The Bakken formation that underlies most of the western portion of North Dakota and Eastern Montana has long been known to hold copious amounts of oil reserves. The oil shale formation in these geographic areas is called the Williston Basin. This formation is a rich deposit that the U.S. Geological Survey calls the largest continuous oil accumulation it has ever evaluated.
There are currently over 6,617 oil wells in North Dakota, and that number is anticipated to increase as more oil is extracted. So far the cost of oil shale exploration and drilling has been the greatest issue slowing down the development and production from these formation. In recent years, Oil Barrels Prices have been rising considerably and have made Oil Shale exploration a viable venture.
Production in Montana dates back to the fifties and has recently seen an exponential increase in production. By the year 2000, the entire state had produced north of 15 Million Barrels of Oil. Not 5 years later the number more than doubled to over 36 Million.
A recent technological advance – found in the application of horizontal drilling - largely helped jump start Oil Shale production by making the drilling of such wells an economically viable business venture thanks to the rising oil prices.
The Bakken formation has become a hot topic in the Oil Energy sector and much of that controversy centers on the question of how much of its oil is recoverable.
The predictions have been staggering. Some experts suggested that the Bakken might harbor the greatest discovery of oil in the United States since Prudhoe Bay.
A draft study conducted by the late organic geochemist Leigh Price provides estimates ranging from 271 to 503 billion barrels (mean 413 billion) of potential resources in place. He believed that as much as 50% of it is recoverable, an important consideration since there are vast oil reserves in the world which are not calculated into any projections because their recovery is beyond the reach of technology and economics.
To give that some perspective, all recoverable oil in the U.S. is estimated at 21.4 billion barrels. In Saudi Arabia it's estimated at 264 billion barrels. Dr. Price's study was conducted while he was working for the U.S. Geological Survey (USGS).
Several Stocks have made great progress entering the Oil Shale industry. Kodak Oil & Gas (N YSE: KOG) currently recently traded above $10 with a market cap of 2.27B and was below 50 cents not more than 4 years ago.
Another player with assets in the Bakken Formation is Northern Oil & Gas (NYSE:NOG - News). Within the same timeframe as Kodak Oil & Gas, Northern went from below $3 to above $30.
Several companies continue to try to establish a beachhead on the Bakken formation and many capture investors’ attention. The most recent and interesting development for investors looking to capture the rising interest in Oil Shale stocks lies in junior companies showing strong fundamentals and sound assets.
1st NRG Corp (PINKSHEETS:FNRC - News) captured the attention of investors when it entered the Bakken formation through its commitment to participate in a prospect that will test the Bakken Shale and Three Forks formations in a prospect that encompasses approximately 9,800 acres.
1st NRG Corp’s project include 7,150 acres in Eastern Ohio, 1,370 acres located in Banner County Nebraska as well as various working interests in forty two producing coal bed methane (CBM) wells on Clabaugh Ranch.
Most recently the company announced a $7 Million credit facility for use towards the development and production on the various assets the company has working interests in.
1st NRG Corp (PINKSHEETS:FNRC - News) could be very well positioned to follow in the list of successful Oil Shale Stocks that have seen increase in both production as well as shareholder value.
For a Detailed Trend & Fundamentals Analysis of 1st NRG Corp. visit Wall Street Report by following the link below:
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