This is one of the reasons I enjoy the blog experience. A few folks send me links that send me in interesting directions.
This was sent to me, from a posting on the DNR board. I do not hold shares in DNR. Denbury recently bought Encore, a fairly big player in the Bakken. But that has nothing to do with the following, a comment found on the DNR Yahoo!Message boards. You should read the full message at the link, but these are the data points, as expressed by "Harold," who has a history of great posts:
WMB offers a compelling opportunity for those who desire an inexpensive exposure to natural gas
There is currently a natural gas glut, but like all gluts, it will end sometime
WMB owns 84% of Williams Partners, WPZ
WPZ will increase its distribution to about $3 next year (about 6% yield)
Market value of WPZ will be about $13 billion; WMB's share is worth $19/share
WMB's distribution from WPZ is worth about $6/share
Therefore: WMB has about a $25/share value just for WPZ
WMB has another $2/share of pipeline, midstream assets not in the partnership
WMB has net debt of about $1/share
Therefore, WMB value is about $26/share and is trading for $18.50
But, it's probably worth much more. For the rest of the comments, go to the link.
I hold WMB for the long term, and continue to add to it.
Jack Cvancara 19-18 1-H, previously posted elsewhere, shows a production of 81,000 barrels of oil in less than three (3) months; IP of 4,357; yup: BEXP. We've all known about this well (since the May 26, 2010, press release, but it's finally off the confidential list!) For an interesting in-depth discussion of the Bakken in general, and the Cvancara specifically, click here.
Two different companies reporting on wells targeting the Madison (which by the way, is still the leading formation in North Dakota for oil production, I believe)
Ritchie reports a Spearfish well
Hess granted three wells on a multi-well pad in the Robinson Lake oil field, EN-Weyrauch series, 154-93-1918. Since they will all run the same two sections, will this be two horizontals in Middle Bakken and one in TFS? [See comments; I am wrong on how I said this. See this link for more about Hess multi-well pads. If these are true dual laterals like Hess has done before, we should see three more permits by Hess in these sections.]
Slawson has a permit in the Elk oil field, south of the river, southwest of Williston. This is the field that BEXP reported an IP of 3,042 for the Papineau Trust 17-20 1-H located at NENW 17-151N-102W. This well was reported out in July, 2010, just a couple of months ago. Slawson is an exciting operator. Slawson's well is directly north: SWSE 21-152N-102W, Bonanza 1-21-16H
This has not been a particularly good week for the oil patch, so it's nice to see this kind of daily activity report to close out the week.
It would be interesting to get a breakdown of those 55 jobs. I assume they are city employees, probably some of them in the auditor's office.
That's $2 million/job.
With the additional 3.8 percent tax on almost all passive income starting next year to help pay for administrative costs associated with the new federal health care program, North Dakotans getting royalty money from Bakken wells may be able to help out California, a little bit.
And with 12% unemployment in California, any little bit will help.
[I assume North Dakota will continue to receive more federal spending per dollar of tax paid but the rate should shift toward California, and it could shift significantly. With the 3.8% on royalty income it is no longer a given that North Dakota will receive more federal dollars than taxes paid. Remember, North Dakota is producing 10 million barrels of oil per month; at $50/bbl that's one-half billion dollars/month. Most recent data shows New Mexico is number one beneficiary in federal/state offset; North Dakota is number six; California, 43; and, New Jersey, last, at 50.]
Wouldn't it be easier just to send the royalty money (if that turns out to be the case) directly to California and bypass Washington, DC? It would be a bit more efficient.
Anyway, my rant for the day.
Update: I posted the above note earlier today/yesterday and now -- just minutes ago -- I checked in at LA Times.com and see that the 55 jobs was not enough to stem the unemployment problem in California. The LA TImes.com is reporting that unemployment in California has jumped to 12.4%, up from 12.3% the previous month. Actually, that change is statistically insignificant, but one would have assumed the increase in the number of jobs in Los Angeles would have stemmed the tide. Of the 2.3 million unemployed in California, almost one million have been unemployed for more than six (6) months.
Maybe not yet, but over time North Dakota may move up on the list of states with significant dinosaur discoveries.
This article from MinotDailyPress.com talks about a particularly good site near Marmarth, North Dakota, where the ND Geological Survey says that fossils of the following dinosaurs were found this past summer: Triceratops, duck-billed dinosaurs, raptors and a tooth from a Tyrannosaurus rex, often called "T. rex," the largest meat-eating dinosuar (sic).
Without doing any type of search, this is my hunch: California, Montana, Utah, North Dakota.
It's more than just oil in North Dakota.
(By the way, if a newspaper is going to do a story on dinosaurs, the editors should make sure they spell the word "dinosaur" correctly. I assume this will be corrected; if so, when you click on the link, you will not see the same story I saw; if nothing else, the spelling will have been corrected.)
This is about the Lodgepole, which by the way, has produced the most productive oil well in the history of North Dakota, the Dinsdale 2-4 (when you get to that link, scroll down).
This isn't the only well Halek plans to drill. Halek plans to drill 17 wells in North Dakota over the next 18 months. Halek is based in Billings, Montana. The Lodgepole/Dickinson well is one of the first wells they have drilled in North Dakota.
