Feb
01
Posted by bakken
Bakken plays continue to be on fire with oil reaching monthly highs due to unrest in Egypt and Tunisia and a risk of civil unrest spreading to other countries. Despite the fact Egypt is not a major oil producer, the fact that 8% of the worlds oil passes through the Suez Canal in Egypt is what is rattling oil markets. Oil will continue to push higher as tensions escalate in the region. Similarly, if Mubarak steps down and the crisis dissipates, we could easily see a 5-10% drop in oil. Below are some tidbits from the Bakken:
- As we predicted a few months ago, some lawmakers are stirring up some concerns that the use of diesel during the fracking process is a violation of the Safe Water Drinking Act. The diesel fuel was used by drillers during hydraulic fracking, where water, sand and chemicals such as diesel fuel are injected under high pressure into rock formations deep underground. The link article to the NY Times article is here
- ONEOK Partners LP will invest another up to $305 million into its already significant stake in the Bakken Shale over the next 3 years, the Tulsa-based natural gas and natural gas liquids mover and processor announced. ONEOK (OKE: 83.83 +0.34%) has hit 52 week highs around $59 in recent days.
- Our stocks to watch in 2011, Brigham Exploration and Continental Resources are both up more than 10% in the last 5 trading days. Brigham recently had positive news on Q4 production coming in at almost 11,400 boe/d with 80% of that volume being crude. In addtion, Jefferies came out on 1/28 increasing its price target from $32 to $48 as a result of accelerating production and Brigham’s proven reserves of 1 tcfe.
- Hess looks to increase their production in 2011 by ramping up additional wells. Hess, currently has 18 wells in the Bakken, produced an average 15,000 barrels of crude per day and is looking to finish the year north of 20,000 barrels per day.
- U.S. Energy (USEG: 2.48 +1.64%) a 166 Million dollar micro-expects to spud approximately 40 gross and 13 net wells with capital expenditures of approximately $45.7 million in its 2011 oil and gas drilling program. The Company has allocated an estimated $33.2 million to be spent in the Williston Basin region.
Till next time
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Dec
03
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.
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