Thesis: although DNR's main focus is on enhanced oil recovery, DNR has a growing acreage position in the North Dakota Bakken (remember, DNR bought Encore, a Bakken oil exploration and production company not long ago).
Denbury, according to Eric Fox at Investopedia:
- 275,000 net acres under lease in the ND Bakken formation
- Approximately 76,000 of those acres in the Almond and northeast Foothills area
- The rest in the "core area of its play in the Williston Basin; 73,300 net acres
- The company estimates it has 350 million barrels of oil equivalent in the Bakken
- It is operating five (5) rigs
- 2011: DNR to focus on its core are in the Camp and Cherry Hills areas
- The rest of its Bakken acreage is held by production and not under pressure to drill there
- DNR has six wells being completed and another five being drilled (Cherry, Murphy Creek, and Charlson)
- Well cost, on the high side: $6.8 to $7.8 million/well
- Also, DNR is re-fracking wells that had originally been completed with only one hydraulic fracturing stage
Closed at 14.68 today, down sharply from it's 52 week high...Why the long decline I do not know.
ReplyDeletePositioning for an entry point, with a 5% stop loss...
I don't know either, but I have a long time horizon, so this will take care of itself.
ReplyDelete