Here's the Next Big Bakken Winner
46 Cents for Newest Bakken Oil Play
There's a new player in North Dakota's Bakken shale oil field.
This small, undiscovered company has 11,000 acres in America's most prolific oil field.
The company has just completed two new Bakken wells. And the initial production (IP) rates were pretty good.
Over the next couple of years, this company will drill at least 17 more Bakken wells.
By the end of this year, it will be pumping 4,000 barrels of oil a day.
The stock sells for just $0.46 a share.
But get this: It's about to start paying its shareholders a 5.8% annual dividend.
Now, I probably don't have to tell you that there aren't many 46-cent stocks paying dividends out there. In fact, there aren't many 46-cent stocks that are cash flow positive...
That's why I think you should buy this company's stock as soon as you can.
Because as word gets out, it probably won't stay at $0.46.
New Kid on the Bakken Block
A couple years ago, Oasis Petroleum was the new kid on the Bakken block.
Oasis IPO'd in the summer of 2010 at $15 a share.
Today Oasis shares trade above $40. And with a forward P/E of just 12, it's likely to go higher.
Northern Oil & Gas (NYSE: NOG) is another Bakken oil stock that made some investors a lot of money.
Toward the end of 2009, after a strong rally, Northern's shares were trading around $7...
A year later, the stock was pushing $30.
Northern has been struggling a bit lately due to some management issues. But that doesn't change the obvious fact that Bakken oil stocks tend to make big moves higher as investors discover their stocks.
There are a couple of reasons I think this $0.46 Bakken stock is about to start lighting up investors' radar screens...
For starters, there's more light, sweet crude in the Bakken than most investors realize. The United States Geologic Survey (USGS) recently revised its estimates of recoverable oil in the Bakken.
Their "official" number is now 7.4 billion barrels.
That's double what they thought was there just a few years ago.
But the top insiders of the biggest Bakken oil companies think there's almost four times that amount.
One billionaire CEO quietly asserts there are 27 billion barrels of recoverable oil trapped in the Bakken's shale rock.
What that means is any company that owns Bakken land is almost certainly sitting on a lot more oil than they can "officially" report.
And that means revenues, profits, and stock prices have more upside than most people believe.
The second thing you need to know is that news of this 5.8% dividend has not been announced yet.
The dividend was approved at a recent shareholder meeting. And the company has included a 2013 dividend in its most recent investor presentation.
But the dividend has not been "officially" announced...
Once that happens — and it could literally be any day now — I think these 46-cent shares will move higher.
My colleague here at Angel Publishing, Keith Kohl, covers this stock.
Keith says this stock will easily trade above $1 before the year is out. I believe him.
By the end of next year, as production grows, this stock could be pushing $2 a share — a 334% gain.
You should know that Keith has led investors to these kinds of gains before. Following Keith's analysis, investors have made as much as 574% and 261% from Bakken oil stocks.
This a rare opportunity to get into a Bakken oil company at the ground floor — before huge jumps in production push the stock price higher, like we've seen so many times before.
You can check out the details of this $0.46 Bakken oil stock right here.
Until next time,
Until next time,
An 18-year veteran of the newsletter business, Briton Ryle is the editor of The Wealth Advisory income stock newsletter, with a focus on top-quality dividend growth stocks and REITs. Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low-risk covered call option strategy. He also contributes a weekly column to the Wealth Daily e-letter. To learn more about Briton, click here.