This week, independent exploration and production companies are out strutting their stuff in San Francisco, as they seek to woo analysts, investors, and portfolio managers at the Oil & Gas Investor Symposium. It's a fine opportunity to take a peek at some companies that don't otherwise receive much attention.
The most interesting presentation I caught on Tuesday came from Venoco
Venoco has some interesting prospects, including the Monterey shale. Like the Bakken shale that Continental Resources
The Monterey is massive, and Venoco estimates more than 10 billion barrels of original oil in place (OOIP) across its leasehold. The highly complex reservoir, combined with a relatively difficult regulatory environment, may hamstring large-scale development, however.
Venoco makes things easy for us by excluding Monterey upside in its various slides on potential firm value. Using a futures curve to determine the net present value of proved reserves, Venoco appears to be priced at a significant discount, second only to Whiting Petroleum
Following its sale of the Hastings field to Denbury Resources
Even when severely handicapping Venoco's probable reserves, substantial unrisked resource estimates, and the additional potential of the Monterey shale, the shares appear pretty interesting at today's price.
Wondering how to further research an oil stock like Venoco? Oh, do I have a series for you, Fool.