Nexen latest production numbers

[selkirk]

Nexen NXY stated that production in 2007 will be slightly lower than previous guidance. (was 278,000 bpd to 305,000bpd.)

probably produce 265,000bpd to 278,000bpd.

Buzzard is now producing at an avg. 68,000bpd, though buzzard is now producing and growng Ettrick field (north sea also ) has been delayed until first half 2008.

before going further should state that production Q2, was 253,000bpd.

most of the short fall is from lower natural gas production from the their US operations Gulf of Mexico. the wells will soon be tied in and this production from Aspen and Wrigley will go up. within three months both will be producing.

Long Lake (oil sands play) is running 4 months behind schedule, though within 12-18 months should be producing oil.

finally 18 more well are going to be drilled in Gulf of Mexico.

the company will have production growth and have a great chance to grow their reserves. some of these large projects delays are not uncommon in the energy sector.....

cash flow in 2007 $6.25-6.30 2008 7.15-7.20
earnings per share 2007 2.50 2008 3.30

Q2 EPS was .62 was two cents ahead of estimates
(most)

and Cash flow /share in Q2 1.62 this beat estimates by .04.

I own NXY, they are well run have a cdn. oil sand play coming on stream soon (less than 24 months. by the way cost on new projects are rising rapidly so it is good NXY is almost completed.) also gulf of mexico and north sea should see production growth.

also own TLM, PCA, SU, CNQ, ECA,
also have small holdings in 3 int. oil/gas companies and 2 cdn. income oil/gas income trusts (cresent, a buy, and pen west rate a hold.)

Have sold puts on COP and Husky oil, believe they will trend higher.

own no drilling or service stocks. just prodcuers and int. companies.


by the way thought oil would trade down to $60, instead it has risen.
was a strong move above 70, and believe oil/gas will be good place to be in the long term.

short term......hard for me to predict......did not expect the strength the last two weeks.
the number and invesments assume 60 oil.

thanks
selkirk

 

[djv]

Selkirk, If some of these studies that demand for oil products will continue to increase 3 to 4% a year. But production stays as is or slight dip. It seems oil has to stay high. And if supply gets stalled do to storms or weather related reasons. It will stay even higher. We may see slight dip to 55/60 but 65 and up looks to be here for long time. I know that is based on many I'F's. But the trends sure look to upside. I been using the USO and it's worked well to this point a nice upside.

 

[selkirk]

djv would agree with you on the upward trend, do not factor in storms. last year there was supposed to be more than normal....very light year.

two years ago they suggested a mild storm season and the opposite occurred. so hard to play that angle, though it is a threat, by the way this year is predicted to have more storms than normal..... would effect and is probably in the natural gas prices already to some extent.

believe demand growth will be in the 1-3% range...probably around 2%. going forward.

in the US for example demand is expected to grow 1.1% to 1.4% next year....though those numbers may prove low. also Asia is growing quicker.

another two points for the bullish case is that opec countries are having growing populations and are acutally consuming more than ever. so more oil is needed for their own domestic use.

the other bullish point for oil is much of oil in the world is controlled by state owned companies, over 80%.... often these companies are underfunded (do not reinvest, in the oil sector), also they are also run by politics at the current time....many examples.

still oil in the short term trades on the weekly US numbers (released wed). and short term economic news, and political problems,. ie. nigeria.

thought there would be peace for 3 weeks, in Nigeria, and the sub prime noise would worry people about the economy.

still may happen, long term bullish.....would like to add my exposure to oil/gas is probably more than most.....in cdn. the indexes are heavlily waited towards oil/gas energy and base metals....

thanks
selkirk

 

[ageecee]

Nexen NXY stated that production in 2007 will be slightly lower than previous guidance. (was 278,000 bpd to 305,000bpd.)

probably produce 265,000bpd to 278,000bpd.

Buzzard is now producing at an avg. 68,000bpd, though buzzard is now producing and growng Ettrick field (north sea also ) has been delayed until first half 2008.

before going further should state that production Q2, was 253,000bpd.

most of the short fall is from lower natural gas production from the their US operations Gulf of Mexico. the wells will soon be tied in and this production from Aspen and Wrigley will go up. within three months both will be producing.

Long Lake (oil sands play) is running 4 months behind schedule, though within 12-18 months should be producing oil.

finally 18 more well are going to be drilled in Gulf of Mexico.

the company will have production growth and have a great chance to grow their reserves. some of these large projects delays are not uncommon in the energy sector.....

cash flow in 2007 $6.25-6.30 2008 7.15-7.20
earnings per share 2007 2.50 2008 3.30

Q2 EPS was .62 was two cents ahead of estimates
(most)

and Cash flow /share in Q2 1.62 this beat estimates by .04.

I own NXY, they are well run have a cdn. oil sand play coming on stream soon (less than 24 months. by the way cost on new projects are rising rapidly so it is good NXY is almost completed.) also gulf of mexico and north sea should see production growth.

also own TLM, PCA, SU, CNQ, ECA,
also have small holdings in 3 int. oil/gas companies and 2 cdn. income oil/gas income trusts (cresent, a buy, and pen west rate a hold.)

Have sold puts on COP and Husky oil, believe they will trend higher.

own no drilling or service stocks. just prodcuers and int. companies.


by the way thought oil would trade down to $60, instead it has risen.
was a strong move above 70, and believe oil/gas will be good place to be in the long term.

short term......hard for me to predict......did not expect the strength the last two weeks.
the number and invesments assume 60 oil.

thanks
selkirk

18 more wells drilled in GOM i need to get some of there work.