BEXP: Conference Presentation

This is the presentation made by BEXP at Enercom conference in Denver last week. The amount of information is incredible; I don't know where to begin. Maybe I'll have time Monday to sort through all this.

However, note that BEXP is suggesting takeaway capacity for oil in North Dakota could be as much as 800,000 barrels/day in 2014 (slide 37, appendix). [Current, reasoned, general expectations are that daily production, currently around 300,000 bopd will level off at 400,000 bopd. June production hit an all-time high of 315,278 bopd. In May, production averaged 298,000 bopd. The increase in June represents a 5.7 percent increase -- in just one month.]

Look at the thickness of the Upper Three Forks Sanish compared to the Middle Bakken, slide 39, appendix).

BEXP estimates as many as 555 wells over 13 years in proven areas with an average NPV of $9.4 million/well (almost $5 billion), slide 34. Regardless of the value of these wells, this is just one company in the Bakken estimating almost 600 wells and drilling for 13 years. This explains all the activity in Williston, suggesting companies plan to be there for a very long time.

A Story Out of the Mideast About the Bakken

This story is from an English website out of the Mideast. Following Enbridge's recent announcement to double capacity, one of their reporters filed this story.

Note: somehow I accidentally deleted this comment. This comment should have been published:

Anonymous has left a new comment on your post "A Story Out of the Mideast About the Bakken":

Bruce, you’re site is so complete, thorough and organized I stopped posting back in June of 2010. Somehow you missed a 08/30/10 blurb about the Bakken Shale oilfield from The National in Abu Dhabi entitled, “A new US oil rush could rock OPEC” that is really old old news, except for this “gem” at the end of the article.

“ The effects of that have rippled around the world, weighing not only on North American gas prices but also on international markets for the liquefied natural gas now shipped across oceans from states such as Qatar. OPEC producers would do well to remember that; the next threat to oil price stability may come not from market speculation or renewable energy but from a new North American oil rush.” tcarlisle@thenational.ae

For the full article see my 8/30/10 post on the IV HES BB at
http://www.investorvillage.com/smbd.asp?mb=4307&mn=253&pt=msg&mid=9458325

Good Luck and Good Investing. HLW3333 08/30/10

I posted a reply in the comment section below. This whole thing has gotten very confusing. Sorry. I will try to do better in the future. 

Connecting the Potash Dots. Yes, It Involves The Bakken (at least the location)

Here's another set of dots to connect. It starts with Warren Buffett buying the Burlington Northern railroad.

BHP Billiton recently announced plans to build a huge potash loading terminal at the Port of Vancouver, Washington. BHP has also announced intentions to buy Potash Corporation.

Ninety-four (94) percent of all potash produced in North America comes from Canada. However, it was recently announced that the state of North Dakota granted a permit for a potash mine. This is the first potash mine permit issued by the state in three decades (specifically, since 1976). North Dakota's potash reserves are in the Bakken area.

Connecting the dots results in a lop-sided hexagon.

The potash terminal alone is a pretty exciting story, especially for those of us who still remain bullish.

Oh, back to Warren Buffett. BHP accepted proposals from Burlington Northern Santa Fe and Canadian Pacific to carry potash to the port terminal. Who knew that Warren Buffett bought BNI for carrying potash to Vancouver?

By the way, here's another story on Greenbrier for investors.

Resolute Energy: Another Bakken Play

Resolute Energy is yet another energy company that I was unaware of until today's edition of the Oil and Gas Journal which reported joint venture activity between Resolute and Marathon. Resolute is not entirely new to the Bakken; it has previously partnered with GeoResources in North Dakota.

The real question is why a fairly large company (MRO) with a market cap of $21 billion, debt of $7 billion, annual cash flow of $6 billion, and $2 billion cash on hand would partner with anyone, much less a small cap company (REN) with a market capitalization of about $600 million.

I can think of only two reasons. I suppose others can think of a lot more.

Investopedia: Three Forks Sanish

Another great investors' article on the Bakken. This time about companies targeting the TFS and the pipeline companies.

Companies mentioned in this article include five in which I hold (and accumulate) shares: CLR, WHX (WLL), NOG, EEP, and ENB.