July 28 - View from Houston
Posted: Wed Jul 28, 2010 5:58 pm
Hess' takeover bid for Sweet 16 member American Oil & Gas (AEZ) will definitely draw more attention to Bakken players.
There are 17 public E&P companies that hold over 50,000 net acres in the Bakken. There are a lot more that wish they were in the play. The Hess offer gives everyone a valuation point. There is a good chance a competing bid will come forth. Hess is not the only one taking a hard look at AEZ.
The Bakken is now confirmed as the "Real Deal". There has been enough drilling and enough wells on-line long enough so ultimate recoveries can be estimated. 400,000 to 1,000,000 bbls of oil will be recovered from these wells. Let's say it is 500,000 per well. For a well costing $6 Million to drill and complete that is an all in F&D cost of $12/bbl. Not bad!
Now, realizing that these wells come on very strong, the NPV per well is very high.
THIS IS EXACTLY WHY I LOADED THE SWEET 16 UP WITH BAKKEN PLAYERS THIS YEAR.
IMO PetroBank (PBG.TO) may be the most undervalued Bakken Player. Take a look at my forecast model for that one.
Oasis Petroleum (OAS) is the newest Pure Play on the Bakken. I hope to have a special report on it going to our Premium Members this weekend.
The Eagle Ford is the next "BIG DEAL" so do your homework on that one.
Dan
There are 17 public E&P companies that hold over 50,000 net acres in the Bakken. There are a lot more that wish they were in the play. The Hess offer gives everyone a valuation point. There is a good chance a competing bid will come forth. Hess is not the only one taking a hard look at AEZ.
The Bakken is now confirmed as the "Real Deal". There has been enough drilling and enough wells on-line long enough so ultimate recoveries can be estimated. 400,000 to 1,000,000 bbls of oil will be recovered from these wells. Let's say it is 500,000 per well. For a well costing $6 Million to drill and complete that is an all in F&D cost of $12/bbl. Not bad!
Now, realizing that these wells come on very strong, the NPV per well is very high.
THIS IS EXACTLY WHY I LOADED THE SWEET 16 UP WITH BAKKEN PLAYERS THIS YEAR.
IMO PetroBank (PBG.TO) may be the most undervalued Bakken Player. Take a look at my forecast model for that one.
Oasis Petroleum (OAS) is the newest Pure Play on the Bakken. I hope to have a special report on it going to our Premium Members this weekend.
The Eagle Ford is the next "BIG DEAL" so do your homework on that one.
Dan