DPTR

[J.Livermore]

Guys, this not a buy signal yet, but a descending channel breakout could happen by tomorrow.

My stock screener filtered this stock on a high relative volume search, and I thought it was nice to post it here. Tomorrow may be the DPTR day, or else a strong corrective reaction on this channel top.

[J.Livermore]

I will sell my position on DPTR tomorrow if I watch a gap up.

[setravis]

Nice to see you back JL
Good looking trade you got there.

Good Trading....and good luck.

[J.Livermore]

I'm selling it now, I need some cash to increase my position on some pennies 

[eliteG]

great trade 

[J.Livermore]

It looked like a selling signal this morning, but this candle was full of surprises and came up to be a bullish one closing positive and near the day high, upsss, looks like I've just sold a winner, well, I've made a nice profit on this one anyway, but will keep it on the watch list.

[Terliso]

Check this out traders...
----> DPTR is rocketing with growing volume
----> Coverage initiated on Delta Petroleum by AG Edwards to buy (2 days ago)
----> Breaking all the resistance.... now DPTR got another ALL-TIME HIGH @ 21.92

wohooooooooooooo........I believe prices will rocket some more in days to come... BULLS IN CONTROL!!!!

[amstocks82]

Interesting that I don't see any mention of the great news for DPTR -- which is basically the blow out reported in the Salt Lake Tribune a couple of weeks ago.

http://www.sltrib.com/search/ci_4485973

"The corporation was prepared for well pressure of 5,000 pounds per square inch, but the pressure increased to 8,000 PSI, overtaking safety valves on the well, said Tammy Kikuchi, a spokeswoman for the Department of Natural Resources."

The well that had the blow out is one of the wells in the Paradox Basin of Utah. The well was finally brought under control after about 5 days in which time gas volume vented was said to be very impressive.

If true, this information indicates that not only has DPTR found natural gas, but found it in a unexpectedly prolific type of formation. Normally encountered formations would not support 8000 PSI high volume venting for 5 days. The pressure would drop very quickly.

Could mean very interesting things for DPTR.

Right now for oil and gas, I like DPTR, CHK, DBLE, BSIC.OB and CWEI.

[amstocks82]

Three Great Reasons to Buy Delta Shares
1) The Central Utah Overthrust prospects (possible multi-hundred million barrel of oil potential)
2) The CRB (possible several trillion cubic feet of natural gas potential)
3) The Paradox Basin (possible trillion cubic feet of natural gas potential)

The three reasons are discussed in more detail below

The Central Utah Overthrust prospects
Delta has 21 prospects located in the thrust belt of Central Utah. The recent discovery by Wolverine of the Covenant field in Central Utah indicates that there may be billions of barrels of oil present in the overthrust area.

The Covenant field is a part of the Central Utah Thrust Belt. In the distant past, the earth's plates pushed together creating the overthrust area. The term overthrust means that some of the strata were pushed "Over" the top of other large layers or were overthrust. Therefore looking down through the ground some of the strata is duplicated. This process sometimes formed anticlines or domes that are good structures to trap oil. If there is also a good top seal meaning that the strata that overlays the overthrust area prevents oil and gas from migrating away, then this is a good structure for trapping oil. From now on, I'll use the term "structure" to mean a possible oil bearing area where the geology is favorable for trapping oil.

Later in geologic terms, oil migrated through the underground strata in Utah across the thrust belt and some of the oil was trapped in structures located in the Overthrust belt. The Covenant Field is an example of such a structure and proves that oil migrated through the thrust belt and was trapped.

The question remains whether or not other structures in the thrust belt of Central Utah also trapped oil. The probability is difficult to determine mainly because there is only one proven example in Central Utah – the Covenant field. However, other thrust belts where one large oil field is found generally are followed by several other finds such as happened in the thrust belt area of Alberta, Wyoming and Montana. Another fact that makes it hard to judge the probability of finding oil is that wells drilled prior to the Covenant discovery were not drilled on structure. The problem is that the geology is complex and interpreting seismic data is not easy.

Seismic data relies on being able to interpret "sound" waves that are generated and sent down through the ground. Part of the sound waves reflect off different rock formations and are picked up by sensors on top of the ground. Sound waves travel at different speeds depending on the type of rock and how dense the rock is. Certain rock strata tend to absorb most of the sound or reflect most which makes determining what is under those types of rocks difficult. If geologists mistake the type of rock that the sound waves are traveling through, this might cause them to misinterpret how fast the sound wave traveled in the ground. This will skew the depth measurements on the seismic mapping.

Prior to drilling in the Covenant field, due to the scrambled nature of the Central Utah geology and the difficulty of interpreting seismic data, none of the wells that were drilled were on structure. In other words, prior to drilling the Covenant field, the wells were not drilled in areas where oil was likely to be trapped.

To summarize, the Covenant wells that were drilled on structure found oil. Other wells have been drilled but from what is now known were not on structure. Therefore, it is difficult to determine the probability of finding oil in favorable structures in the Utah Overthrust area. On the positive side, in overthrust areas, oil bearing structures appear to happen in clusters. Based on this and the fact that Delta has 21 structures to drill means that there is a high probability that Delta will find oil in one or more of the 21 structures. Some of the 21 structures are larger in size than the Covenant field and therefore might contain much more oil.

Delta has partnered with other operators who have experience in drilling in overthrust areas to help them improve their chances of drilling in the correct area on structure. The first prospect is the Joseph Federal 1. It is located in Section 24, T25S, R4E, SLM, Sevier County, Utah and was spud November 8. The location of this well is southwest of the Covenant Field and the structure based on seismic data is larger than the Covenant field. This well is expected to be completed in December.

The CRB (possible several trillion cubic feet of natural gas potential)
Delta has a large position in the Columbia River Basin (CRB) of 1,125,000 acres and 464,000 net acres. The CRB is a largely unexplored basin that may have 200 to 300 trillion cubic feet of natural gas or more. Delta has a 20 percent stake in this entire area. The estimated potential recovery factor is estimated anywhere from 25% to 50%. If the amount of natural gas is the lower estimate of 200 trillion cubic feet and only 1/3 of it was produced, then this is 67 trillion cubic feet.  Delta's 20 percent stake would provide them with 13 trillion cubic feet of natural gas. Each trillion cubic feet of natural gas is worth around 1 to 2 billion in market cap meaning Delta is undervalued if the model is true.

Encana has recently drilled a test well in the CRB in which DPTR has a 15% working interest after pay out (the Anderville Farms 1-6). The comments to date made about the well are positive and tend to confirm the geological theory about the CRB. The testing and completion of the Encana well should be complete in November and it is possible that more information will be released about the well in the last week of November.

Delta released the following information in a press release, "The Anderville Farms 1-6 (non-operated) reached total depth in August, and completion activities have commenced.  A second non-operated well, the Anderson 11-5, is currently drilling and should reach total depth later this fall.  A third non-operated well, the Brown 7-24, has been permitted and is expected to spud within the next several months.  The Company is also in the process of permitting three operated wells with the expectation that drilling should begin in the second quarter of 2007."

The Paradox Basin (possible trillion cubic feet of natural gas potential)
Delta is in the process of completing 3 wells in the Paradox basin. The results of the drilling exceeded Delta's expectations and they have applied for additional drilling permits. One of the wells not only exceeded expectations of Delta but did it in a large way. During completion activities, the Greentown State 36-11 well blew out at over 8000 PSI possibly as high as 18,000 PSI.

Delta's statement about this was, "The Company has perforated the first interval in the Greentown State 36-11 as part of a multiple-zone, multiple-stage completion.  During post-frac flow back, the well encountered unexpectedly high pressures that exceeded the rated limits of the wellhead equipment, thereby causing the well to produce in an uncontrolled situation.  Flow rates were estimated to have exceeded 12 million cubic feet of gas equivalent per day (Mmcfe/d) from less than 15% of the projected productive intervals.  Company personnel worked in conjunction with a leading well control company and contained the well over the next five days without property damage and without injury.  Subsequent production testing indicates that the well will produce at a stabilized rate of 3.8 Mmcfe/d from this interval alone.  Additional intervals will be tested over several weeks."

The Paradox basin may have a multi-trillion cubic meter of gas potential. The company's assessment was not updated after the blow-out but prior to the blow-out, their public assessment was that they had 5 prospects in the Paradox basin with a potential greater than 100 billion cubic feet of gas. Delta has 120,000 gross acres and 75,000 net acres in the Paradox basin.

There are very rarely companies that have three great reasons to buy their stock. In fact I've never came across any company that had three different major reasons to buy. The Paradox Basin is farther along in that they already have a well that initially appears to be a block-buster. The Paradox basin itself might be large enough to more than double the company's natural gas reserves. Paradox basin therefore is enough to justify the recent stock price increase. On top of the Paradox basin, Delta has two other potential block buster resources.

But Delta also has a couple of potential problems. They have gone up such that the PE is now very high relative to most small oil and gas companies. They are part of the SEC's continued investigation of the possible pre-dating of stock options and how they are accounted for on the balance sheet.  Perhaps this is why according to published data on insider and institutional ownership that the number of shares owned by insiders and institutions is greater than the total number of outstanding shares in the company. To make this possible, Delta has a very large number of shares short. In addition, number of call options outstanding is greater than most heavily traded companies 30 times their size. Based on the above, Delta has the attention of a lot of people in the oil and gas industry and of many funds and stock traders. Therefore, one thing that will be sure in the future of Delta is that the trading of the company won't be boring.

[amstocks82]

The title of this message thread is , "DPTR -- ON High Alert!"

Never before has that been so true as it is in the next two weeks.

DPTR is drilling the Joseph Prospect in Utah. This is a wildcat well and as most who follow oil stocks know, Oil and Gas companies drill a lot of wildcat wells.

There are wildcat wells and then there are WILDCAT WELLS which can transform several oil companies over night by adding 10s of BILLIONS to the VALUE of various companies.

The Joseph Prospect is drilling a large structure closure in the Utah Overthrust. The first well in the Utah Overthrust that was drilled on a structure closure found oil and resulted in the Covenant field which is expected to produce perhaps 100 million barrels of oil from a small area.

The Joseph Prospect is on a much larger structure closure than the Covenant field was on. The potential for the Joseph Prospect is perhaps 200 to 400 million barrels if there is oil there at all.

In other Overthrust belts where oil was found, half of the structures identified on the overthrust trend contained oil. Delta Petroleum has 21 prospects to drill. The Joseph Prospect is the first of 21. If they find oil, then most analysts will decide that the Covenant field was not a fluke. In other words, they will believe that many of the undrilled structure closures in the Utah Overthrust contain oil. An analyst might easily estimate based on the 50% propability that since Delta would have 20 undrilled prospects, that half probably contain oil. The average amount of oil would be around 100 million barrels. This would mean that Delta Petroleum now has 1 billion barrels of oil in the structures. Delta has partnered on some of the structures with others but after all the partnerships, it would leave them with an estimate that they may have 600 million barrels of oil. The oil in the Covenant field is sweet light crude -- the easiest to refine, and most valuable. In thrust belts, the oil is relatively easy to produce. The cost might be $15 dollars a barrel including the costs to ship it to market. The price of oil will probably settle above $60 a barrel. This means Delta would have 45 dollars per barrel multipled by 600 million in profit over about 20 years to produce the oil. That is huge.

In addition, Delta has 20% of the CRB. This may be worth another 20 to 40 billion in profit over 20 years.

Delta's market cap is only around 1.5 billion. If either the CRB or the Overthrust pan out for the company, the price of the stock will increase several times the current price. If both pan out, the sky is the limit.

[la-onda]

chart update:

[kslifka]

Holy Moly

[kslifka]

DPTR...looking very bullish here.

$24.95 looks like a good initial target.

[Livana]

We're a year later since the last post.  DPTR has dropped like a brick.

In the meantime, it's the top gainers of yesterday.

News:
Thursday April 2, 2009, 4:08 pm EDT
Delta Petroleum was higher by 40%, or 49 cents to $1.71 on volume of more than 3 million shares.

I can't find out why the jump though...
I will keep an eye on it and might get in.

[setravis]

Taking another look...
This first came to my attention, April 2 @ $ 1.30. Didn't pull trigger but it may be worth a shot. Director bought 30,000 @ 1.80. I like the looks of the chart and its above 50-day MA


52wk Range: 0.88 - 28.37
Volume: 2,813,464
Avg Vol (3m): 1,439,830

Technicals
Percentage Gainer

Last Price Quote is:
69.16%above 13-day MA
60.00%above 50-day MA
RS Rating: 17 

Fundamentals
Key Data:
Market Cap (M): $257.57 
P/E Ratio: 78.61 
PEG Ratio: -0.160714 
Next Earnings: 05/07/2009
Last Analyst Rating: Neutral