May production reported 7/24/2014.
On a sequential basis, monthly production is decreasing for the last two months. The year-to-year monthly production is increasing at a decreasing rate.
2014 Month/Oil Production/ YOY Rate
The only new well to report was Cane Creek 32-1-25-19 at 4144 Bbls in 27 days of production.
MDU continues to creep up. I wonder who is buying all those shares. Warren Buffett perhaps? Wouldn't that be a good fit? Warren could use an abundant supply of Diesel fuel to run his trains. I'm not trying to start a rumor. Far be it from me, I would never do that, but somebody sees value here.
Seriously, who might take over MDU, a big electric utility looking for diversification perhaps? I don't know....
I hope it never happens. I like MDU the way it is... john
IF they had keep the Bakken acres...Would they now be as deep into the Paradox Basin?...If not...until the Paradox plays out???...The Paradox could be game changer for MDU...that one well...@ over 700,000bbls has already put $50million to MDU"s bottom line...
good luck all
I wonder if the issue of Bakken horizontal wells playing out relatively quickly might have something to do with the Mountrail Co sale?
More Paradox Basin wells - I'm all for that. Best not to have all the "eggs" in the Bakken basket.... john
New sale is intersting. 2000 bopd. They were not drilling up there because they have better return in FB area. They did hang on to 12,000 Montrail county acres. Anyway, seems like good enough deal - they want to put drilling capex where it will do best. I am hoping hey hit 1 or 2 more great paadox basin wells. If drilling sucess there becomes mor epredictable, that area willbe a homeru.
Perhaps I am missing the point. I have the feeling that the market has been overpricing Bakken assets. Look at the recent KOG deal, which I think was a pretty disappointing to KOG shareholders, but may represent something closer to what Bakken assets are really worth.
Also I think the just announced sale by MDU of $200 million of assets in Mountrail County is very interesting. Apparently they think there are better places to invest their money. I always thought Mountrail county was the sweetest of sweet spots in the Bakken, yet MDU is selling. Why? Could it be that Bakken assets are not really as valuable as we have supposed?
Have you noticed that MDU has been showing considerable strength recently - often moving up on market down-days? This morning there was a 350K block of MDU stock that moved counter to the down market. Some big money seems to see serious value in MDU. .... john
Have no complaint that fidelity is doing better in Bakken after production was pretty stagnant under 5k bopd for years. But add what they would have from oasis partnership (had it continued) and current productionwould be a lot higher.
If you look at the June Oasis Pdf presentation it lists on slide 4 the North cotton wood and the South Cottonwood fields.. these fields have 145 ,000 acres Net ,
these fields are having 6 operated OAS rigs drilling this year, And they now have 156 operated wells. the land has the Middle bakken, and 2 of the Three forks benches producing Now.. In 2014 OAS is to test the 3rd and 4th Three forks bench for oil..
in 2010 then Fidelity went and purchased land leases in the Stark county Area ( Dickinson ND ) and are drilling the Three forks formation.
Besides the 10,400 BOPD, Fidelity has 12 wells that are in 3 different fields on Confidential.. these 12 wells had Runs ( oil sold ) in the month of May of 70,414 BO .. Now there is no way to determine how much was actually produced in May from these 12 wells., but it was picked up and sold...
Also fidelity had Nat gas from Cedar Creek Field produced and sold of 67,662 Mcft . The associated Nat gas from the oil production was 169,116 Mcft sold, and 199,284 Mcft produced. . Fidelity Flared 15.2 % of the Nat gas produced. . don
You are totally missing the point - MDU was partner with oasis but sold their interest cheaply early on. Now Oasis worth more than MDU. Their share of Oasis production (had they kept their interest) would be more than their current operated Bakken production. Yes they have many pieces, but Oil and gas E and P is one piece that would be bigger now if they had continued with Oasis.
Somehow I am not bothered by the disparity. As we all understand, MDU is an energy conglomerate that does lots of stuff other than drill for oil and it also pays a pretty good dependable dividend. I don't think the two companies are comparable. My portfolio would have room for either one or both of them, but for different reasons. I suppose if MDU wanted to match OASIS' oil production at the expense of some of their other operations they could do it . Or they could cut the dividend and invest that cash into EP. ... john
I agree with you 2,000%. it is ironic that OAS has a EV of 7.84 Billion, and its only business is E+P, While MDU has 5 divisions , many moving parts, and has a EV of 8.4 Billion..
Margin, did you look at the fidelity production for ND for the Month of May, don
MDU is the owner of 25 % of the Wygen iii coal fired elec generator located in Gillette., they bought this portion from Black hills power in 2009.
CHEYENNE, Wyo. — Two electric utilities say they're interested in hosting a proposed lab to test out carbon-capture technologies at a working power plant in Wyoming.
Gov. Matt Mead said Monday those utilities are Bismarck, North Dakota-based Basin Electric Power Cooperative and Rapid City, South Dakota-based Black Hills Corp.
both utilities operate coal-fired power plants in the Gillette area.
Wyoming has reserved $15 million to build a test center a Wyoming coal-fired power plant. Teams would use the lab to compete for a proposed $10 million prize for developing a cost-effective way to trap and reuse carbon dioxide emissions.
The U.S. Environmental Protection Agency proposes steep cuts in CO2 emissions in the years ahead. Much of that CO2 comes from coal-fired power and the stakes are high for Wyoming, the top coal-mining state.
Yes, along with KOG's debt, WLL has also obtained a lot more borrowing power from all of KOGs high quality assets. I don't have the knowledge to evaluate this relationship between Whiting's debt and their new post-acquisition borrowing power.... I have a feeling that Whiting got a good deal though....
Thinking ahead, perhaps Whiting, now that it is about to become the top Bakken producer, will be an attractive target for one of the really big players - like say Exxon?
They also bought the debt...more like $22/share...What it tells us is WLL thinks highly of their/KOG's Bakken leases...The future of shale oil producers...need to be careful comparing leases...different areas....obviously some very valuable...some not so much....IMO, MDU's Paradox Basin leases holds the key for MDU...IF they hit...MDU is going to be worth a lot more money...Hopefully we will know more in a few weeks...We'll see...
good luck all...
Wow, $13.90/shr? If I were still a KOG owner I'd be pretty unenthusiastic about that.
I think the current price of WLL at $78.50 is pretty rich. If WLL can covert some of it's high priced shares into KOG's assets in the ground that will be a pretty good deal for WLL shareholders. I have no idea how significant this will be to the valuation of Fidelity properties. It might be closer to those of OAS??
It will be very interesting to hear what some of you who are closer to the oil business think ?