A tiny Bakken play that could be a 10 bagger (or a 0 bagger) in 3 years

Posted by bakkenexpert

I came across a tiny Bakken play Western Standard Energy Corp (WSEG.OB) that has a $27 million dollar market cap. This is truly the smallest publicly traded Bakken play that I have come across thus far. Western Standard has an effective 80% Working Interest and 64% Net Revenue Interest (after land owner payouts) in seven Lodgepole Reef Prospects (see map below) within the Williston Basin. In this area approximately 4 million barrels of oil has been estimated with represents almost $2 billion in reserves at $110 per barrel. The company also announced on July 14th that they acquired additional acreage in Stark County with 100% working interest with payouts due to landowner downstream. The company plans to drill a well in the 11000 feet range at a cost of $4.5 – $5 million dollars. If they are able to tap even 3-5 decent wells in the area with a rate of 600 barrels per day that could lead to a revenue stream of $100 million per year and a market cap of $300 million which equates to a share price around $3 (hence the potential 10 bagger). Please be aware that the opposite could also occur with this company not having success, not being able to get access to financing and becoming a sub penny stock (hence the 0 bagger). We are just setting aside a few thousand shares and checking this again in a year. Good Luck to all!

Below is a 3 month chart of WSEG

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Continental Resources takes off

Posted by bakkenexpert

Continental Resources (CLR) today announced initial results from its Mathistad 1-35H well completed in the Three Forks/Sanish formation in the North Dakota Bakken Shale area. The well is yielding an impressive average rate of 1,095 barrels of crude oil equivalent per day (unhedged this is $130,000 in revenue per day), with 90 percent of production being crude oil and 10 percent natural gas. This data lends hope that the Three Forks/Sanish area may be a separate reservoir with greater reserves than originally anticipated. As i have stated before, all it takes is some positive news to send a bakken play off to the races and we see that with CLR this morning. The stock is up almost 12% around $73 per share sending it within striking distance of a 52 week high. As listed in our previous confidential rig report, Continental has more than 30 well prospects in the area and there is now evidence that these could be VERY lucrative.

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