Support solidifying

Posted by bakkenexpert

Yesterday oil futures spiked more than 10% on the potential impact and devaluation of the dollar on a $700 billion bailout of the financial sector. Today there was some profit taking but oil still closed above $105 which allowed our bakken plays to keep most of their gains. As the market has endured turbulence, the bakken related companies have gone about their business continuing to build up production capacity and expanding in the bakken region. Notable highlights over the last 2 weeks:

• Northern Oil & Gas (NOG) announced 8 new Bakken discoveries with anywhere from 1%-12.5% working interest.  These wells average 768 BOPD.
• Northern Oil & Gas (NOG) announced that with recent leasehold acquisitions, Northern’s acreage position in the North Dakota Bakken and Three Forks/Sanish plays has grown to approximately 65,000 net acres.
• MDU Resources (MDU) estimates that it holds approximately 950 Bcfe of probable and possible reserves, a 19 percent increase from its previous estimate released in July 2007. The increase is largely driven by the company’s exploration plays in the Bakken and Paradox Basin areas and the recent East Texas acquisition.
• Kodiak Oil & Gas (KOG) released info that it now owns an approximate 38,000 net acres under 54,000 gross leasehold acres on the Fort Berthold Indian Reservation (FBIR) in Dunn County, N.D. The Company has three approved drilling permits and recently completed construction of a drilling pad on one of these permits.
• UBS upgraded EOG Resources from hold to buy which helped send the stock up $15 this week.

We have not seen any hint of slowing of exploration for our bakken plays which is a positive sign.  If oil can continue to stay over $100,  the rest of the year could be quite promising as we head into earnings season.

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Signs of life

Posted by bakkenexpert

The downturn in financial markets had sparked renewed fears of a global slowdown amid the credit crunch.  For the better part of the last 2 weeks, this took its toll on the price of oil which caused our bakken plays to drop 10-20% during the period.   There has been such a mistrust of the financial system that now oilinvesting is being viewed as a flight to quality which may provide a short term base while the capital market issues attempt to resolve themselves.   On a positive note,  it does look like oil has major support around $90 and if we can get a prolonged hold of that level, then big dollar oil investors may enter the fray.

bakken

Symbol	Last Trade		Change		Volume	Avg Vol (3m)
NOG	11:23AM ET	7.04	0.12	1.73%	170,642	508,603
WLL	11:24AM ET	70.59	0.49	0.70%	404,045	1,190,530
SM	11:23AM ET	34.86	0.06	0.17%	531,390	1,456,460
MDU	11:24AM ET	26.65	0.15	0.56%	511,302	1,106,240
GEOI	11:23AM ET	11.11	1.16	11.66%	89,040	214,415
BSIC.OB	11:11AM ET	1.30	0.10	7.14%	18,795	43,792.3
WSEG.OB	11:20AM ET	0.1250	0.0400	24.24%	257,534	789,254
CLR	11:23AM ET	36.39	1.90	5.51%	1,304,581	2,017,570
BEXP	11:23AM ET	12.74	0.65	5.38%	478,931	1,304,140
KDKN.OB	11:23AM ET	0.86	0.26	23.21%	105,260	95,510.8
KOG	11:23AM ET	1.3800	0.1800	15.00%	1,128,631	1,350,410
EOG	11:24AM ET	90.33	1.52	1.71%	2,018,772	4,224,690

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