Saturday, February 20, 2010

Another testing technique in the Bakken?

I found this little bit of information very interesting. When you get to this thread, scroll down a bit and you will see another way that operators/producers are testing the Bakken. They drill past their target, the Middle Bakken, and into the TFS. They analyze the core sample from the TFS, then cement the well from the TFS back up to the Bakken and then drill the lateral as planned into the Bakken. The company now has information on the TFS, information they can use for future wells in the area, and for future re-entry into an existing well. Yes, they can drill right through the cement. This is pure speculation on my part but it sure makes sense.

On another note, there has been a lot of hyperbole on the Yahoo!Finance discussion boards regarding some companies in the Bakken. It appears that many folks contributing to these discussion boards are caught up in the share price of a company and/or the current events in the Bakken. The share price of a company and the company itself are two completely different things. Owners, directors, and employees might be doing very, very well in their company, but the share price may not reflect that. Current events are very important, but I think we have not even begun to see the potential of the Bakken.

I am inappropriately exuberant but there is a rational basis for some of my passion. These are some random data points that have yet to materialize: a) reports from CLR and EOG on their multiple-well pads; b) the results of the NDIC hearing docket in which one case by EOG was a request to drill 570 wells in one area; and c) the improving understanding of the geology and fracking techniques in the Bakken.

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