Weekly Roundup: Bakken Passes the 600k bpd mark

Markets have settled down after making a significant move over the last 2 weeks.  Currently the dow is hovering around 13400 and the Nasdaq around 3140.    In Bakken news some of the stocks we have highlighted have made positive moves and the region recently surpassed a significant milestone.

  • Exxon Mobil Corp. (XOM: 81.53 +0.52%) agreed to buy Denbury Resources Inc.’s (DNR: 1.52 +1.33%) Bakken Shale assets for $1.6 billion in cash and interests in two oilfields.     The deal gives Exxon 50% more acreage in the region and allows Exxon to start the diversification process away from natural gas
  • On June 30, 2009, oil mysteriously jumped by more than $1.50 a barrel during the night, to reach its highest price in eight months, the kind of swing that is caused by a major geopolitical event.  Steve Perkins, a long standing, senior broker at PVM Oil Futures, spent $520 million on oil futures contracts totaling 7 million barrels of crude throughout the night during a drunken haze. Perkins was subsequently barred trading securities for 5 years.
  • US Silica (SLCA: 34.94 +1.87%) a company we profiled in August as the potential Bakken play for the next year,  has seen a very strong move of upwards of 35% from $10 to current levels in the mid 13’s.    The company reported solid numbers last quarters and is still growing at a 25% clip year over year.  In a recent conference,  US Silica stated that they would consider growing by acquisition of existing mines to maximize return on silica products that are used in fracking.      The company is still 50% below its analyst target of around $19 and has a forward PE under 8.   The stock is consolidating at current levels and could be poised for a breakout after earnings at the end of October.
  • Oil production from the North Dakota portion of the Bakken shale formation topped 609,000 barrels a day for the first time in July, up almost 70 percent from a year 2011.  At current growth rates,  Oil production could surpass 1 million barrels per day some time in 2017.

Until next time,  keep drillin’