Both Risk and Reward in This Bakken Play


Looking at companies in the oil-heavy Bakken area, Continental Resources is the largest leaseholder, EOGwins for creativity when it comes to moving oil, and the relatively small Kodiak Oilrepresents the area's growth story. This company has been growing at well over 200% for the past few years, production growth has been huge, and its reserves are substantial -- but there are still risks at hand for this small-cap E&P. In the preceding video, analyst Joel South looks at issues such as liquidity, the Bakken's high depletion rate, and price volatility in determining what it will take for Kodiak's risks to turn into rewards.

If you're on the lookout for intriguing energy plays outside small-cap E&Ps, then you'll want to check out The Motley Fool's special premium report "3 Stocks for $100 Oil." To access your copy of this current, in-depth analysis -- free for a limited time only -- simply click here now to start reading.

The article Both Risk and Reward in This Bakken Play originally appeared on

Joel South and Taylor Muckerman have no positions in the stocks mentioned above. The Motley Fool owns shares of Apache. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published