The next gig after IOC?

[Kaliboo]

Admin,

Maybe I missed it.  Any plans as to what comes next here on SHU should the IOC deal be approved?  OF course there will be the lingering wait for the drilling results and the recert results until the final check arrives in ~Q2 2017.

The ending of the drama here may be analgous to that deadly addictive soap opera separation syndrome (ASOSS) which has had a multitude of victims.    Heath issues could take a turn for the worse for a number of posters and readers.  We can't let that happen.  It would be good to view this task (i.e., preparing for the next gig) as "preventative medicine."  Good luck.

All the best,

Kaliboo

[admin]

Admin,

Maybe I missed it.  Any plans as to what comes next here on SHU should the IOC deal be approved?  OF course there will be the lingering wait for the drilling results and the recert results until the final check arrives in ~Q2 2017.

The ending of the drama here may be analgous to that deadly addictive soap opera separation syndrome (ASOSS) which has had a multitude of victims.    Heath issues could take a turn for the worse for a number of posters and readers.  We can't let that happen.  It would be good to view this task (i.e., preparing for the next gig) as "preventative medicine."  Good luck.

All the best,

Kaliboo

Sorry for the late response Kaliboo. Bit of a tall order, this as there are quite a few taxing requirements for replacing IOC. In no particular order:

• Many of us having a position in the stock
• The stock being a story-stock, generating more than a fraction of the drama and passion that InterOil has generated over the years
• Having a few posters with either exceptional industry knowledge and patience to explain stuff in an impassionate and detailed way (obviously Pet, but there have been others like Palm and more recently 2126 and a few others I hope will not get too upset with me not mentioning everybody personally) and/or
• People with a rolodex of useful contacts and the enthusiasm to spill some beans on a regular basis (could that be JFT, amongst others..)

In fact it was a fairly unique mix that made it work, even if at times (especially in the beginning) it could very well have imploded (but most of that we managed to hide from the public, haha).

Difficult to replicate IMHO, but if people have ideas, I'm all ears.

[Kaliboo]

Admin,

Maybe I missed it.  Any plans as to what comes next here on SHU should the IOC deal be approved?  OF course there will be the lingering wait for the drilling results and the recert results until the final check arrives in ~Q2 2017.

The ending of the drama here may be analgous to that deadly addictive soap opera separation syndrome (ASOSS) which has had a multitude of victims.    Heath issues could take a turn for the worse for a number of posters and readers.  We can't let that happen.  It would be good to view this task (i.e., preparing for the next gig) as "preventative medicine."  Good luck.

All the best,

Kaliboo

Sorry for the late response Kaliboo. Bit of a tall order, this as there are quite a few taxing requirements for replacing IOC. In no particular order:

• Many of us having a position in the stock
• The stock being a story-stock, generating more than a fraction of the drama and passion that InterOil has generated over the years
• Having a few posters with either exceptional industry knowledge and patience to explain stuff in an impassionate and detailed way (obviously Pet, but there have been others like Palm and more recently 2126 and a few others I hope will not get too upset with me not mentioning everybody personally) and/or
• People with a rolodex of useful contacts and the enthusiasm to spill some beans on a regular basis (could that be JFT, amongst others..)

In fact it was a fairly unique mix that made it work, even if at times (especially in the beginning) it could very well have imploded (but most of that we managed to hide from the public, haha).

Difficult to replicate IMHO, but if people have ideas, I'm all ears.

Ok thanks.  There a lot of small independent oil and gas companies sitting on huge assets in the Permian Basin ( W Tx New Mex) that are lowest cost.  These are/will be the first to ramp up.  Because of the reserve volumes they are attractive takeover candidates at the right price.  The "next gig" could include one or more companies concentrated in the prime of the Permian.

[petrengr1]

Admin,

Maybe I missed it.  Any plans as to what comes next here on SHU should the IOC deal be approved?  OF course there will be the lingering wait for the drilling results and the recert results until the final check arrives in ~Q2 2017.

The ending of the drama here may be analgous to that deadly addictive soap opera separation syndrome (ASOSS) which has had a multitude of victims.    Heath issues could take a turn for the worse for a number of posters and readers.  We can't let that happen.  It would be good to view this task (i.e., preparing for the next gig) as "preventative medicine."  Good luck.

All the best,

Kaliboo

Sorry for the late response Kaliboo. Bit of a tall order, this as there are quite a few taxing requirements for replacing IOC. In no particular order:

• Many of us having a position in the stock
• The stock being a story-stock, generating more than a fraction of the drama and passion that InterOil has generated over the years
• Having a few posters with either exceptional industry knowledge and patience to explain stuff in an impassionate and detailed way (obviously Pet, but there have been others like Palm and more recently 2126 and a few others I hope will not get too upset with me not mentioning everybody personally) and/or
• People with a rolodex of useful contacts and the enthusiasm to spill some beans on a regular basis (could that be JFT, amongst others..)

In fact it was a fairly unique mix that made it work, even if at times (especially in the beginning) it could very well have imploded (but most of that we managed to hide from the public, haha).

Difficult to replicate IMHO, but if people have ideas, I'm all ears.

Ok thanks.  There a lot of small independent oil and gas companies sitting on huge assets in the Permian Basin ( W Tx New Mex) that are lowest cost.  These are/will be the first to ramp up.  Because of the reserve volumes they are attractive takeover candidates at the right price.  The "next gig" could include one or more companies concentrated in the prime of the Permian.

Kaliboo- That is exactly what I have been thinking. Rumor has it that the Permian Basin has more oil than Saudi Arabia. We drilled through these tight zones for nearly a hundred years before we figured out how to get the oil out with horizontal drilling and hydraulic fracturing. Wells are now being drilled with horizontal laterals of up to 13,000 feet (~2.5 miles). We have flat terrain and locations are easily accessed and cheap to build. These wells can be drilled in less than a month. The wells must then be completed and fraced which is the most expensive part. The wells can be profitably drilled with oil prices below $50/Bbl.

I think the Majors and several smaller independents are going to pursue this development aggressively. Chevron (CVX) has about 2 million  acres, Exxon (XOM) has about 2.1 million net acres, Occidental (OXY) about 1.5 million net acres, Apache (APA) about 1.7 million net acres,Concho Resources 650,000 acres and Pioneer (PXD) has 785,000 acres. These leases have been going for as much as $58,000/acre. Other smaller companies involved are WPX Energy (WPX) and Energen (EGN). There are many others, I have not researched this completely.

As you say this Permian Basin covers a very large area of West Texas and New Mexico. Much of the area has stacked pay zones thousands of feet thick. The success ratio of drilling these wells should be 100% i.e no exploration risk. I think the Majors will be spending more money here and less in the more expensive areas like deep water Gulf of Mexico etc. The risk is much less and the cost/Bbl is much lower in the Permian Basin. We have much of the infrastructure in place but, of course, much more will be built as the development ramps up. For example more pipelines will be required and more storage facilities. It is not too far from major refineries in Texas, New Mexico and Louisiana.

As a side note these wells require a tremendous amount of frac sand. They are now using 4,000 tons/well and some have used up to 8,000 tons. That is a LOT of sand. Consider the number of acres/wells to be drilled you will see that a very large amount of sand is going to be needed. When the oil price comes back and the major ramp up in drilling gets underway I believe there will be a large increase in demand and probably a shortage in supply that will result in a price increase for frac sand. The number of sand suppliers is fairly limited, U S Silica Holdings (SLCA) being the main supplier. Others are Hi-Crush Partnership (HCLP), Fairmount Santrol (FMSA) and Emerge Energy Services (EMES). All of this sand must be transported and much of it will be hauled by Union Pacific Railroad.

I make no stock recommendations. Do your own research but this looks like it is going to be a very exciting play. Most will probably be after I am gone.  Happy investing to all.

[admin]

["As a side note these wells require a tremendous amount of frac sand. They are now using 4,000 tons/well and some have used up to 8,000 tons. That is a LOT of sand."]

Perhaps the Saudi's, instead of exporting oil and madrasa's, should start exporting their desert.

On a more serious note, I ran into a little company called Madalena Energy, which has prime acreage in one of the most promising shale plays in the world, the Vaca Muerta field in Argentina. Even started a forum

But of course, this was just before the energy crash and the stock price has misbehaved and nobody else is interested in the name.

[Kaliboo]

Admin,

Maybe I missed it.  Any plans as to what comes next here on SHU should the IOC deal be approved?  OF course there will be the lingering wait for the drilling results and the recert results until the final check arrives in ~Q2 2017.

The ending of the drama here may be analgous to that deadly addictive soap opera separation syndrome (ASOSS) which has had a multitude of victims.    Heath issues could take a turn for the worse for a number of posters and readers.  We can't let that happen.  It would be good to view this task (i.e., preparing for the next gig) as "preventative medicine."  Good luck.

All the best,

Kaliboo

Sorry for the late response Kaliboo. Bit of a tall order, this as there are quite a few taxing requirements for replacing IOC. In no particular order:

• Many of us having a position in the stock
• The stock being a story-stock, generating more than a fraction of the drama and passion that InterOil has generated over the years
• Having a few posters with either exceptional industry knowledge and patience to explain stuff in an impassionate and detailed way (obviously Pet, but there have been others like Palm and more recently 2126 and a few others I hope will not get too upset with me not mentioning everybody personally) and/or
• People with a rolodex of useful contacts and the enthusiasm to spill some beans on a regular basis (could that be JFT, amongst others..)

In fact it was a fairly unique mix that made it work, even if at times (especially in the beginning) it could very well have imploded (but most of that we managed to hide from the public, haha).

Difficult to replicate IMHO, but if people have ideas, I'm all ears.

Ok thanks.  There a lot of small independent oil and gas companies sitting on huge assets in the Permian Basin ( W Tx New Mex) that are lowest cost.  These are/will be the first to ramp up.  Because of the reserve volumes they are attractive takeover candidates at the right price.  The "next gig" could include one or more companies concentrated in the prime of the Permian.

Kaliboo- That is exactly what I have been thinking. Rumor has it that the Permian Basin has more oil than Saudi Arabia. We drilled through these tight zones for nearly a hundred years before we figured out how to get the oil out with horizontal drilling and hydraulic fracturing. Wells are now being drilled with horizontal laterals of up to 13,000 feet (~2.5 miles). We have flat terrain and locations are easily accessed and cheap to build. These wells can be drilled in less than a month. The wells must then be completed and fraced which is the most expensive part. The wells can be profitably drilled with oil prices below $50/Bbl.

I think the Majors and several smaller independents are going to pursue this development aggressively. Chevron (CVX) has about 2 million  acres, Exxon (XOM) has about 2.1 million net acres, Occidental (OXY) about 1.5 million net acres, Apache (APA) about 1.7 million net acres,Concho Resources 650,000 acres and Pioneer (PXD) has 785,000 acres. These leases have been going for as much as $58,000/acre. Other smaller companies involved are WPX Energy (WPX) and Energen (EGN). There are many others, I have not researched this completely.

As you say this Permian Basin covers a very large area of West Texas and New Mexico. Much of the area has stacked pay zones thousands of feet thick. The success ratio of drilling these wells should be 100% i.e no exploration risk. I think the Majors will be spending more money here and less in the more expensive areas like deep water Gulf of Mexico etc. The risk is much less and the cost/Bbl is much lower in the Permian Basin. We have much of the infrastructure in place but, of course, much more will be built as the development ramps up. For example more pipelines will be required and more storage facilities. It is not too far from major refineries in Texas, New Mexico and Louisiana.

As a side note these wells require a tremendous amount of frac sand. They are now using 4,000 tons/well and some have used up to 8,000 tons. That is a LOT of sand. Consider the number of acres/wells to be drilled you will see that a very large amount of sand is going to be needed. When the oil price comes back and the major ramp up in drilling gets underway I believe there will be a large increase in demand and probably a shortage in supply that will result in a price increase for frac sand. The number of sand suppliers is fairly limited, U S Silica Holdings (SLCA) being the main supplier. Others are Hi-Crush Partnership (HCLP), Fairmount Santrol (FMSA) and Emerge Energy Services (EMES). All of this sand must be transported and much of it will be hauled by Union Pacific Railroad.

I make no stock recommendations. Do your own research but this looks like it is going to be a very exciting play. Most will probably be after I am gone.  Happy investing to all.

Thanks Pet.  Glad we are both liking this idea.I have no doubt that your insights will continue to be highly valued.  All the best.

Kaliboo

[Northoil]

[quote='admin' pid='76135' dateline='1472665545']

["As a side note these wells require a tremendous amount of frac sand. They are now using 4,000 tons/well and some have used up to 8,000 tons. That is a LOT of sand."]

Perhaps the Saudi's, instead of exporting oil and madrasa's, should start exporting their desert. 

On a more serious note, I ran into a little company called Madalena Energy, which has prime acreage in one of the most promising shale plays in the world, the Vaca Muerta field in Argentina. Even started a forum

But of course, this was just before the energy crash and the stock price has misbehaved and nobody else is interested in the name. 

____________________________________________________________________________________________

Admin - I hope we will be able to follow this (IOC) story "until the last dog dies".  At least through the dissent phase, if we have any contact and if Exxon doesn't drag it out (which I predict they'll do).  Results of further exploration and follow-up of existing discoveries out of sheer abiding interest or so we can say "I told you so" may be muffled as these are small potatoes to Exxon and Total in their press releases and reports.

Interesting comments on the Permian play, but nothing beats the excitement of a small company with a fractious management making a big exploration play in the third world.  Here we are, picking appraisal locations from cartoon maps, engaging law firms in a town of 30,000 people to go up against Exxon (which has 75,000 direct employees) and overseeing the LNG business!  Really, you can't beat it.

[admin]

Admin - I hope we will be able to follow this (IOC) story "until the last dog dies".  At least through the dissent phase, if we have any contact and if Exxon doesn't drag it out (which I predict they'll do).  Results of further exploration and follow-up of existing discoveries out of sheer abiding interest or so we can say "I told you so" may be muffled as these are small potatoes to Exxon and Total in their press releases and reports.

Interesting comments on the Permian play, but nothing beats the excitement of a small company with a fractious management making a big exploration play in the third world.  Here we are, picking appraisal locations from cartoon maps, engaging law firms in a town of 30,000 people to go up against Exxon (which has 75,000 direct employees) and overseeing the LNG business!  Really, you can't beat it.

Yes, don't worry, at most we'll move to cheaper hosting, but we're not going off the air.