terminals), US domestic gas consumption appears to be growing by leaps and bounds, too: GAS

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It's the most feasible alternative to green energy at the moment. It doesn't have the stigma of nuclear and it's cleaner than coal.

Have we talked about BHP selling shale assets? Where are they operating? Who would be potential buyers? Did they jump in at the wrong time?

http://fortune.com/2017/08/21/bhp-sell-shale/

Goose06 said:

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https://www.wsj.com/article_email/elliott-management-wants-energen-to-explore-sale-options-1502978202-lMyQjAxMTI3MTE1ODQxMjg4Wj/

Who are the logical buyers of Energen?

Anadarko, Concho, maybe Shell, maybe Oxy?

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Maybe a Permian company that blocks up to their acreage? I think it would have to be someone who could pay with cash and maybe a little debt. So, not a pure Permian company.