Kodiak Oil and Gas
Forest's commitment to liquids production isn't a new idea. In 2008, liquids accounted for just over 10% of production and 28% of revenue. That ratio has shifted dramatically, so that the expected liquids numbers for 2011 stand at just below 25% of production and 54% of revenue. This is the sort of forward thinking that small oil and gas companies need to possess in order to survive the current environment of basement-level natural gas prices.
Continental is focused on the Bakken for the immediate future. Though each well in the play costs an average of $8 million to get up and running, Continental's rate of return in the Bakken is an impressive 40% to 50%.
Going forward, the company is pioneering the development of the Three Forks formation there, which sits below the lower Bakken and is expected to incrementally increase the company's reserves.
Carrizo Oil and Gas
The company brought two new wells online in the Niobrara during the third quarter, with one more expected to come online in December. CEO Chip Johnson said the company's new wells continue to exceed expectations, a great sign for the future of liquids production at Carrizo.
Barring government intervention, oil and gas production will continue to boom domestically in the coming years. Utilize the Fool's free My Watchlist feature to stay up to date on all the exploration and production companies getting the most out of oil and NGLs.