some good news

[prince_jake_33]

Oil experts knew for decades that North Dakota's Bakken Formation hid a huge petro-reservoir within its rocks. But as soon as drillers figured out the power held in the union of two key technologies, hydraulic fracturing and horizontal drilling, the Bakken came alive.

Here are some of the best-rated names active in that area.

Brigham Exploration (BEXP) may shine best. It bounced off its 10-week average two weeks ago and now stands 8% off its Feb. 28 peak.

Brigham notched a 700% EPS gain in Q1 of 2010 and 425% in Q4. Q2 and Q3 earnings were compared against year-earlier results. The Street looks for a 175% gain in the current period.

Sales in the past four quarters surged 76%, 327%, 84% and 159%. After-tax margin has boomed in the past four periods, with the most recent reading at 46%. A year earlier, that gauge read 18%.

A Feb. 28 report from Dougherty & Co. notes Brigham's expansion in the Bakken.

"Brigham announced that it will expand its seven-rig drilling program in the Williston Basin, adding an eighth in May and operating 12 rigs by September 2012. ... We believe this was the highlight of the December quarter release."

Continental Resources (CLR) is just a day away from completing a square-box base. Like Brigham, it also can be treated as a rebound from the 10-week line.

Continental's 56% sales decline in Q4 is a problem. The Street sees moderate gains in this year's Q1 and Q2. For 2011's last two quarters, expectations are running at explosive growth: 67% and 334% for Q3 and Q4, respectively. Sponsorship is flagging.

Oasis Petroleum (OAS) is the purest Bakken play. It came public in June at $14 per share. The stock climbed as high as 36.15 on March 3 before reversing lower. A high-volume loss two weeks ago pushed Oasis below its 10-week line, which it has yet to regain.

[dan_s]

OAS is on our Watch List. I'm also trying to get them to host a luncheon for us.

We have just added Triangle Petroleum (TPLM) to the Watch List. It is a micro-cap that is active in the Bakken.

I will be putting the final touches on a company profile / forecast for Endeavor International (END) tomorrow. It looks very good.

You should all be checking the Watch List tab every few days. We are currently taking a hard look at all the companies on our Watch List and issuing profiles and forecasts as fast as we can. There are few strong candiates for graduation to the Sweet 16.