The energy markets have continued to face volatile price movements throughout 2016. Natural gas prices have managed to recover after a steep sell off across the financial markets which led investors to dump risky investments and turning to safe havens. Given the miserable last few years the energy sector has faced and lousy beginning of 2016; it appeared the energy bears could not give up control.
After seeing the price of natural gas dip below $2.00 MMBTUs in early March 2016, the price of gas has since rallied back to $2.822 MMBTUs and post year to date gains of 3.37% through August 2016. Most of the rally in natural gas could be attributed to the above-average heat wave that has largely effected the United States this summer. In addition, the production decline of 3% since February 2016, has also aided the bullish move. In fact, the U.S. Energy Information Administration released a gas inventory report on August 4, 2016 that showed natural gas storage shrank by 6 billion cubic feet, through the week of July 29th. This marked the first summer drawdown in natural gas storage since August 4, 2006.
While natural gas demand tends to peak in the summer time, forecasts of warmer weather continue to show up across the country. Without a doubt, the rally in natural gas does face some hurdles. Very heavy production and imports from Canada continue to add to total supply and lowering prices. Ultimately, commodities traders see a mild Fall and moderate Winter in 2016. Natural gas prices are impacted by supply/demand factors, unseasonable weather, production, and more.
The price of natural gas could go in either direction for the rest of 2016, but we do know that gas is not going anywhere. The fact that natural gas is cheaper than coal to use as a heating and energy source and is a cleaner option for the environment, shows that demand will likely continue over the next many years.
One company that operates in the natural gas exploration and production business is 1st NRG Corp. (OTC Pink: FNRC).
Overview and Energy Projects
Headquartered in Denver, Colorado, 1st NRG Corp. (OTC Pink: FNRC) is engaged in the exploration and production of coal bed methane, one of the cleanest forms of natural gas. 1st NRG Corp. (OTC Pink: FNRC) operates Clabaugh Ranch in the Powder River Basin of Wyoming and holds a non-operated interest in an oil & gas well in the Beekmantown Dolomite formation in SE Ohio.
The interest in the Clabaugh Ranch field was purchased in October 2010 by the natural gas company and is located in the Powder River Basin of Wyoming. 1st NRG Corp. (OTC Pink: FNRC)’s acquired interests include 43 producing wells, and 3,059 acres of undeveloped land capable of holding another 36 wells. Being that 1st NRG Corp. (OTC Pink: FNRC) is operating in shallow drilling environment, the company experiences lower costs and able to continue drilling over a number of years.
While production at the Wyoming coal methane field has been shut-in, 1st NRG Corp. (OTCPink: FNRC) has announced they will be restarting production on its projects within the next couple of weeks. Thanks to 1st NRG Corp. (OTC Pink: FNRC)’s low cost business model that focuses on shallower drilling, the rally in the price of natural gas has allowed the company to enter into a profitable working environment again. Overall, management estimates 1st NRG Corp. (OTC Pink: FNRC) holds around 18.2 million Bcf of proven natural gas reserves at its Clabaugh Ranch project.
Turning to 1st NRG Corp. (OTC Pink: FNRC)’s oil & gas well located in the Beekmantown Dolomite formation. Management is pleased to announce that most of the pipeline is set to come back online within the next month or two, and should continue to progress throughout 2016. The 1st NRG Corp. (OTC Pink: FNRC) maintains 100% of the offset development rights on this oil & gas well in Eastern Ohio.
Ultimately, with natural gas and oil well operations looking to come back online within the next several weeks, 1st NRG Corp. (OTC Pink: FNRC) management is forecasting to see revenues between $150-160,000 moving forward with the rest of 2016. The key to 1st NRG Corp. (OTC Pink: FNRC)’s success in a relatively rough energy sector environment is to carefully map out geographical areas within its Clabaugh Ranch and the Beekmantown Dolomite formation, that are deemed to be “low geographical risk.” In other words, an area that does not need deep drilling and is able to be a repeatable development opportunity.
FNRC: Financial and Competitor Analysis
Now lets take a look at 1st NRG Corp. (OTC Pink: FNRC)’s financials and competitor analysis. As of August 2016, 1st NRG Corp. (OTC Pink: FNRC) has a market cap value of nearly $110.1 million. Furthermore, the natural gas explorer and producer has a share structure that consists of 20 billion authorized shares, 5.41 billion shares, and a float of nearly 409.5 million shares, as of June2016. The unfriendly business environment that has plagued the energy sector still continues, as natural gas and oil commodities continue to experience losses. As a result, 1st NRG Corp. (OTC Pink: FNRC) did not post revenues during the 1st quarter of 2016 and experienced a net loss of $222,014.
While natural gas commodity futures are up 3.37% year to date, through August 2016, energy commodities have been giving up gains from earlier in the year in recent weeks. Within the natural gas and oil exploration and production industry, there is a wide range of expectations to where market conditions are heading. Some companies suggest that they are expecting higher oil and gas prices by the end of 2016. However, others suggest that the supply glut with only continue to bring prices down and hold them hostage. Ultimately, the industry relies on the fact that not all natural gas and oil fields are equal, making some areas more affordable, desirable to explore and produce than other areas.
Ultimately, 1st NRG Corp. (OTC Pink: FNRC) and the rest of the energy sector continue to wait and hope the worst of the energy commodity price collapse could be over. Supply issues continue to plague oil, while natural gas supply issues seemed to have caught a temporary break, thanks to stronger-than-expected demand. As 1st NRG Corp. (OTC Pink: FNRC) focuses on keeping costs low by utilizing coalbed methane, which is not only a cleaner natural gas, but also does not require as deep of drilling. Not to mention, 1st NRG Corp. (OTC Pink: FNRC) still has thousands of acreage that is still relatively unexplored and could yield a big addition of unexpected resources for the company.
For more information on FNRC please visit EmergingGrowth.com
Disclosure:
All information contained herein as well as on the EmergingGrowth.com website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive. All material is for informational purposes only, is only the opinion of EmergingGrowth.com and should not be construed as an offer or solicitation to buy or sell securities. The information may include certain forward-looking statements, which may be affected by unforeseen circumstances and / or certain risks. This report is not without bias. EmergingGrowth.com has motivation by means of either self-marketing or EmergingGrowth.com has been compensated by or for a company or companies discussed in this article. Full details about which can be found in our full disclosure, which can be found here, http://ift.tt/2capLZE. Please consult an investment professional before investing in anything viewed within. When EmergingGrowth.com is long shares it will sell those shares. In addition, please make sure you read and understand the Terms of Use, Privacy Policy and the Disclosure posted on the EmergingGrowth.com website.
After seeing the price of natural gas dip below $2.00 MMBTUs in early March 2016, the price of gas has since rallied back to $2.822 MMBTUs and post year to date gains of 3.37% through August 2016. Most of the rally in natural gas could be attributed to the above-average heat wave that has largely effected the United States this summer. In addition, the production decline of 3% since February 2016, has also aided the bullish move. In fact, the U.S. Energy Information Administration released a gas inventory report on August 4, 2016 that showed natural gas storage shrank by 6 billion cubic feet, through the week of July 29th. This marked the first summer drawdown in natural gas storage since August 4, 2006.
While natural gas demand tends to peak in the summer time, forecasts of warmer weather continue to show up across the country. Without a doubt, the rally in natural gas does face some hurdles. Very heavy production and imports from Canada continue to add to total supply and lowering prices. Ultimately, commodities traders see a mild Fall and moderate Winter in 2016. Natural gas prices are impacted by supply/demand factors, unseasonable weather, production, and more.
The price of natural gas could go in either direction for the rest of 2016, but we do know that gas is not going anywhere. The fact that natural gas is cheaper than coal to use as a heating and energy source and is a cleaner option for the environment, shows that demand will likely continue over the next many years.
One company that operates in the natural gas exploration and production business is 1st NRG Corp. (OTC Pink: FNRC).
Overview and Energy Projects
Headquartered in Denver, Colorado, 1st NRG Corp. (OTC Pink: FNRC) is engaged in the exploration and production of coal bed methane, one of the cleanest forms of natural gas. 1st NRG Corp. (OTC Pink: FNRC) operates Clabaugh Ranch in the Powder River Basin of Wyoming and holds a non-operated interest in an oil & gas well in the Beekmantown Dolomite formation in SE Ohio.
The interest in the Clabaugh Ranch field was purchased in October 2010 by the natural gas company and is located in the Powder River Basin of Wyoming. 1st NRG Corp. (OTC Pink: FNRC)’s acquired interests include 43 producing wells, and 3,059 acres of undeveloped land capable of holding another 36 wells. Being that 1st NRG Corp. (OTC Pink: FNRC) is operating in shallow drilling environment, the company experiences lower costs and able to continue drilling over a number of years.
While production at the Wyoming coal methane field has been shut-in, 1st NRG Corp. (OTCPink: FNRC) has announced they will be restarting production on its projects within the next couple of weeks. Thanks to 1st NRG Corp. (OTC Pink: FNRC)’s low cost business model that focuses on shallower drilling, the rally in the price of natural gas has allowed the company to enter into a profitable working environment again. Overall, management estimates 1st NRG Corp. (OTC Pink: FNRC) holds around 18.2 million Bcf of proven natural gas reserves at its Clabaugh Ranch project.
Turning to 1st NRG Corp. (OTC Pink: FNRC)’s oil & gas well located in the Beekmantown Dolomite formation. Management is pleased to announce that most of the pipeline is set to come back online within the next month or two, and should continue to progress throughout 2016. The 1st NRG Corp. (OTC Pink: FNRC) maintains 100% of the offset development rights on this oil & gas well in Eastern Ohio.
Ultimately, with natural gas and oil well operations looking to come back online within the next several weeks, 1st NRG Corp. (OTC Pink: FNRC) management is forecasting to see revenues between $150-160,000 moving forward with the rest of 2016. The key to 1st NRG Corp. (OTC Pink: FNRC)’s success in a relatively rough energy sector environment is to carefully map out geographical areas within its Clabaugh Ranch and the Beekmantown Dolomite formation, that are deemed to be “low geographical risk.” In other words, an area that does not need deep drilling and is able to be a repeatable development opportunity.
FNRC: Financial and Competitor Analysis
Now lets take a look at 1st NRG Corp. (OTC Pink: FNRC)’s financials and competitor analysis. As of August 2016, 1st NRG Corp. (OTC Pink: FNRC) has a market cap value of nearly $110.1 million. Furthermore, the natural gas explorer and producer has a share structure that consists of 20 billion authorized shares, 5.41 billion shares, and a float of nearly 409.5 million shares, as of June2016. The unfriendly business environment that has plagued the energy sector still continues, as natural gas and oil commodities continue to experience losses. As a result, 1st NRG Corp. (OTC Pink: FNRC) did not post revenues during the 1st quarter of 2016 and experienced a net loss of $222,014.
While natural gas commodity futures are up 3.37% year to date, through August 2016, energy commodities have been giving up gains from earlier in the year in recent weeks. Within the natural gas and oil exploration and production industry, there is a wide range of expectations to where market conditions are heading. Some companies suggest that they are expecting higher oil and gas prices by the end of 2016. However, others suggest that the supply glut with only continue to bring prices down and hold them hostage. Ultimately, the industry relies on the fact that not all natural gas and oil fields are equal, making some areas more affordable, desirable to explore and produce than other areas.
Ultimately, 1st NRG Corp. (OTC Pink: FNRC) and the rest of the energy sector continue to wait and hope the worst of the energy commodity price collapse could be over. Supply issues continue to plague oil, while natural gas supply issues seemed to have caught a temporary break, thanks to stronger-than-expected demand. As 1st NRG Corp. (OTC Pink: FNRC) focuses on keeping costs low by utilizing coalbed methane, which is not only a cleaner natural gas, but also does not require as deep of drilling. Not to mention, 1st NRG Corp. (OTC Pink: FNRC) still has thousands of acreage that is still relatively unexplored and could yield a big addition of unexpected resources for the company.
For more information on FNRC please visit EmergingGrowth.com
Disclosure:
All information contained herein as well as on the EmergingGrowth.com website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive. All material is for informational purposes only, is only the opinion of EmergingGrowth.com and should not be construed as an offer or solicitation to buy or sell securities. The information may include certain forward-looking statements, which may be affected by unforeseen circumstances and / or certain risks. This report is not without bias. EmergingGrowth.com has motivation by means of either self-marketing or EmergingGrowth.com has been compensated by or for a company or companies discussed in this article. Full details about which can be found in our full disclosure, which can be found here, http://ift.tt/2capLZE. Please consult an investment professional before investing in anything viewed within. When EmergingGrowth.com is long shares it will sell those shares. In addition, please make sure you read and understand the Terms of Use, Privacy Policy and the Disclosure posted on the EmergingGrowth.com website.
1st NRG Corp. (OTC Pink: FNRC) Keeping Costs Low by Utilizing Cleaner, Coalbed Methan
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