Getting very frustrated with the sp. How many of us should have sold at 4.5p! Seems there is so little confidence in this small scale model. BOD clearly sticking to their strategy of small working interests. Guess for the short term there's better prospects out there. LGO seems to be going from strength to strength. Need to make a decision soon on whether to sell my holding in Maggers or LGO to fund stamp duty - any suggestions?
Compo compilers & entrants -- We are currently waiting on two well results only. There seems to be some foot-dragging on the 50 or so drills in which MAGP has elected to participate. Those at the lower end of the boepd scale have accordingly been more realistic.
Oil prices won't slow Oklahoma drilling for a while
Today Oil WTI $81.38 Negative -0.08 -0.10%
The price of oil has tumbled more than 20 percent from its peak in June, but oil and natural gas industry leaders say the short-term price drop is unlikely to slow drilling and production activity in the near future.
“Companies have made their commitments to develop for some time in the future,”
Oklahoma City-based Continental Resources Inc. CEO Harold Hamm said his company has protected itself against price swings.
“We don’t live in fear,” Hamm said. “We try to keep our costs in line and our cash margins where we can operate.
Continental also has locked in about two-thirds of its production this year and more than half of its production next year near $100 a barrel.
Devon Energy Corp. CEO John Richels has a similar perspective. Devon’s oil sands operations in Alberta, Canada, are especially protected from price swings, he said. Those projects require a large up-front investment, but the wells are then expected to produce at a relatively flat rate for at least 25 years.
Rita Whittington COO of Magnolia Petroleum said "As a result of our focus on low cost proven US onshore formations such as the Mississippi Lime, together with our cost-light corporate structure, Magnolia's cost to produce is very low at less than US$30 per barrel.
Like all oil companies, we would prefer to see higher oil prices, but even with pressure on the oil price Magnolia's margins are very healthy".
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