Weekly Roundup

Posted by bakken

For the moment, the Greek crisis is somewhat contained with the likelihood that the public referendum will not move forward and Greek will secure the 130 billion euro bailout from eurozone partners and the International Monetary Fund (IMF). Unfortunately, the Greek PM George Papandreou said a new coalition government would need four months to secure the new euro130 billion ($179 billion) rescue agreement and demonstrate the country’s commitment to remaining in the eurozone. If it indeed takes 4 months to stabilize the government, that will continue to cause volatility in the markets with a high probability that the large swings will continue. The dust has settled in the Bakken region with the Brigham acquisition closing soon and focus turning to some other players. Get your daily dose below:

• Saxon Oil Company Ltd.announced that the Bakken 30-31 #1H well, in Williams County, North Dakota, has produced approximately 85,629 bbls (281 bopd) of oil since the first date of production on December 1, 2010. The well recently produced approximately 6,522 bbls (217 bopd) of oil in the month of September 2011. Saxon owns a 4.2% working interest in the well.
• Enbridge Energy announced it was planning a $90 million expansion to oil projects in North Dakota that would add 100,000 barrels of oil to the market.  M. Maki, president of Enbridge Energy Partners, announced his company was working on expanding the gathering capacity of its Bakken program in North Dakota by 100,000 barrels per day.
• Tesoro Corp Chief Executive Greg Goff said on Thursday the company’s 120,000 barrel per day (bpd) Anacortes, Washington, refinery would cut the use of Alaska North Slope crude oil as it boosts shipments of Bakken crude by rail.  Tesoro has a railroad loading system under construction that will boost its shipments of Bakken crude from North Dakota to the Anacortes refinery by the end of 2012.  The $50 million Bakken rail shipment project, announced in July, will eventually bring 30,000 bpd in the cheaper crude oil to the Anacortes, up from the current 1,000 to 2,000 bpd.

• There was a rare negative article on Whiting Petroleum (WLL: 44.20 -0.20%) earlier this week in Barron’s.   Global Hunter Research stated that  Whiting Petroleum posted solid third-quarter results. However, it they indicated that it  seemed that the company’s production growth is on a treadmill that constantly requires more capital to maintain growth levels.   They wrote:  “As a result, we are lowering our rating on Whiting (ticker: WLL) from Buy to Neutral and our price target from $70.00 to $60.00 reflecting seven times our updated 2012 earnings  (Ebitda) estimate of $1.18 billion down from $1.2 billion.

Keep checking back for more Bakken news in the next few days!

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Tags: Bailout BEXP greece IMF Saxon wll