As you can see by the chart FNRC was trading at nearly .005 just a few months ago so we are really seeing a great opportunity here.
If you look at the MACD you can see the selling pressure has slowed and turned into to buying off lows!
In the past we have seen FNRC run huge from lows. It looks like we are seeing the start of what could be another big run here!
FNRC. is an exploration and production company headquartered in Denver, Colorado. We currently hold natural gas (CBM) assets in the Powder River Basin of Wyoming consisting of producing and prospective CBM wells in the Clabaugh Ranch Field, a development of 6,025 gross acres. We are planning to expand our activities into unconventional shale potential which includes 1,370 acres in the Niobrara Shale in Western Nebraska and 7,150 acres the Utica Shale in Eastern Ohio. The Niobrara Shale and the Utica Shale not only have potential oil reserves, but also natural gas and natural gas liquids.
FNRC’s Projects:
CBM – Northern Wyoming
The recent rise in natural gas prices may enable the Company to initiate a plan of development which will include completing coals currently behind pipe, working over existing wells and drilling our permitted locations. We have an average interest in the current 42 producing wells of approximately 3%, however we hold a 66% working interest in the 8 offsetting permitted locations. In 2012, we received an average price per mcf of $2.41 and the current futures indicate an average CIG price for 2013 of $3.90 per mcf.
Nationwide, natural gas production has decreased 1.157 bcfd from a high in November 2012 when compared to the EIA numbers released for January 2013, and correspondingly the number of drilling rigs exploring for natural gas is at levels not seen since 1999. And to date, net withdrawals from natural gas storage are 480 bcf more than the average of the corresponding period of the previous three years.
Our current CBM properties are characterized by what we believe to be low geologic risk and repeatable development opportunity. All of our wells drilled have encountered developed coal seams in the Warner, Upper and Lower Smith, Wyodak/Anderson Lower, Gates and Wall formations. Most of the wells are comingled, producing from the Upper and Lower Smith and the Wyodak/Anderson. We anticipate using funds released from our financing discussed above to facilitate the 2013 CBM plan.
Utica Shale – Eastern Ohio
The Company has an agreement to develop approximately 7,150 acres in Eastern Ohio, one of the most active areas for oil, natural gas and natural gas liquids exploration in the United States. We are currently seeking a partner to develop the prospect.”In summary, FNRC is a part of a revolution in the US. The company has strong and significant interests in major wells with huge proven reserves.
But, like a lot of natural gas producers, they didn’t make it through the Natural Gas bear market (price fell from $13.68/bcf in 2008 to $1.90/bcf last year) without some serious cuts and bruises. Thankfully, they found further financing and were able to pass that through to the common share market. This is just what public listing is supposed to be all about.
And now they are ready to run with the new Natural Gas bull market, and have adopted an aggressively shareholder friendly attitude in the process.
