July – Active Drilling Rig Report

The rig count is currently at about 40 and has fallen dramatically since the Nov 08 count in the mid nineties.    It looks like both EOG and Continental both scaled back dramatically while Whiting continued drilling with the same number of rigs.     We’ll continue to track to see if rig count is a leading indicator of capital spend increasing in exploration across the industry.   For now however,  don’t expect any major increases in output from new wells in the area,  rather maximizing flow on existing wells.

Rig Operator Well Name and Number Start Date
KEY NRG 439 SAGEBRUSH RESOURCES LLC RICE TRUST 1 7/24/2009
STRIDE 772 LUFF EXPLORATION CO LUTES STATE #1 7/24/2009
ENSIGN 93 PETRO HUNT LLC THORSON 159-94-7B-18-1H 7/12/2009
ENSIGN 123 BAYTEX ENERGY USA LTD GOLDAL 16-10-161-98H 7/13/2009
TRINIDAD 36 CONTINENTAL RESOURCES BRATLIEN 1-35H 7/6/2009
UNIT 117 KODIAK OIL & GAS (USA) INC CHARGING EAGLE 1-22-10H 7/21/2009
H & P 258 PEAK NO DAK LLC VOIGT 32-24H 7/9/2009
H & P 257 MARATHON OIL CO JACQUELINE OLSON 14-16H 7/12/2009
NABORS 59 BURLINGTON RES O&G CO BOXCAR 21-15H 7/19/2009
H & P 259 MARATHON OIL CO SCHOLLMEYER 21-4H 7/20/2009
NABORS 182 TRACKER RES DEVMNT HAY DRAW 34-1H 6/17/2009
CYCLONE 22 CONTINENTAL RESOURCES DOLEZAL 1-5H 7/5/2009
PRECISION 825 BURLINGTON RES O&G CO NORTH COAST 11-25H 6/21/2009
NABORS 688 ANSCHUTZ EXPL CORP STROH 11-1H 7/5/2009
NABORS 265 XTO ENERGY INC JORGENSON 43X-4 7/10/2009
NABORS 486 ANSCHUTZ EXPL CORP SICKLER STATE 21-4H 6/7/2009
ENSIGN 76 ZENERGY INC AAGVIK 1-35H 6/30/2009
PATTERSON 180 CONTINENTAL RESOURCES ROLLEFSTAD 1-3H 7/17/2009
BRONCO 8 PETRO HUNT LLC USA 3D-4-4H 7/18/2009
NABORS 460 HESS CORPORATION BB-STATE-151-96- 3625H-1 6/15/2009
PIONEER 67 WHITING OIL AND GAS CORP HAGEY 11-13H * MIRU
NABORS 148 EOG RESOURCES INC FERTILE 13-18H 7/3/2009
PIONEER 66 WHITING OIL AND GAS CORP ARNDT 11-24H 7/15/2009
H & P 241 HESS CORPORATION RS-FELDMAN-156-92- 1423H-1 7/19/2009
H & P 179 HESS CORPORATION EN-HERMANSON A-154-93- 0136H-1 7/6/2009
NABORS 108 FIDELITY EXPL & PROD CO CRAFT 22-15H 7/8/2009
NABORS 161 EOG RESOURCES INC LUCILLE 22-06H 7/10/2009
GREY WOLF 517 ZENERGY OPERATING CO LLC DAKOTA-3 PENNINGTON 16-15H 7/6/2009
ENSIGN 67 EOG RESOURCES INC FERTILE 23-19H 7/6/2009
GREY WOLF 106 WHITING OIL AND GAS CORP STROBECK 11-1H 7/8/2009
MAJOR 43 EOG RESOURCES INC BURKE 27-07H 7/26/2009
RED HAWK 558 SLAWSON EXPLORATION GENESIS 1-13H 7/26/2009
H & P 256 MARATHON OIL CO BRODAHL 31-25H 7/28/2009
BRONCO 20 HUNT OIL COMPANY NIELSEN 1-8H 7/10/2009
NABORS 686 WHITING OIL AND GAS CORP TOLLEFSON 44-10H 5/30/2009
GREY WOLF 520 WHITING OIL AND GAS CORP KANNIANEN 11-5H 6/25/2009
RED HAWK 354 UNIT PETROLEUM CO MCCARROLL RANCH 1 7/6/2009
RED HAWK 351 EAGLE OPERATING INC WGMU 2 7/16/2009
ENSIGN 88 XTO ENERGY INC MARMON 41X-12 6/30/2009
NABORS 49 BRIGHAM OIL & GAS LP BRAD OLSON 9-16 1-H 7/16/2009

New Bakken stock we are tracking

Oil continues to build a base in the $60 to $75 dollar range so we feel confident that this is a good opportunity to look at some additional bakken plays.   One that caught our eye was Cobra Oil & Gas (CGCA).  This had a big run in the last few weeks but now has settled around 1.20 which looks like a decent entry point.    Cohen recently came out with a target of $3.65 on this stock and it appears it has some room to run.    One thing that has caught the attention of some investors is that the oil giant Exxon-Mobil actually has an interest in this company:   Cobra entered into a Letter Of Intent (LOI) with Enercor, Inc. (Enercor) to purchase 20% lease assignment upon completion of financing activities. Enercor holds a contract with Exxon Mobil Corporation regarding the conversion of certain of Exxon Mobil’s leases covering approximately 26,000 acres of land owned by the BLM (Bureau of Land Management) in the State of Utah.  Although this investment isn’t directly due to CGCA’s bakken properties,  its a positive sign for the company itself.  In June 2008, the USGS reported that Cobra’s two primary Montana drilling targets represent nearly 4 trillion cubic feet of natural gas (see graphic below).  If oil continues to rise or even stay stable, this could be an easy double or triple

CGCA Bakken Map