July 26, 2008 – Active Drilling Rig List

Posted by bakkenexpert

The number of active drilling rigs has stayed fairly static since our last post on the subject in June.    Continental Resources is still the leader with 13 active rigs in the area.   EOG has 8 rigs,   Marathon Oil (MRO) has 7 and Whiting Petroleum (WLL) has 5 rigs.   With some of the recent finds in the area, we expect the number of rigs to top 85 by September and Continental Resources will most likely continue to report positive news on their drilling efforts as they did with Mathistad 1-35H a few weeks ago as outlined in a recent Continental Resources press release on Mathistad 1-35H below:

“The Mathistad 1-35H commenced production on July 4, 2008 and has flowed at an average rate of 1,095 barrels of crude oil equivalent per day, with 90 percent of production being crude oil and 10 percent natural gas,” said Harold Hamm, Chairman and Chief Executive Officer for Continental Resources. “This is a second positive data point in our effort to determine whether the Three Forks/Sanish formation is a separate oil-producing reservoir not drained by a horizontal well completion in the Middle Bakken zone above it. If the Three Forks/Sanish proves to be a separate reservoir, it would add significant incremental reserves to the Bakken play.”

Rig	Operator	Start Date
RED HAWK 351	BALLANTYNE OIL	7/17/2008
NABORS 49	BRIGHAM OIL & GAS LP	6/26/2008
NABORS 688	BURLINGTON RES O&G CO	6/26/2008
NABORS 59	BURLINGTON RES O&G CO	* MIRU
NABORS 177	BURLINGTON RES O&G CO	* MIRU
NABORS 52	BURLINGTON RES O&G CO	7/23/2008
CYCLONE 27	CONTINENTAL RESOURCES	7/16/2008
CYCLONE 26	CONTINENTAL RESOURCES	7/16/2008
CYCLONE 22	CONTINENTAL RESOURCES	7/23/2008
CYCLONE 9	CONTINENTAL RESOURCES	6/25/2008
CYCLONE 18	CONTINENTAL RESOURCES	6/27/2008
CYCLONE 2	CONTINENTAL RESOURCES	6/20/2008
CYCLONE 21	CONTINENTAL RESOURCES	6/22/2008
PATTERSON 154	CONTINENTAL RESOURCES	7/1/2008
CYCLONE 19	CONTINENTAL RESOURCES	6/12/2008
CYCLONE 10	CONTINENTAL RESOURCES	6/28/2008
PATTERSON 82	CONTINENTAL RESOURCES	* MIRU
CYCLONE 23	CONTINENTAL RESOURCES	6/17/2008
PATTERSON 180	CONTINENTAL RESOURCES	7/22/2008
PATTERSON 136	CONTINENTAL RESOURCES	6/1/2008
RED HAWK 358	EAGLE OPERATING INC	* MIRU
CYCLONE 25	ENCORE OPERATING LP	6/24/2008
NABORS 277	ENCORE OPERATING LP	7/5/2008
PIONEER 57	EOG RESOURCES INC	6/27/2008
NABORS 337	EOG RESOURCES INC	7/12/2008
ENSIGN 88	EOG RESOURCES INC	* MIRU
PIONEER 56	EOG RESOURCES INC	7/11/2008
NABORS 148	EOG RESOURCES INC	7/7/2008
NABORS 149	EOG RESOURCES INC	7/15/2008
NABORS 161	EOG RESOURCES INC	6/28/2008
ENSIGN 67	EOG RESOURCES INC	7/2/2008
NABORS 358	FIDELITY EXPL & PROD CO	6/23/2008
NABORS 417	FIDELITY EXPL & PROD CO	7/23/2008
NABORS 455	FIDELITY EXPL & PROD CO	6/29/2008
RED HAWK 354	GOLDEN EYE RESOURCES, LLC	7/22/2008
ENSIGN 46	HEADINGTON OIL CO LLC	5/16/2008
ENSIGN 24	HEADINGTON OIL CO LLC	7/21/2008
NABORS 560	HEADINGTON OIL CO LLC	7/12/2008
NABORS 558	HELIS OIL & GAS CO. LLC	7/11/2008
NABORS 165	HESS CORPORATION	6/9/2008
NABORS 742	HESS CORPORATION	7/22/2008
NABR WELL 556	HESS CORPORATION	6/28/2008
H & P 179	HESS CORPORATION	6/23/2008
H & P 241	HESS CORPORATION	7/14/2008
NABORS 272	HESS CORPORATION	7/3/2008
NABORS 557	HESS CORPORATION	7/20/2008
NABORS 140	HUNT OIL COMPANY	7/10/2008
NABORS 684	LUFF EXPLORATION CO	7/13/2008
NABORS 44	MARATHON OIL CO	7/8/2008
H & P 258	MARATHON OIL CO	7/7/2008
PATTERSON 183	MARATHON OIL CO	7/16/2008
H & P 255	MARATHON OIL CO	7/15/2008
H & P 259	MARATHON OIL CO	7/15/2008
H & P 257	MARATHON OIL CO	7/5/2008
H & P 256	MARATHON OIL CO	* MIRU
CYCLONE 20	MUREX PETROLEUM CORP	7/4/2008
ENSIGN 71	MUREX PETROLEUM CORP	7/10/2008
WANNER 5	OASIS PETRO NO AMER	6/30/2008
PATTERSON 490	PEAK NO DAK LLC	6/12/2008
ENSIGN 93	PETRO HUNT LLC	5/6/2008
PATTERSON 462	PRIMA EXPLORATION INC	7/18/2008
NABR WELL 164	SAGEBRUSH RESOURCES LLC	7/10/2008
NABORS 152	SAMSON RESOURCES CO	7/9/2008
PIONEER 44	SLAWSON EXPLORATION	6/25/2008
NABORS 592	ST MARY LAND & EXPLORATION CO	7/6/2008
KEY 233	ST MARY LAND & EXPLORATION CO	7/19/2008
NABORS 267	TRACKER RES DEVMNT	5/14/2008
NABORS 182	TRACKER RES DEVMNT	6/23/2008
GREY WOLF 520	WHITING OIL AND GAS CORP	5/31/2008
NABORS 527	WHITING OIL AND GAS CORP	6/30/2008
KEY 257	WHITING OIL AND GAS CORP	7/18/2008
NABORS 686	WHITING OIL AND GAS CORP	7/16/2008
NABORS 354	WHITING OIL AND GAS CORP	* MIRU
H & P 180	WINDSOR ENERGY GROUP LLC	7/24/2008
ENSIGN 43	ZENERGY INC	7/20/2008

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Back to Basics – Picking up BSIC.OB here

Posted by bakkenexpert

Ok, so I’ve been watching this one but haven’t decided to pull the trigger until now. Today Basic Earth Science Systems (BSIC.OB) issued an updated on their Bakken Well. The Paulson 14-9H well had its best day near the end of May when it produced 687 barrels of oil. During May, the well produced approximately 5,400 barrels of oil over 14 days for an average of 387 barrels of oil per day. Currently BSIC is working on stabilizing the flow and at that point the production rates can be better estimated. Basic only has a 1.2469% working interest (0.9975% net revenue interest) in the well which is operated by Marathon Oil Company (MRO) so the revenue impact is not expected to be substantial in my mind.    The  Paulson 14-9H well was a nice friday tidbit but nothing to put on the refrigerator.   The next paragraph is what got my attention:

“In related events, the success of offset wells near our Banks Prospect, a 13,000 acre horizontal Bakken project, has dramatically enhanced the viability of our acreage. As a result, the Company and its partners have been approached by several companies wishing to acquire a portion of Basic’s acreage. While some offers are enticing, at this point, no agreements have been made. If we were to enter into an agreement, in addition to being fairly compensated for our investment and maintaining as much of our interest as possible, our objective would be to increase the effectiveness of the original joint venture agreement so that development could not be stalled by a handful of non-consenting owners.”

I think this is a VERY positive development for BSIC. Typically for a company as small as BSIC, it is difficult to scale operations and fund exploration and production. It appears they are open to divesting some of their prime Bakken acreage for NRI in return as well as compensation for the land. For a company with a tiny 40 million dollar market cap, this could be huge in terms of revenue and profit. A single lucrative deal could propel the company to a low single digit PE.

Disclosure: We own shares of BSIC.OB as of June 27, 2008. View our Disclaimer here

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