03
Apr

Tuesday – Coal Update Part 1 & a word from Phil at PSW



I regret this morning's delay but I simply wasn't finished. Besides, the refiners are getting thoroughly whacked ((WNR) down 8%!) this morning and the last comment on yesterday's post was from an overly zealous heckler/Iran war conspiracy theorist. It made me laugh so hard I pulled something and was unable to type for a time.

Oil is off a touch (around $1) as I get ready to post trading just under $65 and gasoline is off a more impresssive $0.03 to trade just over $2.01. Below $2 on RBOB and the refiners, though still churning out cash, will see their stocks chop blocked pretty good.

Natural gas would be down (and was down) more with oil but then those pesky academics in Colorado upped their hurricane forecast. Landlocked state, about as far as you can get from a beach and be in the US...go figure. Anyway, sorry for the late post.

Tuesday Topics

  1. Coal
    1. Supply
      • quarterly
      • weekly
    2. Demand
    3. Inventories
    4. Prices
  2. Energy Sector Watch - XOI, XNG, OIH
  3. Odds & Ends

Coal: The EIA just released its quarterly assessment of the U.S. coal market with data on supply, demand, and inventories. In a nutshell, prodcution continues to grow faster than consumption and inventories are building. Prices appear to be rolloing over.

Supply:

Coal Production Continues To Grow

coal-production-040307.JPG

coal-imports-040307.JPG

Demand:

coal-demand-040307.JPG

coal-exports-040307.JPG

Balance - Inventories

coal-inventories-040307.JPG

Coal Prices appear to be rolling over (click on graph to view in its entirity)

coal-prices-040307.JPG

The Energy Stocks Have Been On A Roll Since The Hostage "Crisis" Began. All of the energy indexes look to be puttig in double tops here.

  • XOI - remains up just under 100 points (9%) in the last eleven trading sessions (from 1,132 to 1,228). 1,242 remains the all time high for this index.
  • XNG - Having had a similar sized run the gassier XNG has actually bronken into record territory in the last few days.
  • OIH - 140 had served as resistance since the beginning of the year but a series of mergers and rumors of mergers begining with the (THE) acquisition in the jackup market and ending yesterday with the acquisition of (LSS) -drill pipe- has overcome profit warnings from (HAL) and (NBR) stemming from a slowing drilling environment. I have no positions in service at present but at 147 I’m watching the group more intently these days.

How to play some of my ideas given the expected pullback in oil and gas prices from Phil of Philstockworld.com. This is a excerpt from the public portion of Phil's site this morning - more specific recommendations and an up to the minute read are available in the member's section. From Phil:

ZMan and I have a long list of oil companies we’d like to short in addition to our "LVS-in-waiting" (our term for a massively overbought security about to crash), TSO who have REALLY overstayed their welcome above $100. We are already in on the $100 puts with a $1.80 basis but the $95 puts are going to start looking attractive again at just $1 as a momentum play. It’s a tricky day to play it with inventory coming out tomorrow but fortune is likely to favor the bold in this case and we are well protected to the upside with our COP and XOM covers.

We need oil below $65 otherwise we’re better off waiting until the afternoon run-up but here are the plays we will have our eye on (detailed picks are available on the member site):

We should be able to give up on our COP $70s this morning and take a shot at May puts - this gives us time to be wrong and a good shot at being able to sell the Apr $65 puts against for a possibly even play to help us stay in for the long haul.

HES has also taken a nasty turn and the puts seem reasonable. MRO jumped $1.63 yesterday, bringing the cost of the puts down, near their 2-week low but far below their $3 high. MUR puts make a nice momentum play ($XXX, .25 T stop), T. Boone’s SU is likely to be miserable if oil gets below $64 and the current puts are a fun play. SLB may have gotten ahead of themselves back at $70 and we like the puts ($XXX, .25 T stop) and Z likes SJT if nat. gas breaks back below $7 with the puts looking very reasonable.

If the coal stocks start falling (ACI, BTU, CNX, MEE, FDG) then we can feel fairly safe that we are in a real downturn. We can expect the usual afternoon shenanigans so let’s follow our day trading rules closely on these as well as the VRule before rushing out and overdoing it. The energy group may hold up in a general bull run but my main scenario for a sustainable rally is some rotation out of this sector and back to tech - it might happen but I won’t hold my breath!

Odds & Ends

Analyst Watch: (FCL) - Foundation Coal and (EPL) downgraded to sell and strong sell respectively at Matrix.

Hurricane Watch: Colorado ups named storm count prediction from 14 to 17. Don't cancel your beach vacation yet, these guys will revise the number at least once more before the season starts.






	
				

70 Responses to “Tuesday – Coal Update Part 1 & a word from Phil at PSW”

  1. 1
    zman Says:

    20% increase in the number of names storms not really having the same effect as La Nina / Bastardi comments do on nat gas.

  2. 2
    zman Says:

    This is my kind of day:

    Refiners all down
    Longs flat to up
    TK up
    SU down
    and COP down more than XOM which doesn’t believe the slide yet.

    I may take off my XOM calls soon as they’ve done their job of protecting the portfolio from further a further run up in crude.

  3. 3
    zman Says:

    I’m getting more comments on PSW that my site is inaccessible today so I unhooked the registration requirement for now until I can look into it. Can I get a test comment please?

  4. 4
    Stephen Says:

    Test

  5. 5
    dave Says:

    It was very hard to get on yesterday afternoon and this morning. I got on about 15 min. ago.

  6. 6
    Stephen Says:

    One thing, PBR is up from $86 to almost $100 in just over two weeks, absolutely crazy.

  7. 7
    sane Says:

    I couldn’t get on yesterday afternoon. Working ok for me today though

    Sane

  8. 8
    nltd Says:

    Z

    Hadn’t even been able to see today’s post until now…

    N

  9. 9
    zman Says:

    When you guys say you couldn’t get on what precisely do you mean?

  10. 10
    zman Says:

    Stephen – hear ya on PBR – they went on a press release frenzy about three weeks ago including all kinds of JVs and some new sizable discoveries and then IRAN hit and the thing looks extended to mean now. Good idea…will put back on the front burner.

  11. 11
    Blessed Says:

    Z thanks I was interested in your take on OIH 145 puts. Phil took some out yesterday and as OIH comes back a little the options have barely moved?

  12. 12
    Blessed Says:

    Z I could get the update and comments section but could not login to post a comment. Today the site was not updated but Per your post it was a little late. We forget that you may get busy also. Thanks for following up on these issues

  13. 13
    zman Says:

    Sure Blessed. I’m not long or short any service right now. A lot of hot money is holding that sector up and while short interest is increasing and warnings have come out it just hasn’t fallen.

    I’d rather be short than long and I’d rather use a component like BHI instead of the whole index. 1) the premiums on the OIH are generally exhorrbitant and 2) the move to the downside may be muted for the index as some of the companies are doing just fine right now and not exposed to the onshore US slowdown. I’ll probably be short that (BHI) again very soon. I’ve just been waiting for the group to get a little less go go and a litte more no go.

  14. 14
    sane Says:

    It kept timing out loading the page yesterday afternoon.
    I was able to log in, but I have it set to auto log in.

    Sane

  15. 15
    zman Says:

    The group just ran up to meet the rise in the broader market with no support from oil.

    Good entry / add point for the refineries as they’ll probably go back and test their lows.

  16. 16
    zman Says:

    Sane – so it was a file not found – error 404 or some such thing?

  17. 17
    zman Says:

    In case you didn’t notice, oil and gasoline are down roughly 2.5% apiece.

    Gasoline just broke $2

  18. 18
    sane Says:

    It would start loading and then give a 404

    Sane

  19. 19
    sane Says:

    I just took it as excessive volume.

    Sane

  20. 20
    zman Says:

    sane – yeah right. lol.

  21. 21
    T-Tupp Says:

    You are really adamant about these TSO puts. Your going to get your head handed to you if you dont wait for concrete signs of a reversal. Remember the trend is your friend. Just an opinion.

  22. 22
    zman Says:

    half out of WNR here on that drop this moring but (probably stupidly) added to TSO 100 May puts at $4.40. They’re listed on the perf page as APL but they’re may.

  23. 23
    zman Says:

    T-Tupp – I’m getting it hand to me now but I have a little time to maneuver here.

  24. 24
    zman Says:

    Storm Cat Fayetteville Shale production table is updated witht the underlying assumptions.

    http://zmansenergybrain.com/?p=74

  25. 25
    Big H Says:

    Zman, I really have enjoyed your writing everyday now for quite some time! , I just would like to know what the”perf page” you metioned in your last post is and how do I get it? Thank You.

    PS
    TSO,MRO(likly best put) Su( Big ? mark) and PBR don’t look like their a No Go now, are the dip buyers came right in and buy them back up from thodays am drop- H’Cain season report and gas season? having and effect…maybe some short covering too. I would hold tight to those xom hedgies, tommorow will shead some light with EIA numbers, but hey as everyone knows if Iran releases the brits then another plunge, but I think big money for whatever reason holds oil too62.50ish `

  26. 26
    T-Tupp Says:

    Z-man:

    do you know of a better source for crude, gasoline & NG futures free price quotes? ive been using the NYMEX website and there has to be something better out there. i have a subscription to market watch live, but i don’t think i get futures quotes.

    im kinda a rookie to futures although i am a seasoned options trader. why is it that the front month NYMEX cantracts are May? shouldent it be april? obv it’s diffent than options expiary, but im kinda confused on how futures are so different…

    sorry to pepper you with questions, but how come a couple weeks ago when the previous contract expired the new front month contract traded up like $1.50 immediately. i remember you mentioned something about a 12 month strip and poked fun at the media hyping up the jump as material in nature, but can you maybe clarify this for me? it would be greatly appreciated.

    PS- thanks fr the great fundamental insight into O&G

  27. 27
    zman Says:

    Welcome Big H! – The current list of positions is located at the top left of the page on a tab called ZEB performance. I update it a few times a week.

  28. 28
    zman Says:

    T-Tupp – I like barchart.com for delayed futures quotes, charts, and technical analysis bot.

    front month just rolled over to may, was April until early last week for crude. Don’t ask me why but that’s the way it’s always been.

    as far as contract expiry and crude jumping, the May was already that much higher than April so really there was no jump in price. From a psychological standpoint, it was that much closer to $60 and when oil broke that level people bought it. I look at the forward 12 month strip (the next 12 calendar months of prices) as a way to get a bigger picture at the trader’s outlook for crude. The link for the 12 month strip for oil and ng are listed in my blogroll up above and to the right.

    futures can be said to be in contango (higher price in the future than current prices or closer month prices) or backwardated (near month higher than future months).

    Oil, gas and most non perishable commodities are normallly in contango due to the cost of carrying them in storage. There is some seasonality to this as well so when you look at a 12, 24, or even 36 month run of nat gas prices for instance you’ll see peaks in winter prices and lulls in the two shoulder (low demand) seasons of Spring and Fall.

    The shape of the contago gives you a sense of traders expectations for future delievery and the premium for expectations of geopolitical unrest etc, etc….

    Hope that helps and fire away with those questions.

  29. 29
    Big H Says:

    Thank you, and I will resitger any very soon, just to darn lazy, and just have been reading every day for so long without ever missing I guess I never felt the need , since reading was good enough for me! you know I really don’t feel like I can add anything, you and your guys here are shaper then me!…please excuess my sloppyness but I am having dental implants ( zmh ) installed and all is well but the drugs for very slight disconfort is more then I need and takes its toll- Thanks Again For The Page and You Time~BH.

  30. 30
    zman Says:

    Dental implants with Zimmer? That hurts me to think about it!

    Please comment. The question you ask may spark a conversation that makes or saves someone some cash here.

    Also, I learn more by teaching than I do from getting up on my FA podium and shouting repeatedly that prices (and therefore stocks) are going to fall.

    Often a question causes me to reaccess and change my thinking on something as well.

  31. 31
    zman Says:

    Bih H – so what’s it run a tooth? Just planning ahead. lol.

  32. 32
    T-Tupp Says:

    i now how markets work, im actually a CFA. i was just curious as to those few tid bits

    i appreciate your help! keep up the good work

  33. 33
    zman Says:

    Sorry for the overteach. It takes awhile for me to know who I’m talking to and I have a very diverse audience.

    I passed level 1 and got too busy to continue (I know, I know, should have done it). I was sellside research for quite some time and didn’t need it.

  34. 34
    Big H Says:

    A dam good sence of humor! while they do nothing but take out and black and decker drill before knocking me out and telling me they need to know if I have any reactions to abnd aids’? and the drill bits cost 1k each if I have to replace them!!! but they do blast pink floyd and I get lemon sented hot towals, plus a warm neck pillow-!

    Zman…Like I said I am not as sharp as you and yours, so If you have a minute I would like to here your line of thinking( to bounce off what I am thinking and c how close I am ) as to why the dip buyers,buyers , bulls or whatever you wanna call them …why they came in so nicly and brought all service and refiners back up from their lows to new day highs?? Thanks and I look forward to hearing your reasoning!

  35. 35
    zman Says:

    News flash : GST Tiny little GST announced 2nd successful well in a week. This one found twice as much pay as the one on Mar 29. They get half while CHK gets a quarter. CHK ouwns 17% of this compnay.

    Recent wells in the area have had initial production of in excess of 20 million cubic feet of gas equivalent per day mmcfepd (one > 50)

    GST total company production: 13.7 mmcfepd. These two wells will be on production by late summer. You can see how this could be pretty significant. They speak at Howard Weil this week and this could be a hot little ticket. That conferece can run these little stocks, even in a down oil market.

  36. 36
    zman Says:

    My thoughts on the dip buyers – the analysts see the drop in oil and they say

    “ok, this is what we’ve been expecting, those fellas in Iran aren’t going to cooperate with us bulls and keep the Brits forever.” so here’s what you do on the day:

    1) you wait for oil to stop going down, and

    2) you (the analysts) tell everyone that the companies are cheap (sort of ture) and that they’re gong to have a friggin great quarter (very true in the case of the refiners)

    3) CNBC has your back with constant pix of roofs being lifted on buildings by high winds.

    4) so despite the fact that oil, gasoline, and natural gas are off >2% and look to be headed lower (they haven’t bought the hurricane study update yet – which doesn’t show a rise in hurricanes, just named storms but that’s a technicality the weathergirls of CNBC can’t be bothered with…that and the fact that those guys in the Rockies got it completely wrong last year)…so despite that you’ve got a telphone pole of a chart in the XOI which leads to shorts (who’ve just bumped up their interest) starting to panic cover.

    They’ll probably get Cramer in the act later today. Once someone mentions Storm Depot (TELA) you know the end is nigh.

  37. 37
    Big H Says:

    “”) you (the analysts) tell everyone that the companies are cheap (sort of ture) and that they’re gong to have a friggin great quarter (very true in the case of the refiners)””

    So if the refiners ARE going to have a great Q, theirs no reasoning to buy any APR or even MAY puts? unless your just trading trading the short term swings..i.e. ( oil going up 6 , and looking for it to go back to 62 or whatever) hence refiners will profit take and scare some traders and holders?// Is this what your stratagy is IF I Can Ask Please ? Thanks BH.

  38. 38
    zman Says:

    BH,

    I’d tell you that despite the fact that the refiners are going to have a great quarter that it is already priced into the stock. Take, TSO for example. Up in excess of 50% ytd. That’s a lot considering that gasoline’s run is petering out (my opinion). Look at the refining tab and historic crack spreads. It just can’t get much better than this. The first real drop in crude and gasoline (which you started to see today) will smack these stocks.

    It’s like when AAPL beats the pants off their quarter but the stock falls. You see it all the time and expectations here are now very high for the quarter. I’m sure they’ll still beat estimates but will the fundamental fact that we have enough gasoline in storage and that prices will fall sooner rather than later (again, my thoughts and not consensus although the EIA thinks the run is almost done as well) have an impact on the stocks?!

  39. 39
    zman Says:

    Just in the time it took me to type that the XOI and refiners started to drop back down. I’ve come out of have my WNR short for a 50%ish gain and the HOC’s are doing ok as well. TSO continues to be a pickly but like I said, I’ve got plenty of time.

  40. 40
    zman Says:

    GST potential production. I’d bet that both of the two recent wells are of the 5-10 mmcfepd variety. So toether they’d add say, 7.5 mmcfepd , which brings the company’s production up rougghly 50% later this summer.

  41. 41
    Jessy Says:

    zman

    Why do you think COP will slide?
    I own some COP. I dont want to loose money. Please tell me the reason behind it. Thanks.

  42. 42
    zman Says:

    Jessy,

    If you own it long term there’s probably nothing to worry about. I was trying to capture a perceived short term slide in natural gas prices (now though beg May) by covering the biggest, highest exposure natural gas vehicale I could find. They bought BR and now they’re the gassiest major out there. The E&P s have better n gas hedge coverage making them an easy choice for large cap leverage to gas for a trade.

    Fuandamentally, it’s a solid company that’s bent on growing (not a lot of its peers can say that) and cheaper, I suspect in part b/c of the BR thing, than many of its peers.

    So if you hold it for the long term I’d say you’re cool. Now, it may fall $3-5 bucks or so in the next two months but again, long term, you’re cool.

  43. 43
    Big H Says:

    http://www.zimmerdental.com/info_aboutImplants4.asp

    Up their is the zimmer link, its a 2 step process, I have grest bone structure, and cells so, the actural screw in my jaw is being accepted really well, and the bone is grabbing it like its gonna be their for good….the dude doing this is a friend now and I am shelling out some decent cash buy saving from regular prices !

    its about 3500 for all the work and that means more then just the impalnts- zimmers good, and he has good deals with them which makes it easy for him to do this..dude makes plently money elsewere!!!

    Thanks for that last reply…..I’m on the same page as you with the refiners, but still am cautious on entering any puts on service other then fast flips( which I been doing a lot)but we all know that refiners have not hit their mo mo price objectives at all yet, and the only thing to do is play the voliolity..

  44. 44
    Jessy Says:

    Thanks zman.

  45. 45
    zman Says:

    BH – On a pain scale of 1 to 5 (after the drugs wear off) what are steps 1 and 2 like with 1 being “a minor toothache” and 5 being Jack Bauer with a power drill and you’re a suspected terrorist.

    Or if that #5 doesn’t do it for you how about “like you went all in on TSO $85 puts when the stock was at $90”

  46. 46
    zman Says:

    knocked off half my XOM cover (may 75 cals.). 10% gain.

  47. 47
    Jon Says:

    GST article says they have a third well in the area which should be completed in another month.

  48. 48
    Jon Says:

    From March 29 Business Wire article:

    “Gastar is currently drilling the Wagner #1 well, a Bossier test offsetting two successful Bossier wells drilled by ConocoPhillips and expects to reach total depth in approximately five days. Gastar is also currently drilling the Donelson #3 well, another Bossier test that offsets the earlier successful Donelson #1 well drilled by Gastar. The Donelson #3 well is expected to reach total depth in approximately 35 days.”

    Zman, what do they mean by “offsetting” in this context? Does that mean they are figuring out the extent of the field?

  49. 49
    zman Says:

    Hey guys if you like this site, do me a favor a tell a friend and click the digg button at the top of each day’s post. I’m sure you don’t want to know hoow this helps so I won’t bore you with it but you’ll notice I’ve avoided all the typical adds along the sides…they just slow things down and nobody but nobody clicks on those things anyway.At least not on an oil and gas blog site! Anyway, spread the word. It’s been quiet in here because my editor at SeekingAlpha is on holiday and my hits are down by half without the blog getting republished on a daily basis to yahoo finance, google finance, etc…

    As always, thanks for reading and happy hunting!

  50. 50
    zman Says:

    Jon – yeah, pretty much. Offset means different things to different people and situations but in this case they’re trying to relate the well to the discoveries made by another operator in close proxmity. Generally, when we say offset we’re tyring to tell you something about the neighborhood in which you’re drilling. This is gas country and productive gas country at that and they want to let you know that. Sometimes they’ll say stepout instead of offset which generally means they’re stretching a bit further out to delineate a previous discovery or field.

  51. 51
    dave Says:

    Closed out half my CHK position

  52. 52
    dave Says:

    Stopped out of the rest of CHK. Tight stop.

  53. 53
    zman Says:

    Dave – good job on the CHK. Its been having a nice run in here for you.

  54. 54
    dave Says:

    Zman…thanks I get scared now every time I trade these sectors. I try to take quick profits/losses. It always seems to be a two day or so trade. I was suprised all the huricane talk didn’t push prices higher in oils, etc

  55. 55
    Big H Says:

    Don’t we all ( Ok maybe not, no ones chasing any puts, and calls seem to be the mode of the Apr contracts ) wish it was at 90 ! ! Did get close on the valuation call the other day for a minute or two.

    yea well, let me be rank, I have great bone and gums, so thats big …my roots next to where the work is being done are perfect, as are the teeth ( pretty much ) all this is a big plus…it allowa the work to be done with minmal effort, and done in the ideal way it is supposed! so thats all a big and brings the scale low….NOW what is real important next to that is the guy holding the pile driver! and how good he is and how much he can contrll the pain scale, and the dude is good, plus he knows how to handle me on any hard or slow work, and this psye he uses , works !….so aside from a few days at a 2 – 2/ and 1/2 on the scale alls been well….really good hands and very good diolage with what i can and cannot take… makes it very easy!

  56. 56
    Big H Says:

    PS I gonna look better then Louie Armstrong doing “Mack the Knife”

  57. 57
    Big H Says:

    PS PS wow those refiners and service had another blow out day when all is said and done…I only have one put, its a killer and I learned to wait…xom apr 75’s. My average is 1.65— Hope I can sell tommorow for even…! then i will wait for a better run or singal, the run will get me into some may puts if its strong enough~ ( do i make any sence to you)

  58. 58
    Big H Says:

    OO I ment my average cost for the XOM’s Apr 75 P is $0.65 ! sorry big differance-

  59. 59
    Jon Says:

    Okay Z, you’ve been dugg…

  60. 60
    zman Says:

    Thanks, Jon, so easy, so painless. you don’t even need to leave a comment and if you don’t like the post you can bury it (anti dig)

  61. 61
    sane Says:

    dugg

    Sane

  62. 62
    p.wilmington Says:

    Z- I’m curious as to your take on BPI Energy another CBM play. A relative is in heavy. I’ve stayed out. They seem to be similar in some ways to Strom Cat but they are solely in the Illinois basin, which doesn’t seem to have a history of success for CBM.

    http://www.bpi-industries.com/

    A recent presentation is available on the upper right on the link above. In one of their comparative charts on page 24 they have quite different figures for Storm cat, e.g. only 25 bcf proved reserves.

    Thanks for your thoughts.

  63. 63
    zman Says:

    P – I’ve heard of them but that’s about it. Illinois basin is no where near as sexy as the PRB, Green River, Raton or any Rockies Basin however that doesn’t mean it’s a boring go nowhere stock. I read up and get back to you.

  64. 64
    p.wilmington Says:

    Z- Correction to the above post regarding proved reserves. I was mistakenly looking at your figure for the 2007 goal of 80. There is no real differenc ein the actual figures.

  65. 65
    zman Says:

    P – here ya go my friend.

    BPI Energy (BPG) Snapshot: This is not a report and it’s unlikely to turn into one given my time constraints. It’s a snapshot done at the request of a reader and while interesting I personally don’t need any more single digit midgets in the portfolio right now. Still it is a grower and apparently well run. Here’s my 15 minute look from the Howard Weil conference.

    Tiny (< 1 Mmcfgpd) coalbed methane operator in the Illinois Basin. Debt free and management has skin in the game (11% ownership). 500,000 acres now. First, this is not your father's CBM play. Forget what you know about production rates in the Rockies. This is generally thinner coal with lower saturation per ton. As dewatering occurs production typically climbs to ~80 over 18 months, drops to 60 by year 4 and tails out over 20 years. Not exciting but if you drill enough wells you've got a nice, low cost, long reserve life annuity. * 50 well program in 2H07. When this was announced the stock shot up from $0.60 to $0.90 and has since given back most of that. * Management includes former Chief Engineer of BR who has undoubtedly got lots of CBM experience with BR's huge program in the San Juan Basin. Field Ops guys is from HAL's CBM Solutions Team...not too shabby. * Technical: 2 more seasoned staff from BR adn 2 from Energen Areas of Operations: 1) Southern Illinois, Delta project: single seam wells. 100% WI and NRI, 86 wells onstream - ~ 700 Mcfgpd and 3,500 bpd of water. 4 productive horizons present. First well was drilled back in 2003 and the first pilot took place 2005 so I'd bet that their first 10 wells or so make up a vast majority of production here and that the rest will begin to make their presence felt over the next 12 to 24 months. 2) Northern (Shelby) project: multi seam wells 10 wells onstream, flaring , 2 more awaiting completion. 20 Mcfgpd and 1,000 bpd water, has some nitrogen but it doesn't sound like a problem. The company appears to be getting bottom hole pressures down well which takes time and as that occurs, prodcution will climb. 3) Macoupin (additional Northern Basin potential): 4/07 - begin 10 well pilot At Delta they've got close to 100 wells onstream with aggregate production of just 700 mcfpd and water production of around 3,500 bpd. (water handling capacity???) LOE - probably pretty darn low. F&D - very shallow, 500 feet, <$200K to drill. Illinois is criss crossed with infrastructure and has a good local market. Gas here trades at a premium to Henry Hub and Rockies.

  66. 66
    bill fraser Says:

    omi is about to be taken over. this will add strength to other tanker stocks. Here is a post i put on yahoo

    http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_O/threadview?m=tm&bn=13349&tid=36996&mid=36998&tof=1&frt=2

  67. 67
    dan Says:

    http://www.whiskeyandgunpowder.com/Report/CoalReport.html

    According to this report, Coal is not going anywhere for a long time. Making Coal Stocks a great addition to a diversified portfolio.

  68. 68
    Methods to earn monthly wages, although at the moment I’m only supplementing the household income. Says:

    Methods to earn monthly wages, although at the moment I’m only supplementing the household income….

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