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Re: KUP post# 824

Tuesday, 03/07/2017 11:34:48 AM

Tuesday, March 07, 2017 11:34:48 AM

Post# of 887
An article from Seeking Alpha definitely supports a rise in the price of $BKKN.

I see a rise in production equates to higher royalties for $BKKN.

Continental Resources is one of the three companies that drill on $BKKN's properties.

~We Win!

DAPL Will Reduce The Bakken Discount: A Boon For Whiting Petroleum - But Don't Get Too Excited

http://seekingalpha.com/article/4052636-dapl-will-reduce-bakken-discount-boon-whiting-petroleum-get-excited

Summary

The two legs of the "Bakken Pipeline System" are expected to enter commercial operation in Q2.

This will be a boon not only for the pipeline owners, but for Bakken producers like Whiting Petroleum and Continental Resources.

However, higher realized prices could spur more production. And more production means lower prices (eventually).

As a result, I continue to favor pipeline providers over crude oil producers.

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