Trying to hang on

Our bakken plays have held on fairly well considering oil is still drifting towards $30 per barrel.   This is partly because there is hope that the OPEC cuts of 2 million barrels per day will cause a mid term reversal in the price of crude over the next few months.   Our earlier call on CLR looks pretty good with the stock up 33% (from $15 to $20) in the last few days.    We will consider getting into WLL if it goes below 30 as well.

bakken Edit
Symbol Last Trade Change Volume Avg Vol (3m)
NOG 10:00AM ET 3.17 Down 0.17 Down 5.09% 34,216 284,335
WLL 10:00AM ET 32.76 Down 2.37 Down 6.75% 145,488 1,501,340
SM 10:00AM ET 19.93 Down 0.82 Down 3.95% 36,350 1,065,490
MDU 10:00AM ET 21.00 Down 0.36 Down 1.69% 215,711 1,718,310
GEOI 10:00AM ET 7.4596 Down 0.1304 Down 1.72% 14,531 113,672
BSIC.OB 9:53AM ET 0.646 Down 0.054 Down 7.71% 2,500 38,635.9
WSEG.OB 9:44AM ET 0.03 Down 0.01 Down 14.29% 65,850 141,765
CLR 10:00AM ET 19.34 Down 1.27 Down 6.16% 128,363 2,021,960
BEXP 10:00AM ET 3.82 Down 0.15 Down 3.78% 61,656 956,982
KDKN.OB 9:59AM ET 0.60 Down 0.05 Down 7.69% 4,400 95,348.4
KOG 10:00AM ET 0.3701 Up 0.0001 Up 0.03% 47,100 894,449
EOG 10:00AM ET 67.38 Down 2.22 Down 3.19% 328,205 5,068,030

Australian based company with exposure to bakken

I as have many been following the Bakken explosion, albeit from Australia. I am a shareholder of a small cap company called Sundance Energy who hold 70 000 acres in the US with 18000 acres in the Williston Basin. It is hugely undervalued and is a cheap entry to a stock with exposure to Bakken oil. It has numerous joint ventures the largest being with Helis. I would like to just alert all investors to a stock that has huge potential but with little exposure especially in Australia. The code is SEA on the ASX.
There is some good research around recently with site visits done recently. Good luck if you choose to invest.

A good time to step in?

So oil has continued its descent to the mid 40’s but oil stocks have been fairly rangebound for the last 2 months with XLE bouncing between 40 and 50.     Bakken stocks have been particularly hit hard when compared to other oil stocks because of a number of investor concerns including recovery costs,  drilling costs and loss of any premium associated with growth in the Bakken region.     Of utmost concern is the recover costs per barrel in the bakken region.  There is no exact number, but there have been published reports that it costs upwards of 5 million to establish a productive well in the region and that production costs are anywhere from $30-50 per barrel.     If this is true,  some of the Bakken players can expect to see their margins squeezed in upcoming quarters but in terms of the pps,  it looks to be baked into the stocks as most are down over 75% year to date.     I’m content that CLR doesn’t have much down side from its current price around $15 and if so,  who cares at this point.    I’ll sell covered calls at a strike of 17.5 or 20 until I make a nice profit or the stock just “goes away”.    On another note, below we can tell that most of the short interest is out of these stocks by now and our bakken plays are really just tracking with the price of oil at this point.  In other words,  don’t expect any of these to gap on the upside on news specific to the company in the short term.    Supply and demand will account for 80% of the price movement for the forseeable future.

Fundamentals Edit
Symbol Last Trade P/E Pct from Yr High Short Ratio
NOG 2:01PM ET 2.75 N/A Down 83.23% 9.5
WLL 2:01PM ET 29.46 4.16 Down 73.79% 1.1
SM 2:01PM ET 17.56 4.46 Down 73.22% 2.9
MDU 2:01PM ET 19.82 9.12 Down 43.92% 1.1
GEOI 1:48PM ET 6.59 5.08 Down 77.34% 3
BSIC.OB 12:01PM ET 0.75 3.93 Down 75.33% N/A
WSEG.OB 12:35PM ET 0.05 N/A N/A%
CLR 2:01PM ET 15.74 7.12 Down 81.22% 1.7
BEXP 2:01PM ET 2.77 6.35 Down 84.86% 5.6
KDKN.OB 1:11PM ET 0.60 N/A Down 83.74%
KOG 1:57PM ET 0.4359 N/A Down 92.07% 1.6
EOG 2:01PM ET 71.70 7.69 Down 50.55% 1.4