The latest update on the Bakken Fund is below. For the FAQ, scroll to the bottom of the page
The Bakken Fund is constructed as an index fund of 10 stocks with Bakken exposure. Each stock gets a 10% weighting (total 100%) regardless of market cap. We have included micro caps, small caps, mid caps and large caps in the Bakken Fund to give diverse exposure to both risk and the Bakken region. After extremely solid years in 2009 (180% gain) and 2010 (64% gain) we have pulled into positive territory for the year (as of 6/30/11) with a 5.28% gain. Given the roller coaster ride the economy has seen this year, we don’t expect the fund to sit still through the remainder of the year. We expect Bakken plays to end the year on an up note and outperform non-Bakken plays. Many of the pure plays are off 30% from their 2011 highs and could bounce in the short term.
BAKKEN FUND 2008
RETURN: -43.34%
Company
Symbol
Price 1/1
Price 12/31
Return
Brigham Exploration
BEXP
7.3
3.13
-57.12%
Continental Resources
CLR
26.13
20.71
-20.74%
Whiting Oil & Gas
WLL
28.83
16.73
-41.97%
Northern Oil & Gas
NOG
6.95
2.6
-62.59%
Kodiak Oil & Gas
KOG
2.2
0.31
-85.91%
MDU Resources
MDU
24.86
19.87
-20.07%
EOG Resources
EOG
87.3
65.44
-25.04%
NewField Exploration
NFX
52.7
19.75
-62.52%
GEO Resources
GEOI
9
8.69
-3.44%
Marathon Oil
MRO
55.21
25.41
-53.98%
Total
-43.34%
BAKKEN FUND 2009
RETURN: 180.49%
Company
Symbol
Price 1/1
Price 12/31
Return
Brigham Exploration
BEXP
3.13
13.55
332.91%
Continental Resources
CLR
20.71
42.89
107.10%
Whiting Oil & Gas
WLL
16.73
35.72
113.51%
Northern Oil & Gas
NOG
2.6
11.84
355.38%
Kodiak Oil & Gas
KOG
0.31
2.22
616.13%
MDU Resources
MDU
19.87
22.51
13.29%
EOG Resources
EOG
65.44
96.42
47.34%
NewField Exploration
NFX
19.75
48.23
144.20%
GEO Resources
GEOI
8.69
13.66
57.19%
Marathon Oil
MRO
25.41
29.94
17.83%
Total
180.49%
BAKKEN FUND 2010
RETURN 64.72%
Company
Symbol
Price 1/1
Price 12/31
Return
Brigham Exploration
BEXP
13.55
27.24
101.03%
Continental Resources
CLR
42.89
58.85
37.21%
Whiting Oil & Gas
WLL
35.72
58.6
64.05%
Northern Oil & Gas
NOG
11.84
27.21
129.81%
Kodiak Oil & Gas
KOG
2.22
6.6
197.30%
MDU Resources
MDU
22.51
19.97
-11.28%
EOG Resources
EOG
96.42
91.13
-5.49%
NewField Exploration
NFX
48.23
72.11
49.51%
GEO Resources
GEOI
13.66
22.21
62.59%
Marathon Oil
MRO
29.94
36.65
22.41%
Total
64.72%
BAKKEN FUND 2011
RETURN +5.28%
(Through 6/30/11)
Company
Symbol
Price 1/1
Price 6/30
Return
Brigham Exploration
BEXP
27.24
29.93
9.88%
Continental Resources
CLR
58.85
64.91
10.30%
Whiting Oil & Gas
WLL
58.6
56.91
-2.88%
Northern Oil & Gas
NOG
27.21
22.15
-18.60%
Kodiak Oil & Gas
KOG
6.6
5.77
-12.58%
MDU Resources
MDU
19.97
22.5
12.67%
EOG Resources
EOG
91.13
104.55
14.73%
NewField Exploration
NFX
72.11
68.02
-5.67%
GEO Resources
GEOI
22.21
22.49
1.26%
Marathon Oil
MRO
36.65
52.68
43.74%
Total
5.28%
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The Bakken Fund FAQ
Question: What is the ticker symbol for the Bakken Fund and how can I invest?
Answer: Unfortunately, The Bakken Fund is a “virtual” fund and you cannot currently invest. We’ll let our readers know if an investment firm starts something similar
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Question: Which companies are included in the Bakken Fund?
Answer: We concentrate on publicly traded companies that have significant exposure in the Bakken Region/Williston Basin.
Question: What investment strategy do you use for the Bakken Fund?
________________________________________________
Answer: We do not trade in and out of the Bakken Fund, it is simply an index fund with 10 constituents
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Question: Why do you not include canadian companies in your fund?
Answer: We currently do not include canadian companies due to limitations with tracking Canadian companies. We will consider Canadian companies as soon as it is possible to do so.
________________________________________________
Question: What kind of returns are you expecting with the Bakken Fund?
Answer: We believe the Bakken Fund will outperform other Oil & Gas funds over the next 10 years due to the explosive growth in the Bakken region. Its a simple thesis, but more wells, a greater boepd and advances in drilling will ultimately lead to more production and revenue for companies operating in the Bakken region vs their non-Bakken counterparts. Our target for 2011 is 15% but it is impossible to predict whether the index will meet this objective.
The number of active drilling rigs has remaining relatively steady around 172 rigs for the last 3 months. Similarly (as shown below), the number of Rigs for the major Bakken players has also remained static with Continental Resources leading the way with 21 drilling rigs. The notable exception was with OXY USA (a subsidiary of Occidental Petroleum (OXY: 102.63 +4.21%) ) which saw the number of rigs increase from 2 to 10. Of course, this was due to the acquisition of Anshutz and their rig assets, but this has pushed OXY to one of the leading drillers in the region. This combined with the 200,000 acres they have amassed in the region makes them a formidable producer on the Bakken horizon. In other drilling news:
Brigham Exploration (BEXP: 0.00 N/A) held the 4 highest initial rate wells in the region. Brigham is expecting an eighth operated rig is to be in place by the end of May, a 9th in June, a 10th in early July, and another 2 in the first quarter of 2012. The pace is a few months ahead of its previously announced schedule.
Voyager Oil & Gas (VOG: 2.80 +4.87%) has participated in approximately 40 gross wells in 2011, bringing the total well count to 58 wells targeting the Bakken/Three Forks formations. Currently, Voyager has approximately 1.80 net Bakken/Three Forks wells drilling, completing or producing. Voyager expects to participate in 70 gross wells and 6.0 net wells in 2011. Voyager expects to average 700 barrels of oil equivalent “BOE” per day by the end of 2011.
GeoResources Inc (GEOI: 32.13 +3.38%) is currently drilling their 4th well, the Muller #1-21-16H with an 18% working interest (WI). They have three wells on production in the area with their recently completed well, the Anderson #1-24-13H (35% WI), (completed in early April 2011) having an initial 24-hour production rate of 905 bopd.
