Call for information and to discuss opportunities to participate in the Bakken Shale success story.

None of us is getting any younger, and according to the current information a majority of Americans will be working until we die…therefore, investing while diversifying in those better performing sectors making money makes good sense…but sitting on the sidelines is both missing the boat, and depressing, and who wants to be depressed most of the time? Burying your head in the sand unless oil bearing sands is not a good idea, and you don’t have to do it. Investing to augment your retirement savings, and work income to stay ahead of inflation and cheaper dollars is smart, and now necessary for most of us.

Google the Bakken Shale and do some preliminary homework, and then email me or call me for more information and details about oil & gas investing. Editor

I’ve observed most of the practices of contractors, and sub-contractors, and employees who work for Operators, and oil service companies that perform work in the oil & gas fields during the past three decades and would like to make some comments, and note specific things seen time and time again throughout the Midwest where my focus has been; as a funding agent, issuer, sponsor, registered broker, and Operator…

First, the airing or getting something off my chest…

Why is it that ‘funding people, which are either private or small companies’ get to ‘take all of the heat’ meaning ‘cease and desist’ actions from the various state departments of securities; while these authorities completely ignore the vast majority of money raised by legitimate companies is being charged or spent in the field by often questionable, and unprofessional people…or by these so called experts at various operations being conducted in the field…This practice routinely occurs, and is often associated with dishonest or inaccurate estimates, and inflated invoices. Where is the oversight, or proper supervision? I have also seen death in the field as a result of carelessness, and complete lack of common or good sense…often as the result of a complete lack of supervision by the service companies raking-in the cash. Extremely young, inexperienced, and untrained personnel are being allowed to work without supervision, safety equipment, or managerial support?

Second, where are these owners of the field companies who are billing, and charging what ever they want regardless of the quality of their work, records provided…or proof work was accomplished properly? Who verifies the work has been done? I’ve caught workman sitting around doing nothing while an Operator, or private company is being charged. What about failure with a standard procedure field job, or jobs? It seems if a service company generates an invoice which they spend considerable time doing, the assumption is it’s correct…many times this has not been my experience…

Third, the attitude appears to be that anyone can charge whatever they want while performing a task in the field without cost parameters; but when ‘funding a deal’ this isn’t the case. This is true because the funding rules, and restrictions on who can charge or be paid commissions, or how much by funders are strictly monitored, and the lawyers working for state governments have a field day finding fault with privately funded companies; rather while those charging for services, and spending the majority of the money in the field get a pass…again, why?

Finally, why are the private companies raising the money to look for oil or brokerage firms always considered the bad guys, or the bad actors in this industry?

Drilling is about looking for and hopefully finding the oil which isn’t guaranteed…the funding guys don’t do the work in the field…the drilling & service companies doing work in the oil & gas fields of the country ought to have some integrity, or assume some responsibility, and accountability when spending the funder’s money, or the public, or private companies money…I suppose this is a drastically novel thought and idea…but this discussion is long over due in my opinion…

Bakken Shale could hold 100 times more recoverable oil than previously estimated!

Soon-To-Be-Released, New USGS Report Could Signal…of explosive Bakken Shale profits!

So, if you missed out on these huge profits during round 1 of the Bakken revolution:

• 473% gain – Marathon Oil
• 538% gain — Continental Resources
• 560% gain — Statoil ASA
• 766% gain — Whiting Petroleum
• 672% gain — Hess
• 1,611% gain — EOG Resources
• 5,557% gain — Kodiak Oil & Gas

A New, soon-to-be-released USGS Report could estimate the vast Bakken Shale holds as much as 100+ billion barrels of original oil in place. Consider also the fact of the Bakken having a 99.6% probability of drilling success. This record is after the drilling of over 6,000 successful wells has taken place in the Bakken Shale.

It’s common knowledge among oil industry higher-ups that the U.S. Geological Survey (USGS) is putting the final touches on its brand new, two-year, intensive geological study to determine more-accurately how much recoverable oil is in the vast Bakken Shale.

Even thought the USGS has not yet confirmed it, geologists at major, big-oil companies are betting that, when released, the new estimates will indicate there may be much more recoverable oil in the Bakken Shale than previously reported by the USGS in its last 2008 survey!

You need to act now before the government releases new, much higher estimates!

Because, just as its previous 2008 survey unleashed an investor rush that quadrupled the trading prices of many Bakken-related oil stocks, so could a new increase of oil reserves in the Bakken Shale can ignite a second round of buying.
Round-one investors, who were quick to jump on most any of the Bakken’s exploratory drillers, could have made huge profits of 473% . . .766% . . .1,611% and even 5,557% as companies like Marathon, Hess and Kodiak began drilling.
That was then. And the many of the initial Bakken investors are very, very rich.

But now, new estimates by credible geologists with some of the majors put the Bakken’s total oil in place much higher, conceivably as much as 100 times of what’s referred to as original oil in place, or 100 times the original estimate of 2.4 billion barrels of recoverable oil. It’s expected that the new USGS Survey will confirm this astonishing increase in recoverable Bakken oil reserves. And, I don’t see how it can possibly not ignite a repeat of the round one buying frenzy. But, for the maximum bang for your buck when that USGS report hits the street, you don’t want to invest now in the higher priced oil stocks that already took a ride on the 2008 Report.

If you’re an energy investor, you may know that most of those early, first-to-the Bakken, super-hot energy stocks have understandably cooled as fat and happy early investors have taken big profits off the table. While many of those already-profitable, Bakken-related stocks will undoubtedly get a huge boost from a new USGS Report, none is likely to give you a repeat of the kind of explosive profits seen in the early days of the Bakken Shale revolution.

Round 2 of the Bakken Revolution:

But, what if…

• You could turn back the calendar to the days when stocks of Bakken juniors like Kodiak Oil & Gas which were trading for pennies? What if you could invest now in the Bakken’s next 5,557% super-stock?

• What if there is a “whole new” Bakken within the already developing oil fields of the vast Bakken shale that is just now attracting attention?
• And what if there was a brand new, still-undiscovered exploration company, headed by a field geologist recognized as one of America’s most experienced Bakken experts?
• What if that company had just negotiated the mineral rights to some key, and prime Bakken acreage?

What if you could invest in a new company pre-issue price at $2.00 a share. What if the stock of a Bakken newcomer proves true to the pattern of so many past Bakken success stories? Well that, in a nutshell, is what this is all about!

Suncor Energy up 178 profits at 360% and 500% increases…
Holly Frontier profits of 135%
Darling Int’l up 320%
Marathon Petroleum profits at 88% & 117%

Even as the market hits new all-time highs, there’s lots of money still sitting on the sidelines, poised to pour into the market and it is likely you will see great stocks explode in bursts – racking up 80% of their next 12 month gains…in 12 weeks or less.

P.S. It’s an astonishing fact that 99.6% of all wells drilled to date in the Bakken have been successful! Sophisticated seismic data indicate the Bakken Shale can surprise us even more than we thought with even greater amounts of oil! Editor

The best way to take advantage of the current Bakken Shale investment opportunity is to invest with small fractional working interest in leases that are located in the key counties where the major oil companies, and large independents are having the greatest success. This means picking deals where the acreage, and leases consistently produce well, along with having high ‘flush & peak’ production, big recoverable reserves, and in those areas which can more rapidly return an investor’s capital. Acreage costs will be higher but are a small part of the overall costs to develop. However, if smaller fractional working interests are purchased from reputable companies the investor can have the same opportunity as any public company, large independent, or major oil companies committed to the Bakken Shale.

There is very good oversight of all of the oil & gas players provided by North Dakota, and Montana since they receive healthy royalties from any production produced from the Bakken Shale, and these states have taken a hands-on positive approach to keep the reporting and statistical updates current; for drilling permits, drilling & completion reports, and other pertinent information needed for anyone wanting to invest. The two states are pro energy, and work with the developers, and this is the best ‘symbiotic’ relationship between government, and entrepreneurs I’ve seen in 30 years of being in the business and working in any other states.

Call or email me for more information…leave a message, and your contact information for a fast response. Accredited Investors only! Editor

Investors, here are some good reasons to seriously evaluate and consider an investment in the Bakken Shale in North Dakota, and Montana. In my opinion these are the key, or bullet point reasons for doing so!

1) The economics with current oil prices in the Bakken Shale make sense, and an excellent return of your capital, and ROI is possible if you are associated with the big operators drilling in the best counties, etc. The upside has been proven with multiple horizontal ‘staged frac’ wells being drilled in the Bakken and Three Forks Shale Formations, and there have been few dry holes, or reportedly 9 in 6,617 based on state or government statistics compiled since 2000′, and posted on my update originally written last year. Our professional contacts in the industry have access to acreage and new wells being drilled that allow non-operator participation in some of the best wells being drilled. The major oil companies are participating in this tremendous opportunity and routinely take advantage of this un-paralleled oil play in the country today. Just recently I heard the 200,000 square mile area known as the Bakken Shale is one othe five biggest producing oil fields discovered in history. Most of my comments are based on first-hand knowledge spanning the past five years, and as a result of inspecting current industry deals and offers, and after spending some time in North Dakota talking with industry experts familiar with and directly involved on a day to day basis in the Bakken Play.

2) To explain why good acreage, and drilling opportunities are still available you need to know speculators have over bought acreage in some cases, and overextended themselves, and cannot meet their funding commitments, or have flipped acreage for a profit. Opportunities still exist to participate in key acreage in the best Bakken counties, and wells are operated by top or first tier ‘operators’ who have controlling ownership interest in leases; which include successful operators like; Continental, Hess, Kodiak, Whiting, Marathon, EOG, NOG, Statoil, One Oak, and several others I like. These are just a few of the operators drilling, and operating in key Bakken Shale counties where big initial production and the best wells are still being drilled and completed while implementing the continuously updating, and new or better technological advances. (Sometimes smaller companies sell because they are over extended, need cash flow, or have other funding commitments they must meet, or simply want to take profits or retire).

3) Acreage that isn’t already held by production (HBP) will be sold out by the end of 2013 according to a prominent official in Minot, North Dakota. Major oil companies are buying-up all acreage they want to drill on to hold by production (HBP), in the key and remaining oil rich areas they will later drill-up. Smaller investors can participate in ‘fractional ownership interests’ with direct investing industry, ‘heads-up’ deals, or in limited partnerships as ‘turn-key’ investors, but the opportunities to do so are getting more difficult. Knowing and working with reputable landmen, and other insiders and professional industry people is the key to success in the Bakken at this time.

4) Cash flow typically begins about 90-120 days after the wells are completed, and after divisional order assignments, and the ownership is clearly defined by the oil companies making distributions to all investors big and small. Currently fracking rig availability can be a delay regarding well completions, and this timeline is shortening. This is a timely opportunity in the Bakken for ‘non-operators’ who want to be in the Bakken before the ‘majors’ and large independents buy-up all of the best acreage.

5) Each Bakken deal is part of an acreage play on a 1,280 acre ‘unit’ where up to 8 new wells can be drilled to the Bakken Shale, and up to 8 wells to the Three Forks Shale which are the two primary productive shale zones. Once the first well is drilled, and holds by production (HBP) the acreage, you can then drill on an increased density spacing or 160-320 acre portions as part of the master spacing unit of 1,280 acres. Note, included in this primary production recovery development process are the first rights to all secondary drilling operations as well. This is very important, because 8 X 2 equals 16 total wells divided between the two zones. This means you would be an owner of an undivided interest in an acreage prospect with up to 16 wells in the best counties of the Bakken and Three Forks formations in North Dakota, and Montana. The best part is you would be investing as a ‘non-operator’ in wells, and acreage controlled by ‘first tier operators’ using the latest technology available, and who have the best track records in the business, not to mention they own the majority of interest with lots of their own money on the line. (New wells can cost 8-10 million, and good acreage runs about $3,000 to $12,000 per acre based on immediate area production, or depending on ‘proved & recoverable’ oil reserves. Operators will want to own 51% to 80% of the lease acreage, and will put-up this percentage of money in the development costs). Mineral right owners typically get an eight or 12.5% to 20% of the royalties associated with an oil & gas leasehold interest.

6) Time waits for no man. I spent a week in North Dakota in April of 2010, and was a speaker at the Bakken Investor Conference in Minot, North Dakota. I spent a week in the oil fields around Williston, ND. The best acreage and drilling deals are being drilled, and completed in the most productive counties and with the first tier operators I’ve told you about, and these opportunities won’t be available for too much longer. The best Bakken Shale data I’ve been able to find suggests another 2-5 years of those best opportunity drilling deals; and with the field or Bakken Shale peak production occuring at 1.2 million barrels of oil per day in 2014 before depletion, and normal production decline occurs. Secondary recovery operations are likely, and will typically restore and extend historical lives of all oil & gas wells.

7) Returns of 2 or 3 to 1 during the first five years are what we expect to see, and are being forecasted by industry experts familiar with the Bakken in the areas we can participate. New fracking techniques are being implemented by the best of the Operators, and this new technology is increasing the Initial Production (I.P.’s), and cumulative recoverable reserves, while increasing the value of the acreage. Recent cost savings of $400,000 per well in fracking costs are being experienced by some of the best major oil companies participating in the Bakken Shale horizontal drilling in North Dakota for example.

8) Everything starts with a conversation, and exchange of information needed to make decisions. Investors can own a piece of each Bakken prospect and acreage position with the major oil companies, or multiple fractional ownership interests; or an investors can own as part of a diversified portfolio of investments in a limited partnership and/or participate in reporting companies who offer OTC Bulletin Board stock traded on a public exchange.

9) Investing in oil & gas isn’t complex when investing with industry partners. Oil field law, and practices are standard in the industry. Certain states are well organized, and since they make money as a royalty on all production motivation is high to assist rather than hinder legitimate operators, and developers. If you don’t understand a given deal you are looking at, there is a high probability that less than candid or unprofessional promoters don’t want you to look too closely at the fine print in a memorandum or their deal offering. Worse, these often ‘late to the party boiler rooms’ with high upfront promote aren’t disclosing everything about their offer. However, ‘drilling for oil is required to find oil’, and in most situations, dry holes, less than commercial wells, or mechanical failures, and funding delays, or equipment availability can be responsible for failure, or poor performance. Most of these problems are minimized when investing as non-operators alongside, or with big operators who have lots of their own cash on the line, or particulary in the Bakken Shale where dry holes are extremely rare or non-existent these days.

10) Call or email me with questions, and let me know when you could act as ‘time is of the essence’ in the Bakken. dwstutes@att.net

11) You are not forced to participate in each well, and can invest as part of turn-key deal; but not exercising your option on a ‘per well basis’ in an industry structured investment, or what’s called a ‘direct participation, or heads-up deal’ puts you in a non-consent category if you don’t put-up your funds for each new developmental well, and thus you could lose your option to participate in one or more wells drilled after the first well is drilled by the operator. So, the first well holds the acreage by the operators who all own a majority interest in the acreage, and the wells they drill and operate. This ‘non-consent’ feature of an industry deal insures the cash will be available from all participants in a deal when called for for each new well drilled.

Oil prodroduction on producing leases can be sold for at current oil prices of $96 dollars per barrel, or $80,000 to $90,000 per barrel of oil per day production from active wells, and more based on the location and quality of acreage, and recoverable reserves, and for proved producing, proved developed, and proved un-developed production, etc. Total recoverable oil reserves over the life of a new 20,000′ horizontal well can range from 500,000 barrels of oil per well to 2,000,000 barrels of oil per well To achieve liquidity investors may be allowed to ‘flip’ or sell acreage proven by production, and receive a faster return on their investment. This can be possible, or once production is held by production (HPB), which by the way holds the three year leases in perpetuity, or indefinitely…

Continental, and other first tier operators are now drilling six to eight laterals on pads with ‘walking rigs’ to two zones or the Bakken Shale, and the Sanish, or Three Forks intervals in certain key or ‘sweet spot’ areas to boost recovery of oil, and bring-in more reserves. This is a game changer, and another example of how technology works in the oil field.

P.S. All inquiring accredited investors wanting specific information about the Bakken investments are required to complete a questionnaire, and a ‘mutual confidentiality, and non-disclosure agreement’. Qualified investors only please! If you have liquidity, and want to talk seriously about how to invest in the Bakken, I can provide details about how to do this with the right people. I give priority to investors who call me and leave a message with your contact information and state you are calling from, and I will take the time as necessary to explain oil & gas investing with investors who provide phone numbers, or who call me to discuss investing options.

Editor

1) High enough oil prices to make a profit as your wells, and field ‘deplete, and wells decline’ from their original or ‘flush or peak’ production.

3) Available & consistent Investment funds.

You could also add deliverability and consumer demand, but this has been consistent for many decades…plus truck, rail, or move oil & gas in pipelines to market.

Editor

In my 30 years of experience the bigger private placement deals get harder to control, and ‘consistently fund’, and especially so if the first well, or new wells in a new private placement drilling program don’t produce commerical quantitites of production revenue. A funding, or small oil company must continue to raise funds to complete the funding of the program, and these funds get harder to find when early success isn’t achieved. Investors then get upset, and unfortunately often sue, and believe me there are is no shortage of lawyers willing to take ‘retainer checks’ for ‘class action’ suits they orchestrate.

However, you can also invest in ‘private placement deals’ AND OTC Bulletin Board stock deals, with companies who are working with ‘investment dealers’ rather than filing Initial Public Offerings (IPO’s). Many large companies have gone this investment dealer route such as Oxcidental Petroleum, and Bridgstone Tires to name just two. You can invest with companies who work with investment dealers, hedge fund managers, etc., and the company you invest with is by federal filing requirement getting sponsored to satisfy the regulations. In other words you can then get the best of both worlds. Therefore, you can invest in a private placement offering by a company going public, and get the benefits of both investments. You get the tax write-offs associated with private drilling deals, and the upside and liquidity offered by a stock investment. You can get cash flow if successful in the private placement offering, the tax write-offs, and potentially see a nice increase in the stock price of a new OTC Bulletin Board Company as it steadily acquires more oil & gas assets, and increases it’s valuation, and it’s future net earnings. Editor

The Rockin’ Bakken

Oasis Petroleum’s Bakken Production Doubles in 2012

ConocoPhillips’ Bakken Production Averages 24,000 in Q4 2012Almost 50 Wells Are Drilled And Awaiting Completions Or Facilities
Jan 30, 2013 By RT Dukes

ConocoPhillps’ Bakken production averaged 24,000 boe/d in the fourth quarter of 2012. Production is expected to grow almost 10% in 2013 and ultimately rise to approximately 40,000 boe/d over the next 4-5 years.
Conoco has a drilling inventory of over 1,200 gross locations and expects to capture more than 400 million barrels of resource potential from the play. The company drilled and participated in 187 gross operated and non-operated wells during 2012.

Will Continental’s Reserves Cross 1 Billion Boe in 2013?Production and Reserves Grew By More Than 50% in 2012
Jan 25, 2013 By RT Dukes
CLR Bakken Production Growth

Continental Resources Bakken assets account for 86% of the company’s provded undeveloped (PUD) reserves. That’s important because the company just reported proved reserves growth of 54%, an increase from 564 mmboe to 785 mmboe. Over 200 mmboe were added through exploration and development activity and over 80 mmboe were added through acquisitions.

Continental’s (CLR) reserves have grown an average of 45% each year since 2009. If that trend continues, Continental will book more than 1.1 BILLION boe at the end of 2013!

Bakken Natural Gas Flaring Should Continue to Fall
8-13 GPM Natural Gas Makes Bakken Processing Attractive
Jan 23, 2013 By RT Dukes

Bakken Natural Gas Flaring Graph

Bakken natural gas flaring has risen over the past few years as drilling expanded across North Dakota and Eastern Montana. Flaring hit a peak at the end of 2008, declined through 2009, and has been increasing since that point. Currently, 30-35% of natural gas produced in North Dakota is flared.

Oneok’s Bakken Processing Is Expanding – Garden Creek III Plant
The 100 mmcfd Plant Will Cost $325-360 Million, With In-Service of Q1 2015
Jan 17, 2013 By RT Dukes
Oneok Bakken Investments before Garden Creek III was announced

Oneok Partners announced plans to invest more in Bakken processing infrastructure in North Dakota.The company will spend $325-360 million to build the Garden Creek III plant in McKenzie County, ND. The plant will be built near the 100 mmcfd Garden Creek I and the 100 mmcfd Garden Creek II plants.

Bakken Pipeline & Midstream News, News

Hess’s Bakken Spending Down $900 million in 2013 to $2.2 Billion
Spending Down, But Activity Likely Similar to 2012Jan 11, 2013 By RT Dukes

Hess Corporation’s Bakken spending is set for $2.2 billion in 2013. That’s almost 33% of the company’s entire budget, but down from the $3.1 billion that was spent in 2012. Company-wide spending will drop to $6.7 billion in 2013 from $8.3 billion in 2012.

Phillips 66 Commits to Take 50,000 b/d of Bakken Crude
Bakken Crude Will be Moved to New Jersey by RailJan 9, 2013 By RT Dukes
Phillips 66 Advantaged Crude Transport Routes

Phillips 66 has signed a five year take or pay contract with Global Partners for 91 million barrels of oil (50,000 b/d). Global will use its transportation system to deliver crude from North Dakota to Phillips 66 Bayway refinery in New Jersey. Moving crude this distance will likely cost the company somewhere between $10-15 per barrel over the life of the contract.

The transportation differential can be made up easily when you consider physical prices for Williston Sweet were trading below $80/bbl on the day the deal was announced. WTI was trading near $93/bbl and Brent Crude was trading over $110/bbl the same day.

Bakken Rig Count Down 20% From 2012 PeakThe Initial Rush is Subsiding and Operators Are Moving to Improve Operations.
Jan 4, 2013 By RT Dukes

Nabors Walking Rig…see my previous posts

Bakken drilling activity in North Dakota is at levels not seen in over a year. Approximately 180 rigs were working in the state to start 2013. That’s down from almost 220 in May of 2012. The almost 20% drop has many beginning to wonder how long the boom will last.

EOG Resources’ Bakken Core Acreage Could See 160-Acre Development

Bakken Natural Gas Flaring Should Continue to Fall

Will Continental’s Reserves Cross 1 Billion Boe in 2013?

Oasis Petroleum’s Bakken Production Doubles in 2012

ConocoPhillips’ Bakken Production Averages 24,000 in Q4 2012
Almost 50 Wells Are Drilled And Awaiting Completions Or Facilities
Jan 30, 2013 By RT Dukes

ConocoPhillps’ Bakken production averaged 24,000 boe/d in the fourth quarter of 2012. Production is expected to grow almost 10% in 2013 and ultimately rise to approximately 40,000 boe/d over the next 4-5 years.

Conoco has a drilling inventory of over 1,200 gross locations and expects to capture more than 400 million barrels of resource potential from the play. The company drilled and participated in 187 gross operated and non-operated wells during 2012.

Will Continental’s Reserves Cross 1 Billion Boe in 2013?
Production and Reserves Grew By More Than 50% in 2012
Jan 25, 2013 By RT Dukes

CLR Bakken Production Growth
Continental Resources Bakken assets account for 86% of the company’s provded undeveloped (PUD) reserves. That’s important because the company just reported proved reserves growth of 54%, an increase from 564 mmboe to 785 mmboe. Over 200 mmboe were added through exploration and development activity and over 80 mmboe were added through acquisitions.

Continental’s (CLR) reserves have grown an average of 45% each year since 2009. If that trend continues, Continental will book more than 1.1 BILLION boe at the end of 2013!
Bakken Natural Gas Flaring Should Continue to Fall
8-13 GPM Natural Gas Makes Bakken Processing Attractive
Jan 23, 2013 By RT Dukes

Bakken natural gas flaring has risen over the past few years as drilling expanded across North Dakota and Eastern Montana. Flaring hit a peak at the end of 2008, declined through 2009, and has been increasing since that point. Currently, 30-35% of natural gas produced in North Dakota is flared.

Bakken Production Down, but Not Out in November 2012
Weather Likely the Biggest Factor in November’s Production DeclineJan 18, 2013 By RT Dukes

Bakken production slipped in November for the first time in almost two years. Production was down a little more than 2% when comparing an equal 30 days from October to November. The culprit was likely the snowiest day in over 100 years. Parts of ND had several inches of snowfall on November 10th.

Oneok’s Bakken Processing Is Expanding – Garden Creek III PlantThe 100 mmcfd Plant Will Cost $325-360 Million, With In-Service of Q1 2015

Jan 17, 2013 By RT Dukes Oneok Bakken Investments before Garden Creek III was announced
Oneok Partners announced plans to invest more in Bakken processing infrastructure in North Dakota.The company will spend $325-360 million to build the Garden Creek III plant in McKenzie County, ND. The plant will be built near the 100 mmcfd Garden Creek I and the 100 mmcfd Garden Creek II plants.

Hess’s Bakken Spending Down $900 million in 2013 to $2.2 Billion
Spending Down, But Activity Likely Similar to 2012
Jan 11, 2013 By RT Dukes

Hess Corporation’s Bakken spending is set for $2.2 billion in 2013. That’s almost 33% of the company’s entire budget, but down from the $3.1 billion that was spent in 2012. Company-wide spending will drop to $6.7 billion in 2013 from $8.3 billion in 2012.

Phillips 66 Commits to Take 50,000 b/d of Bakken Crude
Bakken Crude Will be Moved to New Jersey by RailJan 9, 2013 By RT Dukes
Phillips 66 Advantaged Crude Transport Routes

Phillips 66 has signed a five year take or pay contract with Global Partners for 91 million barrels of oil (50,000 b/d). Global will use its transportation system to deliver crude from North Dakota to Phillips 66 Bayway refinery in New Jersey. Moving crude this distance will likely cost the company somewhere between $10-15 per barrel over the life of the contract.

The transportation differential can be made up easily when you consider physical prices for Williston Sweet were trading below $80/bbl on the day the deal was announced. WTI was trading near $93/bbl and Brent Crude was trading over $110/bbl the same day.
Bakken Rig Count Down 20% From 2012 Peak

The Initial Rush is Subsiding and Operators Are Moving to Improve Operations.
Jan 4, 2013 By RT Dukes

Nabors Walking Rig

Bakken drilling activity in North Dakota is at levels not seen in over a year. Approximately 180 rigs were working in the state to start 2013. That’s down from almost 220 in May of 2012. The almost 20% drop has many beginning to wonder how long the boom will last. EOG Resources’ Bakken Core Acreage Could See 160-Acre Development

Bakken Natural Gas Flaring Should Continue to Fall