Back in 2008, the U.S. Geological Survey gave an official estimate of how much total recoverable oil may be in the Bakken formation of North Dakota and Montana. At about 3.5 billion barrels, many thought it was a bit low. Now, after five years, the USGS has done another assessment and determined that the region will be able to produce more than double that amount.
For those who have followed oil companies in this region, this shouldn't come as too much of a surprise. The original assessement did not include some of the deeper formations, and people in the business believe that the 7 billion barrel estimate just released is still a bit conservative. In this video, Fool.com contributor Tyler Crowe takes a look at how investors should react to the news, and if it changes the investment thesis on Bakken-centric producers like Kodiak Oil & Gas (UNKNOWN:KOG.DL).
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