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Bakken Resources is Royalty in the Energy Investment Business

Bakken Resources is Royalty in the Energy Investment Business

Our business model is simple:  We acquire royalty and overriding royalty interests in known, proven oil and natural gas properties.

Why royalty and overriding royalty interests?  These interests allow Bakken to participate in a dynamic industry.  As commodity products, oil and natural gas are subject to not only market fluctuations but also are subject to geopolitical shifts.  These factors create risk, high risk.  Our preference to hold royalty and overriding royalty interests allows us to participate in this dynamic sector, while substantially reducing our risk exposure, and creating high profit opportunities.  In effect, we shift our risk to our well operators.

-Acquire a diversified portfolio of mineral assets
-Build on Proven Reserves
-Leverage our relationships within the industry
-Bring capital and expertise together to drive shareholder value

Our business model allows us to profit in any market conditions.     When Oil and Gas prices are high, we profit handsomely.  When prices are low, we invest in cheap, high potential long-term assets.  We do not have the high cost structure of most energy sector companies.  Therefore, we can create value for our shareholders in any market environment.

We currently own 1,667 net mineral acres in Williston Basin of North Dakota’s Bakken formation.  This acreage is in the prime “sweet spot” of the Bakken.  In addition, we have small interests in Texas and Idaho, as well as Montana   Bakken continues to search for royalty interests that will create value for our shareholders and complement our asset portfolio.

Non-Operator Interests

Bakken Resources Inc. holds what is commonly referred to as non-working interests.  A non-working interest simply means that Bakken owns an interest in an interest in  gas or oil wells or other mineral extraction enterprises, but that does not participate in or have any responsibility for actual well operation.  We partner with strong and successful well operators such as Oasis Petroleum and Continental Resources Inc.  These operators provide all exploration and production services, and assume production services, and  all the risk of well operation.

Bakken’s non-operator business model allows us to reduce risk by diversifying our holdings,
take advantage of opportunities in the marketplace, keep our costs low, target specific formations, and choose specific operators.

The key to our model is to partner with strong operators.  Strong operators ensure that we can thrive at any point in our commodity cycle.

New U.S. Geological Survey assessments estimate undiscovered volumes of oil at 7.4 billion barrels in the Williston Basin Province of Montana, North Dakota, and Wyoming.

Business Objectives

We have one mission:  create value for our shareholders.  We create value by investing in quality oil and natural gas assets, keeping our costs low and partnering with strong operators.  We operate with one overarching principal in mind:  quality assets make money throughout the commodity cycle.

The oil and gas industry is in the midst of a cyclical downturn.  This downturn has eroded oil and natural gas unit prices, and has resulted in significantly lower asset prices.  Accordingly, we are in acquisition mode.  We are reviewing and pursuing high quality assets that will complement our current assets, and will create long-term value throughout the commodity cycle.

Record Production

Bakken Resources Inc. is pleased to report record crude oil and natural gas production and a record number of producing wells in 2016.

Through September 30, 2016, the Company’s well interests have produced more than 4 million barrels of oil and more than 5 million mcf of gas, representing a 44% and 86% increase over year to date 2015, respectively.  “Quality assets are strong in an upturn as well as a downturn”, says Dan Anderson, BRI’s chief financial officer.  “The hidden value of our producing assets is the remaining well capacity. Replacing depleting assets and expanding reserves are key to our future.  We plan to dedicate our strategic initiatives to acquisition and expansion in a “friendly” market environment”, Anderson adds.

Industry discussion generally centers on cash break-even points for exploration and
production companies.  However, companies like BRI have business models that are characterized by relatively low cost operations.  As production grows in the current pricing environment, BRI can create long-term value for its shareholders.

As the industry recovers from its recent recession, companies like BRI are well positioned to take advantage of opportunities in the marketplace.  And, BRI aims to do just that.  BRI has recently completed a preliminary draft long-term strategic plan.  This plan includes a detailed study of the significant producing domestic basins.  The Company has identified a number of strategic initiatives designed to create long-term value while reducing overall risk.

Learn More About Bakken Resources:

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