The Bakken formation is a 350 million-year-old layer of rock occupying 520,000 km2 of the subsurface of the Williston Basin covering parts of Saskatchewan, Manitoba, North Dakota and Western Montana. The formation was discovered in 1953 and as early as 1974, it was postulated that vast amounts of petroleum (up to 500 billion barrels) were contained in the formation itself but it was not economically viable as the oil was trapped in shale (fine sedimentary rocks).
With the development of new drilling techniques, it became possible to horizontally drill right into the flat shaped deposits and collapse the oil rich rocks by fracking (pumping sand and liquids at high pressure into the well bore) in order to allow the oil to flow back up.
Applying new drilling techniques alongside higher oil prices made it economically viable to exploit the oil trapped in the Bakken shale as well as other formations such as the Cardium in Alberta and the Viking in Saskatchewan. Armed with the same proven technology, the industry has now set its eyes on the Southern Alberta Basin. With its similarities to the Williston Basin, the companies are excited about the potential of this new emerging light oil play dubbed: The Alberta Bakken.
The Alberta Basin Bakken is a Devonian Shale light oil play stretching from Southern Alberta into Montana covering a large land area (>100 miles). Although the Bakken is the targeted zone, there is multi-zone oil potential (deepest to shallowest):
• Bakken group (BigValley, Exshaw(lower Bakken)/Bakken and Banff (upper Bakken))
• Second White Specks
The Bakken group constitutes the heart of the play as the reservoirs are deep, over-pressured and highly saturated with oil. The Alberta Bakken play shares a lot of geological characteristic with the original Bakken. Horizontal multi-fracced wells will be targeting light 35-42 degree API oil at a depth ranging from 4500 feet deep up to 7000 feet. Those deep wells are going to be expensive starting at $4 million each. High initial production rates are expected to be followed by high decline rates after the first year. Estimated ultimate recovery (total amount of oil to be recovered) is potentially about 185,000 barrels per well. In terms of economics, it will come close to North Dakota Bakken wells i.e. it will be very profitable especially with current oil prices.
In the Alberta Basin Bakken, the companies are scrambling to secure as much land as possible. Millions of dollars are being spent on land sales and leases. Joint Venture agreements are being announced and the major players are following it closely. Even though several exploratory wells have been drilled on both sides of the border, data is being held tight until everybody has finished positioning himself. Rosetta Resources (NYSE:ROSE) was one of the few to report significant oil hydrocarbons in place and over‐pressured reservoirs. The company estimates that there are 13-15 million barrels of oil in place per section. What that means is that a junior company holding 100 net sections with a theoretical 10 mmbls per section and a 15% recovery factor is sitting on 150 million barrels of light oil.
On Monday, November 21, SEPAC will host its Oil & Gas Investor Showcase. A key event on Calgary's business calendar, the Investor Showcase allows hundreds of retail investors, along with media, analysts and other industry executives, to hear the CEOs of Canada's most dynamic junior and mid-cap oil and gas producers make 20 minute presentations on their company's growth plans.
The SEPAC Oil & Gas Investor Showcase offers a unique setting for investors to get immediate, first-hand information from the CEOs of some of Canada's leading junior and mid-cap oil and gas producers. This event attracts hundreds of retail investors, along with industry analysts, oil and gas executives and media. Market conditions have created a great buying opportunity in the junior sector for investors.
SEPAC Oil & Gas Investor Showcase
THE ALBERTA BAKKEN PLAYERS The Alberta Bakken Players
CANADIAN UNITED STATES
ARGOSY: T.GSY ROSETTA: ROSE
BOWOOD: V.BWD & ROAOF MOUNTAINVIEW: V.MVW
CRESCENT POINT: T.CPG NEWFIELD: NFX
DEETHREE: T.DTX PRIMARY: V.PIE
LEGACY: T.LEG QUICKSILVER: KWK
#1 PICK for the Alberta Basin Bakken play is BOWOOD ENERGY, INC.
The Comapny has 2 tickers. It's main ticker is BWD (Canadian. TSX) It's other ticker is ROAOF (United States. OTCBB)
For traders in Canada, use the BWD ticker. For those in the United States, use the ROAOF ticker.
Keep in mind that the PPS will be different for each ticker due to currency Exchange Rates.
Bowood Energy Company Website
Link to Webcast of Bowood presenting to 'CEEPIC'. Canadian Energy Explorers & Producer's Investment Conference
Webcast from The Canadian Energy Explorers & Producer's Investment Conference
Bowood Daily Candlesticks. With Volume/MACD/RSI and 10, 200 day Simple Moving Averages & 30 day Exp Moving Averages
Remaining Candlestick Charts for companies listed above.