In the last week oil prices have languished as the broader market has declined about 3%. European debt fears continue to be a drag on the market and the poor job growth numbers recently released have not helped sentiment. An important OPEC meeting looms on potential production increases. Certain OPEC members (predominantly the Saudis) have pushed for a production increase in the belief that demand will rise in the next few months due to US demand. Other members such as Iran have a much less favorable policy towards the U.S. are more apt to push keep production curbed and to maximize margins (and profit) as the summer driving season in the U.S. begins and demand will likely rise regardless of moderate price increases. Our Bakken plays have been hit 3-4% on average but are showing signs of consolidation at these levels. As usual, the Bakken region continues to be a flurry of activity and we highlight some of the happenings below
|▲▼||Company name▲▼||Price▲▼||Change▲▼||Chg %▲▼||Mkt Cap▲▼|
|BEXP||Brigham Exploration Co.||27.58||+0.32||1.17%||3.23B|
|NOG||Northern Oil & Gas, Inc.||17.46||+0.43||2.52%||1.10B|
|WLL||Whiting Petroleum Corp.||61.30||-0.59||-0.95%||7.19B|
|OAS||Oasis Petroleum Inc.||26.59||+1.05||4.11%||2.46B|
- Oil & Gas companies are improving drilling technology in the Bakken region with Brigham Exploration leading the way. Companies typically drill 2 miles underground and rely on hydraulic fracs with as many as 40 stages using a ball-and-sliding-sleeve system. In 2010, North Dakota pumped 113 million bbl of oil from the wellhead, almost three times the state’s total in 2006, with most coming from the Bakken region.
- Northern Oil & Gas (NOG: 13.49 -0.59%) participated in the Mustang #1-22H, a successful Bakken test well operated by Slawson Exploration in Mountrail County, North Dakota. Northern Oil controls a 39.56% working interest in the well, which had an initial production rate of 1,829 barrels of oil per day (“BOPD”). As of June 6, 2011, Northern Oil currently holds working interests in a total of 413 gross (35.96 net) producing wells and is participating in 139 gross (13.23 net) Bakken or Three Forks wells drilling, awaiting completion or completing.
- Aux Sable, partly owned by Enbridge Inc , said one of its affiliates has agreed to buy some key assets in the Bakken area of North Dakota from U.S. oil and gas company EOG Resources for $185 million. Aux Sable and Sable NGL are owned by Veresen Inc , Williams Partners and Enbridge, whose pipelines carry the bulk of Canada’s crude exports to the United States.
- VAALCO Energy, Inc. (“VAALCO”) (EGY: 6.27 +1.95%) today announced the purchase from a privately held company of a 70% working interest in 5,214 acres in Sheridan County, Montana. The acreage directly adjoins the Flat Lake Field which successfully produces from the Middle Bakken formation.