The only reason "Ten New Permits Issued Today" is noteworthy is the fact that this is the fourth year of the current North Dakota Bakken book and this is one of the biggest days for new permits. Generally, five to six new permits during this boom and when I see more than eight (8) it is quite noticeable. Of note, Oasis was granted two permits on the day that it goes public (IPO tonight). Oasis is putting two wells on one pad in Bull Butte. EOG has yet another permit in the very prolific Wayzetta township in the Parshall oil field. This tells me "we haven't seen nothin' yet."
"We're" on track for 1,275 new permits this calendar year.
With ten (10) more permits granted today, North Dakota is on track to issue 1,275 new permits this calendar year (2010). This well exceeds any past year in the current boom.
For comparison with other years, click here.
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Wednesday, June 16, 2010
Questar Approves Split
In all the "background noise" of the Bakken and this blog, I completely forgot about Questar. When I first came across this company some months ago while looking at the NDIC dockets, I was very impressed. Shortly thereafter, I saw that Questar was going to split off its regulated pipeline and distribution company from its E&P business which is operating in the Bakken.
At that time, I said that if I had the money, I would invest in Questar. As it is, I am pretty much maxed out in energy in the Bakken and did not want to add yet another holding, but "on the surface," (no pun intended) Questar post-split looks like another good bet in the Bakken.
Natural gas, by the way, is now over the $5.00 threshold and is trending up. If the "tea leaves" are correct, that the country is gradually adopting natural gas, then both the pipeline/distribution company and the E&P company look all that more attractive.
That plan for the spin-off has been approved.
At that time, I said that if I had the money, I would invest in Questar. As it is, I am pretty much maxed out in energy in the Bakken and did not want to add yet another holding, but "on the surface," (no pun intended) Questar post-split looks like another good bet in the Bakken.
Natural gas, by the way, is now over the $5.00 threshold and is trending up. If the "tea leaves" are correct, that the country is gradually adopting natural gas, then both the pipeline/distribution company and the E&P company look all that more attractive.
That plan for the spin-off has been approved.
Oasis Petroleum IPO Tonight According to CNBC Television
Oasis Petroleum will go public tonight according to CNBC: 42 million shares in the $13 - $15 range, to raise about $400 million. The press release was two days ago anticipating the IPO sometime this week. Here is the CNBC video. This is the original "Form S1" from March, 2010.
When I was first alerted to the pending IPO back on March 27, 2010, I posted my guess for fair value for Oasis based on NOG and KOG (two different business models): my fair value guess -- 30 million shares at $12/share.
Oasis currently has four (4) active rigs in North Dakota, one less than the highly visible BEXP.
Regardless of what Oasis does, this is another opportunity for national awareness of the Bakken. I think it will help all Bakken stocks.
I am accumulating shares in three or four other Bakken companies and won't participate in the Oasis IPO, but I can't argue against it. I don't know history of Oasis very well, but I believe they partnered with MDU/Fidelity in the early days, and then during the drop in oil prices in 2008/2009, Oasis acquired all (or most) of MDU/Fidelity acreage in North Dakota. At the time, MDU had just successfully petitioned the NDIC for defining a new field, the Cottonwood field, which has been less than spectacular, although recently EOG has had some pretty good wells there.
It looks like a nice day for an energy IPO; oil has been trending higher ever since the administration shut down the gulf, and oil is having a good day today, also.
It also looks like a nice for a picnic in the Bakken; some areas will see highs in the low 80's; rain in some areas tomorrow.
When I was first alerted to the pending IPO back on March 27, 2010, I posted my guess for fair value for Oasis based on NOG and KOG (two different business models): my fair value guess -- 30 million shares at $12/share.
Oasis currently has four (4) active rigs in North Dakota, one less than the highly visible BEXP.
Regardless of what Oasis does, this is another opportunity for national awareness of the Bakken. I think it will help all Bakken stocks.
I am accumulating shares in three or four other Bakken companies and won't participate in the Oasis IPO, but I can't argue against it. I don't know history of Oasis very well, but I believe they partnered with MDU/Fidelity in the early days, and then during the drop in oil prices in 2008/2009, Oasis acquired all (or most) of MDU/Fidelity acreage in North Dakota. At the time, MDU had just successfully petitioned the NDIC for defining a new field, the Cottonwood field, which has been less than spectacular, although recently EOG has had some pretty good wells there.
It looks like a nice day for an energy IPO; oil has been trending higher ever since the administration shut down the gulf, and oil is having a good day today, also.
It also looks like a nice for a picnic in the Bakken; some areas will see highs in the low 80's; rain in some areas tomorrow.
Inappropriately Enthusiastic
General (ret.) Wesley Clark, a former presidential candidate, sees North Dakota as the future energy capital of ..... North America.
These local links are often broken or only available in the future through a subscription (paid/free).
The article doesn't say anything particularly new, but this is what caught my attention these four data points:
Similar story here. Likewise, I expect the link to be broken in a matter of days.
These local links are often broken or only available in the future through a subscription (paid/free).
The article doesn't say anything particularly new, but this is what caught my attention these four data points:
Regarding wind, North Dakota went from an installed capacity of less than 5 megawatts in 2003 to 1,300 megawatts now.Kind of exciting.
There are more than 820 turbines operating in the state, which ranks 10th nationally in installed wind capacity.
North Dakota has five ethanol plants operating and produces more than 350 million gallons per year, a tenfold increase since 2005.
Discussing biomass, Christianson said the state ranks No. 1 in potential for energy crops.
Similar story here. Likewise, I expect the link to be broken in a matter of days.