Oil & Gas Company Enters Final Phase of EOR Modeling Project

Source: Streetwise Reports 11/29/2018 A Mackie Research Capital Corp. report provided an update on this energy company’s Bigoray operations. In a Nov. 28 research note, analyst Bill Newman reported that Pulse Oil Corp. (PUL:TSX.V) yielded “favorable results” from completion of phase two of the enhanced oil recovery (EOR) reservoir modeling of its two Bigoray Nisku reefs in central Alberta. The final, phase three, solvent and injection development study is now underway and should be finished by year-end 2018. In the note, Newman described each of the three stages of the EOR modeling project. Phase one involved analyzing and interpreting the logs and petrophysical data from 15 wells drilled in the two Nisku pools and then conducting the same with 10 cores also from the two pools. Those studies “confirmed excellent reservoir properties,” Newman pointed out. Specifically, they showed the Nisku D and Nisku E reservoirs have “a trimodal porosity system, with matrix, vugular and fracture porosity that compares favorably with offsetting pools, where EOR implementation has resulted in recovery factors as high as 85% of petroleum initially in place.” Phase two consisted of constructing a reservoir model that incorporated the petrological and petrophysical data collected in phase one along with the company’s three-dimensional (3D) seismic data. “This is the first time that 3D seismic data has been applied to the evaluation of these pools, which helped to better define the pool boundaries and could increase the interpretation of the structure closure,” noted Newman. Phase three entails simulating various solvent and … Continue reading

Texas Oil & Gas Firm Positioned for Faster Growth with Potential Upside

Source: Streetwise Reports 11/29/2018 Raymond James provided a general outlook on this company post-merger and pre-Investor Day. In a Nov. 20 research note, analyst Justin Jenkins observed that with the Andeavor acquisition behind it, Marathon Petroleum Corp. (MPC:NYSE) is “uniquely positioned to continue optimizing its now industry-leading refining position while creating even faster growth in the higher-value Midstream and Retail segments.” Jenkins explained that Marathon should benefit from upside related to merger synergies and “a strengthened refining suite that is well positioned for wide crude differentials and IMO 2020,” referring to the International Maritime Organization’s 0.5% global sulphur cap on marine fuels effective Jan. 1, 2020. Further upside should result from “robust opportunities” in the Speedway and Midstream segments. At the same time, headwinds, specifically current weak gasoline margins, are expected. Jenkins relayed what Raymond James expects Marathon to provide on its Investor Day and what it would like Marathon to provide on Investor Day. The former are: An update and overview of synergies and growth targets resulting from the Andeavor merger. Jenkins noted the estimated synergies target could be higher than the previously discussed $1 billion. Further details on the current refining market and margins outlook and expectations regarding IMO 2020. Updated guidance for Q4/18 and 2019 operations and reporting outlook. Capital allocation plans. “If new guidance figures and capital allocation outlook are well received, a bounce in shares could be due,” Jenkins asserted. A detailed explanation of Marathon’s free cash flow profile would be helpful to investors, Jenkins … Continue reading

Oil & Gas Firm Now Has 'Capital in Place to Fund Immediate Growth'

Source: Streetwise Reports 11/26/2018 A Mackie Research Capital Corp. report discussed some news and near-term catalysts of this Canadian company. In a Nov. 21, 2018 research note, Mackie Research Capital Corp. analyst Bill Newman reported that Pulse Oil Corp. (PUL:TSX.V) generated gross proceeds of CA$11.3 million from an equity financing. It will use the funds to reactivate shut-in wells at Bigoray, to start the next phase of the miscible flood enhanced oil recovery (EOR) project at Bigoray and to drill a multiwell program at Queenstown. These efforts could increase the company’s oil production level in as early as Q1/19. Newman pointed out that upcoming horizontal drilling at Queenstown and Nisku presents short-term catalysts. Whereas Pulse Oil owns 48 sections, or 30,720 net acres, in the Queenstown area in southern Alberta, drilling will mainly target the Mannville group, “specifically Glauconitic lithic channel sandstone reservoirs found at a depth of between 1,500 and 2,000 meters, which allows for relatively low drilling costs,” he explained. The first of two planned horizontal Mannville wells should spud in Q4/18. In addition, Pulse Oil intends to reactivate two suspended Bigoray Nisku wells in late Q4/18 or early Q1/19. Newman noted that, recently, the “high-quality oil production at Bigoray received an impressive price of $79.23 per barrel and $80.29 per barrel in September 2018 and October 2018, respectively.” The above activities could boost Pulse Oil’s production in Q1/19 to about 850 barrels of oil equivalent per day (850 boe/d) from 280 boe/d today, resulting from, say, one … Continue reading

Company's First Wolfcamp Well Demonstrates 'Successful Logging and Oil Shows'

Source: Streetwise Reports 11/26/2018 A ROTH Capital Partners report reviewed the implications of these preliminary results. In a Nov. 20, 2018, research note, ROTH Capital Partners analyst John White reported that Torchlight Energy Resources Inc. (TRCH:NASDAQ) completed drilling of its A11 #2 well in the Orogrande Basin. “It is important to note this is the company’s first well to test the Wolfcamp formation and potentially opens up a new oil and gas play separate from the previously tested Pennsylvanian,” he added. White relayed the well findings and the next step for the energy company. The A11 #2 was drilled to a vertical depth of 4,009 feet, and casing was set. Electric logs show excellent oil and gas potential in multiple intervals with the presence of both oil and gas,” White highlighted. “These intervals represent potentially economical formations.” Core samples are currently being analyzed. The primary zone that was targeted was a Wolfcamp unconventional, 190-feet thick from 3,800 feet down to about 3,990 feet. The company will complete this 190-foot interval using cutting edge stimulation technology “to show the viability of movable hydrocarbons,” explained White. Next for Torchlight, White noted, will be drilling of University Hueco A39 #1 vertically beyond 3,200 feet to test for additional Wolfcamp intervals previously encountered in Rich A11 #2. ROTH has a Buy rating and a $1.75 per share target price on Torchlight. This represents more than a potential double as the stock is currently trading at around $0.67 per share. Read what other experts are … Continue reading

Oil & Gas Company's Thailand Wells Could 'Add Material Production'

Source: Streetwise Reports 11/21/2018 A Mackie Research Capital Corp. report provided an update on this firm’s wells in Thailand and Indonesia. In a Nov. 12 research note, Bill Newman, an analyst with Mackie Research Capital Corp., reported that Pan Orient Energy Corp.’s (POE:TSX.V) follow-up L53-DD2 appraisal well in Thailand encountered about 32 meters (32m) of net oil pay. L53-DD2, drilled to about 26m updip from the L53-DD1 discovery well, hit oil within four sandstone zones between 1,044 and 1,105m of true vertical depth, Newman reported. The start of production testing on both the L53-DD1 and L53-DD2 wells is expected soon, with initial results coming out seven to 10 days afterward. These two wells “have the potential to add material production that could fully fund an expanded drilling program in 2019,” the analyst highlighted. “The big potential upside for investors is the Anggun-1X exploration well,” Newman stated, commenting on Pan Orient’s announcement that the Anggun-1X exploration well is expected to spud in Q2/19. Drilling of Anggun-1X will require 30 days. If results are positive, Pan Orient will begin testing right away. The total dry hole cost is $15.4 million, and the company’s portion, based on its 49% interest, is $7.55 million. Mackie Research maintains its Buy recommendation and $3.25 per share target price on Pan Orient on its “strong financial position and high-impact exploration potential in Indonesia,” Newman indicated. Pan Orient’s stock is currently trading at around ~$1.50 per share. Read what other experts are saying about: Pan Orient Energy Corp. … Continue reading

Oil & Gas Firm Announces 'Investor Friendly' 2019 Corporate Plan

Source: Streetwise Reports 11/21/2018 A Stifel report highlighted what this company aims to achieve in the new year. In a Nov. 16 research note, Stifel analyst Michael Scialla reported on Anadarko Petroleum Corp.’s (APC:NYSE) “2019 investor-friendly plan,” which includes double digit growth with “debt-adjusted share growth of 15% year over year.” Scialla presented the key points of the Anadarko’s plan. The company projects 10% year-over-year (YOY) oil production growth, reaching total production of 260–270 billion barrels of oil equivalent. This amount equates to 712–740 thousand barrels of oil equivalent per day or 410–435 barrels of oil per day. It is 2% lower than the Street’s forecast. The company targets total 2019 capex at $4.3–$4.7 billion, 13% below consensus’ estimate and 3% below Anadarko’s 2018 budget at the midpoint. The explorer and producer’s project focus in 2019 will be primarily on the “three Ds”—the Delaware Basin, Denver-Julesburg Basin and deep water Gulf of Mexico, with 15 rigs and 10 completion teams operating mostly onshore in the basins, the analyst stated. Individual plans for each asset, domestic and international, are: Delaware Basin: to spend $1.4 billion, or 31% of the budget, and complete 150–175 wells in its transition to multiwell pad development Denver-Julesburg Basin: to spend $1.3 billion, or 29% of the budget, and complete 275–300 wells Gulf of Mexico: spend $500 million on 7–9 wells to maintain 140–150 thousand barrels of oil equivalent per day production Powder River Basin: to spend $250 million for 10–15 appraisal wells, targeting the Turner Formation … Continue reading

MGX Minerals: A Rare Breed of a Junior

Source: The Critical Investor for Streetwise Reports 11/20/2018 MGX Minerals CEO Jared Lazerson speaks with The Critical Investor about his company’s wide-ranging projects. Wastewater treatment facility, Alberta (Source: Proactive Investors) 1. Introduction The last time I wrote about MGX Minerals Inc. (XMG:CSE; MGXMF:OTCBB) I described it as a rare breed of junior, and this company definitely seems to do everything to increasingly set itself apart from usual paradigms. It is not just the sheer number of ongoing projects, the staff model or the colossal marketing spending, it is also delving into several clean energy-related technical developments that could change entire industries when successful. All this is financed by large capital raises, and accompanied with an unprecedented volume of news releases to make sure investors don’t miss a thing. As all projects of MGX seem under development in some shape or form, it is very hard to attach a tangible value to them. Nonetheless this is important for investors in order to determine the value proposition at hand. Fortunately the company released the results of the Driftwood Creek PEA in March of this year, providing a solid NPV5 of US$240.7 million and sufficient IRR of 19.30%, both numbers are post-tax. Compared to the current market cap of C$82 million, Driftwood provides a nice, estimated PEA- discounted bottom value of about C$40–50 million, which is about 20% of the post-tax PEA NPV5, which I view as realistic for such a high-grade, profitable magnesium project in a good jurisdiction. With this tangible value … Continue reading

Translating the Mindset of Peak Oil to Peak Gold

Source: Maurice Jackson for Streetwise Reports 11/18/2018 The Mercenary Geologist Mickey Fulp discusses with Maurice Jackson of Proven and Probable how peak oil could inform investment in gold miners. Maurice Jackson: Joining us for a conversation is the Mercenary Geologist, Mickey Fulp. Pleasure to speak with you. Mickey Fulp: Thank you, sir. Maurice Jackson: Mickey, one of the concerns that I think speculators are having in the natural resource space is this concept of peak gold. What can you share with us? Mickey Fulp: Well, there’s this idea now of peak gold. And it’s really morphed out of the concept of peak oil, which was promulgated by a famous geologist/geophysicist in the late 1950s on the idea that U.S. oil production would peak in 1970 and never reach that level again. His premise was based on the natural depletion of giant oil fields discovered in the United States, and he was right. But people have sort of bastardized that concept now into gold. They took the tack that the world was running out of oil when we had reached peak production, and we would never achieve this sort of oil production in the U.S., for example, ever again. Well, lo and behold, it took 47 years for us to recover. But now we’re producing more oil than we ever have. So this idea that the world is going to run out of a natural resource or reach peak production is fraught with difficulty. We produce more oil in the world … Continue reading

Energy Efficiency Solutions Firm Reaches 100-Units-Sold Milestone

Source: Streetwise Reports 11/15/2018 Recent sales of its generator optimization systems, designed in 2008, boosted the total. Smartcool Systems Inc. (SSC:TSX.V; SSCFF:OTC; R3W:FSE) announced in a news release that its subsidiary Total Energy Concepts sold four more Intelligent Generator Optimization Systems (IGOS) to General Equipment & Supplies Inc., taking the total purchased by this five-year-long client alone to 16. The IGOS optimizes the electrical system so power is provided to downstream loads locally rather than by the generator, thereby lowering the kilovolt amperes the generator requires. This results in savings on fuel, typically between 12–20%, and costs, and reduced carbon dioxide emissions, according to the release. The system also increases capacity so smaller generators can power larger applications. “Each IGOS is custom engineered for every installation, resulting in the most optimal solution and the best return on investment for each and every system sold,” the company noted. Read what other experts are saying about: Smartcool Systems Inc. Sign up for our FREE newsletter at: www.streetwisereports.com/get-news Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. 2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Smartcool Systems. Click here for important disclosures about sponsor fees. As of the date of this … Continue reading

Oil & Gas Company's Osage, Meramec Formation Wells Advance

Source: Streetwise Reports 11/15/2018 This small-cap firm continues to delineate and derisk its Oklahoma STACK acreage. Jericho Oil Corp. (JCO:TSX.V; JROOF:OTC) provided an update in a news release on the progress of two Oklahoma STACK Joint Venture wells. As for the Trebuchet 21-23N-10W #1H well, in which Jericho has a 40% working interest, drilling is underway in the lateral section, and about 90% of the planned total measured depth has been achieved. The rate of penetration there is about 1.6 to 1.8 times that of Swordspear 15-23N-10W #1H, Jericho’s initial Osage Formation well, at the same measured depth, thus decreasing the total rig days needed for Trebuchet. The increased rate of penetration is mostly due to a better “drilling-bit set-up and specific lateral geosteering,” the release explained. Next, the well will be fracture stimulated, starting in late November/early December. The Valkyrie 6-19N-12W #1H well, in which Jericho has a 23.5% working interest, is in flowback following 35 successful fracture stimulation stages. “After only a few days on flowback, we are extremely pleased with the resulting downhole pressures and total fluid flowback,” the release noted. The company stated that it will provide further updates this year on the production of its wells. Read what other experts are saying about: Jericho Oil Corp. Sign up for our FREE newsletter at: www.streetwisereports.com/get-news Disclosure: 1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the … Continue reading