CLR: Harold thinks his company' stock is cheap
Posted: Mon Mar 05, 2018 6:30 pm
CEO & Chairman, 10% Owner Harold Hamm bought 31,995 shares of CLR stock on 03/02/2018 at the average price of $48.74. The price of the stock has increased by 5.31% since.
CEO & Chairman, 10% Owner Harold Hamm bought 99,028 shares of CLR stock on 02/27/2018 at the average price of $50.26. The price of the stock has increased by 2.13% since.
This is why:
The Company is introducing its preliminary economic model for unit development in the STACK Meramec over-pressured oil window. The unit economic model is based on the results of six full-unit density tests the Company has completed with three-to-five wells per zone. Initial results indicate that four wells per zone on average will deliver the maximum PV-10 from a single Meramec reservoir in a unit. The Company’s unit economic model includes a total of eight wells with four wells in two Meramec reservoirs given the Company expects to target two Meramec reservoirs on average underlying its acreage in the over-pressured oil window. Combined these eight wells are projected to recover an estimated 9.6 million Boe (MMBoe) and deliver a PV-10 of approximately $87 million with a rate of return of 96%, assuming a completed well cost of $9.5 million for a 9,800-foot lateral well at $60 WTI and $3 HH. In addition, up to four more wells can be expected to be completed in the underlying Woodford formation.
CLR is moving to "Full Development Mode" in STACK and the ROR is FANTASTIC.
Based on my forecast model, at $60 WTI CLR will generate close to $1Billion of free cash flow from operations this year.
CEO & Chairman, 10% Owner Harold Hamm bought 99,028 shares of CLR stock on 02/27/2018 at the average price of $50.26. The price of the stock has increased by 2.13% since.
This is why:
The Company is introducing its preliminary economic model for unit development in the STACK Meramec over-pressured oil window. The unit economic model is based on the results of six full-unit density tests the Company has completed with three-to-five wells per zone. Initial results indicate that four wells per zone on average will deliver the maximum PV-10 from a single Meramec reservoir in a unit. The Company’s unit economic model includes a total of eight wells with four wells in two Meramec reservoirs given the Company expects to target two Meramec reservoirs on average underlying its acreage in the over-pressured oil window. Combined these eight wells are projected to recover an estimated 9.6 million Boe (MMBoe) and deliver a PV-10 of approximately $87 million with a rate of return of 96%, assuming a completed well cost of $9.5 million for a 9,800-foot lateral well at $60 WTI and $3 HH. In addition, up to four more wells can be expected to be completed in the underlying Woodford formation.
CLR is moving to "Full Development Mode" in STACK and the ROR is FANTASTIC.
Based on my forecast model, at $60 WTI CLR will generate close to $1Billion of free cash flow from operations this year.