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Penn Virginia Corp. Should Capitalize on the Haynesville Shale

 Jul 01, 2008 01:33 PM UTC
Return Risk
-34.42% HIGH
Tracked Blogger
Symbol Sentiment Start Return Closed
GMXR n/a
HK n/a
PVA Positive 07/01/08 -93.02% --
CHK n/a

Graphic_arrow1 Via Long Investment Ideas from Seeking Alpha:  


Yesterday there was some interesting news with respect to the Haynesville Shale. Petrohawk (HK) stated that their first horizontal drill in that area was producing 16.8 million cubic feet of natural gas per day. I stated HK was a buy on theupdown.com 6 days ago and it is already up over 14%. Last March the CEO of Chesepeake (CHK) stated the Haynesville Shale may have 20 trillion cubic feet of natural gas. My call on CHK was 102 days ago and is up over 51% in that time frame. GMX Resources (GMXR), which I recommended 54 days ago on theupdown.com and is up 69.1%, was also up on the HK news.


The news surrounding this shale should help many of the companies drilling in the area such as Penn Virginia Corp. (PVA). They recently announced one of their horizontal wells was producing 8 million cubic feet of natural gas per day. PVA had 30% production growth last year and 18% per year for the last three. This year they estimate that growth will be between 21% and 27%. For the first quarter of this year, the growth was 21%. Reserve growth last year was 82% while reserve replacement was up 628%.


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watchhome   N/A     1 point   commented 200 days ago reply

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