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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (42143)	4/4/2011 3:43:57 PM
From: E_K_S	Read Replies (1) \| Respond to of 78752

Re: Double Eagle Petroleum Co. (DBLE)- bought Re: Dominion Resources, Inc. (D) - closed out position (Bought D 8/2009 @ 33.50 closed out position @ $44.85) This is a good discovery Paul. The have well established NG properties and interest in the Rockies Express ("REX")NG pipeline that will serve the West coast "growth" market. This emerging midstream operation IMO is a hidden gem and will be a valuable asset as NG demands grows in CA. Double Eagle also owns over 90,000 gross and 70,000 net acres in Niobrara Oil Shale region. One of the areas I really like because of their high grade oil. According to their Web site, they will be drilling two new wells here in 2011. The company only has 11.18 million shares outstanding but are somewhat leveraged with $32 million in revolving bank debt (almost $3.00/share). They are cash flow positive but may have to raise capital in the future to finance their planned well expansion. This may dilute current shares. In their most recent presentation (pg-15-), they show a Net Asset Value per share in the amount of $18.75/share. It's only a matter of time before the market recognizes this. -------------------------------------------------------------------- Sold my remaining shares of Dominion Resources, Inc. (D) and put 1/2 the proceeds into DBLE. I plan to write the October $10 covered calls on a portion of these shares to generate income. Will buy more shares below $9.00/share. EKS

To: Paul Senior who wrote (42143)	4/6/2011 12:27:40 PM
From: E_K_S	Read Replies (1) \| Respond to of 78752

Hi Paul - PetroQuest Energy Inc. (PQ) came up on my search into Niobrara leases under development. From the Niobrara Shale (A blog dedicated to investment opportunities in the Niobrara Shale) niobrarashale.typepad.com 02/03/2011 PetroQuest Energy Updates Niobrara Shale Operations PetroQuest Energy (PQ) issued a year end operations update on its properties prospective for the Niobrara Shale. The company has been involved with the play on a non operated basis. PetroQuest Energy reported that the Nevis #2 well has produced 20,000 barrels of oil since coming onto production sixty days ago. The company has a 20% net revenue interest in the Nevis #2 well. The well was put on artificial lift in January after experiencing some down time and is now producing 360 barrels of oil per day. PetroQuest Energy said that the Hester #3 well, the company’s third non operated well into the Niobrara Shale, will be spud during the first quarter of 2011. The company has allocated between $11 million and $12 million to participate in 12 to 15 gross Niobrara Shale wells in 2011. Stock has run up but could become a value Buy on any significant correction. I like their very strong balance sheet, the cash generated from operations (enough to fund future E&P), and their success in adding to their reserves (see pg-6- of presentation). Here is their most recent presentation March 2011: Pg-22 Ranks Comparative Valuations to Peers. Lots of names here you will recognize petroquest.com Their 2011 focus is on developing their Niobrara Oil (10% growth). Their a gassy company (79%) but this cash flow pays for their oil development. ------------------------------------------------------------------------ Didn't see this one mentioned in any of your posts. There is some interest in the company at Big Dog's Boom Boom thread. They are in at $7.50-$8.50/share which for me would also provide a reasonable value buy. finance.yahoo.com They sold interests in their NG gathering business in 2008 ($44M), sold equity in 2009($38M) and received $60M JV payment in 2010 for a 50% interest in their Woodford project. As a result, this is one of a very few companies where their annual net income < 4X Debt. EKS

To: Paul Senior who wrote (42143)	5/5/2011 1:32:29 PM
From: E_K_S	Read Replies (3) \| Respond to of 78752

Re: Double Eagle Petroleum Co. (DBLE) Earnings out finance.yahoo.com From the article:"...Total natural gas and crude oil production increased 1% to 2.3 Bcfe for the quarter ended March 31, 2011. The production increase was driven by the Company's additional working interest in its non-operated properties in the Atlantic Rim, which the Company purchased in the third quarter of 2010. The increase was also attributed to improved production from certain wells in the Doty Mountain Unit as a result of fracture stimulations performed in the fourth quarter of 2010. At the Catalina Unit, production declined to 1.2 Bcf for the quarter ended March 31, 2011 from 1.4 Bcf in the first quarter of 2010. Management believes the decrease is primarily the result of the field's normal production decline....". ------------------------------------------------------------------- 3rd quarter has a lot of drilling. There is potential for production increases by end of year. Results of their Niobrara well by the end of the year too. Therefore, not too much excitement until Q3 or early Q4. Sold some Oct $10 calls while I wait. Still holding my small position bought around $9.00/share. Company is slowly growing it's value. EKS