Monday, June 30, 2008

Horizontal wells = Vertical Profits! ~ Petrohawk Energy Corporation (Public, NYSE:HK)

FLOYD!  HK announces that it has completed its initial horizontal well in the Haynesville Shale. On June 27, 2008, the Elm Grove Plantation #63 was placed on production. On June 29, 2008, the well produced at an average rate of approximately 16.8 million cubic feet of natural gas per day with 5,600 pounds flowing casing pressure on a 26/64" choke. The pilot hole drilled on the well encountered approximately 212 net feet of Haynesville Shale. The targeted interval in the reservoir was at 11,005 feet true vertical depth, and a lateral of 3,880 feet in length was drilled. The completion of the well included eleven stages of fracture stimulation. The Elm Grove Plantation #63 is located in Section 9 - Township 16 North - Range 11 West, Bossier Parish, Louisiana. The co is currently drilling three horizontal Haynesville Shale wells and expects to have six operated rigs drilling Haynesville Shale wells by mid- September, 2008.

PETROHAWK (HK)  $47.80 +4.84 (+11.27%)   .... Faith in FLOYD! 

14 comments:

BUY ON THE DIP said...

275,000 acres!!!!!!!!!!

Petrohawk has leases or commitments for approximately 275,000 net acres in the Haynesville Shale and Bossier Shale of Northwest Louisiana and East Texas. Its position is built around its anchor property in the Haynesville Shale, Elm Grove field. Petrohawk continues to increase its acreage position in this area.

The Company is currently drilling three horizontal Haynesville Shale wells and expects to have six operated rigs drilling Haynesville Shale wells by mid- September, 2008. Petrohawk further intends to bring its total number of operated Haynesville Shale rigs to ten by the end of 2008. In anticipation of increased activity in the area, the Company has evaluated and planned for additional access to equipment, services, gathering and takeaway capacity. Petrohawk is currently utilizing existing infrastructure at Elm Grove to deliver new production from the Haynesville Shale to sales.

Petrohawk Energy Corporation is an independent energy company engaged in the acquisition, production, exploration and development of natural gas and oil with properties concentrated in North Louisiana, Arkansas, East Texas, Oklahoma and the Permian basin.

tradertom said...

Wohoo! Making mad profits with Floyd!!!

BUY ON THE DIP said...

we sold some HKGH for HUGE profits.

900%+

BUY ON THE DIP said...

ICO up 4%

JRCC up 7.5%

AKS up 2.5%

AGU up 1.5%
_______

R down 1.7%

CNW down 1%

.....abracadabra!

tradertom said...

I kind of really want to go ALL IN on some leap options in HK.

tradertom said...

Hmm... BWP needs more volume.

viking000 said...

Was there ever a doubt!!! FLOYD! FLOYD! FLOYD!

cobra_dog said...

Hey BOTD,

Question for you. What is your general risk management technique for options. Especially very short term options, when you can be down 50% in 2 seconds on a trade that may still be good. I have this problem where I see several good trades in a row and then they all get wiped out w/ one bad one.

tradertom said...

I don't like short term options at all. Play at least 3 months out and you'll still make mad profits. I made over 1000% on some HK options. And 300% in some USO options.

cobra_dog said...

ok. assuming I do those then... the same question applies. What is your "GET OUT" point ? trend lines ? straight percentage ?

Thanks!

tradertom said...

If it's a really good stock I don't get out. Like, I was down 85% in those HK options I made over 1000% on. Just make sure it's in a good sector AND there is a really strong trend line. XTO HK C are all good examples. C is obviously a short though. And don't put more then 10% of your portfolio into a single position unless you have a portfolio of 10k or less because options are quite expensive.

In these markets you have to play it safe. I don't like going against trends.

Anonymous said...

BOTD,

What gold producer does FLOYD! hold or endorse?

gunshobwoy said...

BOTD

Are still beating the PAL play? If so what is the sell point on this one? In other words when is the exit strategy employed?

BUY ON THE DIP said...

anon comment:
"What gold producer does FLOYD! hold or endorse?"

Floyd is the CEO of Petrohawk, not sure what gold plays he has, we don't know him..... we have friends who know Floyd and they got us in to HK march of 2007, after Floyd became the CEO ...our "friends of Floyd" said HK was going to 40+ before he would sell....we broke that target, and now HK is more transparent than ever. with todays news, they disclosed acreage, cubic feet of natgas, etc.... Floyd said he will SELL the company.

our new target short term target is $56, with a "takeover" target price of $77+.

---- for a GOLD play , (KGC) is the outperformer!

--- for SWC & PAL, we set a 10% stop loss, and plan on holding until 20%+ gains, or our stop loss. its a small palladium spec play within the DIPfolio, not a top 10 holding. and we are pretty much flat on the trade so far.... also, we don't have options on either, just holding the common. less risk, less reward.

hope that helps, cheers.


p.s. Cobra , most of the time we are down to lose everything on our option plays, we like OTM options, ...when you're right, you make more, when you're wrong, you lose all.

and we like to "scatter the board" ... meaning buying near term options (the month we are in) so that we catch that dip bounce! ... , while also buying a few months out, just incase our overall idea is correct but it may take a month or two to materialize.

and when to "GET OUT" .. like you said, usually you are down 50%+ so quick that it doesn't do much good to sell. a good way to look at it is... if you sell your loser, how much cash will you have, is it enough to make a difference? and where will you put the money if you cash out. is there a better opportunity elsewhere? if so , sell the loser, and try the new idea.