Some Good Oil News 4a change!

As I write this (not me, someone at HSI), the price of oil is closing in on another record - nearly $113 a barrel. But imagine being able to extract it... for just $16.

Any company that could do that would stand to make a fortune... not just for itself, but also for its shareholders.

Well, in Richland County, Montana - about 470 miles outside the state capitol of Helena - that's exactly what's occurring.

To get right to the point...

It's the largest domestic oil discovery since Alaska's Prudhoe Bay and has the potential to eliminate all American dependence on foreign oil.

The Energy Information Administration (EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable... at $107 a barrel, Montana is looking at a resource base worth more than $5.3 trillion.

* "This sizeable find is now the highest-producing onshore oil field found in the past 56 years," reports The Pittsburgh Post Gazette.It's a formation known as the Williston Basin, but is more commonly referred to as the "Bakken." And it stretches from Northern Montana, through North Dakota and into Canada.

For years, U.S. oil exploration has been considered a dead end. Even the "Big Oil" companies gave up searching for major oil wells decades ago. However, a recent technological breakthrough has opened up the Bakken's massive reserves... and we now have access of up to 500 billion barrels.

And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL!

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That's enough crude to fully fuel the American economy for 41 years straight.

To America, this discovery couldn't have come at a better time. You see, when all the wells are finally drilled and pumping, we won't have to import any foreign oil from the Middle East. Not a single drop!

For investors... it offers a "once-in-a-lifetime" chance to profit on ever-rising demand for oil. And we can do it by getting in on the groundfloor of the next great oil boom... (who has land there is in luck!/kmy)

Even the US Government has confirmed the Bakken as a huge oil formation. The government's own Energy Information Administration (EIA) issued this press release:

"...with new drilling and completion technology taken into account, the resource base for the entire formation is potentially much larger. A study provides estimates ranging up to 503 billion barrels of potential resources in place."

Oil in the Bakken isn't gritty, dirty and expensive like the Alberta oil sands.

We're talking light, sweet crude oil - the least expensive and easiest to refine oil out there.

And here's the kicker...
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Montana lawmakers recently passed a bill that creates an 18-month tax holiday for oil wells drilled and completed in this area.

This legislation has caused a massive increase in exploration and has blown the top off this hidden ocean of oil.

Since this bill was passed, a small group of investors have been taking advantage of this untapped resource and are making thousands of dollars each month.

...I have uncovered three companies that are drilling in the Bakken right now and are seeing returns and revenues second to none...

"It's a good, old fashioned oil boom," says Dr. Paul Polzin, a University of Montana economist.

One company has been there since the beginning of the Bakken boom... and is already selling its oil to the market. And the best part about it - this company is sharing its Bakken profits with everyday investors.

...The other 2 Bakken companies I've uncovered are true "wildcatter" plays... with the potential to return investors 100-to-1 on their money. ...

Amazingly, this monumental oil discovery - and these 3 companies - have remained a secret...

* "People in the region 'are just starting to see the potential' in this new oil play" - Grand Forks Herald, Nov. 4, 2007

And for the shareholders of oil companies that make huge, new discoveries, the potential payoff is mind-blowing.

There are several companies that have seen similar situations to the Bakken - of course on a far smaller scale - and have rallied hundreds of percent in just a few months. If these companies can see their stock prices increase by 300%, 400% or even 500% with oil discoveries of 1 or 2 billion barrels... just imagine what a discovery of up to 500 billion barrel of oil would do to a stock's price!

Here are a few examples...

Bankers Petroleum is a company based in the Patos-Marinz Oil Field in Albania. Upon discovery of its 1.96 billion barrels (1/250th of the potential of the Bakken Basin) the company's stock price increased 468% in just 7 months!

Then there's Petrominerals, a company whose primary drilling area is in the Llanos Basin in Colombia, South America. When uncovering a 1 billion barrel potential (1/500th of the potential of the Bakken Basin), this stock jumped 775% in just 10 months!

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Lastly, there's the example of BPZ Resources, a Peruvian company that has concentrated on two main oil fields: The Corvina and Albacora Formations. Recently, it was reported that the Corvina Field holds reserves of 60 million barrels and that the Albacora field hold reserve of roughly 500 million barrels (1/1000th of the Bakken Basin Potential) and the stock price rocketed 449% in just 8 months!

A few years ago, a Billings petroleum geologist by the name of Dick Findley was working out of his basement - searching for oil in an area that had been barren for over 20 years. Things were rough and he was struggling to get by.

He even flirted with the idea of getting a second job as a restaurant cook. On a diet of nothing but Ramen noodles and hard-boiled eggs - how could you blame the guy?
"The boom has been so big the pipeline carrying Montana and North Dakota crude to Midwestern markets is at capacity and the largest company drilling in Elm Coulee has temporarily closed some wells because they have no way to sell it." - The Montana Standard

But one thing kept Dick going - an unprecedented suspicion that this area, known as the Bakken Basin, contained more oil than Saudi Arabia, Iraq and Iran combined.

The Bakken Basin, located in Montana, North Dakota and Saskatchewan - was at one point coined "one of the largest disappointments in the oil industry."

During this period, technology lacked the efficiency to make drilling worthwhile. And when oil hit all time lows in the late 90's - the Bakken Basin was basically abandoned.

But Findley kept digging around.

And through sheer luck, he and his partner stumbled upon a porous layer of dolomite, 9000 feet below the ground of a ranch just outside Sidney, Montana.

This stumble turned out to be the largest on-shore oil discovery in decades.

Little did he know, but Findley discovered enough oil to fuel the U.S. for 41 years.

And the oil field he found - and the technology that he helped develop to extract the oil - has recently made millionaires out of ordinary Montanans...

"It was a light bulb kind of thought - When I discovered that the oil was in the middle shale and it continued for 50 miles, I called my partner and I said, 'I think you'd better sit down...we found a giant oil field," says Findley of his initial discovery.

Findley soon took his discovery to energy giant Haliburton, which backed him financially and provided the support to help him develop the necessary drilling technology to efficiently take advantage of this huge oil discovery...


The Technology That Makes It All Possible

It's true that the oil industry has known about the Bakken Basin for over 20 years - but the problem always was that no one knew how to get at the oil. The technology just wasn't there. Until now...

But even today, the exact science behind getting the Bakken oil is still somewhat of a secret.

I mean, think about it for a minute...

Imagine you found a massive, but trapped gold mine in your neighborhood. Now imagine you created a technology to mine it - a technology unique to this specific gold mine.

Would you tell anyone how to do it? Would you reveal your secret?
"Could increase U.S reserves by 10 times..."- American Digest

No, of course not....before everybody else found out about it.

...that's exactly what's going on with the Bakken Basin.

"It's too early in the play to be sharing information," says Bill Walker, a Denver-based geologist with Headington Co.

Bill says his company has recently developed the technology to drill the Bakken down effectively - and it's one of the company's closest guarded secrets.

Even though the technology I'm talking about is rather well known, actually using it successfully is the big secret.

The technology is called Horizontal Directional Drilling or H.D.D., and only a few companies have mastered the process.


How Does Horizontal Directional Drilling Work?

Getting oil out of the Bakken is not a matter of poking a hole in the ground until you hit a soft spot full of oil - which is the old vertical drilling technique.

The Bakken is woven with rocks, and that rock-layer is wide but very thin. Thin enough that vertical drilling is horribly unsuccessful.

It was Findley's idea to drill a well sideways - a technique called "horizontal directional drilling," in which wildcatters drill down to the oil and then kick out their well thousands of feet to the left or right.

Sort of like an underground sprinkler. Here is what it looks like:

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But horizontal drilling alone isn't enough to get the oil out of the ground.

Findley had to work with Haliburton engineers to figure out a way to both drill sideways and fracture the rock to release the oil.
"The Bakken is so prolific... one of the top onshore fields found in the past half-century." - Financial Post

Both horizontal drilling and fracturing had been done before, but never together. This was Findley's revolutionary idea.

These combined technologies made drilling the Bakken Basin possible and extremely profitable.

In fact, the technique is so efficient that companies - like the ones I will tell you about below - are extracting oil from the Bakken at an amazing cost of just $16 a barrel!

And with oil now over a $100 a barrel - the companies below are making a killing

..."Staggering 503 billion barrels total recoverable and non-recoverable..."- Popular Mechanics

They are gobbling up land in this precious region with fervor second to none.

By combining experienced management, low overhead and aggressive acreage acquisition, this company is one of the nation's fastest growing small-cap gas and oil exploration and production companies. "We are excited to announce the expansion of our [Bakken] acreage position," said the Chief Executive Officer. "Our position in this productive resource play is well situated among acreage held by leading Bakken exploration companies. Assuming full development of our [Bakken] leasehold on 640-acre drilling units, [our] acreage would result in approximately twenty-five net wells."

With the newly acquired acreage, this company is poised for profit over the next couple month

(AND SO FORTH, I SUPPOSE YOU GET THE IDEA... when the news is finally published and folks start getting to use this oil, it could change history! So I published this here for you, because it is really big news!/kmy)