We have been lamenting over the last few weeks that the market was having a hard time finding it’s footing and that changed these past 2 weeks with the Dow up about 7% after central banks took steps to free up capital in debt-laden EU countries. In addition, Seventeen nations in the euro zone agreed to sign a treaty that allows a central European authority closer oversight of their budgets. Oil benefited and continues to stabilize near the $100 a barrel mark. The latest Bakken news is below!
- Big Sky Petroleum Corporation and its two partners, FX Energy (FXEN) and American Eagle Energy (AMZG), have completed drilling and casing a horizontal sidetrack of well 14-29, in Toole County, Montana. Good oil and gas shows were noted throughout the drilling of the horizontal section. To date, Big Sky owns a 33.333% working interest in approximately 100,000 net acres in Toole and Glacier counties, Montana.
- US junior American Eagle Energy and its pending merger partner Eternal Energy agreed to sell 75% of their interests in Bakken-Three Forks to a third party for just shy of $14 million. The buyer of the West Spyglass prospect in was listed as “a wholly-owned subsidiary of a publicly traded company with a market cap in excess of $10 billion”
- Dakota Oil Processing, a development company plans to build a $200 milion dollar refinery in the Bakken region. The 20,000 barrel-per-day plant received county zoning approval two weeks ago and now awaits a final state air permit . Once complete, the refinery will lower overhead costs for producers in the region as the oil would not have to be shipped to Texas to be refined.
- The Fracking debate continued to heat up in recent weeks. Environmentalists and others increasingly have raised concerns about the potential impact of “fracking” on water and other resources. The EPA on Thursday announced for the first time that the process may have caused groundwater pollution in a Wyoming community. Ron Ness, president of the North Dakota Petroleum Council, said Friday in Grand Forks that “there has got to be an educational process” to reassure the public about the health and environmental safety of hydraulic fracturing as the process is employed here.
- Oasis Petroleum (OAS: 37.92 -0.76%) was upgraded by equities research analysts at Caris & Co. to an “above average” rating in a research note issued on Friday. In addition, analysts at Morgan Keegan reiterated an “outperform” rating and a $34 price target on shares of Oasis Petroleum in a research note to investors. Oasis Petroleum could be a big winner and a potential acquisition target with a portfolio of high quality acreage in the region.
Until next time, Keep Drillin’
Tags: Caris contamination fracking OAS Refinery