BRIGHAM EXPLORATION: (BEXP) $12.97 Up $1.24 ..... XXX recently told you about the "Bakken Boom" and the companies that have benefited. Those companies we featured included Whiting Petroleum (WLL - $95.00), EOG Resources (EOG - $143.09), Brigham Exploration (BEXP - $12.25), Continental Resources (CLR - $62.30) and Marathon Oil (MRO - $53.51). The U.S. Geological Survey recently published its official results of a groundbreaking study. Its report confirmed a massive oil reserve in an area the locals have nicknamed the "Bakken," which stretches across North Dakota, Montana and southeastern Saskatchewan. The new USGS study estimates a whopping 3.65 billion barrels of oil in the Bakken... but here's what they didn't mention:
The reported 3.65 billion barrels of oil mean estimate is for 'undiscovered' oil only, and doesn't include known oil, such as reserves. In fact, the study reports a 25-fold increase in the amount of oil that can be recovered... compared to the agency's estimate back in 1995. Discovered over 50 years ago, the Bakken deposit--once impossible to extract--is now being hailed as the single largest oil find in US history. That's because, today, thanks to breakthrough drilling techniques like horizontal drilling, the Bakken's oil shales can be extracted relatively cheaply.
BOTTOM LINE: BEXP was initially recommended on January 23, 2003 @ $5.68/sh and updated on Aptil 23, 2008 @ $7.30. More recently XXX included BEXP in a list of stocks to buy to play the "Bakken." Today's close was a new 52-week high on three times the average daily volume. Brigham Exploration is one of the least expensive plays in the area. Technicals now indicate a near-term price objective in the upper $20's. Compare BEXP's current share price to others in the area including (WLL - $95.00), (EOG - $143.09), (CLR - $62.30) and (MRO - $53.51) and it is easy to understand why Brigham Exploration has the potential to trade considerably higher.
CONTINENTAL RESOURCES: (CLR) $62.83 Up $11.77..... This "Bakken" play stock was first featured in the WS section on April 23 at $4.22 but was first featured in the newsletter on February 28, 2008 @ $28.10 when it made its first appearance in the Institutional Money Flow section. Since then, the stock has doubled. The price objective from here is $80.00. CLR is the largest land holder in the area and the company announced today the successful completion of its first well in the Three Forks/Sanish formation. The well has an average flow rate of 693 barrels a day. OPTION UPDATE: Our September 40 calls (CLRIH), recommended at $7.50, closed today at $23.60 bid for short-term gains of 215%
ULTRA PETROLEUM: (UPL) $92.70 Up $3.14 and traded on the New York Stock Exchange..... Ultra Petroleum continues to rock! Boone Pickens came out today bullish on natural gas so Ultra trades to another new 52-week high. Our last update on Ultra was on May 8, 2008 @ $89.75, and April 21 at $85.01. Prior to that XXX gave you an update on April 9 when it was priced at $81.24. We gave it to you on February 8 at $70.11/sh. Even better however, it is probably our best performer in history since XXX initially recommended Ultra Petroleum on August 10, 1999 at $.82 cents a share for a current rate of return of 11,167%. It's still our belief that UPL is headed to triple digits, particularly given the fact that the stock recently made a strong triple top technical breakout. With no end in sight to high oil prices, natural gas will follow the trend. And thanks to a boost from the federal government, Ultra Petroleum's time might have come, too. The Bureau of Land Management just gave the oil and gas exploration company more land to drill and permission to increase the number of wells on that land. And Ultra also got the go-ahead to drill year round in the Pinedale/Jonah field, one of the best natural gas sites in the U.S. The benefits of the BLM decision should send the stock higher. Even if it doesn't, the company seems to have enough production growth on its own to keep the share price climbing." |
