Boone Pickens and Natural Gas

[Peter Hansen]

Boone Pickens , Billionaire Oil man, is now branching out into alternative forms of energy . He is currently building one of the largest solar arrays in the world, and has interest in natural gas and wind energy.
Ever hear of the Marcellus formation?.....well neither did I . This is not a Boone Pickens Project ;but, nevertheless it is verrrrrry interesting.
The Marcellus formation is located in the Appalachin Basin and part of the Devonian black shales. It is a property that stretches through 5 states NY to VA ,and the Marcellus shales are found about 1 mile below the surface... The extraction process requires very expensive vertical drilling. How much gas is actually down there? 2 professors , Teery Engelder and Gary Lash revealed in December 2007 that conservatively that there could be as much as 500 trillion cubic feet ...but of course there would only be about a 10% Recoverability factor ........but anyway ....a MOTHER LODE appears to be sitting there.
How do you play this? ....well XTO energy (XTO) 2 weeks ago paid 600 million to Linn Energy for the Marcellus acreage.
These guys must smell something there ? XTO may be the Natural gas play?

[peanuts]

Boone Pickens , Billionaire Oil man, is now branching out into alternative forms of energy . He is currently building one of the largest solar arrays in the world, and has interest in natural gas and wind energy.
Ever hear of the Marcellus formation?.....well neither did I . This is not a Boone Pickens Project ;but, nevertheless it is verrrrrry interesting.
The Marcellus formation is located in the Appalachin Basin and part of the Devonian black shales. It is a property that stretches through 5 states NY to VA ,and the Marcellus shales are found about 1 mile below the surface... The extraction process requires very expensive vertical drilling. How much gas is actually down there? 2 professors , Teery Engelder and Gary Lash revealed in December 2007 that conservatively that there could be as much as 500 trillion cubic feet ...but of course there would only be about a 10% Recoverability factor ........but anyway ....a MOTHER LODE appears to be sitting there.
How do you play this? ....well XTO energy (XTO) 2 weeks ago paid 600 million to Linn Energy for the Marcellus acreage.
These guys must smell something there ? XTO may be the Natural gas play?

There are already wells that are getting gas from Marcellus. Please just trust me on this... I know some people.

Why not consider a NG service company smack dab in the middle of it? SWSI, anyone? anyone?

btw: I've been a long term supporter of nat gas and especially LNG... I am particular about my investments in such, however, and I consider the Barnett Shale in Texas to be the best place to have investments in natural gas. CHK and KWK have some great assets there as well as EOG... a wild card is WHT

[peanuts]

http://cgi.ebay.com/Beautiful-200-Acre-Historical-Pennsylvania-Farm-Land_W0QQitemZ250234269639QQihZ015QQcategoryZ15841QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

ok, who's gonna put in the first bid? Billyjoe????

[billyjoe]

Peanuts,
What would you calculate that gas to be worth? Or the remaining royalty %.

-----------------billy

[peanuts]

Peanuts,
What would you calculate that gas to be worth? Or the remaining royalty %.

-----------------billy

a lot... There are things to consider:

1. total number of drillable acres
2. spacing of wells for the particular geography (I have been seeing 1 per 20-30 acres)
3. estimated flow rate per well
4. percentage of royalty on monthly volume (which is how most companies pay)
5. floating average selling price of nat gas
6. life of each well

The costs are minimal... The Snyders will bring in a nice big Ingersoll Rand drill and all the well pipe needed, make the roads, lay the transfer pipe, install the main hook-up and generally get everything going for you for free. You just need to negotiate the percent royalty you are willing to give up.

The coal is worth something, too:
200 acres X 2 feet thick coal X 1800 Tons pers cubic foot per acre = 720,000 tons of coal, maybe more.

coal pricing info: LINK

[peanuts]

http://cgi.ebay.com/Beautiful-200-Ac...QQcmdZViewItem

ok, who's gonna put in the first bid? Billyjoe????

OK, the auction is over... which one of you bought it?

[billyjoe]

Peanuts,
How much did I pay? Just told my people to keep bidding. I'm too busy gapfibbing to attend an auction. By the way SWSI---53 days from gap of 3/27---buy zone 19.76 - 21.67---- target 32.26---even at today's close of 25.21 it's 28% gain.

-------------billy

[peanuts]

Peanuts,
How much did I pay? Just told my people to keep bidding. I'm too busy gapfibbing to attend an auction. By the way SWSI---53 days from gap of 3/27---buy zone 19.76 - 21.67---- target 32.26---even at today's close of 25.21 it's 28% gain.

-------------billy

SSSssSSSsssssSSSSsssss and how 'bout the WHT?!?!?!?

[billyjoe]

Wow! WHT has quite a chart, but ,alas, no gap also can't find an EOG gap. There was a gap on KWK on MAY 6. So target is 46.32 buy zone is 42.29 - 42.91 unless you want to take a chance at today's close of 39.55 and maybe make 17%. I'd take SWSI myself.

------------billy

[New-born baby]

Wow! WHT has quite a chart, but ,alas, no gap also can't find an EOG gap. There was a gap on KWK on MAY 6. So target is 46.32 buy zone is 42.29 - 42.91 unless you want to take a chance at today's close of 39.55 and maybe make 17%. I'd take SWSI myself.

------------billy

You really have gone over to the dark side! I thought you were lying to me at first, but now I believe.

Darth Vader would be proud.

But Darth would also tell ya that if SWSI busts $26, you can forget buying it at $19.76, because she's a headin' to $39 first.

[Peter Hansen]

T Boone Pickens $150 Oil Coming SOON!

T Boone started to fool with alternative energy and took a beating 1st quarter .....he is back in the saddle .....making a prediction of OIL going to $150.
In the market "The Trend Is Your Friend " Betting on what you hope to see or some story stock ....usually results in failure .
Notice the stocks reaching 52 week highs and this is bascially where you place your bets. Momentum will keep those stocks going higher.

[billyjoe]

Headline story in Cleveland Plain Dealer today "If the price of oil makes you mad, wait until natural gas bills double this winter" or something to that effect.

-----------billy

[peanuts]

There are already wells that are getting gas from Marcellus. Please just trust me on this... I know some people.

Why not consider a NG service company smack dab in the middle of it? SWSI, anyone? anyone?

btw: I've been a long term supporter of nat gas and especially LNG... I am particular about my investments in such, however, and I consider the Barnett Shale in Texas to be the best place to have investments in natural gas. CHK and KWK have some great assets there as well as EOG... a wild card is WHT

Anyone else enjoying this post as much as little ol peanuts?

[New-born baby]

Today's a decent day to buy

CHK has pulled back today. It might be a nice time to pick some up.