Hoping for a happy new year

The last trading day of the year led to modest gains but did not erase the painful 2008 that most bakken investors experienced.   The vast majority of our bakken plays were down 70-80% on the year as oil plummeted from $147 per barrel down to $40.    Pressure will continue to be exerted on the sector until oil can rebound to the $60-70 range.    In 2009, if oil stays at current levels, there will be smaller players that will file Chapter 11 because  they can’t raise the necessary capital and don’t have the cost structure to make money at $40 oil.    We ended the year with 80 active drilling rigs in the bakken region.   About 20-30% fewer than expected earlier in the year.     Some notable companies will deliver earnings in January and at that time we will get a clearer picture of how the precipticous drop in oil affected the bottom line.

bakken Edit
Symbol Last Trade Change Volume Avg Vol (3m)
NOG Dec 31 2.60 Up 0.22 Up 9.24% 356,624 270,654
WLL Dec 31 33.46 Up 1.41 Up 4.40% 741,065 1,475,580
SM Dec 31 20.31 Up 0.59 Up 2.99% 764,286 1,020,350
MDU Dec 31 21.58 Up 0.23 Up 1.08% 912,046 1,675,130
GEOI Dec 31 8.69 Up 0.11 Up 1.28% 53,428 104,125
BSIC.OB Dec 31 0.6001 Down 0.0299 Down 4.75% 19,200 38,635.9
WSEG.OB Dec 31 0.021 Up 0.002 Up 10.53% 453,230 142,440
CLR Dec 31 20.71 Up 0.09 Up 0.44% 960,317 1,865,200
BEXP Dec 31 3.20 Up 0.07 Up 2.24% 599,393 890,132
KDKN.OB Dec 31 0.60 Up 0.03 Up 5.26% 110,160 95,348.4
KOG Dec 31 0.31 Up 0.02 Up 5.08% 2,121,081 849,023
EOG Dec 31 66.58 Up 0.76 Up 1.15% 2,282,313 4,796,620