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Good morning traders!
We’re excited to bring you a play in one of the biggest money making industries in the world! Oil and Gas!
RVDO (Riverdale Oil & Gas Corp.)
There’s no doubt that the oil industry is large and vital to the world’s economy. That’s why RVDO could have so many exciting possibilities! This particular alert shows strong promise in a highly profitable industry.
One glance at the level 2 and you see how thin it is and how high this thing could go. Couple in a tiny float and we’re talking a pure potential momentum giant!
But enough with why it looks so good as a possible trade. Let’s look at what RVDO does as a company!
BUSINESS SUMMARY
(RVDO - Riverdale Oil & Gas Corp.)
http://www.rvdoil.com/
Riverdale Oil & Gas Corp. or RVDO, produces oil and gas in the United States predominantly with working interest and revenue interest among several wells throughout Texas.
RVDO has made a recent purchase of 10% Working Interest for $10,000 in a well with stable oil production of around 10 barrels of oil per day, for its Acquisition Program. It is also working on a lease acquisition in Kansas, with shallow drilling objectives that have a proven track record. RVDO has been very selective in the prospects and projects that it has been evaluating.
RVDO reported the the Lampley 1R well, in Lavaca Co., TX, is still producing steadily at a rate of 200 MCF gas per day from a shallow gas reservoir at 1700 feet in depth in August of last year. RVDO owns a 1.667% working interest and a 1.25% net revenue interest in the well. The well has not exibited any production decline since May 2014.
RVDO also reported the Koomey Lease in Waller Co., TX is producing from 2 wells in the Catahoula formation from depths at 2200 Ft. The wells are produced alternately allowing better drainage. RVDO has a 5% working interest in the wells, which generate a load of oil (approx. 155 barrels per month).
The HitzCal Project, in Frio Co., TX, has one well producing from a shallow formation, at 3 to 4 barrels oil per day. The 3D seismic data has been re-processed and there are strong indications of deeper potential on the Hitzfelder and Calame leases. A well is being proposed to a depth of 7,000 feet on the Hitzfelder lease, in the proximity of 3 wells that have produced more than a total of 400,000 barrels of oil from 3000 feet in depth. RVDO has a carried working interest of 2.5% in the HitzCal Shallow Project and a 1% Carried Interest in the first well to the tanks in the HitzCal Deep Project.
RVDO reported their well Stowe #5 in Waller Co,. Texas, which Riverdale owns a 3% working interest and 2.25% revenue Interest, has been completed and is producing 40 to 50 barrels oil per day in this very early stage. The well is still cleaning from setting a sand screen to contain the highly porous and permeable Catahoula Sand. A more complete test will provide its true production potential.
The company is headquartered in Austin, Texas.
Read more:
http://www.rvdoil.com/news.html
MARKET OUTLOOK
The U.S. Energy Information Administration (EIA)’s January Short-Term Energy Outlook (STEO) forecasts Brent crude oil prices averaging $58/bbl in 2015 and $75/bbl in 2016, with annual average West Texas Intermediate prices expected to be $3-4/bbl lower. Should its price forecast be realized, EIA projects that the number of operating rigs will decrease by 24% from January to October before beginning to rebound in November. However, EIA noted, the outlook for Lower 48 production reflects more than just the rig count. Other key factors include the efficiency of drilling, which EIA tracks in its Drilling Productivity Report, the rate of decline in production from existing wells, and changes in the amount of time between well spudding and completions.
As an example, permits and drilling in North Dakota declined during the financial downturn of 2008-09, but production rates did not decline as substantially. “At the time of the July 2008 oil-price peak, drilling activity in the Bakken-Three Forks formations outpaced well completion activity as increasing numbers of wells were drilled. Averaging about 70 days before the oil-price peak, spud-to-completion times almost doubled in 2 months, reaching more than 130 days. This increase created a backlog of wells that had been drilled but not yet completed. As fewer wells were drilled during the subsequent drop in oil prices, the spud-to-completion times decreased. Increased drilling activity in the Bakken since 2011 has once again increased spud-to-completion times, which have stabilized at more than 120 days/well, almost twice previous minimum levels,” EIA said.
According to EIA, this backlog of wells acts as a cushion for production rates, offsetting the more immediate decreases in drilling and permitting activity. At most major plays in the US, the backlog currently ranges 3-7 months. When drilling activity remains at reduced levels long enough to outlast the cushioning effect of the well-completion backlog, the number of new wells brought online will begin to decrease, which can eventually reduce production rates.
While the cushion provided by the well-completion backlog changes from formation to formation, EIA’s forecast of rising crude oil prices in the second half of 2015, if realized, is expected to be accompanied by a stabilization of drilling activity that would be sufficient to prevent a substantial production decline in the Lower 48 region. Different outcomes are entirely possible under other price scenarios.
More on the article here:
http://www.eia.gov/forecasts/steo/archives/mar15.pdf
There you have it folks. Get started on your research now!
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