Bakken Shale

[dan_s]

The Sweet 16 is heavily weighted to oil and it is heavily weighted to the Bakken Shale.

I am expecting very strong 4th quarter production growth from all of our Bakken companies. CLR is the "Big Kahuna". DNR, GEOI and OAS are also going to report VERY STRONG growth and impressive year-end reserve reports. 3rd party reserve engineers are going to adjust upward the recoverable reserves based on well preformance up there. They are now giving the wells with long horizontals over a million bbls of oil recoverable per well. These upward revisions will lower DD&A rates and raise reported earnings per share.

PTEN and HP are also getting very strong demand for their big rigs in all the shale plays. HP was added to the Sweet 16 because large-cap E&P companies are almost fighting for their new FlexRigs.

Watch List companies in the Bakken: AXAS, EOG, KOG, MHR (not real good acreage), NFX, NOG, FXEN (minor exposure), TPLM, PetroBakken (which should report very impressive production growth, primarily from the Cardium).

I hope to finish our company profile on TPLM next week.

[dan_s]

CLR, DNR and OAS are all up double digits in just three days of trading this year. Wall Street is expecting very impressive year-end reserve reports from all the Bakken companies.

Take a look at Triangle Petroleum (TPLM). We will post a company profile on this small-cap pure Bakken company early next week.