Petrobank holds ~58% of PetroBakken Energy (PBN.TO). I'm now putting the final touches on a Company Profile with Net Income and Cash Flow model for PBN. It will be available to Premium Members on the website tomorrow. This is one you need to look at very carefully.
Dan
PetroBank
Re: PetroBank
The share price of both Petrobank (PBEGF.PK) and Petrominerales (PMGLF.PK) dipped below where they should have yesterday with all the confusion related to the spinoff. I'm sure a lot of Petrobank shareholders that weren't paying attention were shocked to see the share price down 40% at the open yesterday.
They are both bouncing back as expected today and I expect them to trend higher. It may take longer for Petrominerales since shareholders receiving those new shares may decide to sell, again because they don't fully understand what just happened. For most brokerage accounts it will take a few days before the Petrominerales share show up in your account but don't worry, they will.
Petrobank is hosting our next EPG luncheon in Houston on January 20. I will also be flying up to Dallas with them for a presentation to the SMU Energy Club that night. EPG members in the Dallas area are invited.
They are both bouncing back as expected today and I expect them to trend higher. It may take longer for Petrominerales since shareholders receiving those new shares may decide to sell, again because they don't fully understand what just happened. For most brokerage accounts it will take a few days before the Petrominerales share show up in your account but don't worry, they will.
Petrobank is hosting our next EPG luncheon in Houston on January 20. I will also be flying up to Dallas with them for a presentation to the SMU Energy Club that night. EPG members in the Dallas area are invited.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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prince_jake_33
- Posts: 242
- Joined: Mon Apr 26, 2010 2:21 pm
Re: PetroBank
From Bakken news;
course, specific predictions are rarely accurate but in the spirit of the new year we will give it our best shot. Underlying assumptions in our predictions are that oil prices will sustain over $90 per barrel over the majority of 2011 and that the overall domestic and global economies will continue a recovery albeit slow and sometimes painful.
PREDICTION #1 - Brigham Exploration (BEXP: 28.21 +3.56%) gets acquired by a large O&G in the region such as EOG.
It is no secret that Brigham Exploration is one of the best executing pure plays in the Bakken Region. Their expertise in multi-stage fracking is a boon for a larger player with untapped acreage. They may look expensive on paper to some with a forward PE around 30, but an acquisition would be focused around operational synergy with Brigham’s drilling prowess, not necessarily looking at their current revenue numbers.
PREDICTION #2 - PetroBakken goes up 50% in 2011 .
Although, most US based Bakken players did well in 2010, PetroBakken (PBN on TSX), just across the border did not fare as well. Declining production and subpar execution related to a number of factors such as bad weather caused many big investors to shun this stock for most of 2010. PetroBakken has no shortage of opportunity with 210,000 net undeveloped acres with 1,000+ locations in the Bakken region “North of the Border”. The company will put upwards of 20 rigs into action in 2011 and has a focus on Bilateral well drilling under their “Bakken 3.0″ strategy which should increase Bakken boepd significantly over the next 12 months. More about their strategy can be found on their latest presentation posted in Dec 2010
PREDICTION #3 - Continental Resources (CLR: 59.14 +0.49%) tops $75 per share in 2011 .
Continental has banked a lot on their ECO-pad strategy in the latter half of 2010 and that strategy is already paying dividends. Continental Resources has nearly doubled its production from the North Dakota Bakken during 2010, growing from an average of 8,384 (BOE) per day during the 4th quarter of 2009 to 15,000+ BOE per day in Q3 2010. We expect production to top 21,000 BOE per day by the end of 2011. With seemingly few factors that can stop a 30% sustained growth rate for CLR, a move above $75 seems quite probable in 2011.
PREDICTION #4 - Bakken drilling continues to surpass estimates and will yield record production in 2011
The growth train that is the Bakken was derailed slightly in 2008 amidst the economic crisis but came back with bang in 2010. North Dakota is currently is pumping about 350,000 barrels of crude per day and was on pace to produce about 110 million barrels in 2010, up from about 80 million in 2009. In 2011, we expect the following
•Record production in excess of 140 million BOE in 2011
•Well completion time averaging 23 days in 2011 (was over 60 days 2 years ago)
•USGS revision that outlines more than 11 billion barrels of recoverable oil in the Bakken region
•1900 new wells in North Dakota (200% growth from 2010)
We’ll check back in a few months to see how our predictions have fared, but based on the solid growth in 2010, we are not worried about what we’ll find. Have a great start to 2011! Look for more insight in the coming days on new plays in the region
course, specific predictions are rarely accurate but in the spirit of the new year we will give it our best shot. Underlying assumptions in our predictions are that oil prices will sustain over $90 per barrel over the majority of 2011 and that the overall domestic and global economies will continue a recovery albeit slow and sometimes painful.
PREDICTION #1 - Brigham Exploration (BEXP: 28.21 +3.56%) gets acquired by a large O&G in the region such as EOG.
It is no secret that Brigham Exploration is one of the best executing pure plays in the Bakken Region. Their expertise in multi-stage fracking is a boon for a larger player with untapped acreage. They may look expensive on paper to some with a forward PE around 30, but an acquisition would be focused around operational synergy with Brigham’s drilling prowess, not necessarily looking at their current revenue numbers.
PREDICTION #2 - PetroBakken goes up 50% in 2011 .
Although, most US based Bakken players did well in 2010, PetroBakken (PBN on TSX), just across the border did not fare as well. Declining production and subpar execution related to a number of factors such as bad weather caused many big investors to shun this stock for most of 2010. PetroBakken has no shortage of opportunity with 210,000 net undeveloped acres with 1,000+ locations in the Bakken region “North of the Border”. The company will put upwards of 20 rigs into action in 2011 and has a focus on Bilateral well drilling under their “Bakken 3.0″ strategy which should increase Bakken boepd significantly over the next 12 months. More about their strategy can be found on their latest presentation posted in Dec 2010
PREDICTION #3 - Continental Resources (CLR: 59.14 +0.49%) tops $75 per share in 2011 .
Continental has banked a lot on their ECO-pad strategy in the latter half of 2010 and that strategy is already paying dividends. Continental Resources has nearly doubled its production from the North Dakota Bakken during 2010, growing from an average of 8,384 (BOE) per day during the 4th quarter of 2009 to 15,000+ BOE per day in Q3 2010. We expect production to top 21,000 BOE per day by the end of 2011. With seemingly few factors that can stop a 30% sustained growth rate for CLR, a move above $75 seems quite probable in 2011.
PREDICTION #4 - Bakken drilling continues to surpass estimates and will yield record production in 2011
The growth train that is the Bakken was derailed slightly in 2008 amidst the economic crisis but came back with bang in 2010. North Dakota is currently is pumping about 350,000 barrels of crude per day and was on pace to produce about 110 million barrels in 2010, up from about 80 million in 2009. In 2011, we expect the following
•Record production in excess of 140 million BOE in 2011
•Well completion time averaging 23 days in 2011 (was over 60 days 2 years ago)
•USGS revision that outlines more than 11 billion barrels of recoverable oil in the Bakken region
•1900 new wells in North Dakota (200% growth from 2010)
We’ll check back in a few months to see how our predictions have fared, but based on the solid growth in 2010, we are not worried about what we’ll find. Have a great start to 2011! Look for more insight in the coming days on new plays in the region
Re: PetroBank
It is nice to see others that agree with me. I wonder if he is an EPG member.
Did you know: There are now more than 20 men to each women in North Dakota. I think there a few Nevada based business establishments that are thinking of opening a branch up there.
Did you know: There are now more than 20 men to each women in North Dakota. I think there a few Nevada based business establishments that are thinking of opening a branch up there.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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prince_jake_33
- Posts: 242
- Joined: Mon Apr 26, 2010 2:21 pm
Re: PetroBank
BOGOTA, COLOMBIA--(Marketwire - Jan. 5, 2011) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG - News), is pleased to provide an operational update highlighted by our Yatay-1 exploration well producing 10,440 barrels of 43 degree API light oil per day ("bopd") under natural flow.
Deep Llanos - Corcel, Guatiquia and South Block 31, Llanos Basin
The Yatay-1 well, on the Guatiquia Block, commenced drilling on November 19, 2010 and was directionally drilled to a total depth of 12,000 feet. Well logs indicate 114 feet of potential net oil pay in the Lower Sand-3 formation, and 17 feet of potential net oil pay in the Guadalupe formation. An electrical submersible pump was installed in the well after perforating a ten foot section at the top of the Lower Sand-3 formation. Over the last 17 hours the well has produced on natural flow through a one inch choke, at a rate of 10,440 bopd with less than a 0.1% watercut. We are currently evaluating the potential for additional Yatay follow up locations incorporating these well results and the recently completed Guatiquia 3D seismic acquisition program. Yatay-1 is the first well into a new, seismically defined, structure located down dip from the Candelilla structure and across the bounding Candelilla fault. The Candelilla structure produced over 7.3 million barrels of light oil in 2010 from the Lower Sand-3 and Guadalupe formations. Following completion operations at Yatay-1 the drilling rig will move to the Candelilla-5 location targeting the Guadalupe formation that is currently producing in Candelilla-4.
We currently have two wells drilling on the Corcel Block, Cardenal-1 and Celeste-1. These wells commenced drilling on December 6 and December 9, 2010, respectively. We expect to have results from both wells by the end of January.
Central Llanos Blocks (Casimena, Castor, Casanare Este, Mapache)
We began drilling operations on our Yenac-3 well on December 27, 2010. This is the third well to be drilled on our Yenac discovery. In addition, we are currently conducting a multi-zone test of our Mantis-1 well. Mantis-1 targeted a separately defined geological structure approximately one kilometre northeast of Yenac. Well logs from Mantis-1 indicated over 90 feet of potential net oil pay. The well has tested trace amounts of heavy oil from the first three intervals in the Lower Mirador formation. Testing operations will now continue in the Upper Mirador formation which is the main productive horizon in the Yenac-1 and 2 wells. Testing of three Upper Mirador intervals in Mantis-1 is expected to be completed by the end of January.
Llanos Basin Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, Chiguiro Este)
On December 2, 2010, we began drilling operations on Borugo-1, the next
Deep Llanos - Corcel, Guatiquia and South Block 31, Llanos Basin
The Yatay-1 well, on the Guatiquia Block, commenced drilling on November 19, 2010 and was directionally drilled to a total depth of 12,000 feet. Well logs indicate 114 feet of potential net oil pay in the Lower Sand-3 formation, and 17 feet of potential net oil pay in the Guadalupe formation. An electrical submersible pump was installed in the well after perforating a ten foot section at the top of the Lower Sand-3 formation. Over the last 17 hours the well has produced on natural flow through a one inch choke, at a rate of 10,440 bopd with less than a 0.1% watercut. We are currently evaluating the potential for additional Yatay follow up locations incorporating these well results and the recently completed Guatiquia 3D seismic acquisition program. Yatay-1 is the first well into a new, seismically defined, structure located down dip from the Candelilla structure and across the bounding Candelilla fault. The Candelilla structure produced over 7.3 million barrels of light oil in 2010 from the Lower Sand-3 and Guadalupe formations. Following completion operations at Yatay-1 the drilling rig will move to the Candelilla-5 location targeting the Guadalupe formation that is currently producing in Candelilla-4.
We currently have two wells drilling on the Corcel Block, Cardenal-1 and Celeste-1. These wells commenced drilling on December 6 and December 9, 2010, respectively. We expect to have results from both wells by the end of January.
Central Llanos Blocks (Casimena, Castor, Casanare Este, Mapache)
We began drilling operations on our Yenac-3 well on December 27, 2010. This is the third well to be drilled on our Yenac discovery. In addition, we are currently conducting a multi-zone test of our Mantis-1 well. Mantis-1 targeted a separately defined geological structure approximately one kilometre northeast of Yenac. Well logs from Mantis-1 indicated over 90 feet of potential net oil pay. The well has tested trace amounts of heavy oil from the first three intervals in the Lower Mirador formation. Testing operations will now continue in the Upper Mirador formation which is the main productive horizon in the Yenac-1 and 2 wells. Testing of three Upper Mirador intervals in Mantis-1 is expected to be completed by the end of January.
Llanos Basin Heavy Oil Blocks (Rio Ariari, Chiguiro Oeste, Chiguiro Este)
On December 2, 2010, we began drilling operations on Borugo-1, the next