Get In The Oil Business: Making Money From A Distance With The Bakken

I've been following Michael Filloon for a couple of years and he provides some very good, and I think accurate information.  I think that if you want to learn about the oil and gas business it helps to have "some skin in the game".......in other words, invest in the stock of some of these companies.  You WILL follow their ups and downs, and you will read the news, and pay more attention to political issues. 

Then if you're smart and get lucky, you might make some money.  For example, Brigham turned a nice profit when it was bought out by Statoil, and likewise when Petrohawk was acquired by BHP Billiton (?).

This is all a learning experience, for almost everyone.  I appreciate Mr. Filloon's analysis and commentary.
Peter

To read all of the following article, go here: http://seekingalpha.com/article/632641-bakken-update-continental-resources-well-results-are-getting-better?goback=%2Egde_156898_member_121215590

Bakken Update: Continental Resources' Well Results Are Getting Better

June 2, 2012 | 28 commentsby: Michael Filloon | includes: KOG, OAS, STO, WLL

About the author: Michael Filloon

 

 

Michael Filloon

 

I have done a series of articles covering recent well results by Bakken operators. Information garnered from this shows improvements in 90-day IP rates. The main reasons are stimulation improvements from increase stages and proppant, but these companies are doing a better job in all phases of production. It wasn't long ago we were seeing 10 stage short laterals, and now long laterals with 30+ stages are common place. In my opinion, the two best operators are Kodiak (KOG) and Brigham (STO). It should be noted both have very good acreage positions as well. Kodiak's Polar and Koala prospects are its best, while Brigham's Alger Field acreage is thought by some to be the best in the Bakken. Whiting (WLL) has had some very good completions in Sanish Field, and has been the first to work the Pronghorn. Oasis (OAS) is getting much better, with significant upside in the Camp Field area.
Continental (CLR) may be the best way to follow the Bakken. It has a large acreage that covers a significant area in North Dakota and Montana. Because of this, it has well results in virtually every area of the Williston Basin. Here are its 4Q 2011 and 1Q 2012 well results.

Investing In Shale Gas

How to Invest In Shale Gas Fields Like The Marcellus And Eagle Ford Shale

By Doodlebugs, eHow Member

The United States is the Saudi Arabia of natural gas, thanks to the discovery of new shale gas deposits like the Marcellus Formation. Here is how you can invest in what could be our primary energy source in the future. (source)

Instructions

1. Step 1

   Learn as much as you can about shale gas and its economic importance. The United States has an abundance of clean natural gas trapped in shale formations such as the Marcellus Shale of Appalachia, the Barnett Shale near Fort Worth, the Haynesville Shale in Louisiana and newly discovered gas shales such as the Eagle Ford shale in South Texas. Many experts believe that there is enough natural gas in these shale formations to last the United States a hundred years or more. According to oil man T. Boone Pickens this clean fuel may one day power our cars as well as our homes. How can you invest in this growing industry? There are a couple of ways to invest in shale gas. Some are more risky than others.

2. Step 2

   Consider direct investment in a well. One way to invest in shale gas is to invest directly in a wildcat well being planned. This type of investing is for the rich only since there is a high probability it could be a dry hole but potential rewards could be very high. For direct investment you will often need as much as $100,000. If you have the stomach for this kind of investing contact companies like Petrohawk Resources, symbol HK, and inquire about direct investment.
   The second, and less risky way of investing in shale gas is to buy shares of the companies that are most active in drilling in gas shales such as the Marcellus shale formation. These include Chesapeake, symbol CHK, XTO Energy, symbol XTO, Petrohawk, symbol HK, Devon Energy, symbol DVN, and EOG Resources, symbol EOG.
   Petrohawk (HK) and TXCO Resources (TXCO) are active in the newly discovered Eagle Ford Shale in South Texas. Chesapeake, Devon and XTO are active in the Barnett Shale and Marcellus formation.

3. Step 3

   Buy shares on the open market. A third option for investing in shale natural gas is to buy shares of an Exchange Traded fund or ETF. You can invest in natural gas as a commodity with the ETF whose symbol is UNG or you can focus on exploration and production with an ETF called First Trust ISE Revere Natural Gas, symbol FCG and listed on the NYSE, which is composed of companies like the ones mentioned in step 2 that explore for and produce natural gas.
   For more info on the Marcellus Formation see the resources section.