 Found: The Largest Oil Field of the Past Half-Century By Keith Kohl | Wednesday, February 1st, 2012
At the time, they were trading for less than $6 and $8 a share. Back then, nobody had heard of the Bakken... and they definitely hadn't heard of the two stocks I recommended. They were Brigham Exploration and Northern Oil & Gas. In October, Brigham announced it was being acquired for over $36 a share by Statoil. Many of my readers who purchased Brigham back in 2008 have sold for 600% gains in just three years. And Northern Oil & Gas currently trades for $28 a share. I’m happy to say these two stocks have changed the lives of many of the readers who followed my advice... Like member Mike Leonard, who wrote in to say: “Keith, I'd like you to know exactly how much I've appreciated your Bakken coverage over the years: I sold my position in NOG in Feb. 2010 for long-term gains of 261%, 1/3 of my position in BEXP in Apr. 2011 for long-term gains of 361% (and bought the wife a new car), and sold the rest of BEXP in Oct. 2011 for long-term gains of 743%. Now holding a large position in your newest pick with unrealized long-term gains of 365%. Thanks again!” Or Kim, who told me... “Your insight has been great, I am up about 60% on BEXP, and about 40% on NOG. I was mocked when I told my friends about the Peak, but now we know who's getting the last laugh.” Mr. Smith had this to share: “As a very recent subscriber I am pleased with the short term progress of BEXP. It was literally the easiest 40% I've ever made in all my years of trading.” Here’s my favorite, from long-time subscriber Cheryl Burton: “Hello Keith, I wanted to let you know that thanks to your Brigham calls over the last three years, I've safely paid off my daughter's entire 4-year college tuition. Keep the picks coming.” Martin L. nearly tripled his investment... “Held NOG for about 14 months, some tough times, but patience paid off with a 261% gain. Best regards." George made some quick cash... “Keith, made 3K in a just few trading days, all due to your quick call on Brigham. Can't wait for your next Bakken pick.” And Henry made over 1,200% on Brigham. Good job, Henry. “Keith: I hate to tell you this, but I missed your first round of trades on Brigham, but thankfully took your advice and bought BEXP in April 2009. Since then, it went up 12 fold for me... never sold it until last week. So thanks a lot! Best regards.” These days, with a struggling economy and high unemployment, letters like these are what make me get up in the morning and go to work. I spend endless hours poring over companies’ field production reports, lease acquisitions, landholdings, SEC filings, and CEO interviews. I’ve been to the Bakken and Fort McMurray to get a firsthand look at the operations of some of my favorite oil and gas stocks... And all this hard work is about to pay off for you again. I have three more unknown stocks in the Bakken that I believe will give you bigger returns than Brigham or Northern Oil & Gas. One stock trades for just $7.60 a share. They control over 110,000 acres in the Bakken — and they just announced a monster third quarter... Their reported net income skyrocketed 3,200% compared to a year ago! It gets better: They just completed four new wells, and I think sales and net profit will rise in the coming quarters. This stock is poised to take off to the races (assuming it doesn’t get acquired first at a huge premium.) My second Bakken stock trades for less than $2.50 a share! This stock is cheap. It has $54 million in cash in the bank... and zero debt. It’ll control over 90,000 acres in the Bakken. This baby could easily double in a year. My third and final Bakken stock might be the biggest blockbuster yet. It trades for just $6 a share... has a total of 74,000 acres in the Bakken... and the company’s insiders have been buying its stock like crazy in the open market. In fact, in the last six months, insiders have purchased 880,000 shares — with no selling whatsoever. I love this company. You see, even though it’s a small-cap oil company (it has a current market valuation of just $260 million), it has $110 million in cash and zero debt! In just a minute, I’ll show you how to get your hands on these Bakken stocks... But first, you need to know why the Bakken itself is a game changer for America.
The Crisis that will Dwarf the Debt and Financial Crisis
This chart is from the International Energy Agency (IEA), a “think-tank” that advises governments about energy demand. (I put quotes around think-tank because it’s well-known by energy insiders and analysts alike that the analysis and projections from the IEA are far from reliable.) For instance, IEA estimates about future oil production are downright scary, if you stop to really look at the numbers. So take a look... According to this chart, in 2020, the IEA thinks that around 30 million barrels of oil a day will be produced from oil fields that have yet to be developed, or that haven’t even been discovered yet! That’s just eight years away. And the IEA thinks we’ll somehow find 30 million barrels a day in oil? Not bloody likely. There’s one more thing this IEA chart shows us that is critically important: Oil production from existing oil fields peaked four years ago, in 2007. Fields that produce 60 million barrels a day today will only be producing 40 million in 2020. There’s only one conclusion that can be drawn: Peak Oil is here. And current oil prices are very likely the lowest we will ever see. That’s why you can nail down easy triple-digit gains — 153% or more — from the biggest American oil discovery in 50 years: the Bakken. Because the Bakken Oil Pool in North Dakota may be bigger than Alaska and California combined.
These days, oil in the ground is like money in the bank. I mean, is there any doubt that oil prices will be higher in the future? That’s why China has been buying oil assets in Africa (and wherever else they can get them)... It's why Norway’s Statoil (NYSE: STO) just bought top Bakken producer Brigham Exploration for $4.4 billion... And it’s why individual investors should start building their own Bakken oil bank accounts as soon as possible. As that oil production chart I showed you earlier clearly demonstrates, oil production from current fields is in decline. And that makes new discoveries — like North Dakota’s Bakken Oil Pool, with a confirmed 6.2 billion barrels of recoverable oil — pure gold for individual investors. But the Bakken is unique, and it holds a few secrets that virtually guarantee investors will make out like bandits — very wealthy bandits. You see, the Bakken shale oil play is not new. Geologists have known about it since the 1950s. Shell Oil even tried drilling there in the 1970s, but the company wasn’t able to get enough of the high-grade light, sweet crude out of the ground to make the venture worthwhile. The earliest estimates were that the layered shale of the Bakken formation held a whopping 500 billion barrels of oil. But as Shell proved, getting that oil was a whole different story. That’s because traditional drilling methods don’t work on shale. To fully understand the secrets of the fortune-building secrets of the Bakken — and to completely grasp why the $6 stock I’m recommending may be the easiest, most predictable triple-digit gainer in history — let me introduce you to Dick Findley... How a Starving Geologist Found A few years ago, a Billings petroleum geologist by the name of Dick Findley was working out of his basement — searching for oil in an area that had been barren for over 20 years. Things were rough, and he was struggling to get by. He even flirted with the idea of getting a second job as a restaurant cook... and on a diet of nothing but Ramen Noodles and hard-boiled eggs, who could blame the guy? But one thing kept Dick going: a conviction that this area — the Bakken Oil Pool — held billions of barrels of recoverable light sweet crude. And through sheer luck, he and his partner stumbled upon a porous layer of dolomite 9,000 feet below the ground of a ranch just outside Sidney, Montana. “It was a light bulb kind of thought,” Findley said. “When I discovered that the oil was in the middle shale and it continued for 50 miles, I called my partner and I said, 'I think you'd better sit down... we found a giant oil field'…” The oil field he'd found — and the technology that he helped develop to extract the oil — has recently made millionaires out of ordinary North Dakotans and Montanans. Findley soon took his discovery to energy giant Halliburton, which backed him financially and provided the support to help him develop the necessary drilling technology to efficiently take advantage of this huge oil discovery. It's true that the oil industry has known about the Bakken Basin for over 20 years — but the problem always was that no one knew how to get at the oil. The technology just wasn't there — until now... Bakken Profit Secret #1 "The Bakken is so prolific... one of the top onshore fields found in the past half-century." — Financial Post
But horizontal drilling alone isn't enough to get the oil out of the ground... Findley had to work with Halliburton engineers to figure out a way to both drill sideways and fracture the rock (fracking) to release the oil. Horizontal drilling and fracturing had been done before — but never together. This was Findley's revolutionary idea. And these combined technologies are one key that can unlock 153% in Bakken profits for you... Because even today, horizontal drilling and “fracking” are not exact sciences. The process is equal parts art and science. And the fact is, some companies are better at horizontal drilling than others. This Bakken Profit Secret means that some companies can get more oil out of a well than others... The $6 Bakken stock I’ve been telling you about is one such company. "It's too early in the play to be sharing information." — Bill Walker, a Denver-based geologist with Headington Co.
Here’s a look at its average production rates after 30 and 60 days:
That’s far better that bigger players like Whiting Petroleum (NYSE: WLL):
That means it will pump more oil than its peers... it will make more money... and its stock prices will perform better. My price target for this stock is $16.50, which is a solid 153% gain from current prices. But like I said earlier, the Bakken holds a few secrets that virtually guarantee you fortune-building profits from your investments... Bakken Profit Secret #2 "The Largest Continuous Oil Formation It Has Ever Assessed" – U.S. Geological Survey In 2008, the U.S. Geological Survey completed its estimate of recoverable light, sweet crude reserves in the Williston Basin, also called the Bakken.
That USGS estimate — 4.3 billion barrels — ignited the Bakken stocks and led to a flurry of gains for my readers...
I’m not kidding when I say that billions of dollars were made on the heels of that USGS Survey. And the profits aren’t done rolling in — not by a long shot. Because in 2010, a new oil reserve was identified that actually lies beneath what’s known as the Bakken. This area, called the Three Forks or Sanish formation, holds an additional 1.9 billion barrels of recoverable oil — maybe more...
So combined, we're looking at a whopping 6.2 billion barrels of recoverable oil. We're talking light, sweet crude oil, the least expensive and easiest to refine oil out there. It’s true: North America's fastest-growing oil play keeps getting bigger. But here’s where things get really interesting — and more profitable — for you. Because the current 6.2 billion barrel estimate for the Bakken/Three Forks is almost certainly wrong. Insiders believe the true amount of recoverable light sweet crude oil is much higher. And this Bakken Profit Secret means that the gains on your Bakken investments should be even bigger than what I’m currently estimating! Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains Howard Hamm is the billionaire founder and CEO of Continental Resources (NYSE: CLR). Hamm made a fortune by positioning his company in new and upcoming oil discoveries. Continental was among the first companies to enter the Anadarko, the Rocky Mountains, and the Bakken. In fact, Continental drilled the first commercially successful Bakken oil well back in 2004.
Now Harold Hamm is betting his company’s future on the Bakken... He’s amassed one of the biggest Bakken land positions — 900,000 acres. Continental’s proven Bakken reserves stand at around 220 million barrels of oil. But that’s just the start. Because Hamm is convinced there are at least 8 billion barrels of recoverable oil in the Bakken. That means you can basically take every price target for Bakken oil companies — and double them. "If [oil] prices increase or technology improves, the total amount of oil taken from the Bakken will go up... and that much oil means a century of steady oil production." — Lynn Helms, Director, North Dakota Dept. of Mineral Resources That means the $6 Bakken I’ve been telling you about — the one with 153% gains coming — is likely to make much more money for you. The stock could easily trade at $20 a share. And you can start amassing a fortune-building position in this stock (and a couple others I’ll tell you about) while the U.S. Geological Survey (USGS) re-examines its Bakken estimates. That’s right: Bakken Profit Secret #2 is that the USGS has begun its re-evaluation of Bakken reserves. I can confidently tell you that reserves will go up — maybe even higher than Harold Hamm’s 8 billion barrel estimate. Now is the time to start buying — when stock prices are low and most investors are focused on U.S. economic growth and the debt situation in Europe. And I’ll get you started building your Bakken fortune with my latest Special Report, "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains." In this report, you’ll get my detailed analysis of exactly how this $6 will inevitably rise 153% (at least). This company is virtually unknown outside of oil circles, but insiders know that its 135,000 acres are among the very best Bakken land in the areas where the most productive wells have been drilled. That’s why institutional oil investors are flooding in — to the tune of 36,726,000 shares in just the last 6 months. That’s around $216 million dollars' worth of stock. These guys know what’s going to happen to this stock. They’re going to make their money — a lot of it. And there’s no reason you can’t be profiting right along with some of the most savvy oil insiders. But that’s not all. When you get your copy of "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains," you’ll also get the details on two other small Bakken players with HUGE profit potential (I’ve got a $5 stock that could easily make it to $22.80 a share in 24 months that you’ll definitely want to hear about). I’ll even show you how you can get your hands on "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains" absolutely FREE... But first, I want to shift gears and give you the details on yet another Bakken Profit Secret. Bakken Oil Wells: World’s Most Profitable Oil Investment Now, let's dig into some numbers. Because I want to show you exactly why this $6 stock is about to jump 153%... A typical Bakken oil well costs between $6 and $8 million. That includes leases, royalties, and initial operating expenses. But that same well can produce over 500,000 barrels of oil a year. At current prices around $90, we’re talking about a sweet $45 million a year in revenue for each Bakken oil well. Now, let’s put that in perspective: The $6 Bakken stock I want you to buy has 110,000 acres of prime Bakken land. Right now, it has approximately 31 wells pumping nearly 9,000 barrels every single day. That's over $295 million in annual revenues. Not bad. But this company is drilling for a lot more in revenues than that... It's got 5 rigs drilling 24 hours a day. By the end of 2011, this fast-acting company will have drilled 42 wells in a year... So it's no wonder revenues are exploding to the upside. Conservative estimates are that this company's revenues — and earnings — will double for 2011... and triple in 2012. There's simply nowhere else you can find this kind of massive growth. And again, you can get it for just $6 a share. Even more incredible: This stock is an amazing bargain. The forward price-to-earnings ratio for 2012 is just under 9. There's simply no way this stock can stay at $6 a share for much longer... So I urge you to get your copy of my latest Special Report, "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains," as soon as possible. Because you'll be kicking yourself if you miss the run from $6 to $16.50. And remember, with "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains," you'll also get TWO MORE undiscovered Bakken oil stocks that could do even better than the $6 company I've told you about... Get In on the Ground Floor of As I mentioned earlier, my name is Keith Kohl. I'm the energy analyst and investment strategist of the Energy Investor investment advisory service. I’ve built a very successful career at the forefront of new oil and natural gas discoveries. And my cutting-edge investment research has helped thousands of individual investors make life-changing wealth from the best stocks in the energy sector. In fact, Energy Investor members have made money on every significant oil and gas field — including Eagle Ford and Haynesville in Texas, the Marcellus shale in Pennsylvania, the Tar Sands of Alberta, Nova Scotia’s Maritimes and, of course, North Dakota’s Bakken Oil Pool. "I really enjoy Keith's commentary and his stock calls have been pretty much dead on. The Energy Investor has been the best money I've ever invested. " — G. Thorman Like I said, my readers and I practically discovered the Bakken as an investment. And we racked up a string of gargantuan triple-digit winners. But we’re nowhere near done — because oil is the only investment asset that the world simply can’t do without. Whether it’s a small exploration company with a new discovery, or an established major that’s undervalued, you’ll know about it — and profit from it — thanks to Angel's Energy Investor. "A new black gold rush is under way... enough to meet all U.S. oil needs for decades." — Kiplinger "The highest-producing onshore field found in the lower 48 states in the past 56 years." — Wall Street Journal I’ve been leading investors to the very best-performing oil and energy stocks since 2007. That was the year the International Energy Agency (IEA) dropped a bombshell on investors when it stated: "Some $20 trillion of investment in supply infrastructure is needed to meet projected global demand." Now, I don’t always trust the IEA... They're in the pocket of global government, and one of their main goals is to gloss over the simple fact that the world has already run out of cheap oil. They do this to keep people from panicking. But this time — saying $20 trillion is needed for oil production — the IEA was right on target. Twenty trillion dollars — that’s the size of the opportunity we’re investing for. And with the Energy Investor on your side, you can be sure you’ll get your share in the form of investment profits... "Just wanted you to know how much I appreciate the hard work you do in finding the great companies for your readers. Currently I am up 252%, 165%, and 101% respectively. You made a believer out of me. Regards." — N. W. And that's why I'm writing to you today. The energy crisis of the 21st century is — without a doubt — one of those investments by which you can achieve a lifetime of wealth... It's a sector that could make you a legendary fortune in just a short period of time. When you sign up for Angel Publishing's Energy Investor, you'll immediately get access to the blockbuster Special Report, "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains." With the latest North Dakota oil study shining a new spotlight on the Three Forks formation, many of those Bakken drillers are ready to explode. Taking the first step, however, is up to you... The World's BEST Energy Research — for Just Pennies a Day! When I started the Energy Investor, I set out to give investors the very best research and investment recommendations from the energy sector. And with gains like 574%, 478%, 286%, 118%, and 114%, I have no problem saying "Mission: Accomplished." My readers are making more than top hedge funds, mutual funds, and even the savviest individual investors. The proven ability to uncover life-changing wealth in the stock market is a valuable skill. And there's no doubt I could name my price for a membership to Angel Publishing's Energy Investor... Is $2,000 too much to ask for 574%, 478%, 286%, 118%, and 114% profits? How about $1,500? $1,000? The fact is, top energy hedge funds will charge thousands a year in fees... and they'll take part of your profits, too. But you won't pay anywhere near that much for the Energy Investor. If you act now, you can get the Energy Investor for the ultra-low price of just $49 — for an entire year of profitable research and Special Reports. "Hello, I have to admit that I joined your service more out of desperation than anything else but am I glad that I did! My recent trading history is poor to say the least. I'm just sorry that I didn't act on your information sooner but I guess I can't be too upset with a 250% boost in one week! Keep up the great work." — Judy, a very satisfied member That’s just $4 and change a month to discover consistent market-beating profits from the best energy investments in the world... mere pennies a day for the high level research that can double or triple your money! Why so cheap? Simple: The Bakken is a major American oil field. And I want Americans to have the opportunity to profit from it. So I make my research and investment advice as cheap as possible. (Don't worry, I'm very well compensated for my work.) Truth is, if I didn't believe in the research my team and I are doing, we wouldn't spend weeks traveling to the Barnett Shale, Fort McMurray, Alberta, Kiev, Ukraine, Wyoming, North Dakota, and Montana. When you join Angel's Energy Investor today, you will receive:
And don't forget these profitable Special Reports: Research Report #1: "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains" – The Wall Street Journal calls it the biggest find in the lower 48 states in over 50 years. Insiders believe there are more than 8 billion barrels of barrels of light sweet crude in the Bakken's shale formation. Invest now and make your own Bakken fortune! Research Report #2: "Protect Your Wealth from Peak Oil" – Oil insiders know it — and so do the politicians. Oil prices aren’t coming down, and production isn’t going up. You simply can’t go wrong with North American companies that own oil and gas reserves... Here’s a $4 stock that has over $2.3 billion worth of oil and natural gas. This stock could easily double or triple your money. Research Report #3: "The Future of Fracking: How to Maximize Your Petroleum Profits" – Here’s an undervalued “picks and shovels” play that’s growing like wildfire from the cutting-edge drilling techniques known as “fracking.” This company’s products are indispensible for fracking... yet few investors have ever heard of it. But this company won’t stay off the radar for long... Be there to profit as investors discover this wealth-building opportunity. And best of all: a full 100% Money-Back Guarantee. If you don't agree the Energy Investor delivers the safest and most lucrative energy investment ideas and recommendations you've ever received, just let us know... I'll see that you receive full reimbursement for the money you've paid. (But no matter what, the Special Reports — including "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains" — are yours to keep, FREE OF CHARGE.) But you'll need to act fast if you want to secure your share of Bakken oil profits. These stocks are on investors' radar now. And some big moves are coming soon... I urge you to start building your Bakken oil fortune today by clicking here. Good investing,
Keith Kohl P.S. It's not official yet... but I hear takeover rumors are swirling for one of the stocks you’ll discover in the "Bakken Billions: 3 Bakken Stocks Under $10 for Triple-Digit Gains" Special Report. And after Statoil’s recent blockbuster purchase of Brigham Exploration, I’m sure this little $2 stock would fetch a 50% premium — at least! After all, with a P/E ratio of 4.5, it’s extremely undervalued.
Energy and Capital, Copyright © 2012, Angel Publishing LLC, 1012 Morton Street, Baltimore, MD 21201. All rights reserved. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. While we believe the sources of information to be reliable, we in no way represent or guarantee the accuracy of the statements made herein. Energy and Capital does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Neither the publisher nor the editors are registered investment advisors. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law. Please note: It is not our intention to send email to anyone who doesn't want it. If you're not sure why you're getting this e-letter, or no longer wish to receive it, get more info here, including our privacy policy and information on how to manage your subscription. |
2012/02/01
Found: The Largest Oil Field of the Past Half-Century
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Investing
Over three years ago, I alerted my readers to two small oil stocks that were drilling in the Bakken.
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Keep a civil tongue.