Archive for 'Oil'

Commodities Ready for Rebound?

The picture for the Commodities Markets in the last month shows some pretty bleak numbers.  Precious metals, Oil, Ag and Livestock are all down, down and down. But we all know that nothing lasts forever, not even bad news.  Here’s the report below from Credit Suisse Asset Management

Commodities were lower in July, driven by macroeconomic factors and supply fundamentals, according to Credit Suisse Asset Management.

The Bloomberg Commodity Index Total Return performance was negative for the month, with 21 out of 22 Index constituents trading lower.

Credit Suisse Asset Management observed the following:

  • Energy was the worst performing sector, down 14.47%, led lower by WTI Crude Oil. In addition to continued increased OPEC production, towards the end of the month there was also a slight rise in U.S. rig counts.
  • Agriculture decreased 11.11%, led lower by Kansas City Wheat and Chicago Wheat as limited rainfall in the U.S. Midwest supported harvest progress. Sugar also weighed on the sector as recent rainfall in Thailand contradicted expectations that El Nino would limit sugar crop growth.
  • Industrial Metals declined 7.30%, led lower by Copper as concerns that the recent volatile decline in the Chinese equity market may further dampen economic growth, decreasing demand expectations for the sector.
  • Precious Metals ended the month 6.37% lower. Improved U.S. economic data, including lower jobless claims and higher housing starts, bolstered expectations that the Federal Reserve may raise interest rates later this year as the economy continues to recover. The prospect of higher interest rates strengthened the U.S. dollar and reduced safe haven demand for gold and silver.
  • Livestock decreased 2.17%, led lower by Live Cattle, as the United States Department of Agriculture reported further supply increases compared to the same time last year.

Nelson Louie, Global Head of Commodities for Credit Suisse Asset Management, said: “Major macroeconomic headlines, such as the Greek debt negotiations and the decline in Chinese equity markets, raised global growth concerns. Although the turmoil surrounding the impasse in Greece impacted consumer confidence across the Eurozone, preliminary Purchasing Managers’ Index data showed that economic growth in Europe only lost slight momentum in July. The European Central Bank’s easing measures may continue to support future growth prospects. In China, economic data reflected declines in the manufacturing sector amid decreased consumer demand and weakened equity market conditions. However, the Chinese government has also shown resolve in its commitment to supporting the economy through various stimulus measures.”

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, “Meanwhile, in the U.S., inflation expectations remain below the U.S. Federal Reserve’s 2% target. However, the pace of economic progress in the U.S. versus the rest of the world increased expectations of divergent central bank policy. Macroeconomic factors may also continue to affect commodity demand expectations. So far, in the current phase of the business cycle, most U.S. asset classes have outperformed relative to non-U.S. asset classes. Central bank efforts may broaden the economic recovery into other regions, which may be supportive of commodity demand longer-term.”

About the Credit Suisse Total Commodity Return Strategy

Credit Suisse’s Total Commodity Return Strategy is managed by a team with over 28 years of experience, and seeks to outperform the return of a commodities index, such as the Bloomberg Commodity Index Total Return or the S&P GSCI Total Return Index, using both a quantitative and qualitative commodity research process. Commodity index total returns are achieved through:

  • Spot Return: price return on specified commodity futures contracts;
  • Roll Yield: impact due to migration of futures positions from near to far contracts; and
  • Collateral Yield: return earned on collateral for the futures.

As of July 31, 2015, the Team managed approximately USD 10.0 billion in assets globally.

Credit Suisse AG

Credit Suisse AG is one of the world’s leading financial services providers and is part of the Credit Suisse group of companies (referred to here as ‘Credit Suisse’). As an integrated bank, Credit Suisse is able to offer clients its expertise in the areas of private banking, investment banking and asset management from a single source. Credit Suisse provides specialist advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients worldwide, and also to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 46,000 people. The registered shares (CSGN) of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

Asset Management

In its Asset Management business, Credit Suisse offers products across a broad spectrum of investment classes, including hedge funds, credit, index, real estate, commodities and private equity products, as well as multi-asset class solutions, which include equities and fixed income products. Credit Suisse’s Asset Management business manages portfolios, mutual funds and other investment vehicles for a broad spectrum of clients ranging from governments, institutions and corporations to private individuals. With offices focused on asset management in 19 countries, Credit Suisse’s Asset Management business is operated as a globally integrated network to deliver the bank’s best investment ideas and capabilities to clients around the world.

All businesses of Credit Suisse are subject to distinct regulatory requirements; certain products and services may not be available in all jurisdictions or to all client types.

Important Legal Information

This document was produced by and the opinions expressed are those of Credit Suisse as of the date of writing and are subject to change without obligation to update. It has been prepared solely for information purposes and for the use of the recipient. It does not constitute an offer or an invitation by or on behalf of Credit Suisse to any person to buy or sell any security. Any reference to past performance is not a guide to future performance. The information and analysis contained in this publication have been compiled or arrived at from sources believed to be reliable but Credit Suisse does not make any representation as to their accuracy or completeness and does not accept liability for any loss arising from the use hereof.

Certain information contained in this document constitutes “Forward-Looking Statements” (including observations about markets and industry and regulatory trends as of the original date of this document), which can be identified by the use of forward-looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “target”, “project”, “estimate”, “intend”, “continue” or “believe”, or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties beyond our control, actual events, results or performance may differ materially from those reflected or contemplated in such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Credit Suisse has no obligation to update any of the forward-looking statements in this document.

Certain risks relating to investing in Commodities and Commodity-Linked Investments: 

Exposure to commodity markets should only form a small part of a diversified portfolio. Investment in commodity markets may not be suitable for all investors. Commodity investments will be affected by changes in overall market movements, commodity volatility, exchange-rate movements, changes in interest rates, and factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Commodity markets are highly volatile. The risk of loss in commodities and commodity-linked investments can be substantial. There is generally a high degree of leverage in commodity investing that can significantly magnify losses. Gains or losses from speculative derivative positions may be much greater than the derivative’s original cost. An investment in commodities is not a complete investment program and should represent only a portion of an investor’s portfolio management strategy.

Copyright © 2015, CREDIT SUISSE GROUP AG and/or its affiliates.  All rights reserved.

CONTACT: Justin Perras, Communications, T: (212) 538-2206; E: justin.perras@credit-suisse.com

RELATED LINKS
http://www.credit-suisse.com

Gold, Silver, Copper & Oil-Oh My!

Gold prices hit a five year low earlier this week and some have attributed the decline that Chinese investors are selling to meet margin demands.  There’s also less  Chinese demand for copper, silver,  iron , oil and palladium and that decreased demand will continue through the rest of the year. You also have to factor in the relation of a stronger US  Dollar to weaker commodity prices overall.

See more about Gold and Oil

Dresser-Rand Group Inc. (“Dresser-Rand” or the “Company”) (NYSE: DRC) announced today that its board of directors has authorized in total the repurchase of up to $150 million of its common stock, which is approximately 5 percent of the Company’s outstanding shares.  As of August 25, 2011, Dresser-Rand had 78.7 million shares of common stock outstanding.

According to Mark Baldwin, Executive V.P. and CFO, “the decision to repurchase was based on three criteria:

  1. the recent precipitous relative drop in the Company’s share price,
  2. the capacity that presently exists on our balance sheet, which allows for this level of expenditure, and
  3. our present view that we expect strong bookings in the second half of 2011. While we presently reiterate our previous guidance for 2011 in the area of bookings, we also acknowledge that, should our bids on several large projects for which we believe we have strong offerings actually materialize prior to the end of the year, we may be at the top end of, or even exceed, the guidance previously provided.

In essence, we believe that the time is right for repurchase, that we have the present capacity to fund the transaction, and that the strong expected bookings will generate sufficient cash flows to provide for reducing balance sheet leverage and at the same time enable us to meet ongoing financial commitments for working capital, capital expenditures and potential bolt-on acquisitions over the coming months.”

The stock buyback transaction is being carried out under an accelerated stock buyback agreement with Goldman, Sachs & Co.  As contemplated by that agreement, Dresser-Rand will pay approximately $150 million to Goldman, Sachs & Co. to repurchase outstanding shares of its common stock and will receive a substantial majority of the shares to be delivered under the accelerated stock buyback on August 31, 2011.

Goldman, Sachs & Co. is expected to purchase shares of Dresser-Rand common stock in the open market in connection with the accelerated stock buyback. The agreement contemplates that final settlement should occur early in the fourth quarter. At settlement, Dresser-Rand may be entitled to receive additional shares of common stock from Goldman, Sachs & Co. or, under certain circumstances, may issue additional shares or make a payment to Goldman, Sachs & Co. at the Company’s option.

About Dresser-Rand

Dresser-Rand is among the largest suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, and process industries.  The Company operates manufacturing facilities in the United States, France, United Kingdom, Spain, Germany, Norway, India, and China, and maintains a network of 45 service and support centers (including 6 engineering and R&D centers) covering more than 140 countries.  Dresser-Rand has principal offices in Paris, France, and Houston, Texas.

This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements with respect to planned or proposed repurchase of shares of common stock.  Forward-looking statements include, without limitation, the Company’s plans, objectives, goals, strategies, future events, future revenue, or performance, capital expenditures, financing needs, plans, or intentions relating to acquisitions, business trends, executive compensation, and other information that is not historical information.  The words “anticipates”, “believes”, “expects,” “intends”, and similar expressions identify such forward-looking statements.  Although the Company believes that such statements are based on reasonable assumptions, these forward-looking statements are subject to numerous factors, risks, and uncertainties that could cause actual outcomes and results to be materially different from those projected.  These factors, risks and uncertainties include, among others, the following: potential for material weaknesses in its internal controls; economic or industry downturns; the variability of bookings due to volatile market conditions, subjectivity clients exercise in placing orders, and timing of large orders; volatility and disruption of the credit markets; its inability to generate cash and access capital on reasonable terms and conditions; its inability to implement its business strategy to increase aftermarket parts and services revenue; competition in its markets; failure to complete or achieve the expected benefits from any future acquisitions; economic, political, currency and other risks associated with international sales and operations; fluctuations in currencies and volatility in exchange rates; loss of senior management; environmental compliance costs and liabilities; failure to maintain safety performance acceptable to its clients; failure to negotiate new collective bargaining agreements; unexpected product claims and regulations; infringement on its intellectual property or infringement on others’ intellectual property; its pension expense and funding requirements; difficulty in implementing an information management system; and the Company’s brand name may be confused with others.  These and other risks are discussed in detail in the Company’s filings with the Securities and Exchange Commission at www.sec.gov.  Actual results, performance, or achievements could differ materially from those expressed in, or implied by, the forward-looking statements.  The Company can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them does, what impact they will have on results of operations and financial condition.  The Company undertakes no obligation to update or revise forward-looking statements, which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.  For information about Dresser-Rand, go to its website at www.dresser-rand.com.

DRC-FIN

http://www.dresser-rand.com

Next Generation Energy Corp (OTCQB : NGMC) Hits Home Run with Major Oil Field Purchase

Next Generation Energy Corp (OTCQB : NGMC) Hits Home Run with Major Oil Field Purchase-Image via Wikipedia

Next Generation Energy Corp (OTCQB : NGMC) today announced it has entered into an agreement to purchase 7,715 acres of natural gas and oil rights in the prolific Devonian Shale region of South Eastern Kentucky.

The property consists of 39 tracks located in the Knox County area of southeast Kentucky known for large reserves of natural gas and oil. The appraised value of these commodities on this property is estimated at $55 million or more. Darryl Reed, NGMC CEO, stated that “this acquisition is a home run for NGMC as the property can support up to 80 wells and can generate $55 million in natural gas and oil revenues at today’s energy prices. Any increase in energy prices will be pure upside for the Company.”

Next Generation Energy Corp. has been focused on this geographic area because Kentucky offers many advantages for development.  The area has significant recoverable natural gas and oil reserves in place and has been generally ignored by larger energy companies due to the small output from individual wells, typically between 20 and 80 barrels per day of oil and 10 – 200 million cubic feet of natural gas, as compared to larger well production in Alaska, West Texas, Louisiana and the Gulf of Mexico.

“Another major advantage for developing these tracts is that recovery is achieved at much shallower depths (between 2000 and 2500 feet), thereby significantly reducing drilling costs,” said Mr. Reed. “Natural gas and oil wells in Kentucky are legendary for producing for very long periods of time and in some cases wells have produced for 20 to 100 years. Since the development of new drilling technologies such as horizontal drilling, hydraulic fracturing, and others, wells can be much more productive then earlier convention drilling methods.”

“The State of Kentucky is very energy development friendly and offers a variety of rich geological resources through the University of Kentucky and the Kentucky Geological Survey,” Mr. Reed said.

“This important addition to our energy producing property portfolio is the largest to date.  Next Generation Energy Corp. is in the process of selecting a highly qualified and reputable operator to begin developing these newly acquired tracts.  On another level, we are proud to contribute to increased supplies of domestically recovered energy, reducing our dependence on foreign sources,” Mr. Reed concluded.

NGMC is focused on aggressively growing its existing portfolio of developed, valuable natural resource royalty producing properties, including natural gas, oil and coal, with a primary focus on natural gas. The Company’s strategy is to acquire properties that are undervalued or under-utilized and are currently producing energy commodities. Once acquired, NGMC outsources all expansion exploration, upgrades, drilling and mining operations through leases with well known, environmentally-conscious operators. Royalty cash produced from the properties is reinvested back into NGMC to acquire additional properties in order to maximize shareholder returns.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains or may contain forward-looking statements such as statements regarding the Company’s growth and profitability, growth strategy, liquidity and access to public markets, and trends in the industry in which the Company operates. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in risks, uncertainties or assumptions underlying or affecting such statements, or for prospective events that may have a retroactive effect.

Darryl Reed
CEO
703-372-1282
IR@nextgenerationenergycorp.com
Paul Knopick
E & E Communications
949.707.5365
pknopick@eandecommunications.com

Oil & Gas Co. Finances More Drill Sites

Oil & Gas Co. Finances More Drill Sites

Oil & Gas Co. Finances More Drill Sites-Image via Wikipedia

Daybreak Oil and Gas, Inc. (OTC Bulletin Board: DBRM) (“Daybreak” or the “Company”), a Washington corporation, announced that it has received a commitment for a $3,500,000 secured loan (the “Loan”).  The term of the Loan will be for three years with an interest rate of 6% per annum.  Also, in accordance with the terms of the commitment, the Company will make monthly payments of interest on the proposed Loan, with the entire principal balance due at the end of the term.  The Loan will be secured by the Company’s leases at its East Slopes Project located in Kern County, California.  The Company will also issue 3.5 million restricted shares of its common stock and assign a 5% net profits interest from the Company’s leases at its East Slopes Project to the lender.  Subject to definitive documentation, due diligence and customary closing conditions, the Loan is expected to close on or before June 30, 2011.  Proceeds of the Loan will be used to expand the development of the Company’s East Slopes Project as well as repay the $750,000 principal amount under its existing Secured Promissory Note due September 17, 2011, relating to the Company’s acquisition of additional working interest in its East Slopes Project and for other general corporate purposes.

Global 3 Capital, LLC is assisting the Company with the transaction.  Global 3 Capital, LLC specializes in the funding of oil, gas and alternative/renewable energy sectors.

Future Plans

The Company plans to drill up to nine wells at its East Slopes Project during its 2012 fiscal year, which began on March 1, 2011.  Locations have already been constructed at the Company’s Bull Run Prospect and at the Ball location.  Drilling is expected to begin at Bull Run by mid July 2011, followed by a development well at our Ball Location.  A workover will also be conducted on our Ball #1 well.

James F. Westmoreland, President and Chief Executive Officer commented, “We believe that this is the right type of financing for the Company and its shareholders.  Share dilution has been kept to approximately 7% and the Loan terms will allow the Company to proceed with its plans while not being burdened under a heavy debt load.”

Daybreak Oil and Gas, Inc. is an independent oil and gas company engaged in the exploration, development and production of oil and gas in California.  The Company is headquartered in Spokane, Washington with an operations office in Friendswood, Texas.  Daybreak has over 20,000 acres under lease  in the San Joaquin Valley of California.

For more information about Daybreak Oil and Gas, Inc., please visit the Company’s website at www.daybreakoilandgas.com.

Contact:
Ed Capko Telephone: 815-942-2581
Investor Relations Email: edc@daybreakoilandgas.com

“Safe Harbor” Statement under Private Securities Litigation Reform Act of 1995: Certain statements contained herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Information contained herein contains “forward-looking statements” which can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “should,” “up to,” approximately,” “likely,” or “anticipates” or the negative thereof or given that the future results covered by such forward-looking statements will be achieved.  These forward-looking statements are based on our current expectations, assumptions, estimates and projections for the future of our business and our industry and are not statements of historical fact.  Such forward-looking statements include, but are not limited to, statements about our expectations regarding our financing, our future operating results, our future capital expenditures, our expansion and growth of operations and our future investments in and acquisitions of oil and natural gas properties.

We have based these forward-looking statements on assumptions and analyses made in light of our experience and our perception of historical trends, current conditions, and expected future developments.  However, you should be aware that these forward-looking statements are only our predictions and we cannot guarantee any such outcomes.  Future events and actual results may differ materially from the results set forth in or implied in the forward-looking statements.  The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements:  failure to negotiate and enter into a Loan as well as receive any funds; general economic and business conditions; exposure to market risks in our financial instruments; fluctuations in worldwide prices and demand for oil and natural gas; fluctuations in the levels of our oil and natural gas exploration and development activities; our ability to find, acquire and develop oil and gas properties, including the ability to develop the East Slopes Project prospects; risks associated with oil and natural gas exploration and development activities; competition for raw materials and customers in the oil and natural gas industry; technological changes and developments in the oil and natural gas industry; legislative and regulatory uncertainties, including proposed changes to federal tax law and climate change legislation, and potential environmental liabilities; our ability to continue as a going concern; and our ability to secure additional capital to fund operations.  Additional factors that may affect future results are contained in our filings with the Securities and Exchange Commission (“SEC”) and are available at the SEC’s web site http://www.sec.gov.  Daybreak Oil and Gas Inc. disclaims any obligation to update and revise statements contained in this press release based on new information or otherwise.

http://www.daybreakoilandgas.com

Wanted: 25 CEOs

Hydrotex® announces the launch of a nationwide search for twenty-five Area CEOs, Hydrotex Division Partners.

John Beasley, President & CEO, states, “We are excited about our growth in a time when many companies are cutting positions.  This is a fantastic opportunity for the entrepreneurial minded leader.  Our Division Partners are responsible for all Hydrotex Operations in their area and are vital to the success of our organization.”

Hydrotex Division Partners provide sustainable lubrication solutions to industrial, commercial and institutional end users. Division Partners act as the local CEO and lead all sales, marketing, customer service and logistics functions related to lubrication solutions in a defined exclusive market.  They are the highest paid executives in Hydrotex and are among the best paid field representatives in the industry. New Division Partners receive heavy training and staff support as well as special incentives during their startup period.

The company provides timely lubricant and fuel science to our sales force, customers and the public through our rigorous, nationally recognized Lubrication University.   The company maintains up-to-date technical information and forecasts on the latest industry trends, applications, and product technology developments.  Hydrotex products include a complete line of synthetic greases, heavy duty automotive and industrial lubricants, fuel improvers, and food grade products as well as high technology maintenance consulting services.

Hydrotex® is a manufacturer and distributor of high performance lubricant and fuel improver solutions.  As an employee owned company, we help our customers develop sustainable solutions designed to improve system reliability, save energy, limit pollution, extend fixed asset life, reduce maintenance costs and improve fuel efficiency. Our products and services leverage over 75 years of innovation resulting in superior synthetic lubrication solutions and high touch customer service.

For additional information visit us at www.hydrotexlube.com

CONTACT: Hydrotex, +1-972-389-8500, llampkin@hydrotexlube.com

Web Site: http//:www.hydrotexlube.com

Senetek Plc (OTC Bulletin Board: SNKTY) Oil Wells Show Promising Results

Senetek Plc (OTC Bulletin Board: SNKTY) Oil Wells Show Promising Results-Image via Wikipedia

Senetek Plc (OTC Bulletin Board: SNKTY) announced today an update on its oil project in Dawson County, Texas in which the Company holds a 15% working interest. In review, during the quarter ended September 30, 2010 drilling commenced on the initial test well (the Riggin #1). This well was completed for production and achieved commercial production in November, 2010. The well was completed in the Mississippian formation, which was the lowest of the targeted production horizons, and after initial production rates in the 50-70 barrel per day ranges, has leveled off at a steady production rate of approximately 30 barrels per day, with virtually no water cut.

During the quarter ended December 31, 2010 drilling commenced on the second test well (the McCarthy #1). The well commenced drilling during the first week of January, 2011, and achieved a total depth of 10,500 feet. The well was logged and several zones including the Upper Spraybury formation, the Pennsylvanian formation and the Mississippian formation showed the presence of hydrocarbons. The Mississipian formation in particular showed over 25 feet of pay with porosities up to 14%. Completion of that zone is planned with flow rate tests on the well scheduled for the week of February 14, 2011.

Howard Crosby, President of Senetek remarked, “We are very excited about the results from the logging of the McCarthy #1 well. With porosities over 25 feet ranging from 9-14%, we are expecting this to be a very productive well from the Mississippian horizon.” Details of further development plans and results will be available in forthcoming press releases as they become available.

This news release contains statements that may be considered ‘forward-looking statements’ within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements by their nature involve substantial uncertainty, and actual results may differ materially from those that might be suggested by such statements. Important factors identified by the Company that it believes could result in such material differences are described in the Company’s Annual Report on Form 10-K for the years 2008 and 2009 and subsequent Quarterly Reports on Form 10-Q. However, the Company necessarily can give no assurance that it has identified or will identify all of the factors that may result in any particular forward-looking statement materially differing from actual results, and the Company assumes no obligation to correct or update any forward-looking statements which may prove to be inaccurate, whether as a result of new information, future events or otherwise.