Replies to This Discussion

Permalink Reply by 1kw6x71km1v37 on July 30, 2014 at 12:55

"Performing in line with expectations" is a rather meaningless statement without knowing what Halcon was expecting.

• ▶ Reply

Permalink Reply by sdmwhosane on July 30, 2014 at 16:27

They should start a subsidiary company in poultry processing plants and farms to compete with Tyson Foods.  They could use these strategies in public announcements of growth by inventory product on hand showing a tremendous increase each quarter by counting the eggs laid by hens as live birds to be processed with an increasing demand for product to meet the needs of the consumer.  It should look good on paper and prop up the value of the stock when they go public.  "There is a sucker born every minute." - P.T. Barnum

• ▶ Reply

Permalink Reply by jim weyland on July 30, 2014 at 13:03

i don't have a dog in this hunt, but, when i see completion results reported as:

As previously disclosed, the Company's first operated eastern TMS well, the Horseshoe Hill 11-22H-1 (92% WI -- 7,060' effective lateral), located in Wilkinson County, Mississippi, achieved a 24-hour average initial production rate of 1,548 Boe/d, assuming full ethane recovery.

i wonder, why report "assuming full ethane recovery"? 

why would you want to report results with full ethane recovery in a market where, imo, you'd rather reject from processing as much of it as you could and, rather, sell it as part of the gas stream?

the only thing that comes to my mind is that by assuming full ethane recovery, and, by assuming an average bbl price for recovered ngl's, regardless of the bbl's actual, fractional makeup, you could turn straw into gold somewhat like rumpelstiltskin.

note: i hold this entity and his previous ones in great regard as to value creation. i guess that's why i felt the need to question what i perceive to be weasel words in a/the well's completion report.

• ▶ Reply

Permalink Reply by tc on July 30, 2014 at 13:19

 "assuming full ethane recovery"?  This was a PR spin by HK, to make the well look better than it was.  Goodrich has reported that the portable NGL processors on site, only process 50% of the NGLs and the rest are just flared.  So when NGL plants are built in the TMS, then you will get full ethane recovery. 

This is what I post on yahoo's HK forum page on June 9. 

You do realize that HK missed on 3 frac stages and then played games on the IP announcement. Using GDP's higher standards the IP on HK's well is 1391/bbl and its only 87% oil versus the Blades 98% oil and HK really had to open the choke from 14/64 for the Glades wells versus 19/64 for the HH well. While the HH well is good, its no barn burner

• ▶ Reply

Permalink Reply by RGV AG on July 30, 2014 at 14:02

TC:

Yes sir, that is kinda what I was thinking as well.  A good amount of spin in that relation. 

• ▶ Reply

Permalink Reply by Two Dogs, Pirate on July 30, 2014 at 15:28

Look back to November when their stock took a big hit with the Utica results. Words seem to play a part on Wall Street more than production figures. I can't see the reason for the sell off for only a small portion of leasehold that turned out to not be in the sweet spot.

• ▶ Reply

Permalink Reply by RGV AG on July 31, 2014 at 6:01

They are taking a minor beating today in the market and GDP is getting hammered.  The lack of results, on a timed or interval basis, will hurt these companies market value due to them really pumping up the TMS. 

It is sad to see this.  

• ▶ Reply

Permalink Reply by jim weyland on July 31, 2014 at 5:55

if they're using field processing equipment, my guess is that they're using a j-t plant.

see wiki article:

http://en.wikipedia.org/wiki/Joule%E2%80%93Thomson_effect

j-t's won't knock out much, if even any ethane.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on July 31, 2014 at 6:23

Aggressive PR tends to cause drops in share price, at least in the short term, when not supported by operational results.  All the TMS operators will likely take a hit.  With the possible exception of ECA I don't think any of them will change their development plans.  I expect they will drill all the wells announced for the remainder of 2014. 

• ▶ Reply