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The Federal Reserve Chairman’s statement on August 7th allayed fears in the market that saw a sell off in commodity stocks such as oil. By the end of the market day the bulls had returned and oil prices edged closer to $73. Natural Gas prices continued to rise and closed at $6.325 per million btu(s). The hurricane season still continues to weigh heavily on the minds on investors as the peak of the season is rapidly approaching (peak is usually in mid-August through September). Geopolitical fears are always present within the marketplace and the perfect storm of events could set off a drastic spike in prices.
Endeavor Energy’s property locations protect it from the risks of the energy market while exposing it to the potential gains with the wild price up ticks. A recent announcement by the company spoke of partnership with Quicksilver Resources to develop the prolific Chigwell area of east central Alberta. The Chigwell area is prone to oil and gas in various reservoirs from the deep Leduc to the shallow Belly River sands. Endeavor’s prospects are in the middle Mannville Glauconite formation and the Lower Mannville sands. Endeavor has a 100% working interest in the property, and under the terms of the agreement, Quicksilver will retain a 15% override. ENEC expects that drilling will commence on the property within 60 days (announcement on August 6th). Output at the drill site is expected to be in the range of 60-110 barrels of oil per day, or 500,000 cubic feet of natural gas per day. About Quicksilver Resources, Inc. Quicksilver Resources Inc. (NYSE: KWK) is a natural gas and crude oil exploration and production company engaged in the development and acquisition of long lived, unconventional natural gas reserves, including coal bed methane, shale gas, and tight sandsgas in North America. The company has U.S. offices in Fort Worth, Texas; Granbury, Texas; Gaylord, Michigan; Corydon, Indiana and Cut Bank, Montana. Quicksilver’s Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. For more information about Quicksilver Resources, visit www.qrinc.com. About Endeavor Energy Corporation Endeavor Energy Corporation is an emerging oil and gas development company focusing on the exploration, acquisition, and development of various oil and gas concessions around the world. The company’s current projects are located in Saskatchewan and Alberta region of Canada. For more information please visit www.endeavorenergy.com. |