Three things jumped out at me:
a) able to update net acres for many companies; first time to see Slawson net acreage (>100,000 acres); probably there before but never paid attention; updated "FAQs." Biggest discrepancy: acreage for Hess.
b) 191 rigs in ND; NOG has working interest in 182 rigs; pretty impressive, if I understood the graphic correctly.
c) margin for OAS and NOG: $60 to $61 /bbl.
This story is from last year regarding NOG but I found it interesting...
ReplyDeletehttp://thestreetsweeper.org/undersurveillance.html?i=1665
For those investing in shares of NOG, it's been a wild ride. But for the company itself, not too shabby.
DeleteMarket cap: $1 billion.
Employees: 19.
Nog is a one trick pony. The bakken strategy put in place 6-7 years ago has paid off . The reasons why it hit are two fold first and foremost was a commitment to the concept before others could make that commitment. Second ((and somewhat related was that the larger players (eog/hess/slawson) did not want to get into a bidding war with nog over a few acres per section. The result is that nog has a broad coverage of te play.
ReplyDeleteNog future for investors is not so obvious. There's not that much bakken land currently unleased and bidding is now competitive. Bottom line is that it is not clear how nog grows reserves from here. Fun while it lasted.
A lot of folks would have loved to have been part of that one-trick pony.
DeleteMarket cap: $1 billion.
Employees: 19.
Many entrepreneurs with $1 billion in the bank move on to a new start-ups.
It is also apparent most folks still don't "get" the Bakken. The wells going in? Seed corn. EURs is what matters, but having said that, those with working interest get their money back in one to three years from a Bakken well, and the well will continue to produce for 39 years, on average.
But, as for me, if I was interested in tons of money, and I'm not, I would have loved to have been part of that one-trick pony.
Yes, hindsight is 20/20. Always has been.
ReplyDeleteIt took guts to buy nog on the front end when the payoff was not guaranteed in any way. It would take even more guts to go long on nog in the current market, but that is just my opinion .
This is not an investment site, so I can't comment.
DeleteHaving said that, the easy money has been made in the Bakken. Talking purely to those who are contemplating buying shares of companies operating in the Bakken: don't. That's just my two cents worth. Again, this is not an investment site; don't make any investment decisions based on what you read here.
By the way, Warren Buffett has said he wishes the shares of all the companies he invests in (but doesn't own) would drop 50% so he could buy more (at least I've heard that he's said that). He may get his wish in the Great Recession of 2013.