Bakken Update: Oasis And Denbury Continue To Improve Initial Production

By Michael Filloon: In the first two parts of this series we covered Kodiak's (KOG) upside given the new record Whiting (WLL) well in its Tarpon Prospect.

By Steve Zachritz:Each month we update the Bakken Players piece for current events, repricing of the group versus cash flow estimates, and adding a few new graphs. In between we occasionally like to focus on sections of the larger piece. Last week we had brief comments on production growth per share and you can see that piece here. This week’s topic: unit costs and cash margins.

By Michael Filloon: Denbury (DNR) has been working the Bakken/Three Forks quite hard over the past couple of years. Even though its main business is EOR, it is increasing production quickly through unconventional methods in North Dakota. Early last year, Denbury was using 15 stage laterals, and in my opinion were behind other operators with respect to completion design.

By Michael Filloon: The article "Q4 Production Update For The Bakken," noted some concern about Kodiak's (KOG) most recent production numbers. Not only had wells come in under expectations, but there were also problems with completions.

By Michael Filloon: The third quarter has been good to the oil companies operating in the Williston Basin. Initial worries of escalating costs seem to be manageable, with only Newfield (NFX) seeing well costs as high as $11 million.

Michael Filloon submits: There are three companies I believe to truly be levered to the Bakken Shale. When I say this, I don't mean the number of acres, but more of a ratio. Continental Resources (CLR) (Continental Resources: Lots of Bakken Upside) has the largest overall acreage. Whiting Petroleum Corp.

By Michael Filloon: I recently reported that Brigham's (STO) well design was one of the b

By Michael Filloon: The Williston Basin Bakken/Three Forks hydrocarbon system may be the best unconventional U.S. oil play. Needless to say it is the biggest thing to happen in North Dakota in recent memory. From a development standpoint, Mountrail County has been the focal point. Ross, Sanish and Parshall fields have all produced well and in turn have seen the largest amount of capital spent.