Hi Paul -
Re: Venoco, Inc. Common Stock (NYSE: VQ )
I thought there was an off shore drilling moratorium on the CA West coast after the Gulf incident. However, if their wells are onshore but along the coast, they may work out as long as they can get the appropriate drilling permits from the the rigid coastal commission. Also, there has been scheduled insider selling which I guess is normal but I see no buying.
Finding Value in E&Ps - Neal Dingmann
seekingalpha.com
Stocks discussed in the article:
finance.yahoo.com
From the article:"...TER: At a slightly higher price is Venoco, Inc. (VQ) is trading at $17. Your prior price target was $25. Why the revision?
ND: Venoco's pretty interesting. In a sense, you are really betting on its core gas position in the Sacramento Basin. It provides nice baseline cash flow because it's gas and is well hedged for the next couple of years. One would say, "well that's not very exciting." But the really attractive upside is Venoco's Monterey Shale play. Venoco has a couple of thousand acres there, and it's just Venoco and Occidental Petroleum Corp. (OXY) in this play.
This Monterey Shale is a very interesting oil play on the coast of California. Estimates say there could be more than 100 million barrels in place, though the estimates could be extremely high. This play is almost like an offshore. You have a lot of upside, but you've got a lot of risk because we just don't know about the timing. The company's only going to drill four or five horizontal Monterey Shale wells this year and probably 15–20 next year; so, you're not going to see a ton of results. But as those results unfold, I think you're going to have a lot of people very excited...."
EKS |
