DNR

[dan_s]

I talked to Denbury last week. They have five rigs running in the Bakken Shale and they are very pleased with the results.

A few months ago Denbury announced that they believe their 275,000 net acres in North Dakota’s Bakken Shale contains recoverable oil of approximately 350 million bbls of light oil. This is significantly higher than previous estimates, putting Denbury in the upper half of independents operating in the play.

Most of DNR's oil is now being sold into the Gulf Coast market where they are getting better than a $10/bbl premium to WTI.

[wilmawatts]

Oil centric companies like DNR should do well if the IEA is correct on oil demand. While higher energy prices might impact demand, the IEA predicts record crude oil consumption this year - as China's demand for energy rockets ahead.

Also, indictors point to a continued global recovery - and more energy use. We discuss today:

http://www.lsgifund.com/index_files/Page960.htm