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I like the business that Kodiak Oil and Gas (NYSE:KOG) is in. That business is the development of an unconventional oil resource play.
I like the development of unconventional North American resource plays for several reasons:
- They are located in North America and I don't have to worry about the government expropriating assets or someone blowing something valuable up
- These resource plays are more like manufacturing operations than they are traditional exploration and production. There is virtually no exploration risk so future cash flows are much more predictable
- These resource plays are currently being developed assuming extremely low rates of recovery of the original oil in place. As time goes on I...
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