Deals, Deals, Deals in the Energy Sector

Newsletter No. 23

Good morning!

Hope everyone had a great week last week. 


Today’s Headlines

  • It’s Hot Every Year in Texas

  • Deals, Deals, and More Deals!

  • Want to Learn More About King Operating?

  • Well of the Week: Lone Star Bertha Rogers No. 1


It’s hot every year in Texas

Hope everyone is staying cool this summer, especially those living in southern states like Florida, Louisiana and Texas.


We visited our daughter’s boyfriend, Reid, this past weekend in Odessa, where he’s going to school. It was a toasty 105 degrees there on Sunday. 105! Now, that’s pretty HOT!


Reid isn’t just going to college there, he’s playing football, too! I can’t even imagine how he and his teammates can play in this heat.


As my friend Darren says, “It’s hot every year.” There’s so much truth to that!  


Deals, Deals, and More Deals!

What a great start to some A&D in the oil markets this week.


Exxon is paying $4.9 billion for Dallas-based Denbury Resources. Denbury’s assets include a 1,300-mile pipeline for CO2. This purchase provides Exxon with the largest owned and operated CO2 pipeline in the United States. It would be close to impossible to put together this immense amount of pipeline in today’s world with regulations.  


Crescent Energy looks to pick up approximately 20,000 barrels of oil per day equivalent for $600 million with its Eagle Ford acquisition. Crescent believes the acquisition will also increase capital investments by approximately $45 – $55 million.


Ring Energy acquired Permian Basin Assets for $75 million in cash, adding about 2,500 barrels of oil equivalent per day and 3,600 acres. I am an investor in Ring Energy stock and have always thought they were a very good ran company with great assets.  


Going back to the early 90s with Ring Energy, I worked with Kelly Hoffman in Dallas. Kelly went on to be the CEO of Ring Energy from 2013-2020, and he is currently working with ex-Ring Energy executive, Daniel Wilson. They are currently laying the groundwork for an IPO. They have picked up some assets in the Permian and I’m sure we will hear more about them in the coming months.  


Want to learn more about King Operating?

As mentioned in previous newsletters, public companies are flush with cash and looking for great opportunities in the oil patch. It’s a great time for oil and gas.


If you’d like to learn more about opportunities to participate or if you have something specific you’d like to discuss, you can reply to this email or fill out your information here and someone will reach out. 


Well of the Week: Lone Star Bertha Rogers No. 1

This week, we’re going deep, I mean REALLY DEEP with our Well of the Week. Lone Star Bertha Rogers No. 1 holds the distinction of being the deepest well ever drilled in the United States. Located in the Washita County, Oklahoma, this well reached a depth of 31,441 feet or 9,583 meters!


The well held the record for being the deepest hole in the world until a hole drilled in Russia, the Kola Superdeep Borehole, surpassed it at over 40,000 feet.


The company that drilled the Bertha Rogers hole was the Lone Star Producing Company. They began in October 1972 and reached the maximum depth in April 1974, over a year and a half later.


The Bertha Rogers Well was drilled by the largest land rig in the world. A specifically designed extra-wide pipe was used and about 60 feet per day were drilled into the ground. Drilling stopped when the rig hit liquid sulfur. 


Although the Bertha Roger hole was intended to be a good business proposition, it became very costly to drill into the ground. It was reported that it cost $7 million but yielded very little natural gas. The gas was only discovered at 4000 meters.


In 1997, the hole ceased production of natural gas and it was plugged and abandoned. Now it may just be considered an “ultradeep dry hole.” 

Recommended Reads

California new oil well approvals have nearly ground to a halt

Has Texas Heat Affected Oil and Gas Operations?

Oil and gas stocks: Which companies are insiders buying?

There are some outstanding results developing in the current program… KOPX Program 4. If you are not in it, and you are accredited, it’s a good time to have a conversation! You can schedule a Zoom here.

 All the best,