Upside in the energy market: Oil secret at north dakota's bakken pool belt

By Shan Saeed

THE GOLD INVESTMENT IN OIL

I think most investors and people in general hae probably heard plenty about North Dakota's Bakken oil pool. After all, investors are aware of this huge development taking place. My job as a financial market economist and wealth protection strategist is to share new investment opportunities that nobody is talking about. So my passion for people in my networking, I call them savvy and strategic gurus to remain ahead of the curve as investors, they need to recognize the incredible potential of this unique shale oil formation... and details on top Bakken oil producers since 2007. Let me share few facts flowing out of the Bakken suggest there is much more light, sweet crude there than previously believed...

I'll to get right to the point. Here are a couple quotes from two of the biggest oil companies in the Bakken, Continental [NYSE: CLR] and EOG Resources [NYSE:EOG]

ENERGY MARKET EXPERTS AND GURU

From Continental's CEO Harold Hamm:

"The latest game changer is the Three Forks lower benches. We've literally found an additional oil saturated reservoir in the Bakken that again, makes this world-class oil play bigger and better."

From Continental's President Jeff Hume:

"I believe we just have a larger petroleum storage system than we previously thought, and the reserves will increase as we get that data in hand, and that will be later this year."

From Continental's Senior VP Jack Stark:

"Continental acquired 6 cores of the entire Three Forks formation in 2011 and discovered there were up to 3 additional layers within the Three Forks formation. The significance of this discovery, and what makes it such a game changer, is that the volume of oil in play for the field almost doubles with these added reservoirs."

And from EOG CEO Mark Pappas:

"... we have more potential upside and growth opportunities than we've previously indicated... we're much more excited than we were a year ago about our remaining Bakken and Three Forks potential."

These insiders are estimating Bakken recoverable oil reserves may be 60% higher than currently thought... And it all has to do with layers. Shale is a sedimentary rock, meaning it is layered. Further exploration keeps turning up deeper layers of oil-producing shale.

At first it was just the Bakken, the upper level. Then they found the Three Forks Formation beneath the Bakken. Together, the Bakken and the Three Forks have around 3.5 billion barrels of recoverable oil.

More recent drilling revealed the Sanish formation under the Three Forks, which has another 1.5 billion barrels of oil. But now companies are finding more oil below the Sanish level — and they're pretty excited about it. Continental is in the process of selling off other assets and plans to focus all of its future spending on its Bakken holdings. That's right, Continental — the same company that drilled the very first Bakken well in 1995 — is going "all in" on the Bakken.

Knock, Knock: This is Opportunity

The vast majority of investors have never heard of the Bakken. Even those who know about the Bakken don't know that there could be 60% more oil there. This is what you might consider "breaking news." The U.S. Geological Survey is currently reassessing the Bakken's recoverable reserves.

Results are due in 2013, but I guarantee the "whispers" will begin circulating sooner than that. In fact, they may have already started. Oil prices have dropped sharply over the last few weeks as investors are terrified of what the lunatics in Greece will do next... And they've pushed my favorite Bakken stocks down to the point where they trade with P/Es of 7, even 5! If reserve estimates jump 60%, these P/Es would effectively be 3 and 4. But don't worry — those ultra-low P/Es won't last...Happy investment in the energy market

Disclaimer: this is just a research piece and not an investment advice. All financial transactions carry a RISK.