UPL - $42.00 Ultra Petroleum ** Stop loss $37.00 **
The breakout trigger was hit at $38.75 on Monday at the open and it never looked back. Resistance appeared at $42.50 after a very strong run and several positive news announcements during the week. After their presentation last week there will be a lot of buyers waiting on any dip.
Ultra Petroleum is ultra strong. I sat in for their presentation last week in Denver and they have so much good news it was hard for them to fit it into a 30 min slot. They are concentrating their efforts on the Pinedale Anticline in the Green River Basin in Wyoming. They have over two thousand well sites plotted and they just announced on Wednesday that they got a reduced acreage approval for 10-acre spacing on a portion of this lease. They will be applying for 10-acre on the rest and this will double potential well sites. This is a very productive formation with an almost 100% completion rate. This company is minting money and ramping up to drill even faster.
Ultra Petroleum Corp. is an oil and gas company engaged in the development, production, operation, exploration and acquisition of oil and gas properties. The Company's operations are focused in the Green River Basin of southwest Wyoming and Bohai Bay, offshore China. During the year ended December 31, 2004, it owns interests in approximately 166,974 gross (92,997 net) acres in Wyoming covering approximately 260 square miles. The Company owns working interests in approximately 241 gross productive wells in this area and is operator of 41.5% of the 241 gross wells. Through Pendaries Petroleum Ltd., it is active in oil and gas exploration and development in Bohai Bay, China. The Company also owns interests in 15,518 gross (14,652 net) acres in Pennsylvania, as well as interest in approximately 720 gross (320 net) acres and interests in three productive wells in Texas.
2007 $40.00 LEAP Call OZH-AH @ $8.90
Entry $38.75 (8/08)
NOV - $60.13 National Oilwell Varco ** Stop loss $55.00 **
We got the breakout trigger on Wednesday after a minor dip to $58 and a nice bounce back to $61. Thursday and Friday were flat with support appearing at $60. This company is very strong with revenue doubling in their most recent earnings report on Aug-5th. Their guidance was very strong for 2H-2005 and beyond. The company merged with Varco back in March and the synergies are very good. After a period of post merger consolidation over the spring the trend has picked up substantially.
National-Oilwell Varco Inc., formerly National-Oilwell, Inc. designs, manufactures and sells systems, components and products used in oil and gas drilling and production, as well as distributes products and provides services to the exploration and production segment of the oil and gas industry. The Company's Products and Technology segment designs and manufactures complete land drilling and work over rigs, as well as drilling-related systems on offshore rigs. Non-capital revenue sources within its Products and Technology segment include drilling motors and specialized down hole tools that are sold or rented, spare parts and service on the large installed base of its equipment, expendable parts for mud pumps and other equipment and smaller down hole, progressive cavity and transfer pumps. Company's Distribution Services segment provides maintenance, repair and operating supplies and spare parts to drill site and production locations throughout North America and to offshore contractors.
FEB 2006 $60 CALL NOV-BL @ $6.00
Entry $59.50 (8/10)