Replies to post #393 on Earthstone Energy Inc (ESTE)

[OilStockReport]

Looks like they are still going strong in the Bakken.

Earthstone Energy (ESTE) and Stetson Oil and Gas (SSNOF.PK). Both companies have current locations in the North Dakota Bakken, and both are companies I would not be interested in buying. Earthstone buys old wells with very low production and makes improvements to increase output. Earthstone also buys working interest in Bakken wells. These purchases can be very small and as little as 1%. Stetson Oil and Gas gave investors a reason to be careful in October 2009. Stetson announced its first middle Bakken well had produced no oil. It used $3 million in the process of drilling and came up with nothing but water. This well was drilled on the Fort Berthold Indian reservation and near some of the best initial production of the North Dakota and Montana Bakken. Earthstone is in a much better situation than Stetson is, but I am still wary of this company. When buying speculative oil companies, please thoroughly study the names before putting your hard earned money to work. Just one well failure can create significant downward pressure on a stock, reducing the value of an investment significantly.