Bakken Review

Posted by bakkenexpert

The following bakken tidbits surfaced in the last week

• Brigham Exploration Company (NASDAQ: BEXP) announced that its operated Strand 16-9 #1H produced approximately 2,264 barrels of oil equivalent per day from the Bakken formation during an early 24 hour flow back period.  Brigham maintains an approximate 21% working interest in the Strand, which is the fourth well completed under the drilling participation agreement with U.S. Energy Corp. (NASDAQ: USEG)
• Junior Bakken player, AEZ has been looking for a partner on its Bakken/Three Forks acreage position (76,000 net acres) in order to ramp activity and lower its initial drilling costs in return for about 50% of the working interest in the play.”
• BASIC EARTH SCIENCE SYSTEMS, INC. (OTCBB:BSIC) reported that drilling operations have begun on its newest Bakken well in North Dakota. The Mondak Federal #4-14H well in Section 14, T148N-R105W, a new area of interest for Basic Earth in McKenzie County, is being drilled by XTO Energy Inc., Ft. Worth, TX. This well has a single long lateral borehole spanning Sections 14 and 23. Basic Earth has an approximate 8.4% working interest and expects to spend approximately $400k for its share of drilling and completion costs on this well.
• Junior oil and gas explorer Painted Pony Petroleum Ltd. is increasing its activity in the Saskatchewan Bakken tight oil play as it almost doubles its capital spending plan for 2010 to $90 million.  The company, whose share price has gone up 400% from the start of the year to $5.90, noted Thursday that production in the third quarter grew to 1,600 barrels of oil equivalent per day, up 26 per cent over the second quarter and 79 per cent from the same period of 2008.
• Reliable Energy Ltd. (the “Company” or “Reliable”) (TSX VENTURE:REL) has recently completed its development drilling program having drilled four wells (gross), 3.9 wells net, into its South Kirkella Bakken oil pool. Of the four wells, one is completed, fracture stimulated and on production at 85 bbls per day (net) of oil. Two wells were perforated and placed on production and have each averaged 37 bbls per day (net) of oil with no produced water.

The news definitely indicates that a number of smaller players in the region (including Canada) are making progress towards their production targets.

Related posts

• Glass half full? (0)
• Does XTO’s purchase signal an M&A boom in Bakken? (0)
• Daily Roundup (6/10/2008) – Bakken bloodbath? (2)
• Basic Earth Science (BSIC.ob) – Ready to break out? (0)
• Bakken Crackin? (2)

Glass half full?

Posted by bakkenexpert

The pain continues today for many oil stocks as there is still fear that oil prices will continue to drop from its current level of $125 per barrel. If we can sustain 1 or 2 weeks of stable oil prices, then I believe the controlled “panic selling” will subside and Bakken stocks can start trading independently of other oil sector stocks. At this point, standard option strategies like selling out of the money (OOTM) puts are not advisable as we don’t know where the bottom is of this oil vacuum. We are hunkering down for the next leg here and hoping for stabilization in the next week when some of the Bakken plays report earnings. There were a few bright spots today with WLL, BSIC.OB and XTO in the green. Good Luck to all.

bakken

Symbol	Last Trade		Change		Volume	Avg Vol (3m)
WLL	4:03PM ET	84.95	1.31	1.57%	1,194,647	1,115,910
MDU	4:03PM ET	31.14	1.21	3.74%	1,288,924	1,086,270
SM	4:01PM ET	43.23	0.39	0.89%	2,176,189	1,369,390
CLR	4:04PM ET	62.08	0.19	0.31%	2,377,113	1,737,110
EOG	4:00PM ET	101.18	1.84	1.79%	5,746,200	3,521,540
NOG	4:00PM ET	10.10	0.51	4.81%	410,358	594,478
KOG	4:00PM ET	3.00	0.27	8.26%	1,848,770	1,461,550
KDKN.OB	3:59PM ET	2.03	0.03	1.46%	108,734	243,183
BSIC.OB	3:50PM ET	1.82	0.17	10.30%	8,501	94,520.3
XTO	4:02PM ET	48.78	0.54	1.12%	55,620,781	9,122,790

Related posts

• Market convergence…..Bakken divergence. (1)
• Bakken Review (1)
• Bakken Crackin? (2)
• Whiting Petroleum – Undervalued? (1)
• Time has passed but nothing has changed (0)