The week in Bakken

Posted by bakkenexpert

A couple of interesting developments surfaced this week related to the Bakken region:

• Brigham Exploration shares climbed on 7% Wednesday on news that a recent well produced and initial rate of 3807 BoED but quickly relinquished those gains when BMO Capital Markets downgraded the stock a day later.
• On Wednesday as well Continental Resources (NYSE: CLR) today announced a 29 percent increase in initial production rates for fourth quarter 2009 wells compared to the last quarter.  Furthermore, CLR’s CEO Hamm indicated that they plan to increase to 23 operated rigs by mid-2010.  Finally Continental has acquired an additional 70,000 net acres in leases strategically located on the western and eastern edges of the Nesson Anticline, as well as expanding westward into the Williams area.
• Rosetta Resources (ROSE) not typically associated with Bakken plays, recently set its capital spending budget at $280 million, part of which will go to further development in the Eagle Ford and Bakken plays. The company also forecasts double-digit production growth, to a range of 145 to 155 million cubic feet per day, and growth in proved reserves, which at the end of 2008 stood at 398 billion cubic feet equivalent
• EOG Resources of Houston, began shipments from its new terminal in northwestern North Dakota to Oklahoma. The company has said the terminal near Stanley is capable of loading 60,000 barrels of oil onto one 100-car unit train each day.
• The bakken land grab for smaller players continues, FieldPoint Petroleum Corporation (NYSE AMEX:FPP) announced today that it has acquired a lease of approximately 440-800 gross acres in Renville County North Dakota. This property borders on the well established Bakken shale oil play which encompasses multiple counties including Mountrail, Burke, Divide and Dunn. FieldPoint has paid an average of $155.00 per acre for these oil and gas leases with an average 16-20% royalty.

As for the basket of bakken stocks,  they mostly traded sideways this week with the exception of WLL and KOG which were up 5% and 10% respectively (and happened to be our top picks for 2010 posted on Jan 3rd)

Symbol	Last Trade		Change		Volume	Avg Vol (3m)
CLR	1:30pm ET	44.80	0.20	0.44%	388,741	689,444
WLL	1:30pm ET	76.41	0.33	0.43%	435,568	977,730
EOG	1:30pm ET	97.92	0.63	0.64%	2,069,979	2,752,350
NOG	1:30pm ET	13.054	0.116	0.88%	219,819	423,594
AEZ	1:28pm ET	4.7699	0.0901	1.85%	317,086	661,909
BEXP	1:30pm ET	14.59	0.09	0.61%	1,888,634	3,705,130
KOG	1:30pm ET	2.59	0.01	0.39%	700,627	1,520,470
MDU	1:30pm ET	23.52	0.09	0.38%	131,162	651,506
GEOI	1:28pm ET	14.32	0.22	1.51%	23,327	86,142.2
WSEG.OB	1:22pm ET	0.03	0.00	3.45%	94,456	68,768.8
KDKN.OB	12:25pm ET	0.28	0.01	3.32%	96,850	328,373

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Tags: BEXP BMO CLR EOG FieldPoint Petroleum FPP Hamm Renville ROSE