I knew if I stuck with this stock long enough, it would pay off. This week, more oil deposits were discovered in the Three Forks area in North Dakota. This is especially encouraging for companies like my XTO and CHK but even more for my BEXP. They have determined they can drill about 2000 bpdoe and is the strongest Three Forks Well to date.
This discovery prompted a quick upgrade by Keybanc and Raymond James to "strong buy" along with a quick 30% increase in stock price in 2 days.
Here's some basic math:
with oil @ $55.00
new well @ 2000 bpdoe
2000 bpd @ 55 $110,000
365 @ $110,000 = 40 million
Of course, you also have to figure in depreciation of the well along with royalties to those who own the mineral rights ( and of course, what the "greenies" in Washington decide to do ) but still...........
I also think natural gas prices are starting to bottom out which will help BEXP as well.
http://www.breitbart.com/article.php?id=D99EAOH01&show_article=1
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