Several investors wrote off natural gas plays after spot prices bottomed out last year, but the subsequent rise in gas prices hasn't seemed to change the opinion of many investors. It's a shame, because they could be missing out on some great companies that could make big returns in the future. One company that comes to mind is WPX Energy (NYSE: WPX ) , which just announced that its most recent well in the Piceance Basin of Colorado sported an impressive 100-day output of 1 billion cubic feet of gas.
The implications of this gas find could mean a large uptick in the company's reserves. With the company valued at $1.00 per thousand cubic feet equivalent of proved reserves, WPX is one of the lowest-valued gas company's on the market. Also, even though the company has a gas-heavy portfolio, its liquid component just happens to be in one of the best tight oil plays in the U.S. -- the Bakken. In this video, Fool.com contributor Tyler Crowe talks about how the low market value per proven reserve could be an opportunity to get in on a strong natural gas play that just also happens to have the same amount of proven oil reserves in the Bakken as Kodiak Oil & Gas (UNKNOWN: KOG.DL ) .
With all of Kodiak's assets in the Bakken, the company is one of the easier ways to gauge the health of the formation. To find out whether Kodiak is currently a buy or a sell, you're invited to check out The Motley Fool's premium research report on the company, which comes with a full year of updates and analysis as key news breaks. To get started simply click here now.