Denbury Resources Inc. (DNR) - Started a tracking position
RAM Energy Resources, Inc. (NasdaqGM: RAM) - Peeled off 20% shares after another big run up.
GMX Resources, Inc. Common Stoc (NYSE: GMXR) - Sold some higher priced shares
Started a tracking position in DNR. (2010 Annual Report: phx.corporate-ir.net )
McDep November 11, 2011 Report - Oil and Gas Investing under Uncertainty ( mcdep.com )
DNR is in the list of Independent Oil Producers
The Company is the largest oil and natural gas producer in both Mississippi and Montana, owns the largest reserves of carbon dioxide (CO2) used for tertiary oil recovery east of the Mississippi River, and holds significant operating acreage in the Rocky Mountain and Gulf Coast regions With all the excitement for the Mississippi region, DNR owns some mature oil fields in this region that benefit from their C02 extraction methods. Denbury currently operates or controls over 800 miles of CO2 pipelines, which distribute CO2 from Jackson Dome to oil fields in the Gulf Coast region. The 2010 completion of the 325-mile Green Pipeline to Texas will allow them to potentially transport volumes of anthropogenic CO2 from the Gulf Coast region to their CO2 EOR fields.
According to the McDep report, DNR is one of the lowest valued Independent Oil producers w/ a 0.67 McDep ratio. DNR's owns or controls the C02 distribution in this area which as marginal wells are drilled, need this resource to make well profitable. I am thinking that as more new money finds it's way into the Mississippi area, DNR can provide these resources and/or pick up non productive wells on the cheap that can be made profitable with their C02 EOR process.
The stock is at the lower end of it's 52wk range. My target in 12-18 month $18.00-$22.00 depending on the level of activity in the Mississippi (Gulf) region. (20%-35% potential gain & may look at writing some covered calls against stock accumulated).
From the Big Dog's Boom Boom Room Board:
posted 11/15/2011
Denbury Resources, Inc. (DNR)
Analyst Day: 2012 Production/Capex Outlook, But Few Surprises
15 November 2011 ¦ 16 pages
citigroupgeo.com
A little more house cleaning in RAM and GMXR. Booking profits in RAM and taking some losses in GMXR to help offset end of year gains.
EKS |
