Now that you’re familiar with the Alberta Bakken oil play and the players in Southern Alberta, let’s cover the players on the US side of the border in Montana. The same scenario is playing out in Montana where several companies are actively working to acquire as much prospective land as possible. The great part about this emerging light oil play is that it is watched by the majors on both sides of the border. American investors can get their exposure through US listed companies without having to go through the currency headache.
This map is displayed as is by BeatingTheIndex.com, with no guarantees as to the accuracy of the data. If you have a better map, please contact me and I will be glad to update this post with it. For now this should give you a pretty good idea on the play.
Who are the companies positioned to benefit from this emerging play? Let’s start with a list of companies operating in Montana with a focus on junior and intermediate producers:
Abraxas Petroleum Corp. (NASDAQ:AXAS)
Alberta Bakken Land: 10,000 net acres
AXAS has over 10,000 net acres in the Alberta Bakken in Glacier and Toole Counties, Montana. For 2012, the company is looking to acquire more acreage and has no immediate plans to start drilling. The primary driver will be the drilling results from other operators such as NFX.
American Eagle Energy (OTC:AMZG)
Alberta Bakken Land: 75,000 acres
American Eagle and its 2 partners (FX Energy & Big Sky Operating) control about 75,000 net acres of Bakken/Three Forks rights (Glacier & Toole Counties, Montana). The company’s working interest varies between 33%-50%. In 2011 the AMZG JV parties drilled 3 vertical wells to test oil in the Lodgepole, Bakken and Three Forks; the parties also drilled and fracked a 3,600’ lateral (now testing) on one of these three wells. Starting in March 2012 the parties plan to drill 2 more vertical wells and drill, frac and test a 4,000’ lateral on one of the vertical wells drilled in 2011.
Arkanova Energy Corporation (OTC:AKVA)
Alberta Bakken Land: 9,900 net acres
AKVA’s 9,900 acres are located in Pondera County and Glacier County, Montana. Provident Energy Associates, a subsidiary of Arkanova, entered the completion phase of their horizontal infield Lower Cutbank Sand formation well, Tribal-Max 1-2817 in Glacier County, Montana. The well was spud in October, 2010 and directionally drilled to a total depth of 6,808 ft. This well will test the prospective Exshaw Shale (Alberta Basin Bakken), Sanish/Three Forks and Lodgepole formations. Significant results reported by the company will be a catalyst to ROSE and NFX’s share prices.
Compton Petroleum (TSE:CMT, PINK:CMZPF)
Alberta Bakken Land: 79,000 acres
CMT has 79,000 acres located in Cascade County 35 miles west of Great Falls, Montana. Compton entered a farmout joint venture which covers all of the Company’s 79,000 net acres, granting Guardian Exploration (TSXV:GX) the ability to earn a 50% interest in this area by incurring capital expenditures on the exploration and development of the property. Compton will retain a 50% working interest in the area without incurring any capital expenditure commitments. Following a combination of 2D/3D seismic, airborne geophysical surveys and geochemical imaging on the lands, Guardian has committed to spud a test well before December 31, 2012, targeting the Bakken oil formation.
Guardian Exploration (TSXV:GX)
Alberta Bakken Land: 10,276 net acres
GX holds 10,276 net acres prospective Alberta Bakken lands in townships directly adjacent to the Blackfeet Nation in Glacier and Pondera County, Montana. The acreage is in an area where Newfield Exploration with 1 known producing horizontal well only 7 miles NW of GX’s lands, Rosetta Resources and Anschutz Exploration have focused their Alberta Bakken exploration efforts. The company can potentially earn another 34,500 net acres in Cascade County upon completion of its “farm-in” commitments to Compton Petroleum.
Hillcrest Resources (TSXV:HRH)
Alberta Bakken Land: 28,000 net acres
HRH holds more than 28,000 net acres in Pondera and Teton Counties, Montana. The company plans to begin an exploration program in Q2 of 2012. Results for Primary Petroleum’s HZ well program will have an impact on HRH’s share price as some of its acreage is directly adjoined to Primary’s land base.
International Frontier Resources (TSXV:IFR)
Alberta Bakken Land: 17,400 net acres
IFR holds about 17,400 net acres in Glacier County, NW Montana where NFX and ROSE are currently conducting exploration and development drilling programs. IFR is watching ROSE and NFX de-risk its lands.
Alberta Bakken Land: 290,000 net acres
Iofina is not an O&G company, it is a holding company of a group of companies involved in the exploration and production of iodine. However, they hold approximately c.290,000 acres in Northern Montana which are prospective for oil that they intend to farm-out.
Mountainview Energy Ltd (TSXV:MVW)
Alberta Bakken Land: 80,000 net acres
MVW holds 80,000 acres mainly in Pondera County, Montana. For 2012, the company will be targeting Bakken oil on its Stateline and Medicine Lake prospects in NW North Dakota and NE Montana.
Newfield Exploration (NYSE:NFX)
Alberta Bakken Land: 340,000 net acres
NFX has a nice chunk of land in Glacier County, Montana surrounded by ROSE and KWK. In its latest Q2 release, NFX reported 7 vertical wells drilled and 2 horizontal wells placed on production. No results have been announced for the 2 producing horizontal wells which forms the near term catalyst to this play. Results will certainly impact its well partner Stone Energy and the surrounding players Rosetta, QuickSilver and Abraxas.
Passport Energy (CNSX:PPO)
Alberta Bakken Land: 26,000 net acres
PPO’s leases are situated in Toole and Pondera Counties, Montana. It has a 60% WI in 43,500 gross acres of oil and gas leases. The company will be spending $3 million in 2010-2011 on exploration activities including at least an 8-well drill program.
Primary Petroleum (TSXV:PIE, PINK:PETEF)
Alberta Bakken Land: 304,000 net acres
PIE currently holds 67.5% working interest in 304, 000 net acres of land primarily in Pondera and Teton Counties. Moving forward in 2011, the company announced a sale and JV agreement with a US major industry partner potentially earning 32.5% WI for $48.5M. The company expects to complete its 6 vertical well drilling program in April of 2012 for testing multi-zone formations on their land: Sunburst, Madison, Lodgepole, Bakken, Three Forks and Nisku. A 6 hz well drilling program will follow starting in July of 2012 to be completed by Jan 2013.
Quicksilver Resources Inc. (NYSE:KWK)
Alberta Bakken Land: 175,000 net acres
KWK has approximately 175,000 net prospective acres held by production in Glacier and Toole Counties, MT.
Rosetta Resources (NASDAQ:ROSE)
Alberta Bakken Land: 300,000 net acres
ROSE confirmed significant oil hydrocarbons in pace and over-pressurize reservoirs in the Banff, Middle Bakken, Three Forks and Nisku formations after completing 11 delineation wells since 2010. It also estimates 13-15 MMboe per square mile of resource in place. Rose earmarked only 5% of its 2012 budget for the Alberta Bakken where 4 HZ wells are currently being completed. Just like NFX, Rose has an ongoing drilling and completion program.
Stone Energy Corporation (NYSE:SGY)
Alberta Bakken Land: 35,000 net acres
SGY has 35,000 net prospective acres for the Alberta Bakken, in Glacier County, Montana. NFX is the operator as SGY’s acreage represents its 35% WI in Newfield’s land. As part owner in NFX’s first horizontal well, any catalyst to NFX’s share price will automatically apply to SGY.
This list was compiled by BeatingTheIndex.com from the latest presentations and company news releases. I do not guarantee the accuracy of the data so please do your own due diligence prior to making any investment in a company mentioned above. If you spot an error in the data or know of a company that I missed from the list, please do not hesitate to contact me.
US readers, did you invest in any of the companies listed above and why?