Bakken Stocks Weekly Roundup

The Dow lost more than 1% on Friday after a string of previous losses earlier in the week and stocks will be under more pressure today as well with Spain topping the list of bailout fears in Europe.  WTI crude continues to firm around $85-90 after rising to $92 last week.     Oil stocks were hit gave up some recent gains with most players being off 2-3% last week.   A notable recent mover includes Oasis Petroleum (OAS: 8.59 -0.92%) which has climbed about 18% to $28.10 after dipping below $24 a few weeks ago.  The move was attributed to technical buying.

52-Wk Range
OAS 28.10 17.99 35.46 Sparkline Chart
KOG 8.61 3.59 10.90 Sparkline Chart
NOG 16.00 13.25 28.00 Sparkline Chart
WLL 43.14 28.87 63.97 Sparkline Chart
CLR 76.05 42.43 97.19 Sparkline Chart
GEOI 35.33 14.56 38.76 Sparkline Chart
EOG 99.23 66.81 119.97 Sparkline Chart
STO 24.20 20.12 28.95 Sparkline Chart

As always the region stayed busy with a flurry of O&G news with the highlights listed below:

  • Montana officials indicated TransCanada made the right move by agreeing to tie its Keystone XL oil pipeline to the Bakken oil formation in Montana and North Dakota.  TransCanada plans to build the Keystone XL oil pipeline to carry oil from the Athabasca oil deposit in Alberta to Steele City, Nebraska.   There is a proposed extension that would allow approximately  100,000 barrels of oil per day pass through the line from the Bakken oil formation in the region.
  • A recent 13G filed with the SEC indicated Citadel Advisors owns 15.1 million shares of Kodiak Oil and Gas (KOG: N/A +0%). Kodiak is a $2.5 billion market cap E&P company-with a focus on oil and gas production in North Dakota’s Bakken Shale. In its 13F for the end of March 2012, Citadel had been the largest hedge fund holder of KOG with over 8 million shares.
  • North Dakota officials indicated recently that dry  holes are a rarity for drillers in the Bakken. Ninety-nine percent of the rigs hit oil, and nine out of 10 wells are profitable
  • Voyager Oil & Gas, Inc. (VOG: N/A N/A) released an operations update. Second quarter 2012 average production of approximately 900 barrels of oil equivalent per day (“BOEPD”), a 40% increase over first quarter 2012, which was in-line with Company projections; 6.44 net (150 gross) wells producing from the Bakken or Three Forks as of June 30, 2012 with 1.41 net (32 gross) Bakken/Three Forks wells added to production during the second quarter 2012; and An additional 1.22 net (31 gross) wells being drilled or awaiting completion as of June 30, 2012.

Stay tuned for our next segment coming in a few days.   The most promising play in the Bakken may not actually be a driller or oil producer.


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