Bakken Resources (fka BKKN)

[LouisDesyjr]

Cost to move oil

I took a look at a few sources on the cost of moving oil per barrel.

The general consensus seemed to be that trucking it was about $20 per barrel, rail was $10 to $15 per barrel and a pipeline was $5 per barrel to transport oil.

So there is a big cost savings to moving it by pipeline, but not enough to over come the big drop in oil prices.

It also does not seem to make any sense to build a pipeline, since there is only 9,300 acres of leases bought in Sept 2014. It looks like no wells were drilled and I would expect with the drop in oil prices, it would cost more to drill a well than they would get from oil sales.

Louis J. Desy Jr.