KOG

[patrick]

Looks like KOG is being taken to the "wood shed" today. I presume the market did not like their report?

[setliff]

its all about crude--it broke down from its support at 96--technicals say it could go down to 92ish.

[dan_s]

Agree, oil closing below $95 today was a big deal. However, my valuation of KOG based on $90/bbl WTI and I assume an average differential for Bakken oil of $5/bbl.

[dan_s]

From the KOG conference call:
Oil hedges in place
> For Q4,2013: 23,000 bopd at $97 (66% of forecast production)
> For 2014: 24,000 bopd at $93 (60% of forecast production)

[dan_s]

From CC transcript:
"Next, I would like to give you some thoughts on our production and the capital expenditures for the remainder of the year. Last week we announced a tightened production target for 2013 of approximately 30,000 barrels of oil equivalent per day. We also announced that we expect a full year exit rate of something close to 42,000 BOE per day. Based upon our current production rate, coupled with the return of our second completion crew in mid-October, we believe we are on track to meet these production targets."