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

To: upanddown who wrote (183233)	3/30/2014 11:37:24 AM
From: Ed Ajootian	1 Recommendation Recommended By evestor Read Replies (1) \| Respond to of 206166

upanddown, American Eagle (AMZG) -- thanks for your thoughts. Not sure whether there has been enough drilling in the 3F to identify the sweet spot in that formation but I believe the 100 or so wells that AMZG had drilled there as of last year-end are a big enough sample size to be able to start playing around with type curves, etc. SunTrust Robinson Humphrey in their 2/19/14 report that initiated coverage on AMZG (see investorvillage.com ) did a great job at comparing the economics of AMZG's 3F wells in their Spyglass play in Divide County with a typical Bakken well in McKenzie County, see pages 6-8. They make a compelling case for the idea that, in spite of the lower IP rates exhibited by the 3F wells vs. the McKenzie County Bakken wells, the 3F wells have better economics due to fact that they decline at slower rates, plus they are less costly to drill than the McKenzie County Bakken wells since the 3F is encountered at shallower depths up in Divide County, viz. : We expect Spyglass Three Forks well declines of 52%, 50% and 25% in each of the first three years of production versus the peer declines of 67%, 52% and 35%, respectively. As such, we believe American Eagle’s Three Forks wells compare favorably to larger peers’ Bakken and Three Forks wells in the basin.