Wednesday, January 6, 2016

Hit A Wall -- January 6, 2016

It happens periodically, probably about every ten to twenty days when I literally hit a wall. There is so much information coming out today that needs commentary and I cannot keep up. I may or may not post much of substance the rest of today. At a minimum, I will post the usual data but I may not get to commentaries and more in-depth posts until late tonight or maybe even later this week.

Posts may be short with plans to come back to them later.

Not Ready For Prime Time
Idle Chatter

This and $1.98 will get you a cup of coffee at Starbucks. No, not true. Starbucks would require the full $2.00. 

Based on several observations over the past year regarding fire sales in the Bakken, buyers are getting Bakken acreage for about 10% of what that acreage sold for during the boom. In other words, during the peak of the Bakken boom (2010 - 2013, maybe even going into mid-2014), a Bakken mineral acre changed hands for 10x what it is changing hands for in the past year.  For example, a Bakken acre that sold for $4,000 acre in 2012 is now going for $400/acre.

A Bakken acre that sold for $40,000 in 2012 is now going for $4,000/acre.

Before 2007, there really wasn't much known about the Bakken by the layperson. By 2012, anyone paying attention should have had a pretty good idea what the Bakken was able to produce. However, it appears that what the layperson knew about Bakken potential in 2012 was significantly lower than what the Bakken potential now appears to be, based on the results of some recent wells. Back in 2007, a lot of Bakken wells were drilled as wildcats. Today, there are "no" wildcats in the Bakken. 

This is just my two cents worth. It's based on minimal information. I have no background in finance or the oil and gas industry. Do not make any investment or financial decisions based on these comments. If this information is important to you, go to the source.  

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