Markets Rebound – Bakken gets a lift

Markets rebounded decisively on positive European bailout news on Friday with the Dow and Nasdaq with gains of 2.2% and 3% respectively.     Many Bakken stocks got a much needed boost with gains of 3-9% across most Bakken O&G companies.  For many of the stocks,  the move represents a push above the 15 day MA of the stocks and hopefully will provide a support base for future gains.

52-Wk Range &
OAS 24.18 17.99 35.46 Up 1.63 Up 7.23% Sparkline Chart
GEOI 36.61 14.56 38.76 Down 0.05 Down 0.14% Sparkline Chart
WLL 41.12 28.87 63.97 Up 2.77 Up 7.22% Sparkline Chart
CLR 66.62 42.43 97.19 Up 3.65 Up 5.80% Sparkline Chart
EOG 90.11 66.81 119.97 Up 4.95 Up 5.81% Sparkline Chart
NOG 15.94 13.25 28.00 Up 0.53 Up 3.44% Sparkline Chart
KOG 8.21 3.59 10.90 Up 0.71 Up 9.47% Sparkline Chart
HES 43.45 39.67 77.12 Up 2.33 Up 5.67% Sparkline Chart
MDU 21.61 18.00 23.28 Up 0.24 Up 1.12% Sparkline Chart

The region was busy with a lot of key developments as listed below:

  • Pershing Square Capital Management LP, the largest investor in Canadian Pacific Railway continues to expand rail operations in the Bakken.   The railway is one of only two with access to the bakken region in North Dakota.  Canadian Pacific Railway Ltd. announced an agreement June 22 with U.S. Silica (SLCA: 34.94 +1.87%) , the second largest U.S. producer of sand for hydraulic fracturing – known as fracking – to bring sand from a facility in Sparta, Wisconsin to the North Dakota.
  • Statoil (STO: 16.69 +0.72%) announced aggressive plans to triple output in the next 8 years.    A key growth area for Statoil is the Bakken region where it acquired Brigham Exploration in 2011 and is actively leveraging Brigham’s drilling expertise.
  • Credo Petroleum (CRED: 111.97 +0.02%) provided an update on operations.  Credo has participated in 30 Bakken and Three Forks wells to date.  21 of the wells have been completed and all are high rate producers. Eleven new producing wells have been placed on production this fiscal year, and five producers have been added since the Company’s last update. Based on recent progress,  the Company expects additional wells to be added to this year’s drilling schedule.

Keep drillin’

RD Gupta

OSHA weighs in on frack debate

Frack Sand commonly used in Hydraulic Fracking

The Occupational Safety and Health Administration issued an alert on Friday to protecting workers at drilling sites with hydraulic fracturing operations.  Hydraulic fracturing involves blasting rock with water, sand and chemicals to extract the valuable oil and natural gas.      Part of the sand is a silica component that OSHA says poses a risk of silicosis, a “lung disease where lung tissue around trapped silica particles reacts, causing inflammation and scarring and reducing the lungs’ ability to take in oxygen.” They also indicate silica  is linked to lung cancer and tuberculosis.

A hazard alert they issued Thursday describes how engineering controls, work practices, protective equipment, worker training and product substitution can protect employees.  In cooperation with oil and gas industry partners, NIOSH collected 116 full shift air samples at 11 hydraulic fracturing sites in five states (Arkansas, Colorado, North Dakota, Pennsylvania, and Texas) to determine the levels of worker exposure to silica at various jobs at the worksites. Many air samples showed silica levels for workers in and around the dust generation points above defined occupational exposure limits.

Given the Bakken region uses predominantly hydrauling fracking as part of the extraction process, this could have an effect on drillers in the region if the media takes hold of this report.    Thus far,  Fracking concerns have not slowed North Dakota oil production at risk as it is the current (and possibly only) lifeblood of the state economy.   We don’t see a short term impact for O&G companies in the region,  but there is a possibility that sand/silica producers like US Silica (USCA: N/A N/A) could get hit as the negative sentiment swirls.  We will be tracking this story closely in the coming weeks to determine the impact on Bakken drillers.

 

 

 

Active Drilling Rigs: June 2012

It has been half a year since we profiled Active Drilling Rigs in the Bakken region and surprisingly not much has changed in that time.    The number of rigs has grown steadily by 7% in that time from 200 back in December of 2011 to 214 in June.   If we take a look at the major players below,  the numbers have stayed fairly static either adding or reducing a rig or two.  Brigham Exploration, now Statoil (STO: 16.69 +0.72%) saw the largest increase adding 3 rigs in the last 6 months.   We have also seen movement from WPX Energy (WPX: 9.52 +3.03%) which has 6 rigs in the region.

 

Rig Operator Well Name and Number Current Location
RAVEN 1 ABRAXAS PETROLM CORP. RAVIN 26-35-3H LOT2 2-149N-97W
DHS 9 AMERICAN EAGLE COPLAN 1-3-163-101 LOT1 3-163N-101W
DHS 4 BAKKEN AQUA, LLC BAKKEN BACKWASH 7 NENE 19-156N-94W
ENSIGN 67 BAYTEX ENERGY USA LTD KARLGAARD 22-15-160-98H 1PB SWSE 22-160N-98W
PRECISION 607 BAYTEX ENERGY USA LTD M. JOHNSON 35-26-162-98H 1PB SWSE 35-162N-98W
NABORS 476 BRIGHAM OIL & GAS LP SKARSTON 1-12 #1-H LOT2 1-152N-99W
NABORS 49 BRIGHAM OIL & GAS LP TAYLOR 14-23 1H NWNE 14-151N-102W
H & P 277 BRIGHAM OIL & GAS LP BRATCHER 10-3 #3TFH SESE 10-151N-101W
NABORS 460 BRIGHAM OIL & GAS LP BRATCHER 10-3 4H NWNW 15-151N-101W
NABORS B19 BRIGHAM OIL & GAS LP CHERYL 17-20 #3TFH SWSE 8-152N-98W
PRECISION 51 BRIGHAM OIL & GAS LP GUNDERSON 15-22 5H NWNW 15-152N-98W
NABORS B13 BRIGHAM OIL & GAS LP DOMASKIN 30-31 #3H NWNE 30-155N-92W
NOMAC 323 BRIGHAM OIL & GAS LP ARVID ANDERSON 14-11 #3H SESE 14-155N-92W
NABORS B14 BRIGHAM OIL & GAS LP ESTHER HYNEK 10-11 #4TFH SWSW 10-155N-93W
PRECISION 520 BRIGHAM OIL & GAS LP LIFFRIG 29-20 #2H SESE 29-156N-93W
NABORS 52 BRIGHAM OIL & GAS LP WRIGHT 4-33 #3TFH SESE 4-155N-93W
NABORS B18 BRIGHAM OIL & GAS LP JEROME ANDERSON 10-15 4H NWNW 10-155N-92W
NABORS 254 BRIGHAM OIL & GAS LP HOSPITAL 31-36 2TFH SESE 31-156N-92W
UNIT 106 BRIGHAM OIL & GAS LP WAGENMAN 29-32 1-H NWNW 29-155N-101W
NABORS 182 BRIGHAM OIL & GAS LP MARCIA 3-10 #1H LOT1 3-153N-100W
NOMAC 316 BRIGHAM OIL & GAS LP HEEN 26-35 3TFH NENE 26-155N-101W
NABORS 92 BURLINGTON RES O&G CO CONCORD 44-10MBH SESE 10-147N-97W
PRECISION 567 BURLINGTON RES O&G CO CCU POWELL 21-29MBH NWNE 29-147N-95W
NABORS B20 BURLINGTON RES O&G CO CCU GOLDEN CREEK 33-23PH NWSE 23-147N-95W
NABORS 687 BURLINGTON RES O&G CO CARLSBAD 21-17H NENW 17-152N-97W
H & P 286 BURLINGTON RES O&G CO DAYTON 14-22MBH SWSW 22-148N-98W
NABORS 59 BURLINGTON RES O&G CO BIG BEND 31-2TFH NWNE 2-151N-96W
NABORS B16 BURLINGTON RES O&G CO MIDNIGHT RUN 11-1TFH LOT4 1-152N-96W
H & P 446 BURLINGTON RES O&G CO IRON HORSE 31-2TFH LOT2 2-152N-96W
PRECISION 825 BURLINGTON RES O&G CO MORGAN 21-28MBH 2NH NENW 28-150N-96W
ENSIGN 161 CONTINENTAL RESOURCES KUBAS 1-22H SESW 22-141N-98W
PRECISION 831 CONTINENTAL RESOURCES REPETOWSKI 1-36H SESW 36-141N-99W
CYCLONE 1 CONTINENTAL RESOURCES WMPHU 11-9H NWNW 9-130N-104W
CYCLONE 31 CONTINENTAL RESOURCES MARUSKIE 2-22H SESW 22-160N-94W
PATTERSON 490 CONTINENTAL RESOURCES LAKEWOOD 2-20H SESW 20-161N-96W
CYCLONE 28 CONTINENTAL RESOURCES GALE 3-32H SWSW 29-147N-96W
CYCLONE 2 CONTINENTAL RESOURCES FLORIDA 3-11H SWNE 14-152N-100W
PATTERSON 180 CONTINENTAL RESOURCES MORISON 1-14H NWNE 14-148N-99W
CYCLONE 20 CONTINENTAL RESOURCES BJARNE 1-29H NENW 29-151N-100W
CYCLONE 4 CONTINENTAL RESOURCES MONROE 1-2H LOT11 2-152N-99W
ENSIGN 152 CONTINENTAL RESOURCES FRISCO 1-31H SWSE 31-152N-102W
CYCLONE 14 CONTINENTAL RESOURCES SORENSON 1-21AH SESE 21-154N-94W
CYCLONE 19 CONTINENTAL RESOURCES RALPH 1-22H NWSE 22-153N-99W
PRECISION 832 CONTINENTAL RESOURCES TANDE 3-23H SESE 23-159N-95W
CYCLONE 25 CONTINENTAL RESOURCES RADER 154-100-24-25-1H NENW 24-154N-100W
CYCLONE 8 CONTINENTAL RESOURCES LAWRENCE 5-13H SESW 12-159N-95W
TRINIDAD 36 CONTINENTAL RESOURCES BAR PS 1-25H NWNW 25-159N-97W
H & P 275 CONTINENTAL RESOURCES MARCY 3-24H SWSW 24-157N-98W
AES 4 CONTINENTAL RESOURCES HELENA 3-7H SWSE 7-155N-98W
PATTERSON 183 CONTINENTAL RESOURCES GRANT 1-16H NENW 16-159N-97W
CYCLONE 5 CONTINENTAL RESOURCES BISMARCK 3-9H SESE 9-155N-98W
PATTERSON 515 CONTINENTAL RESOURCES JEFFERSON 2-17H NWNW 17-153N-99W
ENSIGN 118 CORNERSTONE NAT RES LLC ALBERTSON 6-27-34H NWNE 27-161N-90W
STONEHAM 11 CRESCENT PT ENERGY US WALTERS 35-26-158N-101W NWNE 2-157N-101W
STONEHAM 17 CRESCENT PT ENERGY US CPEUSC CLERMONT 18-19-158N-100W SWSE 7-158N-100W
PRECISION 289 DENBURY ONSHORE TRMU 22X-16H SENW 16-141N-101W
H & P 456 DENBURY ONSHORE DWYER 14-33NEH SWSW 33-150N-100W
PATTERSON 305 DENBURY ONSHORE TABACCO GARDEN 31-31-29SEH NWNE 29-151N-99W
H & P 448 DENBURY ONSHORE GRIMESTAD 34-33NWH SWSE 33-153N-95W
H & P 454 DENBURY ONSHORE GILBERTSON 31-16SEH NWNE 16-150N-98W
STRIDE 798 ENCORE ENERGY PARTNERS OP LLC OLSON 1-30 NWSE 30-129N-104W
PRECISION 631 ENERPLUS RES USA CORP HARMONY 148-93-18C-07-2H TF SESW 18-148N-93W
ENSIGN 88 ENERPLUS RES USA CORP BELUGA 148-93-06B-05-3H LOT5 6-148N-93W
PRECISION 560 ENERPLUS RES USA CORP BRADFIELD 31-14H LOT4 31-149N-94W
DHS 12 EOG RESOURCES INC VANVILLE 20-1201H NESE 12-159N-91W
CRAIG 5 EOG RESOURCES INC MANDAREE 101-20H NWNW 20-149N-94W
SST 58 EOG RESOURCES INC BEAR DEN 104-2116H NWNE 21-150N-94W
NOMAC 328 EOG RESOURCES INC HAWKEYE 100-2501H NENE 25-152N-95W
TRUE 33 EOG RESOURCES INC WEST CLARK 102-2413H SWNE 24-151N-95W
TRUE 32 EOG RESOURCES INC SIDONIA 45-0409H LOT4 4-158N-90W
NABORS 527 EOG RESOURCES INC FERTILE 46-1608H SESW 16-151N-90W
PRO-OILFIELD SR1 FIDELITY EXPL & PROD CO AMUNDSON 23-14H SWSE 23-155N-91W
NABORS 784 FIDELITY EXPL & PROD CO HANSEN 18-19H NENW 18-155N-91W
NABORS 108 FIDELITY EXPL & PROD CO ISAAC 11-23H NWNW 23-153N-92W
NABORS 280 FIDELITY EXPL & PROD CO KUCHYNSKI 12-1H SESW 12-140N-97W
PATTERSON 320 FIDELITY EXPL & PROD CO TUHY HOMESTEAD 14-23H NENE 14-140N-98W
STONEHAM 16 G3 OPERATING LLC BERG 1-29-32H SWSE 20-157N-101W
UNIV DRLG 1 GADECO, LLC ALEXANDER 26-35H NENW 26-155N-99W
PARAMOUNT 1E GMX RESOURCES FAIRFIELD STATE 21-16-1H NENW 16-143N-99W
PRECISION 604 HELIS OIL & GAS CO. LLC TAT 13-35/26H SWSW 35-149N-95W
PRECISION 620 HELIS OIL & GAS CO. LLC BERT 2-2/11H LOT3 2-149N-95W
H & P 295 HESS CORPORATION MC-SICKLER-144-95- 1423H-1 SWSW 11-144N-95W
H & P 241 HESS CORPORATION LK-HAMILTON 146-97-3526H-3 SWSE 35-146N-97W
NABORS B06 HESS CORPORATION AN-GUDBRANSON-153-94- 2215H-1 SESW 22-153N-94W
PRECISION 564 HESS CORPORATION BW-ABM 149-100-1819H-1 SESW 7-149N-100W
PRECISION 618 HESS CORPORATION BW-STOVELAND 149-100-1003H-1 SESW 10-149N-100W
H & P 294 HESS CORPORATION HA-SWENSON 152-95-1819H-3 NWNW 18-152N-95W
KEY NRG 885 HESS CORPORATION HA-SWENSON OBSERVATION- 18-3 SENW 18-152N-95W
MAJOR 24 HESS CORPORATION HA-SWENSON-152-95- 1819H-5 NWNE 18-152N-95W
NABORS B-5 HESS CORPORATION EN-JOHNSON-155-94- 2017H-1 SESW 20-155N-94W
NABORS B-03 HESS CORPORATION EN-HORST 154-93-0310H-3 LOT1 3-154N-93W
NABORS B2 HESS CORPORATION EN-DAKOTA N-155-94- 211609H-1 NENW 21-155N-94W
NABORS B4 HESS CORPORATION EN-HANSON-156-94- 3031H-3 LOT1 30-156N-94W
NABORS B1 HESS CORPORATION EN-LABAR 154-94-0310H-2 LOT4 3-154N-94W
MAJOR 27 HESS CORPORATION EN-REHAK 155-93-0718H-3 NENW 7-155N-93W
PRECISION 563 HESS CORPORATION SC-JW HAMILTON-153-99- 1314H-1 LOT2 18-153N-98W
PRECISION 562 HESS CORPORATION GO-HILL 158-98-3427H-1 SWSE 34-158N-98W
PRECISION 561 HESS CORPORATION GO-ANDERSON 157-97-36H-1 SESW 36-157N-97W
H & P 179 HESS CORPORATION GO-QVALE TRUST 158-97-3229H-1 SWSE 32-158N-97W
H & P 293 HESS CORPORATION GO-DARRYL-158-98- 0904H-1 SWSE 9-158N-98W
H & P 317 HUNT OIL COMPANY HALLIDAY 3-11-2H SESE 11-146N-93W
NOMAC 320 HUNT OIL COMPANY BEAR BUTTE 1-4-9H LOT2 4-148N-101W
TRINIDAD 221 HUNT OIL COMPANY HORST 2-25H SWSW 24-154N-90W
FRONTIER 19 HUNT OIL COMPANY LEE 2-8-5H SESW 8-154N-89W
MAJOR 41 HUNT OIL COMPANY SHELL 2-6-7H LOT4 6-153N-89W
ENSIGN 89 KODIAK OIL & GAS (USA) INC TWO SHIELDS BUTTE 5-7-8-1H LOT 2 7-149N-92W
UNIT 117 KODIAK OIL & GAS (USA) INC SKUNK CREEK 12-7-8-9H3 LOT3 7-148N-92W
UNIT 118 KODIAK OIL & GAS (USA) INC KOALA 14-32-29-2H3 SESW 32-152N-99W
UNIT 126 KODIAK OIL & GAS (USA) INC SMOKEY 15-7-6-2H3 SWSE 7-149N-98W
UNIT 123 KODIAK OIL & GAS (USA) INC SMOKEY CUPCAKE 14-21-16-3H3 SESW 21-149N-98W
UNIT 109 KODIAK OIL & GAS (USA) INC P ALEXANDER 155-99-16-11-2-1H3 SESE 11-155N-99W
UNIT 328 KODIAK OIL & GAS (USA) INC P ALICE 154-99-4-3-27-4H3 LOT4 3-154N-99W
FAITH 4 LANDTECH ENTERPRISES LLC RIDL SWD 1 SWSW 4-140N-99W
H & P 309 LIBERTY RESOURCES GULLIKSON 152-103-31-30-1H SESW 31-152N-103W
PATTERSON 134 LIBERTY RESOURCES LUKENBILL 155-101-11-2-1H SWSE 11-155N-101W
H & P 438 MARATHON OIL CO RH 34-31TFH SWSE 31-146N-93W
H & P 392 MARATHON OIL CO LORENE STOHLER 11-3H LOT 4 3-146N-94W
H & P 386 MARATHON OIL CO TOM STEFFAN 21-27H NENW 27-144N-96W
H & P 259 MARATHON OIL CO PEGGY SCHETTLER 14-33H SWSW 33-146N-92W
H & P 258 MARATHON OIL CO WALTOM USA 43-8TFH NESE 8-151N-93W
H & P 256 MARATHON OIL CO AISENBREY 21-25TFH NENW 25-151N-93W
H & P 257 MARATHON OIL CO IONE BARSTAD USA 31-30H LOT4 19-157N-103W
PRECISION 602 MUREX PETROLEUM CORP MICHAEL WADE 1-12H LOT2 1-154N-91W
PRECISION 645 MUREX PETROLEUM CORP CANDI LYNN 36-25H NESE 36-155N-91W
PATTERSON 335 NEWFIELD PROD CO BERNICE 150-99-20-17-2H SESE 20-150N-99W
NABORS B11 NEWFIELD PROD CO CHAMELEON STATE 153-97-16-21-2H NWNE 16-153N-97W
NABORS 272 NEWFIELD PROD CO ROLFSRUD 152-96-32-2H NWNW 32-152N-96W
H & P 457 OASIS PETRO NO AMER ISABELLA 6093 42-24H SESW 24-160N-93W
NABORS 149 OASIS PETRO NO AMER CASEY 5200 13-30B NWNE 30-152N-100W
NABORS 165 OASIS PETRO NO AMER ORION FEDERAL 5792 42-20H SESW 20-157N-92W
EXTREME 17 OASIS PETRO NO AMER A K STANGELAND 5300 43-12T SWSE 12-153N-100W
NABORS 110 OASIS PETRO NO AMER NATHAN 5502 21-4B SWNW 4-155N-102W
EXTREME 21 OASIS PETRO NO AMER BASEY 5300 44-12T SESE 12-153N-100W
NABORS 177 OASIS PETRO NO AMER TANNER T 5601 42-24B SESW 24-156N-101W
WHITE MT. 314 OASIS PETRO NO AMER JENNA 5604 13-1H LOT2 1-156N-104W
TRINIDAD 118 OXY USA INC SPLIT RIDGE 1-2-1H-160-91 SWNW 2-160N-91W
ENSIGN 153 OXY USA INC BEATRICE KUBISCHTA 3-15-22H-143-96 NENW 15-143N-96W
H & P 255 OXY USA INC BILL CODY 1-20-29H-141-96 NWNE 20-141N-96W
NABORS B10 OXY USA INC MONGOOSE 1-13-24H-142-95 SESE 12-142N-95W
UNIT 121 OXY USA INC GRIGGS 2-8-9H-142-97 NWNW 8-142N-97W
UNIT 120 OXY USA INC STATE 2-25-36H-144-97 NWNW 25-144N-97W
H & P 325 OXY USA INC FEDERAL TORMASCHY 1-8-5H-142-96 SESE 8-142N-96W
UNIT 119 OXY USA INC LAMEY 2-30-31H-143-96 NENE 30-143N-96W
NABORS B9 OXY USA INC STATE 2-16-21H-143-96 SESW 9-143N-96W
H & P 329 OXY USA INC STATE FRANK BUTLER 1-29-32H-142-94 NWNE 29-142N-94W
MAJOR 001 OXY USA INC MANNING SWD 1 SESE 31-143N-95W
CANELSON 42 PETRO HARVESTER OPERATING RICE 14 SWSE 8-161N-82W
ENSIGN 24 PETRO HUNT LLC CARLSON 159-94-4B-9-1H LOT4 4-159N-94W
ENSIGN 46 PETRO HUNT LLC WOLD 160-94-32A-5-4H NWNE 32-160N-94W
H & P 180 PETRO HUNT LLC FORT BERTHOLD 148-94-9D-04-2H SESE 9-148N-94W
ENSIGN 77 PETRO HUNT LLC FORT BERTHOLD 148-95-25B-36-1H SWSW 24-148N-95W
UNIT 329 PETRO HUNT LLC FORT BERTHOLD 147-94-2A-11-2H NENE 2-147N-94W
UNIT 108 PETRO HUNT LLC FORT BERTHOLD 148-95-27A-34-2H NWNE 27-148N-95W
UNIT 234 PETRO HUNT LLC GOOD SHEPHERD HOME 150-101-15B-22-1H NWNE 15-150N-101W
NOMAC 322 PETRO HUNT LLC FORT BERTHOLD 152-93-18B-19-2H NENW 18-152N-93W
NOMAC 308 PETRO HUNT LLC ANDERSON 152-96-35D-26-4H SWSE 35-152N-96W
UNIT 233 PETRO HUNT LLC FORT BERTHOLD 152-93-9C-10-2H SWSW 9-152N-93W
PATTERSON 491 PETRO HUNT LLC WISNESS 152-96-28A-33-2H NWNE 28-152N-96W
TRUE 31 PETRO HUNT LLC CLEAR CREEK 152-96-34D-2H LOT2 3-151N-96W
ENSIGN 93 PETRO HUNT LLC HOKANSON 157-99-1A-12-1H LOT2 1-157N-99W
PATTERSON 338 QEP ENERGY CO MHA 1-31-30H-150-91 SESE 31-150N-91W
PATTERSON 341 QEP ENERGY CO MHA 2-06-07H-147-92 SESE 31-148N-92W
PATTERSON 319 QEP ENERGY CO MHA 2-05-04H-148-91 NWSW 5-148N-91W
SST 66 QEP ENERGY CO MHA 5-29-30H-150-90 SENE 29-150N-90W
NABORS 455 SAMSON RESOURCES CO SARATOGA 12-1-161-92H NWNE 13-161N-92W
PIONEER 71 SAMSON RESOURCES CO CAMINO 5-8-163-98H LOT2 5-163N-98W
H & P 324 SAMSON RESOURCES CO NOMAD 0607-5H SWSE 31-164N-99W
PATTERSON 136 SINCLAIR OIL & GAS CO ERSA FEDERAL 1-4H LOT2 4-148N-99W
CYCLONE 27 SLAWSON EXPLORATION WOLVERINE FEDERAL 4-31-30TFH SESE 31-153N-93W
NABORS 419 SLAWSON EXPLORATION MAGNUM 3-36-25H SESE 36-153N-101W
CANELSON 41 SLAWSON EXPLORATION FOX 2-28H SWSE 21-152N-92W
PATTERSON 167 SLAWSON EXPLORATION WHIRLWIND 2-31H NENW 6-151N-92W
FRONTIER 16 SLAWSON EXPLORATION JERICHO 3-5H LOT3 5-151N-92W
NABORS 152 SM ENERGY CO CARTER 9-8HW NESE 8-163N-101W
EXTREME 18 SM ENERGY CO ANDERSON 5-14H SWNW 14-149N-96W
NABORS 686 SM ENERGY CO NORBY 9X-20HB NESE 20-153N-95W
WHITE MT. 750 SM ENERGY CO HOLM 14-12HA SESW 12-150N-99W
EXTREME 7 TRIANGLE USA PETROLEUM FREDERICK JAMES 149-101-3-10-1H LOT3 3-149N-101W
PIONEER 42 TRIANGLE USA PETROLEUM STATE 154-102-25-36-1H NENW 25-154N-102W
TRUE 36 TRUE OIL LLC SLASH FEDERAL 44-33 4-9H SESE 33-148N-101W
NABORS B08 WHITING OIL AND GAS CORP CERKONEY 21-2TFH LOT3 2-141N-100W
NABORS 267 WHITING OIL AND GAS CORP ROSS 13-2 NWSW 2-141N-105W
NABORS B07 WHITING OIL AND GAS CORP RENBARGER 21-27H NENW 27-150N-100W
NABORS 587 WHITING OIL AND GAS CORP MOEN 41-26H NENE 26-150N-100W
PRECISION 109 WHITING OIL AND GAS CORP CARL KANNIANEN 22-32TFX SENW 32-154N-91W
PRECISION 110 WHITING OIL AND GAS CORP S-BAR 21-2H LOT3 2-153N-93W
PIONEER 66 WHITING OIL AND GAS CORP ROGGENBUCK 41-24XH NENE 24-153N-93W
PIONEER 57 WHITING OIL AND GAS CORP CVANCARA 12-14TFH NWNW 14-155N-93W
PIONEER 56 WHITING OIL AND GAS CORP FLADELAND 14-27H SWSW 27-153N-91W
PIONEER 67 WHITING OIL AND GAS CORP ESTVOLD 41-26H NENE 26-153N-92W
PRECISION 106 WHITING OIL AND GAS CORP PENNINGTON 11-3TFH LOT4 3-152N-92W
H & P 316 WHITING OIL AND GAS CORP SOLBERG 34-11PH SWSE 11-140N-99W
H & P 276 WHITING OIL AND GAS CORP TOMCHUK 21-30PH NENW 30-140N-98W
NABORS B15 WHITING OIL AND GAS CORP BUCKMAN 34-9PH SWSE 9-140N-99W
PIONEER 3 WHITING OIL AND GAS CORP KUBAS 12-13PH SWNW 13-140N-99W
PATTERSON 301 WPX ENERGY WILLISTON LLC FETTIG 6-7HC LOT3 6-148N-94W
NABORS B17 WPX ENERGY WILLISTON LLC CHARLES BLACKHAWK 31-30HA SESW 31-148N-92W
PRECISION 96 WPX ENERGY WILLISTON LLC LINSETH 13-13/12H LOT4 13-149N-95W
NABORS 486 WPX ENERGY WILLISTON LLC SWEET GRASS WOMAN 22-15HB NWNW 27-150N-94W
PATTERSON 336 WPX ENERGY WILLISTON LLC GEORGE EVANS 11-2HZ SWSE 11-150N-92W
SST 68 WPX ENERGY WILLISTON LLC MASON 2-11HWR NENW 2-150N-92W
NABORS 109 XTO ENERGY INC FBIR GRINNELL 34X-33 SWSE 33-149N-91W
NABORS 681 XTO ENERGY INC FBIR GEORGEBLACKHAWK 21X-6 LOT3 6-148N-91W
NABORS 265 XTO ENERGY INC TUCKERMAN 11X-11B NWNW 11-148N-96W
PATTERSON 191 XTO ENERGY INC RUBY STATE 34X-36G SWSE 36-154N-97W
NABORS 680 XTO ENERGY INC FLATLAND 11X-2A LOT4 2-153N-97W
H & P 239 XTO ENERGY INC ROXY 21X-6B LOT3 6-154N-96W
NABORS 742 XTO ENERGY INC SASS 34X-8E SWSE 8-154N-95W
PRECISION 512 ZAVANNA LLC GEORGE 19-30 1H NENW 19-154N-99W
NABORS 350 ZAVANNA LLC SYLVESTER 1-32H SWSE 32-155N-100W
ENSIGN 76 ZENERGY INC NELSON 14-23H SESW 11-152N-98W
NOMAC 327 ZENERGY INC WAHLSTROM 3-10H LOT3 3-151N-102W
ENSIGN 158 ZENERGY INC HELM 19-30H NENE 19-151N-104W
NOMAC 315 ZENERGY INC NELSON 24-13H SESW 24-157N-100W

Weekly Roundup: Will Bakken turn the corner?

It has been a while since our last post so I do apologize,  but we should be bringing you more Bakken news in the coming weeks!    The last 2 months have been hard on many Bakken players due to the downward pressure on oil due to European pressures as well as domestic unease about the economy.      This week, there was some firming on oil prices as some fears subsized over Spain’s debt,  and most Bakken stocks including Northern Oil & Gas (NOG: 1.45 +3.57%) ,  Continental Resources (CLR: 30.55 -0.78%) &  Oasis Petroleum (OAS: 7.87 -0.76%) bounced back with 3-4% weekly gains.   They are still all approximately down 15-30% from 52 week highs and we will have to see where oil prices converge towards before having more confidence in a meaningful recovery.    Some of the smaller players like Northern Oil & Gas, Oasis Petroleum and Kodiak Oil & Gas do look cheap with forward PE’s below 10.

52-Wk Range &
NOG 17.61 13.25 28.00 Up 0.49 Up 2.86% Sparkline Chart
CLR 70.74 42.43 97.19 Up 0.73 Up 1.04% Sparkline Chart
KOG 8.01 3.59 10.90 Up 0.21 Up 2.69% Sparkline Chart
WLL 40.92 28.87 63.97 Up 0.74 Up 1.84% Sparkline Chart
OAS 24.86 17.99 35.46 Up 0.51 Up 2.09% Sparkline Chart
GEOI 37.92 14.56 38.25 Up 0.43 Up 1.15% Sparkline Chart

In terms of Bakken news, it has been a busy month and we touch on the major happenings below:

  • GMX RESOURCES INC. (GMXR: N/A N/A) , a 60 Million dollar micro-cap O&G company,  announced that the Company has successfully drilled and completed its sixth operated horizontal Bakken well, the Johnston 31-4-1H, 55% working interest, located in Sections 4&9 Township 146N Range 99W in McKenzie County, North Dakota. The Johnston 31-4-1H was drilled to a measured depth of 20,979′ with a lateral length of 8,869′. It was completed as a 34-stage frac Middle Bakken producer achieving a peak rate of 1,479 boepd. The Johnston 31-4-1H had a spud to total depth of 29 days, a spud to rig release of 31 days and a spud to sales of 58 days.
  • Triangle Petroleum (TPLM: 0.0274 -9.8684%) got a reiteration of a buy rating from Cannacord Genuity last week.  Analyst, Marcus Talbert, said, “We are reiterating our rating and revising our price target following Triangle’s Q1/13 financial and operations update. In our view the recent share underperformance is not warranted given the strong project updates and relative growth outlook. TPLM remains one of our favorite ideas based on its meaningful leverage to the Bakken play and impactful near-term catalysts. We believe the current valuation represents a compelling buying opportunity given the accelerated development potential and operated catalysts in H2/12.”
  • Harold Hamm, CEO of Continental Resources (CLR: 30.55 -0.78%) showed optimism in his company by making over 7 million dollars in insider buys of CLR over the last 6 months.  Hamm’s average cost works out to $71.68/share.  Shares of Continental Resources Inc. closed Friday’s session at $70.74.
  • North Dakota still continues its economic growth in the Bakken region.   North Dakota produces a record amount of oil during the month of April at a clip of over 600,000 barrels per day besting Alaska to continue in the No. 2 spot in terms of oil production.    North Dakota continues to lead the nation with the lowest state unemployment rate at four-year low of 3.0% in April.

We will take a look at drilling reports and trends in the coming days on BakkenStocks.  Have a great Father’s Day!

2012 Top Bakken Stock Predictions

Yes, I do realize it is already March,  but it is never too late to make some bold 2012 predictions related to the Bakken region.    For our 2011 predictions, we were pretty spot 0n with the exception of PetroBakken (and even that dog of a stock has been on a tear for the last 2 months).    Without further delay,  lets get to the list.

2012 Predictions

1. Oasis Petroleum (OAS: 7.87 -0.76%)  hits $45 per share in 2012 or gets acquired. With Brigham Exploration acquired in 2011,  Bakken Investors are bracing for the next takeover of a major Bakken player.   With the exception of maybe 1-2 other O&G companies in the region,  Oasis is one of the closest things to a Bakken “pure play” stock.   For more detailed analysis on OAS, see our latest in-depth article on the company.

2. Kodiak Oil & Gas goes up by 50% in 2012. At just under $10,  Kodiak (KOG: N/A +0%)  is primed for solid growth over the next 3 quarters. Between mid-October 2011 and January 2012, Kodiak completed 8 gross operated wells, with the initial 24-hour production test averaging over 1600 BOE per day.   The company ended January with a production rate of about 15,000 Boe/d — up from 10,100 Boe/d at the end of 2011. That’s nearly a 50% production hike in about a month.   With the current ramp rate,  we expect KOG to surpass 20,000 Boe/d by Mid 2012.

3.  PetroBakken (PBKEF: N/A N/A) will turn the corner and end the year above $25. We were wrong in our 2011 prediction that PetroBakken would double,  but PetroBakken started ramping up production in Q4 of 2011 and has seen a run going from single digits to its current level around $16.    There is some thought that the parent company of PetroBakken,  PetroBank will spin off the company in 2012 to allow for accelerated growth and drilling in the Bakken region.     Recent highlights are below:

  • December 2011 production averaged 50,250 barrels of oil equivalent per day (“boepd”), exceeding  exit production guidance estimates and setting a new corporate benchmark. This is an 18% increase over December 2010.
  • Fourth quarter production was 48,007 boepd (87% light oil and liquids weighted), a 23% increase over the third quarter of 2011.
  • Operating netback for the fourth quarter was $59.21/boe, an 18% increase over the third quarter of 2011.
    Record fourth quarter funds flow from operations was $231 million ($1.24 per basic share), a 52% increase over the third quarter of 2011.
  • Proved plus probable (“2P”) reserves increased by 19% to 203.5 million barrels of oil equivalent (“MMboe”) at December 31, 2011, replacing 2011 production by 315%.

We will check back mid year to see how are predictions are doing.    Hopefully we can match our performance in 2011!

The Frac Facts

Article by Michael Filloon

Fraccing has caused concern in recent months. Reports of possible pollution have pushed down the stock prices of oil service companies levered towards pressure pumping:

  1. Basic Energy Services (BAS)
  2. RPC (RES)
  3. C&J Energy Services (CJES)

All three are down significantly since August of 2011, as uncertainty has hit the oil and gas service industry. Looking at growth estimates, all three of these stocks are a value. Wall Street isn’t worried about whether fraccing is safe, it is worried about possible EPA regulations.

Fraccing is not a new technology. It has been used safely for decades. It is important to understand the process of horizontal drilling, to understand why this process is safe. Northern Oil and Gas has a very good video on this process that shows how little contact groundwater has with drilling fluids and zero contact with completion fluids. The most important variable is the casing, of which there are a several “layers” in each well.
  1. The first 30 to 60 feet the well is sealed off by the production casing, intermediate casing, surface casing, conductor casing, with mud and cement between each of these casings.
  2. The conductor casing terminates between 30 to 60 feet, and at 500 to 1500 feet the surface casing terminates.
  3. The intermediate casing terminates several thousand feet below the surface, which leaves the cemented production casing.

Even with all of these layers working as a barrier there can still be human error, but fraccing is a sound and proven process. There has been no documented findings of frac fluid in ground water. This was also found true in the late nineties when pollution related to coal bed methane production was not linked to fraccing, but the dumping of polluted water into rivers.

Each company has its own different recipe for frac fluid. Ingredients of this fluid have drawn heavy interest, as companies did not want the competition to get a hold of this valuable information. Other companies were happy to disclose, posted the information on the internet for all to see. All chemicals used at a well site must be listed in MSDS sheets on location, so it is not a big secret what is being used, more a question of how much. Frac fluid is 99% water and sand/proppant. Other chemicals such as biocides or friction reducers are a very small portion of this mix. Companies like Flotek (FTK) have designed clean frac fluids that are biodegradable.
Environmentalists have complained that fraccing needs to be regulated. Fraccing is regulated by several federal acts and regulations, except for the Safe Drinking Water Act. Each state is responsible for regulating the oil and gas industry and how it effects drinking water. Fraccing is regulated closely as the state is known to check out well sites randomly, performing water tests and making sure regulations are being followed.
Approximately six million gallons of water are used to frac a single well in the Bakken. Of this, one million gallons will return from the well as flowback. There is more to this than just six million gallons of water. It takes twelve hundred truck loads to bring six million gallons of clean water to the well site. The one million gallons of flow back takes over 200 truck loads to disposal wells, where this flow back is dumped a mile under the ground. Heckmann Corp. (HEK) is a company that provides the service of disposing of frac water. Frac water disposal wells have also been linked to causing earthquakes. For this to occur the disposal well must be near a fault line. From what I understand all of the earthquakes have been minor.
The large amount of water used in fraccing has brought concern. The large amounts of fresh water used has already caused problems in the Eagle Ford and Marcellus shale areas. Water shortages have prompted the filtering of flow back to a purity level that can be re-used to frac new wells. Water filtration systems have been designed by companies likeGeneral Electric (GE), which use either filters or chemicals to clean frac water. Ecosphere (ESPH.OB) produces mobile water filtration units that use heat and oxygen to clean water, without the use of filters or chemicals.
In North Dakota there has been a significant issue with the use of reserve pits for the storage of flowback. Even when these pits are lined, it still can leak and pollute soil. Since these pits are in the ground it is difficult if not impossible to know if this has occurred. Companies likePoseidon Concepts (POOSF.PK) provides frac water storage units that are above the ground, can be heated, and better handle problems with pollution.
The Bakken has been somewhat insulated from water problems associated with fraccing. North Dakota has a significant amount of water, and estimates show it should be able to handle fraccing the Bakken/Three Forks. Even when wells have blown, none have shown groundwater pollution associated with chemicals used for fraccing. There have been complaints of pollution from reserve pits, but the state is working on phasing these out. In my opinion the most pressing problem is with wasted water in the Bakken. Trucks can wait three to four hours at disposal wells, plus added congestion to the highways and county roads have been tough on state infrastructure. I am not one for regulation, but the recycling of water could have added benefits.
Disclosure: I am long ESPH.OBFTK.
Additional disclosure: This is an article on fraccing in the Bakken. It is not a buy recommendation.

2012 could be a banner year for the Bakken

By Michael Filloon – BakkenStocks Contributor

I believe 2012, could be a big year for oil. Not all commodities will do well, but the demand for oil should continue to be strong. If problems persist for the Euro, this could have a negative effect. If not, Bakken oil producers could have a great year.

The winter in North Dakota has been mild when compared to years past. Not only has the weather been mild, but there has been close to no snow fall. It was originally thought that this winter could be worse than last. Analysts have been guiding upward, and there is a very good chance they have not increased estimates enough. For now, I am operating on the premise that the Bakken oil names will come in at the top end of guidance.

Triangle Petroleum (TPLM: 0.0274 -9.8684%) is a top pick for 2012. This is a risky play, but the payoff could be exponential. The argument against Triangle is two-fold. These two variables are price and acreage. I would not suggest using P/E, forward P/E or PEG ratios to determine the value of Triangle. Oil companies generally use 4-6 times cash flow to determine value. This is difficult to use given it is just beginning its operating program, and only a few of its non-operated wells are online. Triangle’s acreage is also in question. Station Prospect could prove to have significant middle Bakken resource. Triangle is currently looking for a JV partner in Montana.
Triangle is a growth story, but also has value. Its Station Prospect was purchased for $385/acre. The Montana acreage is close to other oil and gas producers:
  1. Samson Oil and Gas (SSN: 0.50 -5.30%)
  2. Statoil (STO: 16.69 +0.72%)
  3. EOG Resources (EOG: 89.02 +1.16%)
  4. Whiting (WL: N/A N/A)
  5. Continental (CLR: 30.55 -0.78%)

There have been several producing wells in this area:

  1. Swindle 16-10: IP rate of 1065 Boe/d
  2. Rogney 17-8: IP rate of 909 Boe/d
  3. Charley 10-15: IP rate of 1069 Boe/d
  4. Tolksdorf 1-1H: IP rate of 642 Boe/d
  5. Rognas 2-22H: IP rate of 1013 Boe/d
  6. Gobbs 17-81H: IP rate of 909 Boe/d

Whiting’s Starbuck Prospect is in this area of Montana. It has over 88000 net acres, which proves Whiting’s confidence in the play. Continental is running a two rig program here, and completed 6.9 net wells in 2011. Brigham had estimated its acreage in eastern Montana would produce seven wells/location. Kodiak (KOG: N/A +0%) is currently estimating two middle Bakken and two Three Forks wells in its Sheridan County leasehold. Station Prospect has very good thickness of the middle Bakken. Thickness in this play varies from 50 to 70 feet. The upper Three Forks is just beginning to be worked. I will be real interested in the upcoming production from this pay zone. Triangle has 54500 net acres in Station Prospect. It estimates three middle Bakken and three upper Three Forks wells per pad.

Triangle also has operated and non-operated acreage in North Dakota. It has 29000 net acres and has an estimated 168 operated locations, and 952 non-operated locations. Triangle is estimating four middle Bakken and four upper Three Forks wells at 1280 acre spacing in North Dakota. Triangle has just begun its North Dakota operated program. These wells are approved:
  1. Dwyer 150-101-21-16-1H
  2. Larson 149-101-9-4-1H through 4H
  3. Gullickson Trust 150-101-36-25-1H through 4H
  4. Fredrick James 149-101-3-10-1H

Whiting calls this area Hidden Beach. It has had very good results. Whiting has completed five wells in this prospect. The average IP rate as been 2669 Boe/d, with a high of 3092 Boe/d and a low of 2216 Boe/d. This area has a very good upper Three Forks payzone. To the north, Brigham (STO: 16.69 +0.72%)  and Kodiak  (KOG: N/A +0%) have had excellent results. Kodiak’s Koala middle Bakken wells could produce 1000 Mboe and 800Mboe in the upper Three Forks. Brigham also had good middle Bakken production to the north of Triangle’s acreage, which includes two wells with IP rates over 4000 Boe/d. Other oil production companies have already de-risked this area. At this point Triangle will just need to execute.

Its non-operated acreage is also good. Triangle has already had three very good wells operated by Newfield (NFX: 27.56 +0.58%). Its working interest and IP rates were:
  1. Holm 150-99-13-24-1H: 2370 Boe/d and 23.44% WI
  2. Staal 150-99-23-14-1H: 3034 Boe/d and 12.84% WI
  3. Lawlar 151-98-31-30-1H: 2789 Boe/d and 6.33% WI

The biggest problem is valuating Triangle’s acreage. Its North Dakota acreage has been purchased for an average cost of $2500/acre. Its current TEV/acres is $2618. There are reasons for this as much of its acreage has not been developed so a valuation at this point is just a guess. But the acreage to the southeast has some upside. Its Montana acreage could very well produce numbers comparable to southeast Divide County. The Station Prospect is inside the thermally mature middle Bakken, it is to the west of the Brockton-Froid Zone. The difference in TEV/acre seems extreme between Triangle and other Bakken players. This number ranges from $8000/acre to over $12000/acre.

Triangle is growing production significantly in a very short time. In December of 2011, it was producing 800 Boe/d. By year end of 2013, Triangle has a production target of 2600 and 3200 Boe/d. In summary, Triangle has growth and value. Some may think this stock is expensive, but cash flow should increase significantly in a very short time. Its acreage is a value. I believe Triangle’s North Dakota and Montana acreage is worth $10. This is without its 475000 acres in Nova Scotia, and its Rockpile Energy pressure pumping business. This stock is not for the faint at heart, and will see large pullbacks and breakouts so be sure to watch this company close.
Disclosure: I am long KOGTPLM.
Additional disclosure: This article is on Triangle Petroleum and its prospects for 2012. It is not a buy recommendation.

Oasis Petroleum: Indian Hills acreage is a potential (black) gold mine

It was once thought Oasis’ (OAS: 7.87 -0.76%) non-operated Sanish acreage was its most productive. Recent results by Kodiak (KOG: N/A +0%), Newfield (NFX: 27.56 +0.58%) and Whiting (WLL: 5.48 +0.00%) have brought this assertion into question. Kodiak’s Koala results culminated in this stock appreciating from less than $4/share to almost $10/share in just three months. Newfield has had several good McKenzie County well results, but slowed its program due to poor cost containment. Whiting recently released a record result in its Tarpon prospect, which was much better than even Brigham’s (STO) best well. Whiting’s Tarpon Federal 21-4H had an IP rate of 7009 Boe/d. All of this is bullish for the area and Oasis’ Indian Hills prospect.

Indian Hills is located in northern McKenzie County. Recent well results have been bullish this area in both the middle Bakken and upper Three Forks pay zones. Kodiak’s Koala wells are on the southeast border of Indian Hills. Kodiak’s Koala wells have performed much better than anticipated:

  1. Koala 9-5-6-12H3: IP rate of 2327 Boe/d, 90-day IP rate of 980 Boe/d
  2. Koala 9-5-6-5H: IP rate of 3042 Boe/d, 90-day IP rate of 1103 Boe/d
  3. Koala 3-2-11-14H: IP rate of 3412 Boe/d, 60-day IP rate of 1230 Boe/d
  4. Koala 3-2-11-13H: IP rate of 3021 Boe/d, 60 day IP rate of 1004 Boe/d
For those new to Bakken well results, I will clarify how important these results are. IP rates are used to calculate the estimate ultimate recovery (EUR) of wells. The further out the IP rate the better idea of how much resource the well will produce. Here are the 60 day IP rates for some of the most recent and best Brigham wells:
  1. Lucy Hanson 15-22 #1H: IP rate of 4358 Boe/d and 60-day IP rate 934 Boe/d
  2. Gunderson 15-22 #1H: IP rate of 3905 and 60-day IP rate of 1220 Boe/d
  3. Sorenson 29-32 #2H: IP rate of 5330 and 60-day IP rate of 1371 Boe/d
  4. Cvancara 20-17 #1H: IP rate of 4402 and 60-day IP rate of 1229 Boe/d
These Kodiak wells had results in line with Brigham’s best Ross and Roughrider wells. This was accomplished with only 24 stages, compared to Brigham’s 36 to 38 stage wells. I would expect the Koala wells will perform much better once 30 stage laterals are performed. It is important to note the first Koala well listed above was from the upper Three Forks pay zone.

There are further reasons to be bullish Indian Hills. The Kodiak Koala wells are in Poe field on the southeast border of this prospect. Continental (CLR) announced in its third quarter earnings release there were four Three Forks benches, and reaches thicknesses of up to 270 feet. Continental found the first two benches of the Three Forks are fairly uniform throughout, but the third and fourth benches have a more localized development. On the eastern border of the Indian Hills prospect in Banks field is Continental’s Charlotte 2-22H. Results from this test well point to the possibility of all four Three Forks benches being commercial in this area. If this is the case, my estimates have wells in the southeast Indian Hills prospect of:

  • 4 middle Bakken wells
  • 4 first bench of the Three Forks wells
  • 4 second bench of the Three Forks wells
  • 4 third bench of the Three Forks wells
  • 4 fourth bench of the Three Forks wells
Twenty wells per 1280 acre spacing is an aggressive estimate, and these numbers depend upon completion methods as Continental believes it can fracture more than one bench at a time which would decrease the number of wells, but not the total amount of resource. If this is the case, total cost per well would decrease significantly, without creating any difference in production.

Southeast Indian Hills prospect has a lot of promise, but there have been good results throughout the play. Here is a list of completed Brigham wells throughout this play:

  1. Abelmann 23-14: IP rate of 4169 Boe/d and 60-day IP rate of 1155 Boe/d
  2. Greenstein 30-31: IP rate of 3232 Boe/d and 60-day IP rate of 808 Boe/d
  3. Brakken 30-31: IP rate of 3573 Boe/d and 60-day IP rate of 955 Boe/d
  4. Lippert 1-12: IP rate of 2214 Boe/d and 60-day IP rate of 729 Boe/d

Brigham has done a good job of de-risking its acreage in north McKenzie County. It was ahead of the curve with respect to initial production rates. This could be through drilling and completion methods, or superior acreage. It is difficult to know if Oasis will be able to duplicate these types of results, but initial production numbers have been getting better as the company uses more stages and increases proppant. Most importantly, the prospect is good and will be a big producer for Oasis in the long term.

 

 

Oasis: Finally Out From Brigham’s Shadow

The average Bakken investor is well versed on Brigham (STO).  Brigham Exploration routinely outperformed the competition. It was well positioned in Alger Field, which is possibly the best middle Bakken play in the Williston Basin. When Brigham announced it was being purchased by Statoil, Bakken investors flocked to Kodiak Oil and Gas (KOG: N/A +0%) as it purchased a very large number of acres in southeast Williams and northeast McKenzie counties. These two companies gained attention through very good initial production rates. Brigham’s best were in Alger Field, while Kodiak produced very good wells in the middle Bakken and upper Three Forks.
These two companies have gotten most of the attention as pure Bakken plays.  Oasis (OAS) has been in the shadow of Brigham and Kodiak, but this could change very soon.  Oasis has over 303000 net acres in the Williston Basin.  This breaks into three areas:
1.    West Williston: 191716 net acres in southwest Williams, northwest McKenzie, and eastern Richland and Roosevelt counties.
2.    East Nesson: 102786 net acres in western Mountrail and west Burke counties
3.    Sanish: 8729 net acres in the Sanish field area
Oasis has 9 rigs running with 7 in West Williston and 2 in East Nesson.  It has quietly increased production significantly since the second quarter of this year, when it produced 7893 Boe/d.  Oasis estimates it will produce between 11000 and 12500 Boe/d on average for the full year of 2011.

Oasis’ Sanish acreage is probably its best outside of its Indian Hills acreage.  The Sanish is non-operated, and currently can support four middle Bakken and three upper Three Forks locations per 1280 acre spacing.  Oasis’ Cottonwood play is northwest of its Sanish play.  It consists of Mountrail County and into southern Burke County.  The Cottonwood play has much better production at its most southern acreage.  As the play heads north and into Burke, the wells are less expensive.  Its most northern acreage in Burke County is Oasis’ St. Croix.  Oasis has one result (Rebne 11-7H)here, which had and IP rate of 175 Bo/d.  For comparison sake, its Berry 11-6H is west of the Sanish and had an IP rate of 2023 Bo/d.

Its West Williston leasehold is broken down into four parts:
1.    Indian Hills- Northwest of Kodiak’s Koala prospect
2.    Red Bank-Northwest of Brigham’s Roughrider
3.    Mondak
4.    Hebron

Indian Hills is has great potential.  The acreage is probably not as promising as Koala, but has significant upside.  The southeast point of Red Bank is also quite good.   That said, Oasis has an abundance of good acreage that will allow them to execute their operational strategy.  Overall, the acreage Oasis currently owns is not as good as Brigham’s but should only sell at a minor discount to it’s Bakken competitor.

Oasis’ management has done a great job ramping up production, especially when we take into consideration the Bakken winter which slowed oil and gas production to a stand still.  The flooding made things worse as trucks could not get in and out of the well sites.  Oasis has met earnings estimates for three straight quarters after a bad miss in December of 2010.  This company has stated rising costs of oil service has placed a strain on its business.  Because of this, Oasis has started up its own well service business, which helps to take the fear of fracking costs continuing to rise.

In summary, Oasis has a very good acreage in the Williston Basin.  It has kept costs in check, and has seen its initial production rates increase significantly in a short period of time.  It has expanded it infrastructure and is better prepared for winters going forward.  Keep an eye on this company, as it is no longer in Brigham’s shadow.

This article was written by new BakkenStocks contributor, Michael Filloon.   Michael is well versed on companies operating in the Bakken region and we look forward to more articles from Michael in the coming year.

 

Active Drilling Rigs: December 2011

For the first time,  the number of Active Drilling Rigs topped 200 earlier this month up 3% from our last report in October.   The drilling activity in the region has not subsided and the mild early winter weather has allowed drilling to continue at full bore for the last 2 months.  The leaders look similar to previous months with Continental Resources leading the way with 21 Rigs.   Whiting Oil & Gas has also stepped up activity and now is 2nd among all players with 19 Drilling Rigs.   Brigham/Statoil also increased to 13 rigs overall and it will be interesting to see if they accelerate their plans under Statoil management.  Look for our upcoming article tomorrow diving into Oasis (OAS: 7.87 -0.76%) acreage in the region.

 

Rig Operator Well Name and Number
PRECISION 607 BAYTEX ENERGY USA LTD THOMPSON 35-26-162-99H 1XB
ENSIGN 67 BAYTEX ENERGY USA LTD REDFIELD 24-13-157-99H 1NC
NABORS 460 BRIGHAM OIL & GAS LP LYLE 21-16 #1-H
NABORS 49 BRIGHAM OIL & GAS LP PATENT GATE 7-6 #1H
PRECISION 645 BRIGHAM OIL & GAS LP STALLION 33-28 1H
NABORS 44 BRIGHAM OIL & GAS LP DALE 20-17 #1-H
NABORS 266 BRIGHAM OIL & GAS LP FOREST 26-35 #1H
NOMAC 316 BRIGHAM OIL & GAS LP SAX 25-36 #1H
NABORS 254 BRIGHAM OIL & GAS LP STROBECK 27-34 #6H
NABORS 52 BRIGHAM OIL & GAS LP CLIFFORD BAKKE 26-35 #4H
NABORS 182 BRIGHAM OIL & GAS LP MARTIN 32-31 1-H
NABORS 350 BRIGHAM OIL & GAS LP SAM 30-31 #1-H
CRAIG 4 BRIGHAM OIL & GAS LP ZACREP 2-11 #1H
NABORS 558 BRIGHAM OIL & GAS LP BORSHEIM TRUST 33-28 #3H
UNIT 106 BRIGHAM OIL & GAS LP RICH 30-31 #1H
KEY NRG 885 BRIGHAM OIL & GAS LP BLANCHE 27-22 #1H
MAJOR 41 BRIGHAM OIL & GAS LP EVERETT 5-8 #1H
PATTERSON 136 BTA OIL PRODUCERS LLC SHARON #1
NABORS 92 BURLINGTON RES O&G CO GOLDPOINT 41-25TFH
PRECISION 825 BURLINGTON RES O&G CO CECILIA STROH 34-7MBH
H & P 446 BURLINGTON RES O&G CO BRAZOS 24-34H
NABORS 59 BURLINGTON RES O&G CO NEIL 24-19MBH
NABORS 687 BURLINGTON RES O&G CO UBERWACHEN 22-34
NOMAC 359 CHESAPEAKE OPERATING INC DECKER 26-138-97 A 1H
NOMAC 312 CHESAPEAKE OPERATING INC KOSTENKO 30-138-97 A 1H
PRECISION 831 CONTINENTAL RESOURCES BURIAN 1-27H
PATTERSON 490 CONTINENTAL RESOURCES OVERLAND 1-8H
TRINIDAD 36 CONTINENTAL RESOURCES HAMPTON 1-2H
PATTERSON 183 CONTINENTAL RESOURCES INGEBRET 1-8H
PATTERSON 338 CONTINENTAL RESOURCES EDWARD 1-23H
CYCLONE 28 CONTINENTAL RESOURCES KUKLA 3-16H
PATTERSON 455 CONTINENTAL RESOURCES JACK 2-9H
PATTERSON 180 CONTINENTAL RESOURCES QUALE 1-1H
CYCLONE 22 CONTINENTAL RESOURCES LAZORENKO 1-2H
CYCLONE 4 CONTINENTAL RESOURCES JAMESTOWN 1-17H
CYCLONE 14 CONTINENTAL RESOURCES BOHMBACH 3-35H
CYCLONE 20 CONTINENTAL RESOURCES TODD 1-6H
CYCLONE 21 CONTINENTAL RESOURCES VADER 1-7H
CYCLONE 2 CONTINENTAL RESOURCES CINCINNATI 1-30H
CYCLONE 25 CONTINENTAL RESOURCES CHARLESTON 1-22H
CYCLONE 10 CONTINENTAL RESOURCES KING 1-5H
CYCLONE 31 CONTINENTAL RESOURCES LOKKEN 3-2H
PRECISION 832 CONTINENTAL RESOURCES SEVRE 1-22H
CYCLONE 19 CONTINENTAL RESOURCES SUTTON 1-3H
CYCLONE 5 CONTINENTAL RESOURCES RIXEY 1-28H
PATTERSON 515 CONTINENTAL RESOURCES GARNER 1-32H
ENSIGN 118 CORNERSTONE NAT RES LLC CUPLIN 6-3-10H
STONEHAM 17 CRESCENT PT ENERGY US CPEUSC AMELIA GRACE 7-6-158N-99W
PRECISION 630 CRESCENT PT ENERGY US CPEUSC AUSTIN 17-20-158N-99W
PRECISION 96 DAKOTA-3 E&P CO BUFFALO 1-36HC
NABORS 486 DAKOTA-3 E&P CO FOX 14-8H
PRECISION 517 DAKOTA-3 E&P CO SKUNK CREEK 23-14 HC
PATTERSON 336 DAKOTA-3 E&P CO PLENTY SWEET GRASS 18-19HC
SST 68 DAKOTA-3 E&P CO BENSON 16-3H
H & P 448 DENBURY ONSHORE TRMU 24X-12H
PATTERSON 301 DENBURY ONSHORE SATTER 24-35SEH
PATTERSON 305 DENBURY ONSHORE ERICKSON 41-25SWH
PRECISION 511 DENBURY ONSHORE OLSON 34-19SWH
PRECISION 289 DENBURY ONSHORE NELSON 24-11NEH
H & P 454 DENBURY ONSHORE ROEN 24-23NH
H & P 456 DENBURY ONSHORE JOHNSON 24-31NEH
ENSIGN 152 ENERPLUS RES USA CORP SITKA 149-93 06A-3H TF
PRECISION 631 ENERPLUS RES USA CORP CEDAR 148-94 12D-01-4H TF
ENSIGN 88 ENERPLUS RES USA CORP SPRUCE 148-94 12C-01-2H TF
PRECISION 560 ENERPLUS RES USA CORP GRAY WOLF 148-94-05CH TF
TRUE 32 EOG RESOURCES INC VANVILLE 15-1102H
MAJOR 45 EOG RESOURCES INC VANVILLE 17-1213H
TRUE 33 EOG RESOURCES INC WEST CLARK 3-2413H
SST 58 EOG RESOURCES INC WEST CLARK 1-2413H
DHS 12 EOG RESOURCES INC LOSTWOOD 10-2227H
NOMAC 328 EOG RESOURCES INC LIBERTY LR 15-26H
NABORS 527 EOG RESOURCES INC WAYZETTA 124-3334H
DHS 4 EOG RESOURCES INC CLEARWATER 200-06 SWD
DHS 9 EOG RESOURCES INC HARDSCRABBLE 8-0409H
NABORS 108 FIDELITY EXPL & PROD CO LACI 21-28-27H
NABORS 280 FIDELITY EXPL & PROD CO PARKER 29-32H
CANELSON 43 FLATIRONS RESOURCES LLC LUNDE 32-33
ENSIGN 71 G3 OPERATING LLC ARNSON 1-5-8H
STONEHAM 16 G3 OPERATING LLC HOUGHT 1-1-12H
UNIV DRLG 1 GADECO, LLC GOLDEN 25-13H
PARAMOUNT 1E GMX RESOURCES EVONIUK 21-2-1H
PRECISION 18 HELIS OIL & GAS CO. LLC VEEDER 1-27/34H
PRECISION 604 HELIS OIL & GAS CO. LLC FOREMAN 5-2/1H
H & P 241 HESS CORPORATION SMUGALA 27-1H
H & P 295 HESS CORPORATION LK-POHRIBNAK 147-96-16H-3
PRECISION 618 HESS CORPORATION HA-DAHL-152-95- 0706H-2
NABORS B06 HESS CORPORATION BW-R PETERSON 149-99-1102H-1
NABORS 2 HESS CORPORATION EN-SORENSON B-155-94- 3526H-1
NABORS B-04 HESS CORPORATION EN-MEIERS B-156-93- 1003H-1
NABORS B-03 HESS CORPORATION EN-RIERSGARD-156-93- 1718H-2
NABORS B5 HESS CORPORATION EN-THRONSON- 154-94-2029H-1
NABORS 1 HESS CORPORATION EN-POSTOVIT 157-93-0706H-1
NABORS B1 HESS CORPORATION EN-BINGER 157-94-1201H-1
H & P 293 HESS CORPORATION GO-QUALLEY-157-97- 1102H-1
MAJOR 27 HESS CORPORATION SC-FOSTER 153-99-2932H-1
PRECISION 620 HESS CORPORATION SC-JEAN 157-99-0904H-1
H & P 179 HESS CORPORATION GO-JARLAND-156-98- 1102H-1
H & P 294 HESS CORPORATION CA-HALVERSON-154-95- 0409H-2
H & P 317 HUNT OIL COMPANY HALLIDAY 2-12-1H 1
FRONTIER 19 HUNT OIL COMPANY CLEARWATER 1-26-23H 1
UNIT 109 KODIAK OIL & GAS (USA) INC CHARGING EAGLE 15-14-11-4H
UNIT 117 KODIAK OIL & GAS (USA) INC SKUNK CREEK 9-2-3-5H
UNIT 328 KODIAK OIL & GAS (USA) INC EAST GRIZZLY FEDERAL 3-25-36-15H
UNIT 123 KODIAK OIL & GAS (USA) INC SMOKEY KAREN 16-20-17-2H
UNIT 118 KODIAK OIL & GAS (USA) INC KOALA 15-31-30-3H3
CANELSON 42 LEGACY OIL & GAS ND LEGACY ET AL BERGE 1-1H
ENSIGN 86 LIBERTY RESOURCES FRITZ 150-101-32-29-1H
H & P 309 LIBERTY RESOURCES BERGER 156-100-7-6-1H
H & P 259 MARATHON OIL CO ECKELBERG 14-23H
H & P 386 MARATHON OIL CO BEN RECKARD 44-22H
H & P 392 MARATHON OIL CO BLACK HAWK USA 31-16H
H & P 258 MARATHON OIL CO WAKELUM 41-3H
H & P 256 MARATHON OIL CO JESSICA USA 21-6TFH
PRECISION 602 MUREX PETROLEUM CORP ETHAN ROBERT 5-32H
PATTERSON 335 NEWFIELD PROD CO CHARLOTTE 150-98-17-20-2H
NABORS 272 NEWFIELD PROD CO BRATLIEN 154-100-33-28-1H
ENSIGN 89 NORTH PLAINS ENERGY LLC KING 3-8H
H & P 457 OASIS PETRO NO AMER SHAW 6092 24-22H
NABORS 110 OASIS PETRO NO AMER CHICKEN CREEK FEDERAL 44-35H
EXTREME 17 OASIS PETRO NO AMER BRAY 5301 43-12H
NABORS 149 OASIS PETRO NO AMER CATCH FEDERAL 5201 11-12H
NABORS 165 OASIS PETRO NO AMER DUNLIN 5892 34-32H
NABORS 177 OASIS PETRO NO AMER FLINDERS FEDERAL 5602 13-18H
CRAIG 5 OASIS PETRO NO AMER CORNELL 5501 13-1H
STONEHAM 18 OASIS PETRO NO AMER MCCAULEY 5501 14-3H
ENSIGN 153 OXY USA INC STATE TITOS 1-3-10H-142-98
NABORS B9 OXY USA INC STATE JOE LOH 1-20-17H-143-98
TRINIDAD 118 OXY USA INC SORLIE 160-90-7-P16-1H
UNIT 121 OXY USA INC JOE V SEMERAD 1-12-1H-142-97
UNIT 120 OXY USA INC ROBERT SADOWSKY 1-2-35H-143-96
TRINIDAD 221 OXY USA INC ELSIE DVORAK 1-8-17H-141-96
UNIT 122 OXY USA INC STATE BRIAN SADOWSKY 1-10-3H-142-97
H & P 325 OXY USA INC WITTINGER 2-17-5H-143-95
H & P 329 OXY USA INC RAPHAEL STROH 2-13-24H-143-97
NABORS 413 OXY USA INC PRIVRATSKY 1-28-33H-141-95
PRECISION 426 OXY USA INC STATE JABLONSKY 1-1-12H-141-95
MAJOR 26 OXY USA INC BEATRICE KUBISCHTA 3-15-22H-143-96
H & P 255 OXY USA INC SPRING CREEK 1-20-141-93
KEY NRG 370 PETRO HARVESTER OPERATING OPSETH 29-7
UNIT 329 PETRO HUNT LLC SETTERLUND 159-94-28B-33-1H
H & P 180 PETRO HUNT LLC FORT BERTHOLD 148-94-30A-31-2H
ENSIGN 77 PETRO HUNT LLC FORT BERTHOLD 151-94-34C-27-1H
UNIT 108 PETRO HUNT LLC KLOSE 151-103-26B-35-1H
NOMAC 323 PETRO HUNT LLC OAKLAND 151-103-29B-32-1H
NOMAC 322 PETRO HUNT LLC FORT BERTHOLD 151-94-26B-35-1H
PATTERSON 491 PETRO HUNT LLC BRENNA 152-96-23C-14-4H
NOMAC 308 PETRO HUNT LLC SORENSON 152-96-24C-13-4H
ENSIGN 46 PETRO HUNT LLC JORGENSON 158-94-12C-1-1H
UNIT 234 PETRO HUNT LLC ROSSLAND 157-101-14B-23-1H
UNIT 233 PETRO HUNT LLC STATE OF NORTH DAKOTA 154-99-16A-1H
ENSIGN 24 PETRO HUNT LLC PASTERNAK TRUST 157-100-18A-19-1H
ENSIGN 93 PETRO HUNT LLC MILLER 157-101-12C-1-1H
SST 66 QEP ENERGY CO MHA 4-06-01H-149-92
MAJOR 24 QEP ENERGY CO MHA 4-06-07H-147-92
H & P 324 SAMSON RESOURCES CO DORADO 14-23-162-98H
H & P 277 SAMSON RESOURCES CO COUGAR 26-35-163-97H
PIONEER 42 SAMSON RESOURCES CO PIGEON 30-31-162-96H
NABORS 455 SAMSON RESOURCES CO STANLEY 28-21-156-91H
PATTERSON 167 SLAWSON EXPLORATION TURBO #2-21-16H
NABORS 419 SLAWSON EXPLORATION BARNSTORMER FEDERAL #1-3-10H
FRONTIER 16 SLAWSON EXPLORATION WOLVERINE FEDERAL #1-31-30H
CYCLONE 27 SLAWSON EXPLORATION MENACE 1-17-20H
CANELSON 41 SLAWSON EXPLORATION SORCERER 1-14-15H
NABORS 152 SM ENERGY CO WOLTER 15-8H
NABORS 476 SM ENERGY CO SYVERSON 16-34H
EXTREME 18 SM ENERGY CO BOGNER 13-20H
EXTREME 7 TRIANGLE USA PETROLEUM DWYER 150-101-21-16-1H
NEW ENERGY 1 TRIANGLE USA PETROLEUM LARSON 149-100-9-4-1H
TRUE 36 TRUE OIL LLC ANDERSON 12-18H
H & P 276 WHITING OIL AND GAS CORP ROXANE 21-16H
NABORS 267 WHITING OIL AND GAS CORP BSMU 2905
NABORS 686 WHITING OIL AND GAS CORP FRANKS CREEK STATE 21-16TFH
NABORS 112 WHITING OIL AND GAS CORP DULETSKI 21-13TFH
PIONEER 44 WHITING OIL AND GAS CORP KJELSTRUP 44-24TFH
NABORS 587 WHITING OIL AND GAS CORP TIFFT 21-18H
NABORS B07 WHITING OIL AND GAS CORP CHITWOOD 34-36H
PRECISION 520 WHITING OIL AND GAS CORP BROWN 41-28XH
PIONEER 57 WHITING OIL AND GAS CORP LINDSETH 12-12TFH
NABORS 99 WHITING OIL AND GAS CORP MAKI 41-33XH
PRECISION 51 WHITING OIL AND GAS CORP JONES 34-4H
PRECISION 106 WHITING OIL AND GAS CORP S-BAR 11-7TFH
PIONEER 66 WHITING OIL AND GAS CORP KLEFSTAD 24-25H
PIONEER 67 WHITING OIL AND GAS CORP DARYL LOCKEN 21-22H
PIONEER 3 WHITING OIL AND GAS CORP OBRIGEWITCH 21-16TFH
NABORS B-08 WHITING OIL AND GAS CORP BURESH 34-10TFH
PATTERSON 488 WHITING OIL AND GAS CORP KUBAS 34-12PH
H & P 316 WHITING OIL AND GAS CORP IVER & MINNIE 21-14PH
PIONEER 56 WHITING OIL AND GAS CORP BERGSTROM 44-10H
NABORS 109 XTO ENERGY INC FBIR BEAKS 24X-8
NABORS 681 XTO ENERGY INC FBIR GUYBLACKHAWK 24X-27
H & P 239 XTO ENERGY INC CHRISTIANA 21X-6
NABORS 265 XTO ENERGY INC TRUAX STATE 11X-16
PATTERSON 191 XTO ENERGY INC WILLEY 31X-3
NABORS 742 XTO ENERGY INC COLETTE 21X-18
PRECISION 512 ZAVANNA LLC LARSEN 32-29 1H
NABORS 688 ZAVANNA LLC LION 1-14H
NABORS 148 ZAVANNA LLC THELMA 1-21H
ENSIGN 76 ZENERGY INC ROLFSRUD 18-19H
NOMAC 327 ZENERGY INC KNELS 20-29H
NOMAC 315 ZENERGY INC MARY 3-10H