The theme from previous weeks still prevailed last week with EU debt issues causing some schizophrenia in the market. The Dow lost 300 points over the course of the week and oil lost some ground to about $97 but is still up significantly in the last month. Investors are still in the process of looking for a new favorite (now that Brigham has been acquired) in the Bakken region, there are a number of front runners, and Kodiak (
- On Monday, Kodiak Oil & Gas Corp. (
Yahoo! – 403 Forbidden — error 403It has come to our attention that this service is being used in violation of the Yahoo Terms of Service. As such: the service is being discontinued. For all future markets and equities data research ) said it has agreed to acquire North Dakota assets for $590 million in cash and stock to expand the energy exploration and development company’s presence in the Williston Basin. Kodiak also said it will offer 37.5 million common shares to fund the transaction and significantly increase its capital expenditures next year. The company also said its board has approved a $585 million capital expenditure budget for 2012, more than double the $230 million for the prior year, allocated to oil and gas activities in the Bakken and Three Forks oil play in the Williston Basin.
- Bloomberg reported that rising crude output in the Bakken shale formation is set to make North Dakota a bigger oil producer than OPEC member Ecuador. “There’s been an amazing jump in North Dakota output,” said Rick Mueller, a principal with ESAI Energy LLC in Wakefield, Massachusetts. “We are looking for output to be anywhere from 700,000 barrels to 1 million barrels a day within five years.”
- Anadarko Petroleum released news on a huge new shale find in Colorado. Approximately 1.5 billion barrels of oil were discovered by Anadarko Petroleum (
Yahoo! – 403 Forbidden — error 403It has come to our attention that this service is being used in violation of the Yahoo Terms of Service. As such: the service is being discontinued. For all future markets and equities data research ) at Colorado’s Niobrara Shale. J Christionsen , an APC spokesman said “Everything you could possibly want in a play — this has it. It’s great news for us and for Colorado because it’s going to generate a lot of activity and investment for a number of years,” The find could inject close to $4 billion in annual revenue for the area, it could sharply reduce U.S. dependence on foreign oil even more.
Until next time, Keep drillin’ in the Bakken!