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

To: Dale Baker who wrote (178205)	5/2/2013 4:09:42 PM
From: Dennis Roth	4 Recommendations Read Replies (1) \| Respond to of 206103

Devon Energy Corp (DVN) Signs of A Pulse and Much More; Repatriation Surprise 01 May 2013, 11 pages doc.research-and-analytics.csfb.com Our take: When a stock is trading at a 52% discount to the peer group on production (EV per flowing BOE), even a sign of a pulse can be viewed as positive. In this case, DVN provided much more than vital signs, reporting solid Q113 results, a tax-efficient structure to bring $2+ billion of offshore cash back to the U.S., and a timing update on its highly anticipated mid- stream MLP process. While one quarter doesn’t make a trend, we expect an improving picture for U.S. gas and WCS realizations to support modest outperformance from here. Meanwhile, a decision on a midstream MLP looms in Q213, which could be a near-term catalyst. Reiterate Outperform with a $75 target price... ...Mississippian getting better, while the Cline looks more speculative. The company brought on 24 wells, which “continue to support or exceed target economics.” Several wells produced at 600-1,100 Bopd (a mix of 7 and 30 days). This compares to the 335 Boe/d 30-day rate for seven wells brought on in Q1. 3D seismic appears to be working to the company’s benefit. Variability continues to dampen enthusiasm for the Cline shale. Data from over 30 wells has 30-day rates ranging from 50-800 Boepd. The company is in the process of acquiring 3D, which it will incorporate into its program later in the year. Additionally, DVN will begin drilling a five well pad in Sterling County this quarter and intends to test the Wolfcamp to the east as well...

To: Dale Baker who wrote (178205)	5/19/2013 4:48:44 PM
From: Dennis Roth	2 Recommendations Read Replies (2) \| Respond to of 206103

PERRYMAN: A whale of a shale oaoa.com Posted: Sunday, May 19, 2013 6:00 am M. Ray Perryman If early estimates prove to be even close to true, the vast amounts of recoverable oil and natural gas will make the Cline Shale go down in history as the largest shale play ever. Communities across the Permian Basin have already been feeling the effects of surging exploration activity, and indications are that the pace may pick up rapidly. The Cline Shale is about 140 miles long, 70 miles wide, and 200-550 feet thick stretching through the Permian Basin and southward. Test wells are exceeding expectations and indicate the shale could contain 3.6 million barrels of recoverable oil per square mile or as much as 30 billion barrels in total. Yes, billion. That’s multiples of the likely production from other well-known shales such as the Bakken up north or the Eagle Ford here in Texas. Shale formations such as the Cline are still a relatively new source of oil and gas production. Hydraulic fracturing (fracking) and other improvements in drilling tools and techniques have been crucial to opening up these fields... ...The Cline is the newest shale to emerge as a major site of activity. Even apart from the sheer magnitude of the recoverable reserves, the mix of oil, dry gas, and liquids is particularly favorable given the high oil price environment. In addition, operating costs in the Permian Basin are lower than in some of the other shales, and a longstanding network of suppliers, service firms, and other necessities for the business is already in place...