I've been watching Kodiak over the past several months and it appears that the company numerous acreage in the heart of the Bakken and is in the process of obtaining numerous additional acreage, possibly via a buyout. Their stock is trading around $8.80/share and it appears to be a great buy. Can anyone provide additional information about this company as I am considering making a small purchase of their stock.
Charles, KOG operates some of my wells and I can't fault their abitlity to produce oil. Their mineral owner relations leave a bit to be desired. I wouldn't worry about their ability to obtain more acres. I think they recently bought out as much as they can use for the next 5 years. I approve also of their profitability estimate of the acres. If they didn't bite off more than they can chew in their recent purchase (I haven't delved into that part lately) I think they would be a solid investment. The president of KOG would probably be happy to hear me say such things, I still have his cell number around here somewhere.
rw:
I wouldn't be suprised, in light of their prime mineral holdings, that they will eventually sell as did Brigham. If a "deep pocket" corporatation starts looking for Bakken investments, Kodiak just might fit the bill. I will most likely make a small investment in the company as the stock price is very attractive at the present time. It will be interesting to watch what happens to this operator over the next several years. I wonder if Kodiak owns any mineral interests in Montana. I understand that the activity is slowly moving that direction but not sure if they are part of that activity. Thanks for the info you provided.
r w kennedy said:
Charles, KOG operates some of my wells and I can't fault their abitlity to produce oil. Their mineral owner relations leave a bit to be desired. I wouldn't worry about their ability to obtain more acres. I think they recently bought out as much as they can use for the next 5 years. I approve also of their profitability estimate of the acres. If they didn't bite off more than they can chew in their recent purchase (I haven't delved into that part lately) I think they would be a solid investment. The president of KOG would probably be happy to hear me say such things, I still have his cell number around here somewhere.
I bought some shares over a year ago at 3.45. I may buy some more. I hope you are right as I have some mineral acres in Richland county.
Charles, my gut instinct tells me that KOG intends to grow and remain their own entity. That was the feeling i got from the last year or so. That does not mean that their intentions cannot change, or that enough money cannot change them. As for KOG or any of the Bakken players doing serious business in Montana, I think the greatest hold up is drilling rigs, not enough of them and what there are, are committed elsewhere. I think all oil companies would love to get in near the ground floor in Montana, they just do not have the drill rigs to do so, without passing up opportunities elsewhere.
rw:
I tend to agree with you on the lack of drilling rigs in regards to the Montana developement. I am wondering if a large operator or operators will end up developing this Eastern Montana area where the majority of drilling will be focused on these Eastern Montana counties. Thus far, there has been a few drilling such as Oasis but no serious work has begun in this area. Keep in mind, the leases in this area are nearing expiration so operators will face a sizeable investment in order to secure some of this area. I think 2012 will be an interesting year for this area.
r w kennedy said:
Charles, my gut instinct tells me that KOG intends to grow and remain their own entity. That was the feeling i got from the last year or so. That does not mean that their intentions cannot change, or that enough money cannot change them. As for KOG or any of the Bakken players doing serious business in Montana, I think the greatest hold up is drilling rigs, not enough of them and what there are, are committed elsewhere. I think all oil companies would love to get in near the ground floor in Montana, they just do not have the drill rigs to do so, without passing up opportunities elsewhere.
Charles, I agree that 2012/13 will be very interesting in Montana. I hope you get the opportunity to negotiate the new leases you want and wells soon thereafter.
rw:
Thanks, as I am keeping a watchful eye on the happenings in Roosevelt and Sheridan Counties as I have approx. 400 net mineral acres near the ND boarder in Roosevelt and 40 net mineral acres in Sheridan near the ND border. Unfortuately, I have less than 40 acres in Williams County, ND but at least all my NMA are definately in the Bakken. I'm hoping to see some activity in either 2012 or 2013. My minerals in ND expire in July, Sept 2012 and most in MT sometime in mid 2013. Could get very interesting. Good luck to you in 2012.
r w kennedy said:
Charles, I agree that 2012/13 will be very interesting in Montana. I hope you get the opportunity to negotiate the new leases you want and wells soon thereafter.
KOG has been a solid investment for me.. as I have owned it and added to it over the past 2 + years... Just added more about 3 weeks ago.. They may be the next buy out candidate.. and if not they will just continue to make money.. With Brigham gone I believe this is the best play now in the Bakken.. DJ
Darrell:
I totally agree with you and feel that making an investment in this company is a smart move at the present time and under the present conditions. There are alot of good companies in the Bakken play, but I have concluded that Kodiak is the best for the money. Maybe this time next year, the price/share will double or triple and make us all happier. Have a good Christmas.
Darrell L. Jansa said:
KOG has been a solid investment for me.. as I have owned it and added to it over the past 2 + years... Just added more about 3 weeks ago.. They may be the next buy out candidate.. and if not they will just continue to make money.. With Brigham gone I believe this is the best play now in the Bakken.. DJ
Charles, I am a novice at investing just I am at this mineral rights thing. However, I bought some KOG today @ about 10.22 a share. Should be fun to watch. Tom
Thomas:
I think KOG will be a very good investment for 2012 in regards to their current mineral holdings . I bought in approx. 2 weeks ago at $8.75/share and look where it is now. Not to say that it won't drop over the next few weeks but of all stocks in the Bakken, I think this will be a solid invesment.
Thomas Alan McLarnan said:
Charles, I am a novice at investing just I am at this mineral rights thing. However, I bought some KOG today @ about 10.22 a share. Should be fun to watch.
Tom