AvenEx Energy Corp AVNDF

2% gas ?

[thomas35]

STRONG BUY

5.510

Bruce Campbell

9.8% yield. Two thirds an oil producer and one third butane/propane/ethane marketing business that provides a steady cash flow. Their gas is only 2% of their output. Payout ratio last year was 56%.)

2012-02-06

I always thought that oil and gas production was one third each. What are your thoughts on this?

[TimeBuilder]

It "could" be that 98% production is oil and gas liquids combined and only 2% is basic dry gas which has no current market because of over supply. Only Bruce can answer that  2% question as the web site doesn't explain the true percentages. JMHO Long. strong and very happy happy, Regards, TimeBuilder

[okaynow]

excerpt from Q3 financial report "2011 capital expenditure projections have been increased to approximately $40.1 million from $34.0 million largely as a result of third quarter crown land purchases and seismic on a Slave Point and Gilwood play in NW Alberta. The 2011 capital program continues to be focused over 90% on oil related projects while inventorying natural gas projects for the

[pjn0987654321]

"with a production mix closer to a 50%/50% oil and natural gas liquids to natural gas split by year end 2011." See Canucklhead1's post on this topic here -https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=30636555&l=0&r=0&s=AVF&t=LIST

[themangokid]

I saw that marketcall.  if I remember correctly, bruce meant either the cashflow or the revenue generated from nat. gas represented only 2% of the revenue or the cashflow of the company.  He saw this as a positive.  The idea being even if nat gas went to zero it would only reduce the company's cashflow (or revenue) by 2%.  I guess though this calculation is influenced

[Al42]

I saw that episode as well and you are correct in that he said Nat Gas only made up aprox. 2% of their revenue at this time. As for the production, it could be 40 - 50% of their production but who cares as long as teir cash flow remains in tact.

[TimeBuilder]

Thanks guys for the 2% clarification input...makes more sense than our thoughts. Must learn to pay more attention to what I'm hearing and also reading. Regards, TB

[thomas35]

1. Oil & Gas Division Three months ended Nine months ended September 30 September 30 % % OIL & GAS OPERATIONS 2011, 3rd quarter. Production Oil and NGL’s – bbls per day 2,112 Gas – mcf per day 16,655 Total BOE3 per day 4,888 Average Pricing Oil & NGL ($/Bbl) after hedging $78.70 Natural Gas ($/mcf) after hedging $4.05 _____________________________________________   Based on

[themangokid]

I think BC said the CEO gave him the 2% number during a meeting.  It was obvious that BC thought this was a positive.  I'm not so sure however.  having your nat.gas production represent 2% of your cashflow (or revenue) would mean that their nat.gas $$ have plunged or their $$ from oil production have dramatically ramped up.  Maybe a little of both.  However, I dont

[thomas35]

That 2% number does not make sense. Anyhow, the increase price of oil & production should more than make up for this loss of revenue.

[themangokid]

I think it sounds funny too.  Maybe they shut in a bunch of nat.gas.  I dunno.  I'm looking forward to Q4 numbers. Last year they were announced near the end of March.