“There May Be More Oil Under Montana and North Dakota Ranchland Than Under All of Alaska!”  — Investors Business Daily |
Massive Oil Deposit Could Increase US Reserves by 1,000%! |
For years, oil exploration in the U.S. has been considered a thing of the past. Over! Done! A dead end. There was, it was widely accepted, no more economically-recoverable major oil deposits to be discovered in America.Since the 1950s, geologists were aware that the two-mile deep shale known as the Bakken Formation held almost incalculable amounts of trapped oil. But, it wasn’t until very recently that two new technologies...
 | Horizontal drilling |
| Hydrofracing |
...made recovery economically practical. In the early 2000s, Texas oil developers began using new drilling techniques in a similar formation near Fort Worth known as the Barnett Shale. They drilled down thousands of feet and then turned and went horizontally through the gas-bearing rock—allowing a single well to reach more gas. They then blasted huge volumes of water down the well to crack open the rocks and free the gas trapped inside.
The real breakthrough in the Bakken has come in the past two years as improved drilling techniques have led to bigger wells, faster drilling and lower costs. Marathon, for example, last year took an average of 24 days to drill a well, down from 56 days in 2006.That has opened up new areas that weren't previously worth drilling in and made wells profitable at prices as low as $50 a barrel, down from $80 three years ago.
Suddenly it was a whole new ball game. Shale-trapped oil in the vast Bakken Formation could now be economically recovered! I’ve seen estimates that there may be as much as500,000,000,000 barrels of recoverable oil there!
To put that in perspective, Saudi Arabia has some 264,100,000,000 barrels of proven oil reserves, a little over half what is estimated to lie buried in the Bakken Formation.
Iran has about 150 billion barrels. Iraq, some 143 billion barrels. Kuwait’s oil reserves are estimated at about 101 billion barrels, while Venezuela has about 98 billion barrels.
So, no doubt about it, the technologies to economically extract oil from the Bakken are a total game changer.
Best of all, that oil is light sweet crude. The Bakken oil isn’t gritty, dirty and expensive like the Alberta oil sands. I’ve seen estimates that over time, the cost to bring Bakken crude to market could be as little as $16 per barrel!
Wow! How do you like them apples all you greedy OPEC leaders?
The US imports about 14 million barrels of oil per day, which means US consumers sent about $51 billion dollars over seas building palaces in Dubai and propping up unfriendly regimes around the World.
Of course, as you can see from the map, the Bakken Shale Formation and its estimated 500 billion barrels of oil isn’t all within U.S. borders. But, nonetheless America is sitting on top of a super massive 200 billion barrel oil field that could potentially make America energy independent.
 Symbol: LOGL.OB Recent Price: . $1.50 Target: . . . . .$10.00 |
The USGS (U.S. Geological Survey) is about to release a new, more accurate assessment of the Bakken oil formation that covers North Dakota and portions of South Dakota and Montana.
If 200 billion barrels of oil at $90 a barrel are recovered in the high plains, the added wealth to the US economy would be $18 Trillion Dollars which would go a long way in stabilizing the US trade deficit and could cut the cost of oil in half in the long run.
It’s only thanks to two new technologies, that the Bakken Formation could boost America’s oil reserves by an incredible 10 times, giving western economies the trump card against OPEC’s short squeeze on oil supply and making Iranian and Venezuelan threats of disrupted supply irrelevant.
There’s enough oil there to meet America’s ever-growing energy needs for the next 40 years. And what’s astonishing is that, until now, all that oil has been largely discounted and ignored.
And, I can’t help but believe that is precisely why Mr. Marshall Diamond-Goldberg jumped ship, giving up the helm of an oil and gas exploration company (JayHawk) whose stock (JYHW.OB) rose 1,077% in just 7 months under his leadership.
Naïve farmers in North Dakota are still selling the drilling rights to their land at a fraction of what they’re worth. Yes, lots of them are becoming instant millionaires, but what they don’t appreciate is that a single well can now reach horizontally to suck up oil that may be as far away from the vertical drill hole as half a mile.
According to Bruce Gjovig, director of the University of North Dakota’s Center for Innovation, “there may be as many as 2,000 new North Dakota millionaires within the next three to five years.”
The Great Bakken Oil Rush!
So, what’s in the very early stages of development is a stampede to buy up the drilling rights from farmers and ranchers who are more than willing to cash in on the Bakken oil boom in return for freedom from financial worries and the weather-related uncertainties of agricultural life.
Oscar Stohler, a longtime resident of North Dakota who lived modestly for 75 years is now a retired cattle rancher who is officially a millionaire.
So is John Bartelson who receives tens of thousands of dollars each month from the oil company now drilling on his land. There are only 6,000 residents in the county where John lives and it’s estimated that one in three is already a millionaire.
Oil-field workers are suddenly flocking to the North Dakota city of Williston, leaving it with a chronic shortage of hotel rooms and making housing scarce. In Dickinson, three hours to the south, a labor shortage has the local McDonald's offering $300 signing bonuses. And in nearby Killdeer, a town of 700 people that lies in the heart of the new oil country, oil workers jockey with locals for lunchtime tables at the Buckskin Bar & Grill, which serves burgers made from locally raised buffalo.
But North Dakota and Montana are vast, sparsely populated regions and there is still plenty of un-leased land to be had. It’s a bit like the California gold rush, except that in this case, there is 100% certainty that anyone with the resources and technical knowhow will be able to tap into the vast Bakken oil reserves that underlay all of northwest North Dakota and northeast Montana.
Drill and ye shall find! It’s just that certain. And struggling ranchers and farmers are still happy to pocket a mere million for the right to drill on their land that could generate hundreds of millions worth of oil.
My guess is that Diamond-Goldberg, the new President of Legend Oil, is braving sub-zero cold and mountains of snow as he and his legal team are hopping from one town to the next, checking land records, contacting land owners and making deals hand over fist to lock up drilling rights to as much land as they can get their hands on.
Being an exploration-stage company, it only makes sense for Legend Oil to be buying up bits and pieces, forging a cohesive bundle of oil-rich properties large enough for the economies of mass distribution to kick in.
Here’s the real kicker – I’m positive that what the Legend Oil board (all undoubtedly holding massive stock options) is scheming is a takeover by one of the major oil companies once it’s pieced together enough holdings to represent a $-billion dollar deal!
Here’s the Official Word From Legend’s
Management on Its Plans For the Bakken:
Management on Its Plans For the Bakken:
Buy LOGL.OB Now While You Can Still Get It Below $1.50.
In a Takeover, This Stock Could Easily go For $50 or Higher!
In a Takeover, This Stock Could Easily go For $50 or Higher!
Legend Oil and Gas is an oil and gas production and exploration company focused on the dual strategy of developing its existing oil producing assets, while actively seeking projects with significant “Blue Sky” potential in the oil prone shale plays in North America.
Already Positioned for Growth
In 2010, Legend acquired its Piqua property, a 1,040-acre site with 33 active wells in Woodson County, Kansas.
Symbol: LOGL.OB Recent Price: . $1.50 Target: . . . . .$10.00 |
Projected net operating income (NOI) from the leases is estimated at approximately $140,000 per year yielding a purchase price of 4.4 times NOI (based upon average oil price of $70.00 per barrel). Internal estimates of 50,000 barrels of proven producing oil reserves is based upon current decline rates and yields an acquisition cost of $12.50 per barrel.
Based upon the current price of oil and the upside potential as determined through geological review of the project, the Company expects that the economic return from this project will increase over the next several years. Some of the development options being considered include: infill drilling, water flooding, well bore cleanout and additional drilling on lightly developed producing leases. Mr. Diamond-Goldberg suggested that:
“there appears to be real potential to add to the production and reserve base associated with these leases by expanding the drilling which was previously done on them. No significant development has taken place on the leases since 2006. Initial activity will focus on the maintenance of existing wells and the tie-in of shut in locations, with drilling activity planned for the spring when weather improves.”
The Company plans to drill development wells and remediate any existing wells which require work on the site as well as working to improve the production systems in place with the goal of doubling production and creating strong cash flow.
Legend is also actively seeking projects in several of the large shale plays, particularly in the Bakken/Three Forks play. The success of these unconventional plays could lead to a new “Golden Age” of exploration and development, adding substantial reserves that today are recoverable thanks to recent advances in oil field technology.
A Talented and Experienced Management Team
Legend is backed by a management team that is experienced in taking oil companies from the start-up and early development phase through the period of reserves and capital growth within a public company environment. The Company’s officers have held and currently hold senior management positions and Board memberships with several successful small and medium sized producers. Together, the team brings over 60 years of combined oil industry experience to Legend.
Marshall Diamond-Goldberg – President, Member, Board of Directors
James L. Vandeberg, Esq. – Vice President, Chief Financial Officer, Secretary, Member, Board of Directors
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Buy LOGL.OB Now While You Can Still Get It
At Around $1.50. In a Takeover, You Could See
a $10,000 Investment Turn to $323,300!
At Around $1.50. In a Takeover, You Could See
a $10,000 Investment Turn to $323,300!
Symbol: LOGL.OB Recent Price: . $1.50 Target: . . . . .$10.00 |
Legend Oil and Gas (LOGL.OB), my latest find, is a good example of the kind of fortune-building opportunities I try and bring my subscribers in every issue of ECONOMIC ADVICE. I hope you're going to invest now in Legend Oil and Gas, and I also hope you'll be tempted by it to accept a NO-RISK trial subscription to my advisory.
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