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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (151000)	8/31/2011 12:44:14 PM
From: Dennis Roth	Respond to of 206097

Rush to explore and develop shale oil and natural gas in Argentina’s Neuquen basin Wednesday, August 31st 2011 - 08:46 UTC en.mercopress.com Exxon Mobil Corp, the largest US oil company, will spend as much as 76.3 million dollars to explore and develop shale oil and natural gas in Argentina with Americas Petrogas Inc Exxon will gain a 45% stake in Americas Petrogas’s Los Toldos blocks, which cover 163,500 acres in the Neuquen Basin, Calgary-based Americas Petrogas said in a statement Tuesday. Americas Petrogas plans to drill a well in the fourth quarter at its blocks, targeting the unconventional Vaca Muerta formation, which may hold as much as 240 trillion cubic feet of recoverable gas, according to the US Energy Information Administration. “We believe the next major shale development outside of North America will be in the Neuquen Basin,” Guimar Vaca Coca, managing director for Americas Petrogas in Argentina, said in the statement. Vaca Muerta has characteristics similar to reservoirs such as the Eagle Ford and Haynesville formations in North America, the company said. YPF SA, Argentina’s largest crude producer, announced in May it discovered the nation’s biggest oil find in two decades at Vaca Muerta. “From a geological resource point of view, I think Argentina’s future is positive,” Jorge Piñon, a research fellow at Florida International University in Miami. But regulatory uncertainty and a lack of continuity in fiscal terms and conditions are larger concerns for foreign oil companies working in Argentina, said Piñon. “I think some of the major oil companies are looking for niche areas in which they can position themselves to take advantage of future opportunities,” he said. Exxon will have more than 310,000 net acres in the Neuquen Basin following its deal with Americas Petrogas, Patrick McGinn, a spokesperson for the Irving, Texas-based company said in an interview.

To: Dennis Roth who wrote (151000)	9/13/2011 10:20:50 AM
From: Dennis Roth	1 Recommendation Read Replies (1) \| Respond to of 206097

YPF Sociedad Anonima (YPF) - Believing in higher prices and shale Initiating coverage with an Outperform rating and a $50/sh target price 46 pages, 83 Exhibits Link: sendspace.com excerpt: We believe that investors can access a number of attractive themes in Argentinean energy via YPF shares. YPF is one of the few oil companies globally that has an upside risk to its realised fuel prices, despite the timing uncertainty for a wider energy reform in Argentina. The company is also exposed to a significant resource potential in unconventional resources that in our opinion is not being valued by the equity markets. We initiate coverage with an Outperform rating and a $50/sh target price which does not incorporate any value for shale oil. Increasing oil, gas and refined products price is possible even without a wider energy reform in Argentina, something which is illustrated by the fact that YPF has already increased fuel prices 17% YTD, despite this being an election year. Therefore we think YPF is currently in an unique position of facing an upside risk to its realised fuel prices at a time when wider commodity prices have remained persistently high amidst volatile markets. Unconventional resources potential is starting to show-up. And don’t forget Guyana. Pricing incentives and the experience with U.S shale are putting Argentina’s unconventional resources in the oil industry spotlight. After announcing a 150mmboe shale oil discovery in May, YPF has a busy drilling schedule of 30 wells planned before year end. We see a risked value of $8.4/share for Argentinean unconventional resources that is currently not being valued by the equity markets in our opinion. Furthermore, there is the possibility of a significant event if the Jaguar well in Guyana proves successful this October, worth $2.7/sh unrisked. Implied price convergence in 2025 plus 8.7% dividend yield. Reversing our DCF tells us the shares are implying domestic-international price convergence in 2025, which we find conservative. Savvy cash-flow management enables YPF to distribute 90% of its profits, with the shares offering a sector leading 8.7% dividend yield.