The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
GHS Initiates Coverage of EXXI
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MICHAEL BODINO, Global Hunter Securities
(12/23/2010)
"Effective strategy: With an experienced management team, Energy XXI combines a low-risk exploitation strategy with a high-impact exploration program. EXXI has a proven ability to make acquisitions that add to current production and provide a significant amount of upside in known stacked field pays and deeper regional horizons. In addition, EXXI spends a small amount of its cash flow to gain exposure to exciting exploration opportunities. Management has been successful at leveraging industry experience and relationships to not only make a series of acquisitions, but also increase its exposure to opportunities on the exploration front. Transformational acquisition: It would not feel like the holidays without Energy XXI acquiring assets. For the second year in a row, EXXI has made a significant transaction. With the $1 billion cash purchase of shelf interests from Exxon, the company picked up 49.5 Mboe (61%) of proved reserves and production of 18,765 Boe/d (55% oil). Including the ARO of $154.6M, EXXI paid $23.58/Boe for proved reserves and $62,169 per Boe/d of production. This transaction should increase EXXI proved reserves to 125 Mboe, up 65% from fiscal 2010 levels. In addition, this transaction increases 2P reserves from 92.1 Mboe to 158.1 Mboe. Big-time growth: After producing 7.9 Mboe in FY10, EXXI was geared for solid sequential growth with production over 10 Mboe in FY11. The recent XOM transaction should vault production to 13.9 Mboe in FY11 and to 17.5 Mboe in FY12. There is upside to this number with drilling on the newly acquired properties or any deep-shelf production. We are initiating coverage of Energy XXI with an Accumulate rating and a 12-month target price of $33." |
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