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July 29th, 2014

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editorials

 
21st Century Energy Centers Could Take the Bakken by Storm
Emerging Growth LLC  Jul 25  

Iraq Breaks Down, Oil Surges
Chris Martenson  Jun 18  

The Next Billion (Barrels of Oil)
The Energy Report  Jun 13  

An Unwelcome Note on European Natural Gas
Ferdinand E. Banks  Jun 12  

China Leads the World in Green Energy, Gaming and Gambling Markets
Frank Holmes  Jun 11  

»» more editorials in the archives

market data


Ux U3O8 Price (Uranium)July 21st, 2014
$28.50 +$0.15 www.uxc.com

»View Commitment of Traders.

expert analysis & newsletter briefs

Mart Resources Inc.

"Mart Resources Inc. is a good mid-cap name that pays a dividend. It is producing oil in Nigeria. It has experienced significant pipeline losses due to a lot of theft: Its current pipeline is in a swampy area that is difficult to monitor for theft. But in August, the company plans to switch pipelines. Using the new Royal Dutch Shell pipeline will allow Mart to avoid high pipeline losses while increasing production. Importantly, Mart has some wells under development that are not producing at the moment, but that will be tied into the new pipeline when they come on line. . .Mart has access to Shell's new pipeline. Once it starts flowing product through that pipeline, its net production should increase materially. Mart has very aggressive plans for increasing production in the near term. Most of Mart's wells are verticals, which produce 23 Mbbl/d, but it has drilled a horizontal well that should produce significantly more than the vertical wells, and increase its overall production. The results on the new horizontal well will be released in the near term." (7/24/14) - The Energy Report Interview with Steve Palmer

Mart Resources Inc.

"Mart Resources Inc. is a good mid-cap name that pays a dividend. It is producing oil in Nigeria. It has experienced significant pipeline losses due to a lot of theft: Its current pipeline is in a swampy area that is difficult to monitor for theft. But in August, the company plans to switch pipelines. Using the new Royal Dutch Shell pipeline will allow Mart to avoid high pipeline losses while increasing production. Importantly, Mart has some wells under development that are not producing at the moment, but that will be tied into the new pipeline when they come on line. . .Mart has access to Shell's new pipeline. Once it starts flowing product through that pipeline, its net production should increase materially. Mart has very aggressive plans for increasing production in the near term. Most of Mart's wells are verticals, which produce 23 Mbbl/d, but it has drilled a horizontal well that should produce significantly more than the vertical wells, and increase its overall production. The results on the new horizontal well will be released in the near term." (7/24/14) - The Energy Report Interview with Steve Palmer

Enterprise Group Inc.

"In a recent interview with The Energy Report, I highlighted one of my favorite companies in the energy sector, Enterprise Group Inc. . .the company is one way to play this booming oil and gas space, which may take North America to energy independence by 2015. . .big money is investing in Enterprise, as the company has raised over $27M for acquisitions." (7/23/14) - Jeb Handwerger, Gold Stock Trades

Fission Uranium Corp.

"On July 21, Fission Uranium Corp. announced assay results from eight holes drilled at its wholly owned Patterson Lake South property. . .six of eight holes returned substantial high-grade assays." (7/22/14) - David Kratochvil, Euro Pacific Canada

Enterprise Group Inc.

"We continue to rate Enterprise Group Inc. a Buy. . .a combination of tuck-in acquisitions to complement the organic build of existing subsidiaries, expected synergies and cross-selling beginning with the consolidation of E One and 2015E liquefied natural gas upside supports our positive outlook on the company." (7/22/14) - Steven Salz, M Partners


featured companies

Avanti Energy (TSX-V : AVN.V)
Enhancing Oil Production in Brazil and Colombia
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Pan Orient Energy (TSX-V:CAN)
Canadian junior oil and natural gas company based in Calgary, Alberta.
[news ][website ]

Quantum Energy (QEGY.PK:OTC)
Development stage publicly traded diversified holding company with an emphasis in oil field development trading
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Super Nova Minerals Corp. (SNP:CNSX, OTC:SNOVF)
Oil & gas exploration company focused on developing the Millford Bakken property
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The Energy Report ()
Investment ideas for saavy investors
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Torchlight Energy (NASDAQ: TRCH)
Oil Drilling and Working Interest in Oil Projects
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from the publisher
  Robert J. Moriarty

Welcome to 321energy.



Looking for the Next Oil Boom? Follow the Tech


By James Stafford
admin@Oilprice.com
http://oilprice.com/
July 15th, 2014

Much larger than Eagle Ford and once thought to have reached peak production, new technology has brought us full circle back to the Permian Basin in Texas and New Mexico, where the recent shift to horizontal well drilling has rendered this play the unexpected ground zero.

Determining where the next real oil boom will be depends largely on following the technology, and while the Permian Basin has been slower than others to switch from vertical to horizontal well drilling, horizontal has now outpaced vertical, and investors are lining up to get in on the game.

Until about 12 years ago, virtually all wells in the Permian were vertical. As of last fall, however, horizontal and directional rig counts-meaning, non-vertical drilling rigs-have now begun to exceed vertical, according to RBN Energy.

But what they're also looking for are developers who are seeing strong economics in both vertical and horizontal wells. It's all about balance, and this co-mingling of multiple zones -- with the ability to complete both horizontal and vertical wells economically -- is the best bet for investors.

The Permian Basin now boasts the largest rig count in the U.S. Just this week, the number of rigs exploring for oil and natural gas in the Permian Basin increased to 560, according to the weekly rig count report released July 10 by Houston-based oilfield services company Baker Hughes.

What's more, according to Bernstein Research, the Permian Basin will top the charts for North American spending growth in 2014, with an amazing 21 percent increase. And 2013 was already a stellar year for the Permian.

Permian production last year increased by 280,000 boe/d to 2.3 million boe/d, comprised of 1.4 million b/d of oil and 5.3 bcfd of gas, according to the U.S. Energy Information Administration.

This technology has changed the way we think about the Permian Basin, once the darling of American oil production that became lost in the shadow of Eagle Ford and Bakken. While Eagle Ford and Bakken were viewed as the "bigger plays" at the start of the unconventional boom in the U.S., due to the fact that new technology debuted here harder and faster, the Permian is back and bigger than ever.

"The Permian Basin is much larger than the Eagle Ford play, and it also contains over 20 potentially productive zones, while Eagle Ford has only one zone," Parker Hallam, CEO of Crude Energy-a small-cap company, not publicly traded, operating in the Permian, told Oilprice.com.

Hallam particularly noted the "excellent quality rock" in the Wolfcamp, Fusselman, Cline, Mississippian and Strawn zones.

"The Wolfcamp is one of the better producers in the Permian. It can be up to 1,000 feet thick and is composed of multiple individual zones, several which could be production. Wolfcamp is attracting a lot of attention right now because of the horizontal drilling through the normally tight limestone," he said.

Hallam also noted that while horizontal drilling is changing the future of the Permian Basin, "vertical completions using new technology like fracking and co-mingling multiple zones are turning out top results and drillers are seeing strong economics in these wells."

Leading the pack in the Permian are Devon Energy Corp., Concho Resources, Pioneer Natural Resources and Chevron, with Wolfcamp probably the key focus of development activities, and the leading formation in terms of production increases. Devon in particular is being singled out by analysts for its large acreage in the Permian, couple with its transformative turnaround that could render it one of the largest crude oil producers in the U.S.

The only challenge with the Permian-which is on trend to see continual increases in production-is the pipeline takeaway capacity, according to RBN Energy: "The bottom line is that crude oil production in the Permian is growing rapidly, and today there is not enough pipeline takeaway capacity to efficiently handle the volume," but that should correct itself soon with new pipelines coming online.

Bloomberg quoted Bruce Carswell, West Texas operations manager for Iowa Pacific Holdings, as saying that the forecast through July is that volumes are going to continue to move out of the region by rail.

The Permian Basin Petroleum Index, put out by Amarillo economist Karr Ingham, which examines several industry metrics to measure the health of the oil and gas business in the region, was almost 10 percent higher in May than a year earlier.

Regardless of pipeline capacity, Permian Basin crude is shaping up to be the next big oil boom thanks to new technology. Eagle Ford and Bakken became economical only after being drilled horizontally, so with the final shift to dominate horizontal drilling in the Permian, the game has only just begun.


By James Stafford
admin@Oilprice.com
http://oilprice.com/
July 15th, 2014



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