Terra Energy Update.....Doren
Posted: Sunday Aug 13 7:05:03PM 2006
TTR released fabulous Q2 results and is clearly turning this ship around. With an exit target of between 4600-6000 and gas prices that will skyrocket this winter this company is well positioned to benefit. Infrastructure is being built, production is now getting tied in, more land is being aquired and they are drilling along the pipeline route to bring on new discoveries much faster then in the past. This is a 10,000 BOED company in two years in my opinion.
Posted: Thursday Dec 15 4:29:22PM 2005
Terra is one of those oddball companies that is likely confusing the market. The last two quarterly financial results have been quite disappointing to say the least. A company the size of Terra should be generating significantly higher cash flow. It should be noted that 30% of production is medium oil which receives a discounted price compared to light oil. There were lots of workovers during Q2/Q3 and the company also had higher than normal production costs due in part to low utilization at some of its gas plants. Now the upside is that an oil hedge for 200 barrels of oil per day at an average price of $36.00 per barrel expires on December 31, 2005. In October 2005 a hedge on 1,000 GJ per day with a price cap of $8.95 per GJ and a price floor of $6.00 per GJ expired. Terra also expects to see a significant reduction in workovers in the fourth quarter and anticipates better throughput production during the fourth quarter with the tie-in of production. The market may react a bit better following fourth quarter results (which are still 4 months off) but another poor quarter may prove very damaging.