Friday, July 22, 2011

NO MORE POSTS TODAY -- TRAVELING -- POSTS TO START AGAIN TOMORROW ...

.... unless I find time, free wi-fi, a long extension cord ....

Permitorium Continues -- Not a Bakken Story

Every time I use the word "permitorium" I get at least one comment saying the "permitorium" does not exist.

I do not print those comments unless factual information is provided or a mistake of mine is pointed out, such as a typographical error.

Link here.
Swift action to reduce the growing deepwater exploration plan backlog in the Gulf of Mexico and the approval pace for those plans and associated drilling permits would increase employment in almost every US state; boost tax and royalty revenue for federal, state, and local governments; and improve US energy security, a new study by IHS-CERA and IHS Global Insight concluded.
The permitorium affects "almost every state." Incredible, considering almost every state is facing a budget crisis.

Where CO2 Comes From For EOR -- Bakken, North Dakota, USA

Someone asked me where CO2 for enhanced oil recovery comes from.

It comes from multiple sources.

Here is one source (this has to be one of the cleverest ways to produce/capture CO2 that I have seen.

A big thank you to "Don" for alerting me to this article. (The really, really good posts on this blog usually are first sent to me by "Don" by the way. The boring, routine stuff is mine alone.)


Link here.
The Texas Clean Energy Project (TCEP) is a “NowGen” Integrated Gasification Combined Cycle (IGCC) facility that will incorporate carbon capture and storage (CCS) technology in a first-of-its-kind commercial clean coal power plant (CCCPP).

TCEP will be a 400MW power/poly-gen project that will also produce urea for the U.S. fertilizer market and capture 90 percent of its carbon dioxide (CO2) – approximately 3 million tons per year – which will be used for enhanced oil recovery (EOR) in the West Texas Permian Basin. TCEP is being developed by Seattle-based Summit Power Group, which in June 2010 launched a Front End Engineering Design FEED) Study in conjunction with Siemens, Fluor Corporation and Selas Fluid Processing Corporation, a Linde Group subsidiary.

TCEP received a $450MM award in 2010 from the U.S. Department of Energy’s Clean Coal Power Initiative (CCPI). TCEP received its final air quality permit from the Texas Commission on Environmental Quality (TCEQ) on December 28, 2010. The project will be located in Penwell, Texas, 15 miles west of Odessa; construction is scheduled to begin in the fourth quarter of 2011.
Some comments and data points:
  • This story will end up on the top ten list for stories with most acronyms/abbreviations.
  • I was hoping for a few more acronyms/abbreviations.
  • If you want to see more acronyms, see the sister article in which TCEP says it will sell CO2 to Whiting.
  • CCCPP should not be confused with the CCCP, an old, failed, state-controlled economy (OFSCE) that appears to be the model for the future USA (TFUSA).
  • Somewhere in that list of partners, one would expect to see GE.
  • I like the word "final" in the last paragraph ("received its final air quality permit) suggesting that this is the green light for environmentalists to take this clever initiative to court to stop it. Penwell, Texas, is the home of an endangered three-legged, one-blind-eyed, lizard, that fills in for the Gecko for stunts.
  • San Antonio, Texas, the byline for this story, is where I call home. 

Anyone Goin' To San Antone?/Texas Tornadoes

    Denbury Onshore Reports a Nice Well -- Sand Creek 21-10SH -- Bakken, North Dakota, USA

    19889, 1,678, Denbury Onshore, Sand Creek 21-10SH, Sand Creek, Bakken

    For all wells coming off confidential list, click here

    Three (3) New Permits -- Bakken, North Dakota, USA

    Daily activity report, July 21, 2011 --

    Operators: Newfield (2), and Marathon

    Fields: East Fork and Reunion Bay.

    Both Newfield wells will be on the same pad.

    In addition, eleven (11) wells were released from confidential status. Of the eleven, four reported IPs. The rest are waiting to be completed, no doubt.

    Of note:
    • 19077, 717, Hess, EN-Trinity-154-93-2833H-2, Bakken, Mountrail
    • 19225, 667, Hess, EN-Wefald-156-94-1324H-1, Bakken, Mountrail
    • 20200, 688, CLR, Hawkinson 3-27H, Bakken, Dunn

    Absolutely Nothing To Do With The Bakken -- ATT vs Verizon

    As an avid fan of Apple and its products (I don't own any shares in AAPL), it has been entertaining to watch the discussions among customers of ATT and Verizon.

    For those who have followed the story, one can recall all the stories about all the ATT iPhone users who could not wait for Verizon to get the iPhone. So many ATT users were upset with dropped calls and couldn't wait to get a Verizon iPhone.

    Well, now Verizon has the iPhone, and the results are in. They left in droves. Not.

    Link here.
    Verizon Communications may have the iPhone, but the blockbuster smartphone has yet to pay off in its battle against AT&T Inc.

    In the second quarter, Verizon Wireless, the No. 1 U.S. mobile service, signed up 1.3 million fewer iPhone customers than AT&T, dashing high hopes of investors who sent its shares down almost 3 percent.

    On top of this, Verizon Wireless customers spent less per month than expected as the company changed its data service price plans, further disappointing Wall Street on Friday.

    While Verizon Wireless added three times more net subscribers in the quarter than AT&T, it only activated 2.3 million Apple Inc iPhones compared with 3.6 million activations at AT&T.

    "AT&T has done a much better job of hanging on to iPhone customers than anybody expected," said Credit Suisse analyst Jonathan Chaplin.
    Oh, I mentioned that I don't own any AAPL shares. Members in my family do own some shares in ATT, but none in Verizon, that I am aware of, except through mutual funds, etc. 

    Waste Management Adds 1000th Natural Gas Truck To Its Fleet -- Not a Bakken Story

    Link here.
    Waste Management today added a 1000th natural gas truck to its fleet, making it the largest owner and operator of clean-running, heavy duty refuse trucks in North America.

    At a ceremony at its Carson, Calif., property, the company commemorated the delivery of its 1000th natural gas vehicle with Long Beach Mayor Bob Foster starting up the new recycling truck that will serve his city's residents.

    Interesting Group of Wildcats -- Near Dublin Oil Field -- Bakken, North Dakota

    Update


    March 22, 2022: all production data updated.

    July 2, 2013: see comment this date below. A reader updates these wells:

    All of the Petro-Hunt wells/permits are now under G3 (Halcon). G3 has applied for an order authorizing drilling and completion of 7 wells in each existing spacing 1280 spacing unit described as Sections 1 and 12; Sections 2 and 11, in T157 R100.

    They have permitted the STORHAUG 157-100-2B-11-2H, file #24679. Regarding the OSTAD 157-100-2D-1-1, G3 has temporarly abandoned the well and is looking to either plug and reclaim, or turn into SWD.

    The Hanson 33-28H just came off confidential list and is producing since April 2013. It has 38 frac stages and in 34 days of production has produced about 14,700 bbls.
    April 4, 2012: reading the well file for #21161, Ostad 157-100-2D-1-1; a Madison well;  suggests that the well is dry; still on DRL status of 11/12;

    March 30, 2012: remember that string of Petro-Hunt wells just outside the Dublin oil field? Well, the Dublin oil field has been extended and they are now part of the field. I noted this when this well was reported on the March 30, 2012, daily activity report. This well is just inside the northeast corner of the Dublin oil field, but is considered a wildcat; probably will be a horizontal going north two sections, and outside the Dublin oil field
    • 21043, AB/IA/554, Crescent Point Energy / Bruin / HRC / Petro-Hunt, Pankake 157-99-6A-7-1H, wildcat, Bakken, just inside the northeast corner of Dublin oil field north of Williston near the Divide County line; t12/11; cum 238K 4/20; off line 7/19; remains off line 4/20;
    March 29, 2012: finally we see which formation Petro-Hunt is targeting in that string of wildcats near Dublin: Madison (see below)
    • 21161, PA, Bruin/HRC/Petro-Hunt, Ostad 157-100-2D-1-1 -- A bit to the south-- Madison; still being reported as DRL as of 11/12
    December 27, 2011: A reader sent me this comment:
    If you look at the cancelled permit by Petro-Hunt for well #21666, you will notice that they are targeting the Red River C and not the Madison in 157-100-3. Petro-Hunt and Zenergy have been duking it out with each other in the Dublin and Marmon fields. Petro-Hunt has the 3D seismo info for these tracts and it appears from this cancelled permit the RRC is the cause of the contention from these two operators.
    Note:
    • 19811, PNC, Kirby 158-99-33B-3-1, wildcat, RED RIVER; A bit to the northeast
    • 21666: canceled -- a Red River permit -- PNC, Petro-Hunt, Eidsvoog 157-100-3B-4-1
    • 20412: also canceled -- a Bakken permit -- PNC, Zenergy, Eidsvoog 3-10H
    • 21568: also canceled -- a Red River permit -- PNC, Petro-Hunt, Smith 157-100-3D-1-1
    July 22, 2011: NDIC hearing dockets, case 15222: Zenergy, extend Dublin-Madison; 8 320-acre units; 1 hz well on each unit;

    See also this post on the Storhaug well, a wildcat, probably now in the Dublin field.

    Original Post
    (well data updated occasionally)

    Based on information from a reader, Zenergy and Petro-Hunt are targeting the Red River formation in the Dublin/Marmon fields, as well as the Bakken.

    Dublin oil field is a very small oil field far north of Williston but yet in Williams County, near Divide County. It's a bit irregular in shape due to a constellation of Madison wells in the southeast corner of this field; the field is about six sections in size (very small) (posted July 22, 2011) but with a string of wildcats in the immediate vicinity, I expect the Dublin field to be extended. 

    The area is in a non-descript part of North Dakota that simply represents some of the best grain producing acreage in in the country. I don't know who settled this area originally, but I bet it was Russians (Ukranians), Germans, Syrians, or Norwegians.

    "Anonymous" alerted me to an interesting wildcat in Williams County near Divide County. There is a string of wells running west to east near the Dublin oil field. I would assume the Dublin oil field will be extended to include these wells (if not the Dublin, one of the other neighboring fields). The status of the wells below (note one of the wells is in Oliver oil field, west of Dublin.  [July 28, 2011: someone else has also noted the increased activity in this area -- note there are now three new permits in one section -- section 2 of 157-100; northwest quadrant; northeast quadrant; and southeast quadrant; only quadrant not yet permitted in this section is the southwest quadrant.]
    • 19646, 482, Enerplus/Bruin/HRC/Petro-Hunt, Storhaug 157-100-2A-11-1H, Bakken, Dublin/wildcat; t8/11; cum 252K 4/20; cum 267K 1/22;
    • 19811, PNC, Kirby 158-99-33B-3-1, wildcat, RED RIVER; A bit to the northeast
    • 20412, PNC, Zenergy, Eidsvoog 3-10H
    • 20723, 279, Enerplus/Bruin/HRC/Petro-Hunt, Hokanson 158-99-32D-29-1H, Ellisvilel/wildcat;  t11/11; cum 154K 4/20; see this note; cum 160K 1/22;
    • 20953, 343, Enerplus/HRC, Johnson Family Trust 157-100-4A-9-1H, Marmon/wildcat, 2/12; cum 114K 4/20; cum 121K 1/22;
    • 21027, 699, Kraken Operating/CLR, King 1-5H, Oliver; t2/12; cum 154K 4/20; intermittent production beginning in 7/19;
    • 21036, PNC, Petro-Hunt, Storhaug 157-100-2B-2-1,
    • 21040, 353, Enerplus/HRC/Petro-Hunt, Helstad 158-99-34D-27-1H; t12/11; cum 135K 10/16; cum 193K 1/22;
    • 21043, AB/554, HRC/Petro-Hunt, Pankake 157-99-6A-7-1H, wildcat, t12/11; cum 195K 10/16; off line 7/19; cum 238K 7/19;
    • 21161, TA/DRL/SI/DRY, Petro-Hunt, Ostad 157-100-2D-1-1 -- A bit to the south-- Madison
    • 21326, PNC, HRC/Petro-Hunt, Swenson 157-100-1C-2-1, Dublin; PNC 7/12;
    • 21496, PNC-->Al/A, Oasis / Petro-Hunt, Hanson 33-28H, Dublin/wildcat / Church; t5/13; cum 207K 1/22;
    • 21746, 653, Oasis/Petro-Hunt, Mary 3-10H, wildcat; s9/11; Madison; t1/12; cum129K 10/16; cum 169K 1/22;
    • 21747, 685, Oasis/Petro-Hunt, Hanson 34-27H, Dublin, t12/12; cum 136K 10/16; cum 200K 2/22;
    • 21748, PNC, Oasis/Petro-Hunt, Mad Dublin 1-3H, Dublin/wildcat; still LOC 1/15;
    • 21860, 100, Crescent Point Energy, CPEUSCO PAOPAO 35-26-158N-100, a Madison well; t3/12; cum 184K 10/16; cum 257K 12/21; went off line 1/22;
    • 21882, PNC, Petro-Hunt, Dullum Family Trust 157-100-2C-1-1, wildcat,
    • 22323, 181, Crescent Point Energy, CPEUSC Makowsky 31-30-158N-99W, Ellisville/wildcat; t10/14; cum 128K 10/16; cum 199K 1/22;
    • 22456, 247, Enerplus/HRC/Petro-Hunt, Hoff 157-100-1A-12-1H, Dublin, t112/12; cum 196K 10/16; cum 280K 1/22;
    The new wells above are all located within a stone's throw of six older wells, four still producing, two abandoned:
    • 11290, 175, Denbury Onshore, Westerso 13-6, s5/7/90, 303,109; 11/12; , Dublin, Madison; producing, pump; t6/90; cum 319K 10/16; cum 335K 1/22;
    • 11490, 31, Rim Operating/SM Energy, Curran 1 1, s4/21/85, cum 383K 10/16; Dublin, Madison; producing, on a pump; cum 423K 1/22;
    • 12638, 62, Vanguard Operating, LLCWISCO, Hoff 33-1, spud 5/21/89, cum 113K 10/16; Dublin, Madison; producing, on a pump; cum 126K 1/22;
    • 10329, PA/116, Dekalb Energy, State Gafkjen 1, Dublin, mulitple payzones; ~ 12,000; PNA
    • 13472, PA/25, Berco, Gafkjen State 1-36, Dublin, 10,578; Dublin, Madison; ~ 11,000;  PNA
    • 10893, 114, Denbury Onshore, Eidsvoog 1, spud 8/18/84, cum 280K 10/16; Dublin, Madison, producing, pump; cum 297K 1/22;
    Notice: these are Madison formation wells, and it appears "they" are not done with the Madison yet. From the July, 2011, NDIC hearing dockets (see first comment below):
    • Case 15222: Zenergy, extend Dublin-Madison; 8 320-acre units; 1 hz well on each unit; Williams
    Very, very exciting!  This represents four more sections. 

    Esoteric, Trivial Post -- Example Of Why I Enjoy Blogging -- Learn Someting Every Day -- Fracking and Pump Placement -- Bakken, North Dakota, USA

    This is why I enjoy blogging about the Bakken: to learn and to (hopefully) educate.

    A couple of days ago "anonymous" wrote to me about a well that he/she felt had not been fracked yet because there was no pump on the well.

    At least that's what I understood the comment to be. I could have misread it.

    But if that's what was being assumed ("that a well that did not have a pump yet was not fracked"), I thought it was an opportunity to explore.

    I replied that just because a well did not have a pump, that did not mean it was not fracked yet.

    I wanted to find an example of a fracked well that was not yet on a pump, so I went to my database to find a well that had reported an IP, that had been fracked, and was still flowing without a pump.

    HTG, I went to my 2010 database and randomly chose a well with an IP of 1,427. It turned out to be a Slawson well:
    • 18574, 1,427, Slawson, Mole 1-20H, Big Bend, Bakken
    I went to the well file:
    • Spud date: 8/23/10
    • IP test date: 12/10/10
    • Fracked with 19 stages (the fracking was most likely completed just prior to the test date)
    • Status: F
    The "F" means that the well continues to flow (without a pump) as of the most recent reporting period, which appears to be May, 2011.

    I got a kick out of the fact that, literally, the very first well I checked, had been fracked and was still flowing without assistance of a pump.

    So, just because one sees a well without a pump, one cannot conclude that it has not yet been fracked. It is true that most (?) Bakken wells are put on a pump within the first year, but some can go a very long time without a pump.

    By the way, it is my understanding that a pump/no pump means absolutely nothing with regard to EUR of that well for oil. (Obviously if the well needs a pump, it needs a pump, but a pump doesn't mean the well is going dry. It will be interesting to get feedback on that.)

    I do not know if all, most, or some Bakken wells will have a huge flare with/without man-made (artificial) fracturing.

    KOG Closes Its Public Offering; All Shares (Plus Over-Allotment) Sold; $6.10; 27.6 Million

    Link to follow.

    Over-allotment included 3.6 million shares.

    KOG shares flat on a general market opening that was down.

    Another Nail in the TransCanada XL Coffin? Subsidiary's Brand New Pipeline Explodes; So Loud, Could Be Heard For 10 Miles

    Link here and here.

    Bison pipeline; six months old. 

    More to follow.

    Schlumberger Profit Up 64 Percent: Oil Services Industry Can't Keep Up With Demand -- Profits Should Grow Rest of Year -- Bakken, North Dakota, USA

    Link here.
    Gould said it will be a continuing challenge for the company "to supply both the North American and international markets with the required equipment and people." That's means profits will be up even more this year. Increased drilling activity usually benefits oil service companies by boosting the amount they can charge for rig equipment and other services.
    Another link here.
    “The continued strength in drilling liquid-rich plays in North America coupled with an acceleration in drilling both in exploration and development internationally, will put considerable strain on the ability of the service industry to meet activity levels,” Andrew Gould, Schlumberger’s chief executive officer, said in the statement. 
    The quarter was helped by strong activity in North America at a time when overseas was faltering (Libya, other Mideast locations) but now those overseas locations are coming back (not Libya, yet). And remember, as good as North America was this quarter, it was impacted greatly by very bad weather.
    “They’ve seen margin contraction internationally while margins have actually risen pretty dramatically in the U.S.”


    The company said bad weather in the northwestern U.S. and Canada was offset by increased drilling on land and in deep waters, including renewed interest in the Gulf of Mexico.