Bakken Gusher: Montana Millionaires?

By Travis Johnson, Stock Gumshoe, April 7, 2008

There have been two major newsletter publishers pushing hard for oil companies that are working in the Bakken field in Wyoming/North Dakota/Canada, with some speculating that the recoverable oil will exceed that remianing in Saudi Arabia’s largest oil field.

Whether or not that’s true, I don’t know. There are certainly a wide range of estimates for this field, which requires somewhat unconventional extraction and which has frustrated oil companies for many years. The oil is of high quality, but it’s not necessarily in big, easy reservoirs that are simple to pump out of the ground. Something to do with shale and migrating oil and who knows what else.

I haven’t identified the oil companies involved here, though there are dozens, but I wanted to point my regular readers to the Stock Gumshoe Forum, where some very active sleuthing is going on for these firms. Some of the most active and reliable posters have weighed in, including some very good insights from WomanWithPortfolio, one of the best contributors to the forum. If they say they’ve got these companies sniffed out, they’re probably right … and they generally seem very enthusiastic about the potential of this area.

Sorry that I have yet to opine on the Bakken, but I’m no geologist and I don’t have anything that I can add quickly without doing some more in-depth research, so I’ll just pass you off to the other investors who have looked into this one already.

I’ll be writing to you soon with some more ideas … and hopefully they’ll be uncommonly fabulous. If you want to review what the folks on the forum are saying about the oil companies in the Bakken, here’s the link to follow (you don’t have to be a member of the forum to read the items, but you will have to join — free, naturally — if you want to add your two cents or start your own discussion).

And if you’d like some reading outside of Gumshoe Land on this one, the Kiplinger Letter folks also did a little writeup on the Bakken Formation and its oil potential last month, worth a quick read if you’re interested.


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Loren
Guest
April 11, 2008 1:40 am

Newshide,,,,,,I believe the report that Mr. Mining Man is referring to is Old News. We are all waiting for the report which is due out in weeks from the USGS. I am certain we will receive a new wave of hype newsletters from the usual suspects at that time. Hopefully, Travis will be able to find a way to prevent them from posting their entire missive on this site!
I think you might be a bit mixed up, too, newshide. The natural resource we are all talking about here is oil, so no need to yell “timber.” Besides in Montana no one would hear you! lol
Best advice posted here? from Wonder Woman, who suggests buying Chinese style. Thats what I did. Watch HAL and SLB tomorrow, for example (the move is on an upgrade, not Bakken, (so far). I also own MRO and HES from the big companies, and NOG because it set up nicely and is my first selection from the #2 list on the menu. I am looking at ERF BEXP and CLR, as well as SM, but if I buy any more, I am going to have to move to Montana! lol

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newshidden
Guest
newshidden
April 11, 2008 8:02 am

sorry that is the new report, its all over the wires

newshidden
Guest
newshidden
April 11, 2008 8:05 am

my bad only 3.65 billion barrels of oil

http://pubs.usgs.gov/fs/2008/3021/pdf/FS08-3021_508.pdf

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Woman with Portfolio
Guest
April 11, 2008 9:14 am

You can put the Bakken in perspective by looking at the total proven reserves around the world. If the Bakken has 4 billion, that’s equal to a quarter of Mexico’s total reserves and nearly as much as Sudan. It’s about a fifth of the U.S. total reserves.

Here’s the link:

http://www.eia.doe.gov/emeu/international/reserves.html

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MightyTermite
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MightyTermite
April 11, 2008 9:46 am

Here’s a link for some interesting Bakken coverage that might help put the USGS report released on April 10th in the proper perspective. While the Bakken oil pool is not nearly as enormous as the exaggerated estimates the investment newsletters were touting earlier…it’s still HUGE. The link is: http://nextbigfuture.com/2008/04/usgs-bakken-oil-study-released-365.html

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Loren
Guest
April 14, 2008 7:39 pm

WoW,,,
Travis and Woman with Portfolio…..thanks for having this forum. I was already an investor in several of the larger cap stocks like HAL, RIG and HES, but I decided to buy some of the little dogs that Woman With and others recommended here,,,WoW!

Today we had the news from PBR and HES regarding South America and their 0il discovery, which apparently fueled interest in the entire sector. That, combined with a market searching for leadership confirmation, and it was a perfect day for the Bakken doggies! Check out NOG for example, up 9%. The list is long for the oil and gas plays.
If you are a conservative investor, wait for a pullback. Last Friday we had a brief one day event
so that some could get in. I think the key going forward will be earnings. Many of these companies have reported higher costs and some have preannounced projected earnings shortfalls and hedge losses, (check out EOG, for example). That being said, the market seems to be forgiving them so far…….So be careful entering any of these stocks….many are high flyers! Further, the little dogs might sell off fast with the amount of speculation going on. Risk – Reward,,,We shall see.
Thanks again!
Loren Travis and WoW my email: advantedges@aol.com

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Jim
Member
Jim
April 25, 2008 3:20 pm

I’m wondering how all the bakken speculation has been affected by the actual geological survey results, which I took to be very disappointing this month. These teasers talk about 500 billion barrels of oil and the U.S. survey said there was about 5-10 billion barrels of recoverable oil in there. Wasn’t that grossly disappointing, or am I confused?

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Jack
Guest
Jack
April 28, 2008 7:46 pm

are any of you watching bakken related plays? They’re all taking off. complain all you want about what is or isn’t recoverable. you’re missing the rallies in BEXP, BSIC.OB, MRO, and KOG, for example.

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Superbug
Member
Superbug
May 1, 2008 8:08 am

WESTERN STANDARD ENEGRY (WSEG.OB) is also take off.
Less than $1.00 per share – you will not see less than $1.00, again soon! Be patient – it will grow quickly every month.

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Dizzyedge
Guest
May 14, 2008 12:33 am

joseph bailey III Says:

April 9th, 2008 at 7:45 am
GUMSHOE, U R unbelievable which is why I send you this gift:

The stock is HNSO

You have to admit, this guys got marbles! And that’s probably about it.

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Bakkenstocks
Guest
July 8, 2008 9:48 pm

More bakken insight available at http://bakkenstocks.com

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saint
Guest
July 30, 2008 1:48 pm

i think the key to a good bakken play is mangement, i think you all probably remember Elm Coulee play in the willingston basin, richard findley to be exact, well with a little research i found he’s playing a big part in another company that has a large amount of land in bakken area. companies ryland oil in canada and north dakota, still really junior and trading on the tsx, but with management of that calibur and that much land i thought it looked pretty good. they have a 51 101 you can check out on their website too which states something between 7-11B bbl.

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