I believe this Company is one to consider for the NG crunch!
OMDA Oil and Gas, Inc. (OTC.PK:OMOG), an oil and gas production company, through its Chairman, Adam Barnett, announces an update on its Young Oil Project. The operator has informed the company that the Gernt Estates #15 well has been tested and dually completed in the Fort Payne and Monteagle formations. These are the traditional zones in the area. The well is now being stubbed into the transport line and is expected to begin producing at an initial daily rate of 40 mcf in the next few days. Based on historical information about this area and thickness of the pay zones, Young expects this rate to initially increase as the well ``cleans'' itself by producing. They also expect ultimate recoverable reserves of 250 million cf from this well alone. Natural gas wells in this area tend to be very long lived with some producing over 20 years. If the well just maintains this level and does not show an increase, OMOG should receive its initial investment back on its 20% interest (15% net) in some eight months with an additional five to seven times return on investment over the life of the well. These estimates are based on current natural gas prices.
Analysts are projecting oil and gas companies to generate the highest growth rates by far of any sector of the economy, adding 72% over last year's third quarter, according to a survey by Thomson Financial.
[ October 02, 2005, 16:04: Message edited by: Rasica ]
-------------------- All IMHO. Do not rely upon anything I post to base your financial decisions upon.
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I have been in this one for a little bit now it has not done to much. But I am holding for the big breakout that it is due for. There is no way this stock goes through winter without some VERY LARGE GAINS. The company also has a law suit in progress in which it is trying to recoup 36 million dollars. Intial indications are that they are confident with there case. The combination of NG prices, the winter season and possibly winning a large sum of money in the courts will not allow me to sell this stock. Only time will tell but if it breaksout I am in position and waiting
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Mella McEwen Oil Editor Midland Reporter Telegram 09/25/2005 Having seen his prediction that crude oil prices would reach $65 a barrel become reality, Dr. Michael Economides is making equally bold predictions about natural gas. Natural gas prices, he said Wednesday while visiting Midland to address the Permian Basin section, Society of Petroleum Engineers, will reach $20 per thousand cubic feet (Mcf) around Christmas.
Having forecast $65 oil, he said, he's now predicting $100 oil "but I'm not impressed with that. Natural gas is the real story."
Economides, professor at the Cullen College of Engineering at the University of Houston and managing partner in a petroleum engineering and strategy consulting firm, lists several reasons for his expectations of high energy prices. One is the "perfect storm" of Hurricanes Katrina and Rita. Rita's approach has, as of Wednesday afternoon, knocked out 73 percent of the Gulf of Mexico's oil production as personnel were evacuated from offshore rigs and production platforms. On Tuesday, the U.S. Minerals Management Service survey of Gulf of Mexico natural gas wells found that 3.3 percent of gas production has been shut-in as a result of Hurricane Katrina three weeks ago. There is, he said, 3.5 million cubic feet of Gulf of Mexico natural gas production off-line that likely won't be back on the markets by Christmastime.
"What's going to happen is we're going to have a huge shortfall of natural gas and around Christmas there will be a bad present for the Midwest," he observed. That comes at a time, Economides said, when the nation is transitioning from crude oil to natural gas use and domestic production is already struggling to meet rising demand. "Over the next 20 years," he said, "we will have a 25 percent increase in natural gas demand for just electric power generation. Of that, 21 percent will be for new plants and 4 percent to replace coal and nuclear plants."
That means, continued Economides, who has recently appeared on national business news programs discussing energy prices, that over that 20-year period, natural gas demand will rise another 10 trillion cubic feet -- to about 33 Tcf -- and "this means liquefied natural gas will be the only solution." Never before, he noted, has natural gas reached $12 per Mcf, as it has in the aftermath of Hurricane Katrina. But, he said, even if Katrina and, now Rita, had not stormed through the Gulf of Mexico, the energy markets had problems meeting demand.
He cites other issues impacting energy markets, both domestic and global. Domestically, tight refining capacity is a "disaster," he said, adding that "no doubt" additional refining capacity would have eased supply shortages that sent gasoline prices to $3 per gallon after Katrina damaged Gulf Coast refineries and pipelines that sent supplies to the Midwest and Northeast. Globally the United States is going to have to increasingly compete with other nations for oil and natural gas supplies. China, Economides pointed out, increased oil demand 20 percent in 2004 and will increase demand 20 percent this year. The producing members of the Organization of Petroleum Exporting Countries, despite promising this week to increase production by 2 million barrels, has no excess production capacity, he said, and tensions between the United States and major producers Iran and Venezuela could jeopardize supplies from those two countries.
Another major producing country, Russia, has regressed to what Economides called the Brezhnev era with the state takeover of Yukos, once Russia's largest oil company, and the jailing of its founder, Mikhail Khodorkovsky. That, he said, puts over 50 percent of Russia's oil production capability in government hands and "that's a serious deficiency." He chided the Bush administration for not forcefully opposing the Russian government's actions, saying the administration should be blasting Russian President Vladmir Putin. "The Bush administration was not stern with Putin, who is a bigger threat than Saddam Hussein was," Economides stated.
All these factors have combined to form what Economides called a "perfect storm -- a double Category 5 perfect storm" to drive prices higher. And next month, he predicted, oil companies will have a major public relations disaster on their hands as they begin reporting historically high third quarter profits that will be "obscene even by our obscene standards." He suggested that the major producers will have to take action, perhaps pooling large sums of money to fund research into alternative energy sources, anything to fend off calls for a new Windfall Profits Tax. There have been calls for the return of the tax, but, Economides scoffed, "it didn't work the first time, why would it work now?"
-------------------- All IMHO. Do not rely upon anything I post to base your financial decisions upon.
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OMDA Oil and Gas, Inc. Announces Commercial Completion of Second Tennessee Natural Gas Well Wednesday October 5, 8:00 am ET
HOUSTON, Oct. 5, 2005 (PRIMEZONE) -- OMDA Oil and Gas, Inc. (Other OTC:OMOG.PK - News), an oil and gas production company, through its Chairman, Adam Barnett, announces an update on its Young Oil Project. The operator has informed the company that the Gernt Estates number 16, the second of three recently drilled wells, has been tested and dually completed in the Fort Payne and Monteagle formations. These are the traditional zones in the area. As with the Gernt number 15 announced last week, this well is also being stubbed into the transport line and is expected to begin production by the end of this week. This well, unlike the Gernt number 15, is wet with oil mist. This oil mist indicates that conventional open flow testing would not give meaningful results. This well; however, does have considerably more shut-in pressure than the number 15 well. It also possesses similar thickness to the Monteagle and Fort Payne formations. The number 16 re-pressurizes faster than the number 15; therefore Young is confident that it will exceed initial recovery rates of the number 15 after the well is cleaned-up and in production for a few weeks. For the sake of clarity, the company states that the oil in this well is only a small mist. This is of little concern, due the fact that this is a natural gas well and not an oil well. OMDA expects to be able to announce the actual production levels from this well after it has flowed for a few weeks. A short video of this well can be viewed on the company's website at http://www.omogoil.com/investori.html . You may view this video by clicking on the ``Young Oil Venture Video'' link.
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As in the case of the number 15 well, engineering reports estimate ultimate recoverable reserves of 250 million cf from each well. Natural gas wells in this area tend to be very long lived with some producing over 20 years. If the well just maintains this level and does not show an increase, OMOG should receive its initial investment back on its 20% interest (15% net) in approximately eight months with an additional five to seven times return on investment over the life of the well. These estimates are based on current natural gas prices.
As mentioned in our Sept. 30th announcement, this is the second of three gas wells. All three have now been drilled to total depth in this initial program with Young. This well contains a large section of natural gas bearing shale. As mentioned in the number 15 release, completions in the shale require a more aggressive ``fracing'' technique. This technique carries an additional cost beyond the original ``turnkey'' arrangement. Young and others have only recently begun experimenting with shale completions in other area wells, but they have reported very encouraging preliminary results. Due to the large thickness of the shale, it is very likely that a completion attempt will be made on this well; however, no firm decision has been made at this time. The last of the three wells is set for acidizing this week and should be tested next week. Results will be announced as soon as they are available.
Adam Barnett, Chairman, stated, ``I am happy to see that we are now getting such favorable results from our Young Oil project. This is truly an exciting time in the history of OMDA, especially with natural gas prices continuing to rise. I am most pleased with these well's prospective rate of production. With just one well having the ability to cover our initial investment, I feel that the Young Oil Project holds vast potential for our company and our shareholders. I am anxious for the well to be connected to the transport line and to begin production this week. I believe this will signify OMDA's transformation from just a holding company with land-leases to a company with viable producing wells. It has been a long haul for our shareholders with many frustrating delays and I appreciate their patience. I am eager to share all updates with our investors and will continue to announce them through press releases and our weekly newsletters.''
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc.; Texas OMDA Drilling & Operating, Inc.; and OMDA Oil & Gas, Inc. (Texas) are in the business of oil and gas production and lease acquisition. Currently, the company owns average participation interests approaching 47 percent in 355 producing and non-producing oil and gas wells in Louisiana and Texas. The company also owns 100 percent gross interest in an undeveloped 1,116 acre, horizontal play in the Panola Field, Panola County, Texas. Current projects include a 15 percent working interest in an 800+ acre play in Shelby County, Texas and a carried back-in working interest of at least 7.5 percent up to 37.5 percent in a 12 well workover play in the Concorde Dome Field in Andersen County, Texas. OMDA is also in a partnership agreement with Young Oil Corp., the largest oil and gas producer in Tennessee on 46,000 acres in North Central Tennessee, with an initial 20 percent interest in a six well program and a first right of refusal on any other prospects on the Young leases.
This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, statements relating to the future anticipated direction of the oil and gas industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Contact: OMDA Oil and Gas, Inc. Investor Relations (800) 621-0113 IR*omogoil.com www.omogoil.com
-------------------------------------------------------------------------------- Source: OMDA Oil and Gas, Inc.
-------------------- I just want to make enough money to be eccentric.
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to make money on this,you must own alot of shares it will not move much.check the charts.I got in at .01 got out at .015.I have been in and out 3 times.
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Oil finished up at $62.26 and Natural Gas finished up at $13.14. Looks like the slide was only Friday and this morning. OMOG getting closer and closer to going on line with their two new NG wells and drilling of a third.
GLTA
-------------------- All IMHO. Do not rely upon anything I post to base your financial decisions upon.
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There will be news this week on the Young Oil and Patroon projects. Well number 3 is being tapped. Production rate increases on well 1 and 2 will be announced now that the self cleaning is done. Plans for wells 4-6 will be announced. The trees have been moved and the rig is over the hole at Patroon. There is a lot to tell. Shares are cheap for now, imo.
-------------------- All IMHO. Do not rely upon anything I post to base your financial decisions upon.
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Oil Prices Climb on Worries About Demand Thursday October 13, 6:28 am ET By En-Lai Yeoh, Associated Press Writer Crude Oil Prices Rise As U.S. Department of Energy Forecasts Strong Demand Into 2006
SINGAPORE (AP) -- Crude oil prices rose Thursday after the U.S. Department of Energy said the world's appetite for crude would remain strong into 2006. The agency also said American households would pay 32 percent to 48 percent more to heat their homes during the upcoming winter and predicted benchmark crude oil prices to average around $64 to $65 a barrel next year.
Light, sweet crude on the New York Mercantile Exchange rose 27 cents to $64.39 a barrel for front-month November contracts in electronic trading Thursday. In New York floor trade, the contract settled 59 cents higher Wednesday at $64.12 a barrel.
"This winter, residential space-heating expenditures are projected to increase for all fuel types compared to year-ago levels," the federal Energy Information Administration said.
The Energy Department said that those who heat their homes with fuel oil will pay $378 more, or 32 percent above last winter. Residential natural gas customers can expect to pay an average of $350 more during the upcoming winter compared to last year, an increase of 48 percent.
"The price of West Texas Intermediate crude oil is projected to average close to $58 per barrel in 2005 and $64-$65 per barrel in 2006. Continued high crude oil prices had been expected prior to Hurricanes Katrina and Rita," the EIA said.
West Texas Intermediate is the benchmark oil traded on the Nymex.
In other Nymex prices, heating oil was flat at $2.01 a gallon, gasoline up marginally to $1.834, while natural gas was down 4 cents to $13.48 per 1,000 cubic feet.
Earlier this week, the Paris-based International Energy Agency warned that refineries would need to pump at full tilt to keep pace with demand.
The outlooks come amid fresh reports from the U.S. Gulf Coast of continued recovery following Rita and Katrina, which sent prices to an all-time high of $70.85 a barrel Aug. 30.
Chevron Corp. said Wednesday it has restored oil and gas production in the Gulf to about 40 percent of its pre-hurricane levels.
Several of the companies' production facilities were damaged by the storm with the biggest loss being its deepwater Typhoon platform that had a capacity of 40,000 barrels of oil a day and 60 million cubic feet of gas a day.
Exxon Mobil Corp. meanwhile, said its shut-in natural gas volumes have decreased from 545 million cubic feet a day last week to a current 495 million cubic feet a day. Around 50,000 barrels of oil production remain halted, Exxon Mobil said. Also, Royal Dutch Shell Ltd. said its 340,000-barrel-a-day Deer Park, Texas facility is up and running and boosting output ahead of winter.
The Energy Information Administration predicted that only 3 percent of Gulf Coast production, or around 560,000 barrels per day, would remain off-line by November.
-------------------- All IMHO. Do not rely upon anything I post to base your financial decisions upon.
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I just finished reading the latest issue of the Petroleum Review. It knocked my socks off.
It outlines that the world is now up that proverbial peak oil creek without a paddle.
Fueled by the growing demand for fossil fuels, global oil production has increased over the years. But according to the October issue of the Petroleum Review, the party is over.
The current review illustrates that crude production by the world's largest private oil companies is currently in decline. Oh, and please keep in mind, that oil demand is still growing.
The latest production statistics show that in the first half of 2005, most the top 22. and almost all of the 10 publicly traded oil companies produced less crude and natural gas liquids than they did in 2004.
From now on, every year going forward, production will fail to meet demand, and shortfalls will increase. Mark my words.
The major oil companies are now really struggling to hold production levels. And only a small few are managing to maintain their market share of global production.
The review stated that of the top five oil giants, British Petroleum was the only company that managed to increased production at all.
If this doesn't vividly exemplify that the world now faces a serious production problem, I don't know what does.
Producers can no longer keep up with the world's insatiable appetite for oil. So prices must continue to climb.
High oil prices mean high prices for just about everything else. And the majority of Americans are in for a rude awakening.
This couldn't come at a worse time.
As you're about to read from Sam Hopkins, the Chinese economic juggernaut is just getting started. The fuel the Chinese transportation industry will need in the years ahead is going to stretch oil and gas supplies tighter than Joan Rivers' face.
Happy Halloween...
Or, as the Thought Police here in Balwmer call it now...
Happy Fall Festival,
Luke Burgess
-------------------- All IMHO. Do not rely upon anything I post to base your financial decisions upon.
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There was a big sell off on Friday because the wildcat well was determined to be non-commercial. So you guys may do well presently * .0082 pps. Myself I bought more shares on Friday to help average down. I like the new management and their new properties. You will be hard pressed to find other companies who will honestly give the bad news with the good news. This approach makes me feel more secure with a long hold.
GLTA
-------------------- All IMHO. Do not rely upon anything I post to base your financial decisions upon.
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Thank you for your e-mail. Currently, the the last Young update was offered October 31st as follows:
The first two gas wells are tied into the field gathering system. We have a very large compressor set to allow maximum flow from the wells into the sales line. The field is currently in the process of being changed over to a new sales system. As of last Wednesday, Young was staying in touch with the service company to get the tap made. From all indications, this process should be happening at this time. The tap and laying of 10.5 feet of pipeline are the final steps that remain. The good news is it will be worth the wait. We will be selling the gas at a higher price through this new line than through the old line. As for the third well, the crews should have it completed within days for direct hook up to the new gathering system.
As the last pr stated, we hope to have another update out very soon.
Sincerely, Investor Relations OMDA OIL & GAS
-------------------- All IMHO. Do not rely upon anything I post to base your financial decisions upon.
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Wait for November 24th.-December 1st., at that time we will know the numbers being sold in the new pipeline!!
Young has informed us that all 31 wells in the Gernt field, including our three wells, are in the process of being transferred to a new main transmission pipeline. This pipeline is wholly owned by Young Oil. This will increase the price that we and the other participants were receiving from the prior system owner by approximately $.60 per thousand cubic feet. This has required that the whole field be shut in for the past week. Sales into the new line are expected to begin tomorrow or Friday. We have mentioned before that these wells tend to increase in production as they “clean up” over time. It is anticipated we should have stable production numbers in two to three weeks. We will report the production rates at this time. http://www.omogoil.com/omog22.pdf
-------------------- All IMHO. Do not rely upon anything I post to base your financial decisions upon.
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I'll be buying in tomorrow and I agree with everything you have said. Also, it doesn't hurt to be partnered with Young Oil Company!
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