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Friday, December 10, 2010

Denbury and The Williston Basin

Here's the link, an Investopedia article. Again, a very interesting article following on the heels of the OXY story posted just an hour or so ago.

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

2 comments:

  1. Closed at 14.68 today, down sharply from it's 52 week high...Why the long decline I do not know.

    Positioning for an entry point, with a 5% stop loss...

    ReplyDelete
  2. I don't know either, but I have a long time horizon, so this will take care of itself.

    ReplyDelete

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