18
Aug
Wrap – Week Ended 8/17/13
Comments will be included in the The Week That Was section of the Monday post.
18
Aug
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Privately held (but planning an IPO) Antero Resources Q2 report: http://finance.yahoo.com/news/antero-resources-reports-second-quarter-110000519.html
Their Utica wells are huge: 7 of the 8 largest IP'd Utica wells ever are in their first 11 Utica wells, including the largest at 8879 boepd. The first 11 wells averaged IPs of 5632 boepd, asuming full ethane recovery (57% liquids). Their 100k+ acres in the core Utica are located in the same area as PDCE,GPOR and REXX. This news cannot hurt these names. Antero is growing its leasehold there also.
Antero's Marcellus growth is also outstanding. They currently have 15 rigs operating in the Marcellus (1 moving to the Utica soon), all in northern West Virginia.
"The 182 horizontal Marcellus wells that Antero has completed and placed online to date have an average 24-hour peak rate of 15.6 MMcfe/d and an average 30-day rate of 8.6 MMcfe/d assuming ethane recovery, an average lateral length of approximately 7,000 feet, an average Btu of 1115 and an average drilling and completion cost of $8.7 million per well."
But those results use older tech. Using improved well design (with shorter stage lengths) this last quarter their wells (4) averaged a 24 hour peak rate of 25.3 mmcfe/d, assuming ethane recovery (45% liquids). Well costs were $1.5-2.0 million higher using this method. While this represents a limited production history with this new method managment said they were "encouraged" by these results.
"Antero has 325,000 net acres in the southwestern core of the Marcellus Shale play of which 27% was associated with proved reserves at mid-year 2013. Approximately 80% of Antero's Marcellus leasehold is prospective for processable rich gas."
August 18th, 2013 at 11:43 amare you of the opinion that the political situation in Egypt will lead to continued higher oil prices?
August 18th, 2013 at 11:45 amre 1 – thanks, piece there soon
re 2 – not really, if the US acts imprudently and cuts off aid ($1.5 B per year) entirely then you might see a retaliation of denial of access to the Suez but generally these things blow over in time without impact on actual crude deliveries. Egypt itself is not a big producer (about a half mm bopd produced, much less exported). Fear of spread and further regional instability is the short, medium, and longer term thought and that's part of a somewhat swollen ME risk premium at the moment.
August 18th, 2013 at 11:53 amre: 3 thanks for the thoughts
re:1 nrgyman…as always interesting perspective. find your info. useful.
August 18th, 2013 at 4:16 pmIraq to Turkey oil flows reported back on line.
August 18th, 2013 at 4:30 pmre 3 – Libya situation seems much more concerning for oil prices.
re 5 – yup, saw that. thanks.
August 18th, 2013 at 5:05 pmre 4 – agreed, and Iraq, Iran, Sudan … Libya could be a problem for SLb activity levels, hard to tell at this point.
August 18th, 2013 at 5:30 pmhttp://www.fool.com/investing/general/2013/08/16/the-weather-continues-to-plague-this-industry.aspx
never heard of Nuverra, but seems to be a niche business and i always find these kind of businesses interesting investment oppotunities
August 18th, 2013 at 6:21 pmRe 1 & 3: Company presentation http://www.anteroresources.com/wp-content/uploads/Company%20Website%20Presentation%20-%20August%202013%20(B).pdf
Any read on what EV they are going to IPO at?
August 18th, 2013 at 6:32 pmRE 9: Recently on Reuters, an article said they could go for as much as $10 billion. That would be a big IPO for an E&P company.
August 18th, 2013 at 6:46 pmre 10 – saw that, have not heard deal talk pricing yet other that "hot"
SSN trading halt requested.
August 18th, 2013 at 6:47 pmadding to 11, halt requested by company pending news or Wednesday, whichever comes first.
August 18th, 2013 at 6:48 pmRe 10 & 11: I'll ask around the Burgh and see if anyone is in the know.
August 18th, 2013 at 6:48 pmSSN — appears to be a capital raise. Oh those Aussies!
August 18th, 2013 at 8:55 pmEnergy XXI Has Crude Leakage at Gulf of Mexico Pipeline: NRC
August 19th, 2013 at 2:54 amGoldman Raises Brent Forecast on Lower Stockpiles, OPEC Losses
August 19th, 2013 at 3:03 amhttp://www.nrc.uscg.mil/reports/rwservlet?standard_web+inc_seq=1057486
August 19th, 2013 at 3:25 am