Bakken Resources (fka BKKN)

[LouisDesyjr]

Pipeline is not enough to get back into the black.

The problem is not transportation, the problem is that oil prices are too low.

Most shales needs at least $60 to break even, and really needs $80 to $100 per barrel to be profitable.

It isn't like $20 per barrel is the transportation costs.

Rail is already in the area and that is typically $10 per barrel. The pipeline, providing there is enough volume to keep it in operation, only reduces that by $5 per barrel to $5 per barrel.

Those savings can easily be wiped out if oil drops to $45 or $40 per barrel.

Louis J. Desy Jr.