Replies to This Discussion

Permalink Reply by Wilma Watts on January 14, 2010 at 4:18

Crimson stock has been crushed after the IPO. Cheerleader might be onto something - the assets are not nearly as valuable as they have let on publicly. You think?

Just asking, they planned the IPO at $8 a share and it is trading at $4 now. Someone knows something, maybe?

Again just asking.

Permalink Reply by ALongview on January 14, 2010 at 5:37

I believe the IPO was planned around $8 and priced around $5. they raised around $100m. A drop from there is a more of an investor's concern for their debt situation and a recent dilution of shares. I do not believe that Crimson has given any indication that they believe any of their holdings to be less prospective than they thought following the Kardell announcement.

Permalink Reply by RBH on February 17, 2010 at 7:46

ME AND OTHER BLOGGERS CONFUSED--CRIMSON ANALYST MEETING --SAID KARDELL #1h HAS CUM'D ~1 BCF
REPORTED: CUM THRU DEC 2009 378 MMCF

Current Operator: DEVON ENERGY PRODUCTION CO, L.P. (216378) District: 06
Field: BOSSIERVILLE (BOSSIER SHALE) RRC Identifier: 254271
Lease: KARDELL, S. GU Gas Well #: 1H
Oil/Condensate (Whole Barrels) Gas/Casinghead Gas - MCF
Prod Month Commingle
Permit No. On Hand
Beginning of Month Production Disposition On Hand
End of Month Formation
Production Disposition
Volume Code Volume Code
10/2009 N/A 47 47 176,761 176,761 02
11/2009 47 25 72 0
12/2009 72 0 72 201,703 201,703 02
AND DEVON 2-17-2010 ANALYST MEETING SAID RATE KARDELL #1h ~3 MMCF/DAY PER POSTING

Attachments:

• haynesville crimson presentation map with wells spotted and inital tests-add reported production thru 12-2009 eog-common resources-devon.pdf, 124 KB

Permalink Reply by ALongview on February 17, 2010 at 8:00

I noticed the number 1 bcf also and thought it was odd considering the reported numbers. I also was caught off guard as to how 1 bcf in 4 months would equate to "we'll have to see if it will work down there." Seems like they would have known that the Haynesville was thinner there back in September or October when they were drilling and completing. They did go ahead and take 244 leases since 10/01/2009(date of first sales numbers) to now in the same area as the Kardell and further East. Why not go further West where you have seen other operators have success? If it is thinner as you go that way why lease in that direction? I don't know what to believe any more......and is it 1 bcf or 500 million?

Permalink Reply by RBH on February 17, 2010 at 8:02

Alongview--they also previously said lot's of other pay zones..james looked good, etc

Permalink Reply by Wilma Watts on February 17, 2010 at 9:20

I think in yesterday's press release they also repeated 1 bcf produced already. Something does not add up.

Permalink Reply by DJG on January 8, 2010 at 10:11

Incidently, just notice today that Devon has submitted an application to re-permit the well.

Unit size has now been adjusted up to just a bit over 666.27 acres.

W-1:
http://webapps.rrc.state.tx.us/DP/drillDownQueryAction.do?fromPubli...


Location Platt:
http://webapps.rrc.state.tx.us/dpimages/r/758012

Permalink Reply by Wilma Watts on January 14, 2010 at 6:06

When they make the unit larger, does that dilute Devon's interest? Crimsons?

I assume the mineral owners are not happy, they have to split the pie a bit more?

Again, just asking. It seems once you put a unit together once you start making it larger or changing the size would get some of the owners excited or mad, or both, ha ha.

Big gas draw today from storage, but that has not helped price. I listened to the Crimson presentation and was impressed. Devon usually puts on a good show also, looking forward to it.

Permalink Reply by jffree1 on January 14, 2010 at 6:56

Here are the plats:
Kardell as of 6-17-09
http://webapps.rrc.state.tx.us/dpimages/img/600000-699999//PR000066...

Kardell as of 1-07-10
http://webapps.rrc.state.tx.us/dpimages/img/700000-799999//PR000075...

What it looks like to me is they added acreage between the Kardell Unit and the Skillern Unit which now appear to adjoin on the west boundary line. The Kardell Unit is still within normal unit size and will allow for better (and more) horizontal well spacing so everyone should be happy. It was originally very odd shaped and I had wondered how many hz. wells they could fit into it.

Skillern Plat
http://webapps.rrc.state.tx.us/dpimages/img/700000-799999//PR000073...

Permalink Reply by 5thGenTexan on January 19, 2010 at 5:20

Yes, pie is getting cut into smaller pieces. Good for addition acreage holders. Bad for the original acreage holders. Good for oil companies since they can tie up the additional acreage by production without having to drill another well.

Don't look for multiple wells per unit until the companies' other lease holdings are drilled and held by production. Even then, it will probably take a considerable increase in NG prices.

Permalink Reply by jffree1 on January 19, 2010 at 5:47

5GT, This is not a bad deal for the original unit mineral owners. The extra acreage now makes it possible to position additional horizontal wells in the unit. Yes, it dilutes the royalty on one well but it increases the potential for MORE royalties via a larger number of possible unit horizontal wells in the long run. You have to look beyond the initial well. And the unit shape, the way it was originally configured, was not real conducive to future developement. Hopefully, the unit will eventually see as many wells as Devon can jam into the new acreage configuration.

Permalink Reply by Les Bamburg on January 8, 2010 at 19:37

Just as a follow-up, the information I posted was a verbal statement so I had to paraphrase. You can access the webcast at the following link:

http://phx.corporate-ir.net/phoenix.zhtml?c=205282&p=irol-IRHome

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