BY YASMIN GHAREMANI
Some days the price of his stocks swing like a drunk in a bar fight. But Bruce Vanderveen keeps his cool.
As oil prices have slid in the past few weeks, so have the valuations of Magnum and Carrizo — down 12 percent to 14 percent since Vanderveen got in. But he’s not rattled.
In fact, if the price of oil falls even further — say, below $82 a barrel — Vanderveen plans to bargain shop, doubling his current positions and buying into a couple of larger, more stable companies.
Such is the lure of the Eagle Ford.
Vanderveen, who is also invested in North Dakota’s famous Bakken Shale, called the Eagle Ford “a driller’s paradise” in an article he wrote for the investment site Seeking Alpha in April. “I read that it’s cheaper to produce in he Eagle Ford than the Bakken, and that’s what got me interested,” he says.
He’s not the only one turning his attention to the Eagle Ford. Colorado-based research firm IHS reported in July that the Eagle Ford is a contender for the best shale oil play in the U.S., with drilling results so far beating the Bakken. Its South Texas location is also blessed with better weather and proximity to Gulf Coast refineries. “It’s just got the best economics of any of the shale oil plays,” says Dan Steffens, president of the Energy Prospectus Group, a Houston-based investor network. Many retail investors are now looking for ways to cash in on the region’s good fortunes.
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http://www.bizjournals.com/sanantonio/news/2012/11/13/show-me-the-money-eagle-ford-shale.html?page=all
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