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2011 Predictions Review
Posted by bakkenIn the January of 2011 we put out a number of predictions related to the Bakken region, let’s see how we are tracking thus far.
PREDICTION #1 – Brigham Exploration (BEXP: 0.00 N/A) gets acquired by a large O&G in the region such as EOG.
>> RIGHT – As most everyone who follows the region knows, Statoil ASA acquired Brigham last month for $36.50 per share. We weren’t at all surprised that BEXP got acquired, but were expecting more of a bidding war for this jewel in the Bakken region.
PREDICTION #2 – PetroBakken goes up 50% in 2011 .
>> WRONG – This prediction has been a huge disappointment for PetroBakken shareholders. Instead of being up 50% the stock is down about 50% since the beginning of the year. They have failed to execute on their growth plan and missed a few earnings estimates and Wall Street has responded negatively. On paper many investors (such as this one) believe it still has some potential.
PREDICTION #3 – Continental Resources (CLR: 71.31 +0.62%) tops $75 per share in 2011 .
>> TBD Continental Resources (CLR: 71.31 +0.62%) came within striking distance of $75 in July hitting $73.48. The market experienced a pullback shortly thereafter and CLR followed suit. It has bounced back in recent days to $67 and there is an outside chance it will hit $75 in the next 2 months… but don’t hold your breath.
PREDICTION #4 – Bakken drilling continues to surpass estimates and will yield record production in 2011
>> RIGHT – By the end of 2010 oil production rates had reached 458,000 barrels per day in the Bakken region. The numbers are obviously not yet complete for 2011, but right now the numbers are tracking to easily beat 2010 numbers. From the North Dakota Industrial Commission (NDIC) Oil & Gas some positive numbers on 2011 development are below:
Aug Oil 13,829,114 barrels = 446,122 barrels/day
Sep Oil 13,923,650 barrels = 464,122 barrels/day (preliminary) (all time high)
Aug Gas 14,349,802 MCF = 462,897 MCF/day
Sep Gas 14,552,239 MCF = 485,075 MCF/day (preliminary) (all time high)
Aug Producing Wells = 5,951
Sep Producing Wells = 6,071 (all time high)
Look for our 2012 Predictions next month!
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Tags: BEXP NDIC pbn petrobakken record production Statoil ASA
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