The Fastest-Growing Bakken Player

"Luck is what happens when preparation meets opportunity" -- so goes the first-century Roman proverb. Twenty centuries later, it still holds good.

While shale plays like Bakken are always in the news and grab investors' attention, not all companies operating here necessarily do well. Opportunity must be backed by sound business models. Bakken player Brigham Exploration(Nasdaq: BEXP  ) seems to be getting better at this job.

The rule of thumb...When oil and natural gas companies report a rise in revenues and profits, it should always be taken with a grain of salt. If profits are being driven up simply because of higher energy prices, investors should consider it red flag. A simple rule of thumb that I follow for energy companies: Look for ones that have managed to ramp up production coupled with increased capital spending.

Source: Motley Fool 

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Baby Bakken/ Eagle Ford Bargains May Pay Off

The world economy has come under pressure recently. The market has fallen as a result. Many of the small, high Beta, Bakken / Eagle Ford E & P oil companies have been hit hard. If the economy continues to go south, they could be hit some more. However, if they are, they will likely bounce back quickly as soon as the overall market begins to bounce. Small companies with good holdings in these prolific fields seem likely to be highly successful. How the EU credit crisis will resolve itself is anyone’s guess. It seems unlikely that everything will be allowed to fail. TheEuropean Commission President Jose Barroso is supposed to present options on Euro bonds soon. Perhaps that will help. The US equities markets have already taken into account a lot of the possible trouble. Yes, the situation could worsen to beyond even that, but it might also slowly resolve itself without a huge negative impact on the U.S. If you are a long-term investor, you can still make reasonable investments now. In fact you may make great ones.

Some of the stocks that have been unfairly beaten down during this time of crisis are the relatively young oil E & P companies. Their financial health is easily called into question in trying times. However, a number of the companies developing the prolific Bakken and Eagle Ford shale fields are almost certainly going to be successful. In the Bakken, 99% of the wells drilled find oil, and 90% are commercially viable. With good seismic and these odds, even small companies are going to eventually be highly successful. A few of the best looking candidates are Northern Oil and Gas Inc. (NOG), Goodrich Petroleum Corp. (GDP), Triangle Petroleum Corp. (TPLM), and Magnum Hunter Resources Corp. (MHR).

Source: Seeking Alpha 

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Leaving Bakken for emerging shale oil, Anschutz Exploration exits Williston Basin

The Anschutz Exploration Corp. (AEC) closed the sale of its remaining operated and non-operated producing properties and undeveloped acreage in the Williston Basin of Montana and North Dakota to an undisclosed Canadian oil company for $115 million.

The assets consist of current oil and gas production and undeveloped acres. Bill Miller, president of the privately held company, said “With this sale, AEC has now exited the Williston Basin after a successful Bakken and Mission Canyon program that began in 2004. Our continuing focus is on emerging shale oil plays in the US on AEC leasehold of over one million net acres, located primarily in Texas, Montana, Colorado and New York.”

In December 2010, Anschutz sold its principal Dunn County acreage position in the Williston Basin to Oxy USA for $1.4 billion. The 180,000 net contiguous acres in North Dakota held Bakken production and are prospective in the Three Forks formation. At the time of the transaction, the assets were producing approximately 5,500 boe/d. 

Anschutz then sold its Appalachian Basin position in Ohio and Pennsylvania to Chesapeake Energy Corp. for $850 million, and retained its acreage and production in New York.

Source: Penn Energy.

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How to make 25% return in energy over the next three months

Once production in the Bakken begins ramping up, these companies will soar from current levels

Companies operating in the Bakken have been crushed over the past three months... 

The Bakken is one of the most promising shale areas in the U.S. It covers 200,000 square miles across Montana, North Dakota, and Saskatchewan. Based on estimates by the U.S. Geological Survey, the Bakken is the largest oil field discovered in more than 40 years. 

The early players who set up shop in the Bakken have been printing money. But last quarter, companies with big exposure to the promising area reported horrible earnings results. Production estimates for the next quarter were significantly lowered. 

That's because the Bakken experienced what one oil and gas company called "the worst winter in 100 years." Roads were closed... Areas were flooded... Production came to a complete halt. 

After the disappointing earnings reports, most Bakken companies collapsed. For example, Whiting Petroleum, Magnum Hunter, and U.S. Energy pulled back roughly 20% to 30% in just three months. (For comparison, the S&P 500 is up about 1% in the same time frame.)

Source: Stockhouse

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Forbes Energy Services Plans Move Into Bakken Shale

 Canadian oilfield services provider Forbes Energy Services Ltd said it is looking to deploy its drilling rigs in the oil-rich Bakken shale in the United States, even as rig hours in June rose 21 percent.

The company, which deploys its drill rigs and trucks in oil fields across the United States and Mexico, said it bought equipment that was held under lease and rent contracts for $20 million last month, and now plans to deploy these assets in other geographies.

Total rig hours in June stood at 41,587, up 21 percent from a year ago. Total trucking hours rose 34 percent to 121,069.

"Oil and liquids directed activity in the Eagle Ford Shale and Permian Basin continue to drive growth," Chief Executive John Crisp said in a statement.

The Bakken shale, a more than 500,000 sq km formation beneath the U.S.-Canada border, has the highest crude oil content among the tight rock formations known as shales, making it a hotbed of M&A activity as gas prices slumped and oil prices began to rise. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Sriraj Kalluvila)

Source: Reuters

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