Michael Reger and NOG

It appears I'm not the only irrationally exuberant fan of the Bakken. And this guy has made millions.

Michael Reger is the CEO of NOG.

From something called MinnPost.com, published May 19, 2010.

Data points from the article in case the link is broken (the exuberance is from the article; I did not embellish a thing):

• NOG's business strategy: participate in the "massive land grab" for leasing rights currently going on in the Williston Basin
• In 2006, Reger got wind of a successful drill site in Mountrail County, an area thought not to be that productive. He founded NOG and immediately began buying up strategically located leasing rights in the surrounding areas, giving him a proportional share of the oil being pumped in exchange for sharing in the upfront cost of drilling
• His first well, 12.5% interest, cost $600,000 up front, and production paid for that working interest in six (6) months "and they'll send us checks on that well for 50 years...That was the 'Eureka!' moment" when he knew the non-operating business model was the way to go
• Realizing he needed to raise more capital quickly to acquire leasing rights, he took the company public in 2007

"Mountrail thought not to be productive"? It has been noted that four townships in Mountrail county currently account for about 50% of North Dakota's annual oil production. 

And this answers another question I often get about the Bakken: how long will a Bakken well last? Michael Regel expects to get royalty checks from that well for 50 years.

Let's see, a stripper well, at 10 barrels/day at $50/bbl = $500/day; $15,000/month.  12.5% of $15,000 = $1,850. About as good as social security. Assuming social security is still around 50 years from now.