WWTBAM Bored

Kusch-could you e-mail me at

wrolson@runestone.net

I want to pick your brain on companies involved in Bakken exploration.

I want to put a little money on the Bakken table and I figure you might have a little more local knowledge.

Spock wrote:Kusch-could you e-mail me at

wrolson@runestone.net

I want to pick your brain on companies involved in Bakken exploration.

I want to put a little money on the Bakken table and I figure you might have a little more local knowledge.

I'm not an oil expert, nor do I live in the Dakotas, but I'd wait until the new geological survey on the region comes out (due this month?), if I was you.

Unless that's money you're prepared to lose.

Spock, Next Big Future blog is following this among other things

http://nextbigfuture.com/search/label/bakken

Jeemie wrote:

Spock wrote:Kusch-could you e-mail me at

wrolson@runestone.net

I want to pick your brain on companies involved in Bakken exploration.

I want to put a little money on the Bakken table and I figure you might have a little more local knowledge.

I'm not an oil expert, nor do I live in the Dakotas, but I'd wait until the new geological survey on the region comes out (due this month?), if I was you.

Unless that's money you're prepared to lose.

Yep-it is money I am prepared to lose.

TMITSS-Thanks for the Blog link

Spock wrote:Kusch-could you e-mail me at

wrolson@runestone.net

I want to pick your brain on companies involved in Bakken exploration.

I want to put a little money on the Bakken table and I figure you might have a little more local knowledge.

Will do, but remember I am not an expert, I just pretend to be one every now and then.

You should also look at the Sanish/3 Forks formation. Early stages, but rumor is out there that it could be bigger than the Bakken. And the Bakken is quite the deal. Estimates of the reserves are from 25 Billion to 500 Billion.

And let me tell you, the "cash" is flowing in this area. Leased land (mineral acres) is fetching from $75-300/acre and with the avg farm being around 1200 acres, well..... you get the picture. And that is just leasing not the ORRI (Overriding Royalty Interest) that one would get if they actually drill a well, or two or three.....

kusch wrote:Estimates of the reserves are from 25 Billion to 500 Billion.

Not as impressed with the lower figure- pretty DAMN impressed with the higher figure.

But in either case, it'll all come down to how much is recoverable via the horizontal drilling methods they'll have to use there.

kusch wrote:And let me tell you, the "cash" is flowing in this area. Leased land (mineral acres) is fetching from $75-300/acre and with the avg farm being around 1200 acres, well..... you get the picture. And that is just leasing not the ORRI (Overriding Royalty Interest) that one would get if they actually drill a well, or two or three.....

Hmm...sounds like the oil companies think Bakken is the real deal. Please tell me they're not going to have to put productive farmland out of action to get to the oil, though- food prices are high enough after the EtOH boondoggle!

And nice tip on the Sanish/3 Forks formation. I'll have to look that up- haven't heard about that one at all.

Jeemie wrote:

kusch wrote:Estimates of the reserves are from 25 Billion to 500 Billion.

Not as impressed with the lower figure- pretty DAMN impressed with the higher figure.

But in either case, it'll all come down to how much is recoverable via the horizontal drilling methods they'll have to use there.

kusch wrote:And let me tell you, the "cash" is flowing in this area. Leased land (mineral acres) is fetching from $75-300/acre and with the avg farm being around 1200 acres, well..... you get the picture. And that is just leasing not the ORRI (Overriding Royalty Interest) that one would get if they actually drill a well, or two or three.....

Hmm...sounds like the oil companies think Bakken is the real deal. Please tell me they're not going to have to put productive farmland out of action to get to the oil, though- food prices are high enough after the EtOH boondoggle!

And nice tip on the Sanish/3 Forks formation. I'll have to look that up- haven't heard about that one at all.

Rest assured Jeemie of two things.

1. They will not have to put very much farmland out of production.

2. Look for higher food prices, the input costs have skyrockected. It was amazing what the farmers made last year. We had "several" border line farmers (always on the verge of not being able to go on) paydown bigtime or even payoff their debt. Not good for loan volume.

Another example of the oil "boom" that started about two years ago and seems to get bigger every day is the impact on real estate prices around here.

I live in a very modest ranch style home. (built in 1976) Five years ago I would have been lucky to get $105,000, two years ago I might have been offered $135,00, today, maybe $175,000.

And Minot is on the "fringe" of where that oil is. We are getting overflow from Williston/Tioga/Parshall/Ray/Stanley/Watford City.

I lived in Williston during the last boom (late 70's to early 80's) so I know this will not last forever. And to think about 5-6 years ago they were shutting down wells around here because the price of oil was around $6.

I love this stuff! G-Grandpa was a wildcatter, and I think some of it trickled down to me.

Carry on....I'll just keep reading.