Tuesday, April 30, 2013

Canadian Light Oil Prices April 30, 2013

Oil & Gas Prices

What Canadian Value is Reading/Writing/Watching



The Legacy of Benjamin Graham - Columbia Business School Video -

Buffett Author Robert Hagstrom Discusses Whether the Retail Investor Can Mimic Buffett -

Private Equity and Venture Capital Conference - Howard Marks -

Milken Institute 2013 - A Conversation with Entertainment Mogul Barry Diller -

Icecap Asset Management April 2013 Outlook on the Markets -

Whitecap Resources Purchases Viking Light Oil Waterflood Assets

CALGARY, ALBERTA – Whitecap Resources Inc. (“Whitecap” or the “Company”) (TSX: WCP) is pleased to announce that it has entered into an agreement to purchase an existing Viking light oil waterflood asset in the Dodsland area of west central Saskatchewan for total consideration of $110 million (the “Acquisition”). The Acquisition adds 900 boe/d (95 percent light oil) of high netback, operated production with a long reserve life index and a low base decline of 20 percent. The Acquisition includes strategic facilities and oil sales pipeline infrastructure and is synergistic to our existing Viking operations at our Lucky Hills core area located only 10 miles away. 
In connection with the Acquisition, Whitecap will be raising $110 million through a $90 million bought deal common share financing and a $20 million non-brokered private placement of flow-through common shares on a CDE flow-through basis. 
The Acquisition represents the successful continuation of Whitecap’s objective to strengthen the sustainability of its dividend-growth strategy by acquiring high netback, low decline assets that can provide consistent growth and substantial free cash flow. We estimate that production from the Acquisition will increase to 1,200 boe/d in 2014 from its current 900 boe/d and after planned 2014 capital expenditures of $8.2 million, generate free cash flow in 2014 of $17.2 million. The Dodsland Viking oil pool is near our existing Lucky Hills Viking assets where we have significant horizontal drilling and multi stage fracturing expertise. Acquiring an analogous pool in close proximity to our existing Viking development is consistent with our goal to remain highly focused.
The Acquisition includes 24.3 (18.7 net) sections of principally crown lands in the heart of the Dodsland Viking oil pool that has been under waterflood since 1967. This area of the pool has some of the thickest and highest quality Viking reservoir in the Dodsland trend. The waterflood has been and continues to be effective at maintaining reservoir pressure which results in a production decline of 12 percent for the vertical development in this pool. The operator has also drilled 25 horizontal wells with continually improving results, representing 390 net bopd at present. With cumulative oil production of 24 MMbbl (19 percent recovery factor), a current water-cut of only 51 percent and offsetting pool results, Whitecap believes there is considerable incremental upside to the pool which can be realized through a combination of horizontal drilling, water injector reactivations and injector conversions.

Wednesday, April 17, 2013

Canadian Light Oil Prices April 17, 2013

Still holding $90.  Stocks priced for what......$40?

Oil & Gas Prices

Thursday, April 11, 2013

Tuesday, April 9, 2013

CSFB - We Need Shale Oil !

US liquids production is growing strongly (both crude oil and NGL’s). However, non-OPEC performance outside north America has been weak, offsetting much of the growth in the US and Canada. Given these trends, we thought it helpful to look at global decline rates and new field additions to help put the shale oil revolution in context.

■ We believe US total liquids production (Oil, NGL, US GoM and biofuels) can rise towards 15MBD (from 10MBD today). However, we see a large offset from global decline of 4.5MBD annual decline on production outside the US.

Taking new fields and shale into account, our long range supply model points to 1.4MBD pa productive capacity growth from 2012-2019, slightly in excess of demand growth but not noticeably so. There is no explosion of spare capacity. Indeed we could argue we need oil shale growth to avoid a capacity shortage.

■ Our long range forecasts include 3MBD of capacity from a return into service of Syria, Sudan, Nigeria and international shale (Argentina, Canada, Russia, Colombia). Were this not to occur, there would be downside risk to our capacity forecasts.

■ Similar to the IEA, we find that the decline challenge is getting tougher not easier when looking further out beyond 2019.

Shale oil could be "required barrels’ rather than a price destroyer, providing a natural safety valve during high oil prices but not in themselves collapsing near term Brent markets. Meanwhile, infrastructure adds should close the WTI-Brent discount over time also.

■ We believe, the greater threat to longer term oil prices will likely come from a combination of policy to promote natural gas usage and energy efficiency. We remain comfortable with balanced spare capacity through 2019, unless the global economy collapses.

Monday, April 8, 2013

Canadian Light Oil Price

Oil & Gas Prices

What Canadian Value is Reading/Watching/Writing

Kyle Bass - Japan

George Soros Interview - Discusses All Things China, Why Gold Is No Safe Haven -

A Collection of Popular Delusions Essays from Dylan Grice -

Value Investor Arnold Van Den Berg Explains His Version of Value Investing -

Forty Minutes With Activist Investor Bill Ackman  -