The Bakken Fund

Posted by bakkenexpert

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.

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Weekly Roundup

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: 83.96 +0.49%) 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: 2.45 +0.41%) 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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