Weeky Roundup

Posted by bakken

The overall market has been on an upswing over the last few trading sessions with oil up almost 12% in the last 3 weeks. Bakken stocks benefited from the recent move and may have gotten a little extra buying with Brigham being acquired by Statoil ASA. The move may trigger some consolidation in the region with a number of other companies such as Continental Resources and Oasis Petroleum looking attractive. We’ll be issuing our top 3 bakken acquisition targets at the end of the week but in the meantime, noodle on the latest happenings in the region:

• There as been a lot of recent leasing activity in South Dakota and the potential for the Tyler Formation. State geologist Ed Murphy in North Dakota said the formation extends from the western part of that state into northwest South Dakota and may hold up to one-third the volume of oil estimated in the prolific Bakken.
• As expected,  many investors are looking at the largest owners of acreage in the region with the Brigham acquisition.  Among the biggest U.S. explorers in the formation  are Oasis and Whiting who own the most Bakken shale acreage versus their takeover value, according to data compiled by Bloomberg. On that basis, both control more land than Brigham Exploration.
• Sunoco (SUN: 38.50 +0.65%) has been receiving quantities of Bakken crude oil from the Mid-Continent to run at its Philadelphia-area refineries, trade sources said on Friday.  Traders said the crude was railed to Albany, New York and then barged down to Philadelphia. One trade source said volumes were between 10,000 and 20,000 barrels per day.
• The 2nd annual Bakken Infrastructure Summit kicks off this week in Denver.    The summit’s focus will be on the full range of initiatives to develop expanded infrastructure capacity for the Bakken region, including briefings on every major pipeline project currently under development.

Take care until next time!

 

Related posts

• Exclusive Interview with Bud Brigham, CEO of Brigham Exploration (1)
• Active Drilling Rigs – October 2011 (0)
• Active Drilling Rigs – November 2010 (0)
• Active Drilling Rig List – Feb 9th 2010 (0)
• What Bakken O&G companies can learn from the BP debacle (0)

Weekly Roundup – Markets still fickle

Posted by bakken

The last few weeks have been tough on investors with wild swings in both directions and an inability to predict the markets next moves. We are staying steadfast in our bullishness on both Brigham Exploration (BEXP: 0.00 N/A) and Continental Resources (CLR: 79.28 -0.11%) and expect these Bakken plays to break out in the next 3-9 months. The weekly roundup is below.

• After intense selling pressure last week,  most Bakken stocks rebounded upwards  10-15% in the last 2 trading days but most are still trading well below their 2011 highs.
• On September 26th,  Enbridge shut the 25,000-barrel-a-day Line 26, which transports oil from Berthold, North Dakota, to Steelman, Saskatchewan.  The pipeline was shut down due to a leak and there is currently no timetable to bring the pipeline back online
• Two of Whiting Oil’s (WLL: 49.50 +1.29%) wells,   Smith 34-12TFH and Lydia 21-14TFH at Lewis & Clark Completed with Initial Flow Rates of 2,939 BOE/D and 1,960 BOE/D, Respectively.     Whiting  Oil has 1,102,302 gross and 680,137 net acres in the Bakken/Three Forks region.

• Hess Corp (HES.N) Chief Executive John Hess believes oil output from shale prospects in unconventional sources from North Dakota to Texas could reach 1.5 million to 2 million barrels-per-day (bpd) in the coming five to seven years, twice as much as the 700,000 bpd currently produced in these places.

In looking at the major players in the region,  Northern Oil & Gas was the only one to end up net positive after a week of brutal selling as a result of increased production.   Hopefully the remaining players can follow suite as the market recovers in the short term.

Related posts

• Active Drilling Rigs – November 2010 (0)
• Active Drilling Rig List – Feb 9th 2010 (0)
• Whiting Petroleum – Undervalued? (1)
• Weeky Roundup (0)
• Weekly Roundup (0)