The RR wells will be more expensive due to depth and I suspect they are still trying to get the royalties reduced on that formation. I also believe that the RR is not as homogenous as the other layers and will have more traps that may be targeted by verticals. Like you, I am anxious to see some RR wells drilled by anybody to see what they find. The lower bakken or bakken silt also presents another target zone that a few folks are now testing. This ground has evolved from 1 - 550k eur well to 16 700k eur wells per dsu and we aren't finished yet. Ten years from now the true size of the resource is going to be much better known and even optimist Hamm may have undershot it. Somewhere Bud Brigham is wondering what the he11 he was thinking when he sold
the warrant package is the cherry on top. patience will be rewarded when rockpile and caliber reach critical mass and establish their revenue history and get spun into an MLP. just a matter of time but hopefully they don't pick the grape before the juice is at its sweetest
and the fact that they got it at libor +4% or less from one of the biggest lenders in the business speaks volumes about the stability of the cash flow
you don't lose anything until you sell. shorts are running the game right now and scaring the lemmings. don't be one. nothing has changed in the fundamentals of this company and it is way oversold at this point
yes it is, some heavy shorting happen that is going to be fuel for the fire when they have to cover. KOG up 4% today, TPLM down 5%. nothing fundamental about this price swing. will add the remaining 1/3 of my trading shares if it hits $8.3
the expansion of the rail offloading facilities on the west coast will be key. if they can rail to Vancouver or Washington ports and then barge to California refineries the bakken oil price should jump up.
Cannot understand why there is no pipeline to west coast port(s) being proposed.
OAS is the best buyout option right now imo. massive land holdings with little to no pad drilling done yet but lots of piping infrastructure in ground to handle water and get oil to rail heads. happy to see them finally getting into well services
yes that is a lot to have in any one company. these are my trading shares and I bought 2/3 of my trading position today so if it drops down towards the 200 day ma I will add the remaining 1/3.
nothing in the fundamentals have changed, Rockpile is still generating free cash flow and will add more when the third spread is up and running, Caliber volumes are growing adding to free cash flow, and cars and planes are still burning gasoline. Keep an eye on the results of those drilling all around the Montana property.
Major catalysts on the 6 - 12 month horizon include possible spinoff of Rockpile and Caliber into an MLP, increased rail capacity to the west coast ports, light sweet exports to Canada, and proving up the Montana land so I am willing to put a marker down here and wait.
not sure but kind of glad that the idiots don't seem drwan to this board like KOG. imho OAS is the most attractive bakken buyout candidate due to the market cap vs the acreage size. with almost all of their land now hbp they may actually do some pad drilling
there is political uncertainty and social unrest in lots of places and that is why the "big boys" are coming home. Once the smaller guys have proven up the resource and cracked the completion codes to maximize the resource recovery they will either be bought up or will merge to take avantage of economy of scale. We are still early on in the bakken play.
wrt the OP, look at the 3 year charts for KOG, TPLM, OAS, CLR, etc and tell me again how they have not been a good investment. My account balance is up so I guess I do not understand what the definition of a good investment is. Anytime I can get an annual return averaging at or above 25% I count that as a good investment.
If bad weather crimps fourth-quarter production, any selloff among Bakken players would be a buying opportunity, says Tyler Kocon, a portfolio manager at Split Rock Private Trading, an investment advisor in Duluth, Minn. with energy portfolios. He likes Kodiak Oil & Gas (KOG) for its acreage, and says shares, which ended Thursday at $11.64, could rise 20% in a takeover.