BEXP reports another nice well northwest of Williston in the Bull Butte oil field. This is the only well in that field at the current time (November 2, 2009).
The initial production (IP) is reported as 1,776 bbls of oil equivalent, details to follow. This really is quite incredible. Somewhere down the road this well will decline down to about 1,000 bbls/day, but if the average for one year is 750 bbls/day, at $65/bbl, this could generate $18 million in the first year.
Not only is this a nice well, but it is practically a wildcat. Yes, it's in a designated field (Bull Butte) but there are no wells in the immediate area. The other wells near Williston of interest are due west of Williston, and much closer.
The BCD Farms 16-21 #1H was completed with 28 frac stages and is the sixth overall 18+ stage fracture stimulation completed by Brigham in the Williston Basin. The press release said the same thing I noted above: the well sits pretty much at the far extent of BEXP's acreage northwest of Williston. The press release mentions two other wells that have reached total depth and will be fractured in the next week or so: Lee 16-21 #1H and Strand 16-9 #1H.
The press release says that BEXP has also a third rig to its operations in the Williston area. I assume USEG has some interest in these wells.
Monday, November 2, 2009
Investing: Pipelines
Pipeline news is at the top; general information about the pipeline industry in North Dakota is below the YouTube video below.
NOTE: ENB and the "family" of ENB investments now has its own stand-alone page among Bakken Investing sites.
I track pipelines of interest here.
NEWS
January 29, 2023: Ruby Pipeline.
August 18, 2022: DCP, Colorado, PSX, Enbridge.
July 22, 2022: Matterhorn Express Pipeline; Waha to Houston, natural gas; huge.
June 20, 2022: Enbridge Line 5 update.
June 18, 2022: North Dakota Bridger Pipeline approved and being laid.
February 19, 2022: Canada kills the Trans Mountain pipeline.
January 25, 2022: US Federal court vacates permit for Mountain Valley natural gas pipeline.
September 27, 2021: PennEast becomes the latest to scuttle a natural gas pipeline project.
PennEast Pipeline Co. said that although it received federal approval for the 116-mile pipeline from Luzerne County to Mercer County in New Jersey and some permits, it has not received water quality certification and wetlands permits required under the Clean Water Act.
May 24, 2021: Capline Pipeline reversal coming; implications for the DAPL.
May 21, 2021: federal judge allows DAPL to remain open.
May 21, 2021: Bridger Pipeline, Johnson's Corner to south of Watford City approved.
May 11, 2021: largest gasoline line in the US, Colonial Pipeline shut down by hackers; shutdown lasted about a week;
February 27, 2020: Williams (WMB) cancels Marcellus to "New York" Constitution Pipeline.
January 9, 2020: North American build-out.
June 11, 2019: $1.6 billion, 200,000 bopd, Liberty Pipeline proposed for North Dakota.
April 24, 2019: after Canadian federal government delays decision, TransMountain pipeline will likely miss another summer construction season.
March 4, 2019: Enbridge Line 3 delayed at least a year. I will be surprised if it ever gets built.
November 6, 2018: Voyager Pipeline proposed. Cushing to Houston; perhaps Corpus. Would ultimately connect Bakken directly to Gulf Coast refineries, export terminals.
September 18, 2018: Iowa Supreme Court has heard both sides for/against the DAPL. We will get judgment in four to six weeks. Very, very bad news. To say the least.
February 28, 2018: update on Enbridge Line 3 over at SeekingAlpha. This has dragged on so long, I had completely forgotten about it. I'm not holding my breath on this one. Pretty frustrating.
November 20, 2017: Nebraska regulators vote "no" with a 3-2 "yes" vote to approve the Keystone XL.
May 16, 2017: there are reports suggesting that oil is now flowing through the DAPL. Also, a third lawsuit against the DAPL asking for a court injunction to stop the flow has been filed within the last 24 hours.
March 27, 2017: DAPL pipeline oil under the lake.
February 13, 2017: Enbridge's Alberta Clipper one step closer to being approved. We're talking a 3-mile section of pipeline.
December 22, 2016: Blackstone Group in talks to buy a stake in ETP, builder of DAPL.
December 4, 2016: US Army Corps of Engineers won't issue easement for DAPL.
November 28, 2016: huge, huge story. Spectra Energy to expand pipeline from Guernsey, WY, to Patoka, IL.
August 12, 2016: how others see the Dakota Access Pipeline, a pipeline that is only 7 miles shorter than the Keystone XL would have been. Mother Jones has a nice overview.
August 5, 2016: update on the Bakken Pipeline System -- the Dakota Access Pipeline from North Dakota to Illinois via Iowa; and the Energy Transfer Crude Oil Pipeline from Illinois to Texas; funding complete; calls Sandpiper into question
August 5, 2016: Sandpiper in trouble; MRO pulls out; Enbridge to re-evaluate.
August 3, 2016: ETP and Sunoco sell their stake in the Dakota Access Pipeline to Marathon and Enbridge. Marathon will discontinue funding the Enbridge Sandpiper pipeline.
June 7, 2016: movement on the Dakota Access Pipeline noted.
May 27, 2016: Dakota Access Pipeline keystoned in Iowa, as predicted.
May 18, 2016: photograph of storage site/pump station for Dakota Access pipeline; photograph from reader; site on west side of ND State Highway 23 between Johnsons Corner and Keene, maybe about 2.8 miles north of Johnsons Corner.
April 11, 2016: Iowa formally issues Dakota Access pipeline permit -- Dickinson Press.
January 20, 2016: North Dakota approves Dakota Access Pipeline; only Iowa is yet to approve; company expects Iowa to approve "next month." I'll believe it when I see it.
October 19, 2015: RBN begins series on Enbridge Line 9 reversal and what it means for the Bakken.
October 16, 2015: ND PUC approves 23-mile McKenzie County pipeline; the NST Express 12-inch-diameter pipeline will move 100,000 bopd.
September 18, 2015: was the Sandpiper Keystoned?
June 6, 2015: Enbridge Sandpiper and Line 3; still going through the process. Sandpiper is farther along the regulatory process than Line 3. Enbridge still hopes to complete Line 3 in calendar year 2017 and flow oil starting in 2017.
April 26, 2015: ONEOK cancels Lone Creek Pipeline after Native Americans try to extort company for $10 million/mile of pipeline easement.
May 28, 2015: update of the ETP Bakken-to-Illinois Dakota Access Pipeline. Nothing new; company has only 56% of landowners signed on; wants to begin this year. My two cents worth: this pipeline won't be completed before 2021, if ever.
May 20, 2015: Enbridge to begin construction of the Sandpiper pipeline this summer; first phase in North Dakota.
April 14, 2015: Minnesota judge rules Enbridge's Sandpiper pipeline is "needed."
March 24, 2015: ETP, Bakken-to-Illinois, Dakota Access Pipeline, miles of pipeline being brought in, stored near Aberdeen, SD; South Dakota state has until December 15, 2015, to make decision.
February 27, 2015: Vantage ethane pipeline to be expanded, Tioga, ND, to Canada.
January 21, 2015: KMI buys Harold Hamm's Hiland pipeline company.
December 12, 2014: EPD cancels 1,200-mile pipeline from Stanley, ND, to Cushing, OK. See June 24, 2014, entry below.
November 1, 2014: ONEOK acquires Chevron's natural gas liquids pipelines; a Permian story.
October 28, 2014: update on new Bakken pipeline. ETP to take pipeline from the Bakken, through South Dakota, through Iowa, to Illinois (the Dakota Access Pipeline); and then a second pipeline from Patoka to Nederland, Texas. First mentioned at the blog by RBN Energy. Update at BizJournals:
Energy Transfer Partners announced a joint venture with Phillips 66 to build two pipelines to move crude oil out of North Dakota (75% / 25% respectively). Dakota Access Pipeline (DAPL) from the Bakken to Pakota; ETP Crude Oil Pipeline (ETCOP) south from Patoka.
September 8, 2014: a June 26, 2014-article in The WSJ suggests there could be almost one million bopd more pipeline takeaway capacity in North Dakota by 2016.
June 24, 2014: EPD announces first-of-its-kind, 1,200-mile, 30-inch-diameter pipeline, Stanley, ND, to Cushing, ND, to be completed by 4Q14;
June 7, 2014: Canadian government approves Enbridge's Northern Gateway pipeline, from Alberta, to the western British Canadian coast. It will be many years before this pipeline is completed (if ever).
March 6, 2014: Enbridge to replace aging Line 3, Canada to Superior; regulators approve reversing Line 9, Sarnia, Ontario, to Montreal.
January 22, 2014: Koch won't build the 250,000 bopd Dakota Express pipeline from the Bakken to Illinois. No explanation given.
January 21, 2014: EPD increases its distribution.
January 20, 2014: GE buying a company that provides flow equipment for oil and gas production.
January 3, 2014: Warren Buffett buys PSX company specialist in optimizing crude oil flow through pipelines.
December 6, 2013: EPP begins the ethane line fill for ATEX (Marcellus-Utica to Texas).
November 29, 2013: SeekingAlpha has an article on ETP.
November 26, 2013: Marathon to become biggest shipper on Sandpiper.
June 12, 2013: RBN Energy update on Enbridge and Energy Transfer Partners projects to convert two major natural gas pipelines to crude oil pipelines.
June 9, 2013: Glass Mountain Pipeline (crude oil) from Mississippi Lime / western Oklahoma to Cushing;
210 miles; two laterals; initial capacity of 140,000 bopd and
intermediate storage of 440,000 bbls; to be commissioned by late 2013.
May 30, 2013: MDU subsidiary to built $700 million natural gas pipeline.
April 4, 2013: Harold Hamm to build the Double H pipeline, should be on-line by August, 2014. $300 million. Initially 50,000 bopd; to reach 100,000 bopd. Dore, ND, to Baker, MT; joins the Butte Pipeline south to Guernsey, WY; new pipeline from Guernsey down to Tallgrass Pony Express pipeline (converted from natural gas to crude during this time period); to Cushing, OK.
January 4, 2013: update on EPD/ENB Seaway reversal and expansion; update on ENB Flanagan South pipeline.
December 3, 2012: ONEOK vs BNSF, SeekingAlpha.com.
November 27, 2012: for investors only (note disclaimer at this site) -- EPD, three stories today for those interested in EPD
- a) investment ideas from IEA's world energy outlook, from SeekingAlpha.com
- b) ECHO: Enterprise Crude Houston -- RBN Energy
- c) drought affecting Mississippi barge traffic, and EPD, from Bloomberg
September 2, 2012: Update on the ONEOK Bakken NGL Pipeline;
August 30, 2012: Enterprise Products offering additional capacity on ATEX Express ethane pipeline: Co announced the start of a binding open commitment period to determine additional shipper demand for capacity on the partnership's Appalachia-to-Texas ("ATEX Express") pipeline. The 1,230-mile system will deliver growing ethane production from the Marcellus/Utica Shale areas of Pennsylvania, West Virginia and Ohio to Mont Belvieu, Texas. [See January 23, 2012, entry.]
June 12, 2012: major Rangeland COLT update.
June 8, 2012: EPD has begun accepting deliveries for and commissioning the first phase of its Eagle Ford crude oil pipeline between Wilson County and Sealy, TX.
The 147-mile, 24-in. OD pipeline, scheduled to start up in July, can carry 350,000 b/d of oil.
May 29, 2012: SemGroup to build DJ Basin crude oil gathering system. (originally May 18, 2012).
May 23, 2012: Kinder Morgan announces deal to twin 714-mile pipeline from Alberta to Canadian west coast; increased capacity from 300,000 to 500,000 bopd
March 28, 2012: Enbridge/TransCanada race -- the Calgary Herald
A project that beefs up pipeline capacity to move crude from the U.S. Midwest to the world's largest refining market by Enbridge Inc. and Enterprise Products Partners LP is set to lift heavily discounted U.S. oil prices but won't boost even cheaper Canadian barrels, Enbridge chief executive Pat Daniel said Tuesday.
The more than doubling of a previously planned expansion of the Seaway pipeline between Cushing, Okla., and the Texas Gulf Coast, announced by Enbridge and Enterprise Monday night, will eat away at stockpiles of crude in the Midwest to bring U.S. oil prices closer in line with global barrels, but will not reduce Canada's reliance on one customer - the United States, Daniel said.February 15, 2012: new Bakken-to-Clearbrook, MN, pipeline proposed.
February 8, 2012: takeaway capacity constrained --
Calgary-based pipeline operator Enbridge has launched projects to add 10,000 barrels per day of rail oil capacity to its Clearbrook terminus by July, with another 70,000 barrels per day planned by 2013.January 23, 2012: EPP will build the ATEX express pipeline
Simmons forecasts the congestion may see some relief in May, when Enbridge and Enterprise Products Partners begin to fill their reversed Seaway Pipeline, from Cushing, Okla., to the Gulf Coast, which will require two to three million barrels of capacity.
delivering ethane production from the Marcellus-Utica shale areas of Pennsylvania, West Virginia, and Ohio to the US Gulf Coast. ATEX Express will transport as much as 190,000 b/d from Appalachian production areas to EPP’s storage and distribution assets in Texas.
Originating in Washington County, PA, the system’s first leg would involve construction of about 595 miles of new pipeline extending to Cape Girardeau, MO, closely paralleling an existing Enterprise pipeline. At Cape Girardeau, EPP will reverse a 16-in. OD pipeline and place it into ethane service.
At the southern terminus of the ATEX Express pipeline, EPP will build a 55-mile, 16-in. OD pipeline providing access to its NGL storage complex at Mont Belvieu, TX. Expected operational date: 1Q14.August 19, 2011: Enterprise Products Partners will NOT be building the 584-mile crude oil pipeline from Cushing, Oklahoma to Houston. There was a lack of commitment by oil producers to go forward with the project.
August 6, 2011: Reuters update of US mid-continent and Texas pipeline projects, completed and proposed.
April 14, 2011: Tesoro Logisitics, LP, to offer IPO of 14.375 million shares.
April 7, 2011: WMB announces three new pipelines from the Marcellus to metropolitan areas.
March 22, 2011: Update on Enbridge's proposed North Dakota Bakken to Cromer, Manitoba, pipeline expansion project; 74 miles; $180 million; service date: early 2013.
February 2, 2011: Motley Fools -- published earlier, but I just noted it -- ONEOK might be one of your better choices for dividend growth.
February 2, 2011: EPD announces that it is selling assets to focus on core business. Will sell barges and towboats for $53 million. Will build seven new marine vessels.
January 24, 2011: Problems for TransCanada's Keystone XL Pipeline: Texas landowners and Texas refiners don't want it.
January 14, 2011: EPD announces 26th consecutive quarterly distribution rate increase.
December 9, 2010: Keystone XL hearings in Nebraska. My hunch is the Keystone XL pipeline will not be completed in my investing lifetime. Any state from Montana to Oklahoma can scuttle the deal; and even if the states allow it, getting the necessary rights of way will take forever in light of recent Gulf of Mexico spills.
November 24, 2010: EEP's pipeline 6B will re-open this week following a several-month closure due to two pipeline oil spills earlier this year.
November 22, 2010: EPD will build a new crude oil terminal in Houston to handle growing production coming out of Eagle Ford, south of San Antonio.
November 15, 2010: Two huge pipeline acquisitions in the Bakken.
November 3, 2010: Plains All American to add Bakken North Project resulting in 50,000 to 75,000 more barrels/day starting in 4Q2012; will get Bakken oil directly to Cushing.
October 25, 2010: Update on TransCanada's Marketlink Pipeline, the first direct link from the Bakken to Cushing and the Gulf Coast.
October 14, 2010: Enterprise Products Partners (EPD) announces a 5.8% increase in its quarterly distribution. This is EPD's 34th distribution increase since its IPO in 1998, and its 25th consecutive distribution increase.
September 11, 2010: Enbridge signs agreement to provide services for Husky-operated Sunrise Oil Sands Project.
September 6, 2010: Just to give you an idea how much money is involved in the oil industry -- ENB announced it will be investing $185 million in a Canadian pipeline that will be completed in 2013.
July 20, 2010: Kinder Morgan to go public; Questar to spin off its E&P division, QEP; TransCanada Pipeline delivers its first oil to Chicago; TransCanada Keystone XL project on track but political issues may cause delays.
May 5, 2010: Enbridge's Alberta Clipper project on-line, April 1, 2010.
May 5, 2010: ENB 1Q 2010 Earnings Conference Call
February 19, 2010: North Dakota pipeline taking natural gas to Chicago. Big deal.
February 12, 2010: Pipelines let cash flow to shareholders (EPD, OGE, MMP).
February 12, 2010: Prairie Rose pipeline, 76 miles, natural gas, completed. The pipeline was laid by Pecan Pipeline, a subsidiary of EOG.
February 3, 2010: ENB -- a very nice 2009, and even better 2010 predicted.
February 1, 2010: EPD profits rise 78%; beat street.
January 27, 2010: Bridger Four Bears pipeline. 85-mile from fields to Tesoro in Mandan, 10-inch, 40,000 bopd.
... the 85-mile Four Bears pipeline through McKenzie, Dunn and Billings counties in western North Dakota later this year, according to state Public Service Commission filings.January 25, 2010: Bison pipeline on track, OGJ.
The proposed line is intended to connect with three pipeline networks that supply crude to the Tesoro Corp. refinery at Mandan, and to refineries in Minnesota and Wyoming.
January 13, 2010: Bison pipeline update, Bowman county.
January 7, 2010: Wall Street Journal transcript -- very positive on EEP , ENB, and TransCanada.
January 5, 2010: ENB upgrade completed; ND still short on capacity. Actually, it's EEP -- EEP's principal crude oil system is the largest transporter of oil production from western Canada. The system's deliveries to the United States account for approximately 11 percent of total U.S. oil imports.
December 9, 2009: ENB to have largest photovoltaic solar energy facility in North America.
December 2, 2009: ENB increases its dividend 15%.
December 1, 2009: EPD bought another pipeline, probably small news item in the big scheme of things, but linked here just to be complete. The pipeline originates in Odessa, west Texas, and 265 miles later connects with a Pemex pipeline at the Mexico-US border near El Paso. EPD is NOT in the Bakken.
November 20, 2009: I missed reporting on this one earlier: EPD bought TEPPCO Pipeline this summer. This merger creates a massive new player in the pipeline business. It pays 7.5% and with the merger has significant share appreciation potential. The "EPD Family" is now the largest MLP in the US. EPD is NOT in the Bakken, as far as I know.
November 12, 2009: Keystone Pipeline nearly complete.
October 14, 2009: ENB: 52-week high; pays 3.5%. Compare with money market funds. Nice Barron's article on ENB, T. 2010 Guidance Conference Call scheduled for December 2, 2009.
November 3, 2009: EEP: $0.99/share payable November 13 for those holding the shares November 5, 2009. Ex-div: November 3, 2009. Pays 8.3%. I use EEP as a place to hold funds while deciding what to buy. If dividend looks questionable, will look for other high dividend payers in the oil patch.November 28, 2009: In addition to the 570 new wells requested by EOG in case 11939, I count about 241 additional wells by EOG and other producers.
Note: until this month, I had never paid attention to "dockets." It turns out that a docket with 19 pages is not unprecedented. The July 21, 2009, docket had 19 pages, and in that same month (July 29, 2009), there was another docket with 14 pages. In 2009, there were an average of 18 pages of requests if one excludes the month of July. In July, there were 39 pages of requests, total. The number of pages by month shows a trend: Jan (16 pages); Feb (14); Mar (13); Apr (14); May (16); Jun (15); Jul (39); Aug (24); Sep (18); Oct (21); Nov (28); and, Dec (29). This continues to validate my hunch that 2010 is going to be a watershed year for the North Dakota oil industry if oil stays above $70/barrel. CLR has hedged 5,000 bopd for $80 between January and July, 2010.November 4, 2009: The Mountrail County Promoter states that North Dakota, already the 4th leading oil producer in the United States, would produce more oil if pipeline capacity was adequate. The writer notes that there is talk of two more pipelines in the Stanley area: one would take oil into Canada and then back into the states through another pipeline; and the second additional pipeline would take oil out of the local area. I have opined elsewhere that one starts to get the feeling that the Williston Basin could become another "Tulsa" over the next two decades.
For investors, I think the pipeline companies are going to be able to charge a surcharge to transport all the oil that will be produced.
*****
Pipeline, The Ventures (I couldn't resist.)
*****
American Pipelines
ESPO.
Pipeline, The Ventures (I couldn't resist.)
*****
Morgan Kinder to go public in 2010.
ENB, EEP, EEQ (family): ENB and EEP are my favorite (as noted below, I don't follow EEQ). I have ENB as a long-term hold, and I trade in and out of EEP for the distribution. Stand-alone page.
STR: Questar -- an E&P company but a conglomerate focused on energy; one of its five core competencies is pipeline. Might be a better alternative to MDU during current recession. March 9, 2010. Questar will spin off its E&P division at end of July, 2010: QEP.
EEQ: I don't follow. Pays 8.5%.
MDU: If interested in pipelines, this is a very interesting play. Safe, conservative, Fortune 500, nice dividend, particpating in the Bakken in many ways. Has had some tough quarters during the 2008 - 2010 recession; I used to hold / accumulated shares, but sold all my MDU during the recession. Switched to ENB and EEP.
Pecan Pipeline: wholly-owned subsidiary of EOG, according to third-hand source. Not verified.
Pipeline network in North Dakota, a "pdf" file.
EPD: not in North Dakota, as far as I know, but I follow and often invest in due to high dividend and good outlook. [With the June 24, 2014, announcement, EPD will now be building a pipeline in North Dakota.]
****************************
Overseas Pipelines
Overseas Pipelines
ESPO.
Investing: Denbury / Encore
DNR: Yahoo!Financials
4Q10, earnings, triple, February 23, 2011.
3Q10, earnings, Zacks, November 8, 2010
2Q10, earnings transcript. August 5, 2010.
4Q10, conference call. February 24, 2010.
2Q, 2010, earnings, August 5, 2010.
New presentation, June, 2010.
Investopedia: Update on DNR, May 30, 2011. 266,000 net acres under lease in North Dakota (Bakken).
Seeking Alpha on DNR, March 4, 2011.
521 wells transferred to Denbury Onshore, LLC. See Daily Activity Report, March 3, 2011.
Calculating DNR's Worth, Investopedia. February 14, 2011.
Denbury increased its reserves by 92 percent in 2010. February 3, 2011.
Motley Fool: Is Denbury a "Buy"? Just one month later the fools seem to be very bullish on DNR. Not only a buy, but a bargain. January 12, 2011.
Motley Fool: Is Denbury a "Sell"? It failed four of five Motley Fool tests, but it's not a "sell". Go figure. December 11, 2010.
Investopedia: Denbury is king of tertiary recovery. November 23, 2010.
Vanguard Natural Resources LLC said it has signed an agreement to acquire the ownership interest in Encore Energy Partners LP held by Denbury Resources, Inc. The deal is valued at $380 million. After the transaction closes December 31, 2010, Vanguard will own Encore's general partner and about 21 million Encore common units, representing a 46-percent stake. November 17, 2010.
Buying EAC makes Denbury one of the largest independent oil and gas producers overnight. Originally posted November 5, 2009; link added November 17, 2009.
With the recent announcement of Denbury buying Encore, one might be interested in seeing Encore's presentation just before that announcement. Shareholders approve the deal. March 8, 2010.
On the first trading day following the announcement, EAC rose $8, from $37 to $45, while Denbury (DNR) dropped a dollar. Regardless of whether this represents an opportunity to buy DNR, there is no question that this helps establish the value of holdings in the Bakken. It may take awhile for this to sink in, but all things being equal, the value of Bakken holdings across the spectrum just increased.
I am absolutely convinced we are seeing just the beginning of a new age in North Dakota oil industry. I still think that there is a chance that the Williston Basin will become the new "Tulsa" -- without all the people. It's just too cold, too distant, for that kind of population growth. But in terms of production, pipeline, and potential, we could be seeing another Tulsa.
For those who may have missed it, there is movement on Capitol Hill (Washington, DC) to make natural gas a significant part of the "green" energy movement and energy independence going forward. Interestingly enough, there are others who feel natural gas should not be part of the "green" energy movement.
4Q10, earnings, triple, February 23, 2011.
3Q10, earnings, Zacks, November 8, 2010
2Q10, earnings transcript. August 5, 2010.
4Q10, conference call. February 24, 2010.
2Q, 2010, earnings, August 5, 2010.
New presentation, June, 2010.
NEWS
Investopedia: Update on DNR, May 30, 2011. 266,000 net acres under lease in North Dakota (Bakken).
Seeking Alpha on DNR, March 4, 2011.
521 wells transferred to Denbury Onshore, LLC. See Daily Activity Report, March 3, 2011.
Calculating DNR's Worth, Investopedia. February 14, 2011.
Denbury increased its reserves by 92 percent in 2010. February 3, 2011.
Motley Fool: Is Denbury a "Buy"? Just one month later the fools seem to be very bullish on DNR. Not only a buy, but a bargain. January 12, 2011.
Motley Fool: Is Denbury a "Sell"? It failed four of five Motley Fool tests, but it's not a "sell". Go figure. December 11, 2010.
Investopedia: Denbury is king of tertiary recovery. November 23, 2010.
Vanguard Natural Resources LLC said it has signed an agreement to acquire the ownership interest in Encore Energy Partners LP held by Denbury Resources, Inc. The deal is valued at $380 million. After the transaction closes December 31, 2010, Vanguard will own Encore's general partner and about 21 million Encore common units, representing a 46-percent stake. November 17, 2010.
Buying EAC makes Denbury one of the largest independent oil and gas producers overnight. Originally posted November 5, 2009; link added November 17, 2009.
******
Original Blog
March 2008
Original Blog
March 2008
With the recent announcement of Denbury buying Encore, one might be interested in seeing Encore's presentation just before that announcement. Shareholders approve the deal. March 8, 2010.
On the first trading day following the announcement, EAC rose $8, from $37 to $45, while Denbury (DNR) dropped a dollar. Regardless of whether this represents an opportunity to buy DNR, there is no question that this helps establish the value of holdings in the Bakken. It may take awhile for this to sink in, but all things being equal, the value of Bakken holdings across the spectrum just increased.
I am absolutely convinced we are seeing just the beginning of a new age in North Dakota oil industry. I still think that there is a chance that the Williston Basin will become the new "Tulsa" -- without all the people. It's just too cold, too distant, for that kind of population growth. But in terms of production, pipeline, and potential, we could be seeing another Tulsa.
For those who may have missed it, there is movement on Capitol Hill (Washington, DC) to make natural gas a significant part of the "green" energy movement and energy independence going forward. Interestingly enough, there are others who feel natural gas should not be part of the "green" energy movement.
Welcome to the "new" Million Dollar Way
The news coming out of North Dakota oil patch is almost coming too fast to keep up.
BEXP announces another great well (with first day production of 1,776 barrels of oil equivalent), this time northwest of Williston, pretty much at the extreme of their acreage. Although the well is in a designated oil field (the Bull Butte), it might as well be a wildcat as remote and lonely as it is. We've gotten spoiled in the Bakken oil patch. We are no longer surprised by wells producing greater than a thousand barrels the first day; they only hit the headlines when they approach 4,000 barrels. Oh, well. By the way, this was a 28-stage frac.
Denbury announcing a couple days ago that it was buying Encore was the top news story almost everywhere; it was certainly the top news story in the oil patch. Denbury becomes the fourth largest independent oil exploration and producing company overnight by buying Encore, whose main base is in North Dakota. Denbury's assets are primarily located in Mississippi; Denbury now goes nationwide on the shoulders of the Bakken and the Three Forks Sanish.
If you think "the Bakken" is over-hyped, check out "monster wells." Remember, the list of monster wells is only the tip of the iceberg, as they say.
Now, about the blog.
The "old" Million Dollar Way was very eclectic: literature, music, "the Bakken," energy in general, and personal musings. Ninety-nine percent of visitors to the site visited only Bakken-related sites, and even then, only one or two specific pages.
So, this site will, at least for the time being, concentrate on "the Bakken," more correctly the North Dakota oil industry.
I have an emotional interest in "the Bakken." I wear my heart on my sleeve when it comes to "the Bakken."
This is where I grew up. I have no background or connection with the oil industry. I own no mineral rights. I am an investor, but my investments in "the Bakken" are trivial compared to my overall investments. I am more emotionally attached to "the Bakken" than interested in investments. I have no inside information. I do not subscribe to any premium services regarding "the Bakken."
I no longer live in North Dakota, but I visit at least once a year and see first-hand what is going on. My information comes primarily from the NDIC website and the internet in general. Occasionally I will get input third-hand or fourth-hand from someone I know still living in the Williston area. (Williston, North Dakota, USA, is at the center of the Williston Oil Basin, home of "the Bakken.")
Bottom line: I'm pretty much a novice at all this. I know I will make many mistakes on this website but will correct them when brought to my attention. I would not use my site to make investment decisions, although it may be one of several data points to lead you in certain directions. Much of what I write can look factual, when in fact it is opinion or my general understanding of the issue.
Over time, I assume this site will evolve, based on reader feedback. As expected, it was hard not to have op-ed pieces, and some have already been added.
The site's name.
The friends of the "old" Million Dollar Way know that the name of the site has nothing to do with money -- at least not directly in terms of me or investing. When I was growing up, the road leading out of Williston was known as the "Million Dollar Way" because of the automobile dealerships and businesses related to the oil industry. The "Million Dollar Way" was my road out of town to an exciting life. This "Million Dollar Way" site is a new road leading me to new destinations.
Profile of Williston, North Dakota, USA.
North Dakota: Most Economically Stable State, November 2, 2009
The Oil Drum's Assessment of the Bakken, November 2, 2009
Last updated: November 2, 2009.
BEXP announces another great well (with first day production of 1,776 barrels of oil equivalent), this time northwest of Williston, pretty much at the extreme of their acreage. Although the well is in a designated oil field (the Bull Butte), it might as well be a wildcat as remote and lonely as it is. We've gotten spoiled in the Bakken oil patch. We are no longer surprised by wells producing greater than a thousand barrels the first day; they only hit the headlines when they approach 4,000 barrels. Oh, well. By the way, this was a 28-stage frac.
Denbury announcing a couple days ago that it was buying Encore was the top news story almost everywhere; it was certainly the top news story in the oil patch. Denbury becomes the fourth largest independent oil exploration and producing company overnight by buying Encore, whose main base is in North Dakota. Denbury's assets are primarily located in Mississippi; Denbury now goes nationwide on the shoulders of the Bakken and the Three Forks Sanish.
If you think "the Bakken" is over-hyped, check out "monster wells." Remember, the list of monster wells is only the tip of the iceberg, as they say.
What's not to love: a) oil back to a new, higher trading range; b) the major oil companies losing money or reporting lower earnings (forestalls talk of windfall profits tax, driving Congress nuts); and, c) a well in the Bakken at almost 5,000 boepd on initial production -- a new record (reported this week). At $50/barrel, that is $250,000 a day. That's more than a million dollars a week. If I'm wrong on my math, someone will correct me. Yes, the Bakken has severe production declines but let's see what this well is doing a year from now. And, I'm still waiting to hear how the "barnburner" up by Grenora is doing.And now, another monster well, the Chandler James, in production for one full year, producing at a rate of 35,000 barrels/month, which at $50/barrel, is $19 million/year. Yeah, I'm excited.
Now, about the blog.
The "old" Million Dollar Way was very eclectic: literature, music, "the Bakken," energy in general, and personal musings. Ninety-nine percent of visitors to the site visited only Bakken-related sites, and even then, only one or two specific pages.
So, this site will, at least for the time being, concentrate on "the Bakken," more correctly the North Dakota oil industry.
I have an emotional interest in "the Bakken." I wear my heart on my sleeve when it comes to "the Bakken."
This is where I grew up. I have no background or connection with the oil industry. I own no mineral rights. I am an investor, but my investments in "the Bakken" are trivial compared to my overall investments. I am more emotionally attached to "the Bakken" than interested in investments. I have no inside information. I do not subscribe to any premium services regarding "the Bakken."
I no longer live in North Dakota, but I visit at least once a year and see first-hand what is going on. My information comes primarily from the NDIC website and the internet in general. Occasionally I will get input third-hand or fourth-hand from someone I know still living in the Williston area. (Williston, North Dakota, USA, is at the center of the Williston Oil Basin, home of "the Bakken.")
Bottom line: I'm pretty much a novice at all this. I know I will make many mistakes on this website but will correct them when brought to my attention. I would not use my site to make investment decisions, although it may be one of several data points to lead you in certain directions. Much of what I write can look factual, when in fact it is opinion or my general understanding of the issue.
Over time, I assume this site will evolve, based on reader feedback. As expected, it was hard not to have op-ed pieces, and some have already been added.
The site's name.
The friends of the "old" Million Dollar Way know that the name of the site has nothing to do with money -- at least not directly in terms of me or investing. When I was growing up, the road leading out of Williston was known as the "Million Dollar Way" because of the automobile dealerships and businesses related to the oil industry. The "Million Dollar Way" was my road out of town to an exciting life. This "Million Dollar Way" site is a new road leading me to new destinations.
Profile of Williston, North Dakota, USA.
North Dakota: Most Economically Stable State, November 2, 2009
The Oil Drum's Assessment of the Bakken, November 2, 2009
Last updated: November 2, 2009.
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