Weekly Roundup: Greece & Oil

Posted by bakken

We are experiencing a case of deja vu in global economic news this week as oil continues to be volatile in the wake of global economic uncertainty,  with Greece potentially still headed for default (despite a flurry of support measures) and continued lack of consistent buying in equity markets.    Oil has drifted from over $100 to just over $91 with experts expecting a dip to $85.

In Bakken news, many plays have recovered from a tough winter only to be hit with flooding in the region and are struggling to get production back at full capacity. In the last week we have seen the following developments:

• MDU Resources Group, Inc. (MDU: 22.08 -0.45%) today announced the acquisition of 20,000 additional acres of leaseholds in the Bakken oil play in Richland County, Montana. The company now holds a total of approximately 90,000 net acres of leaseholds in the Bakken. MDU also announced that it is lowering its 2011 oil and natural gas production forecasts as a result of extensive rain and flooding conditions that have hampered operations delaying growth activity in key producing states in the Rocky Mountain region including the Bakken area.

• Brigham Exploration Co (BEXP: 0.00 N/A)  reported one of it’s best peak rate at one of its wells in Montana Bakken and it expects more wells in the Williston basin to benefit its third-quarter production, sending its shares up 4% in early Tuesday morning training.  The Gobbs 17-8 #1H well yielded an early 24-hour peak production rate of 1,818 barrels of oil equivalent (boe) in Montana Bakken region.    The development is significant as it solidifies Brigham’s prowess in regions other than the traditional North Dakota Bakken region.  The company expects the number of net wells it has in play to be 40% higher than last year.

• In a recent interview with Forbes,  Harold Hamm,  CEO of Continental Resources (CLR: 71.31 +0.62%) stated  “We’re going to triple the size of the company within five years,” and believes within five years Continental will likely be pumping 100,000 bpd from the basin and to grow its proved reserves from 400 million barrels to more than 1 billion.

Until next time,  we’ll keep drilling away for more news in the region!

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Tags: austerity BEXP boepd Gobbs greece Montana Bakken