Tuesday, November 22, 2011

Five (5) New Permits -- Bakken, North Dakota, USA

Daily activity report, November 22, 2011 --

Operators: Hess (3), GMX Resources, Baytex

Fields: Beaver Lodge, Big Butte, St Demetrius, and Moraine.

After a bit of a dry spell, a couple of nice wells coming off confidential status:
  • 20501, 1,801, Denbury Onshore, Wolff 13-24ENH, McKenzie
  • 20842, 2,743, BEXP, Larsen 3-10 2H, Williams
A well that will soon belong to KOG, I assume, coming off DRL status was not all that great:
  • 20056, 80, North Plains, A. Cvancara 9-7H, Williams

Random Video -- Local Network With Promo On the Bakken -- The Bakken, North Dakota, USA

I am posting this only for the video; it's a promo but I love the background. All that activity.

Beyond the Bakken

Saudi Says Unconventional Shale (aka The Bakken) Has Changed Things

Link here.

I remember very distinctly when I started blogging about the Bakken the first time (I completely deleted the first iteration of the "milliondollarway" in a moment of despair, depression, and idiocy). One of the reasons for starting the blog the first time was to counter those who said the Bakken was over-hyped. My irritation targeted two specific sites which I will not name. My new blog has outlasted one of those sites, and the other site continues to equivocate on the importance of the Bakken. The second site is full of "nope" which is the only hint I will provide.

Be that as it may, the Saudis have seen the implications of the Bakken and have admitted it is a game changer.
Saudi Arabia's state energy company said on Monday that its dominant role in world oil supply had been altered by large new reserves in North America, sapping the urgency to develop the kingdom's own reserves.
The speech by Saudi Aramco's chief executive was the first from the globe's top oil exporter to acknowledge that unconventional oil was set to shift the energy balance of power and cut U.S. dependence on Middle East crude.

"The Bakken" may not be mentioned by name, but this is where it started and this is where the new technology is being introduced, studied, and exported worldwide.

And every roughneck and every truck driver is playing a role.


MIke Filloon on KOG's Acquisition: Parts I, II, III, and IV -- The Bakken, North Dakota, USA

I haven't had a chance to read Parts II & III, and I can't find where I linked Part I, so to make it easy for all of us, the links will all be here.

Part I.
Part II.
Part III.
Part IV.
Part V.
Bakken Update: Is KOG's Acreage Better Than BEXP's?

Perhaps Part VII will be on the value of KOG when the EPA stops fracking in North Dakota.

Siemens (German) To Locate $350 Million Facility to Charlotte, North Carolina -- Nothing To Do Directly With The Bakken

Link here.
Siemens is continuing to expand its worldwide network of gas turbine manufacturing facilities. The company has invested more than $350 million in a 42,000-square-meter plant in Charlotte, North Carolina, creating 700 new jobs. [That is 700 more new jobs than the President created today.]

The Charlotte plant will not only supply the US and other countries that use 60 hertz grids, but will also export advanced power plant technology around the world. Siemens projects that exports from Charlotte will increase to more than $400 million annually.

After Berlin (Germany), Charlotte is the second key pillar in Siemens international manufacturing network. Siemens is expanding into Russia and Saudi Arabia. Charlotte is the only Siemens plant in the world that makes both gas and steam turbines as well as generators.
I believe Siemens is the number one manufacturer of wind turbines, also. Could be wrong on that.

Stand-Ups vs Lay-Ups; Giving Credit Where Credit Is Due -- The Bakken, North Dakota, USA

Elsewhere I'm glad to see they are finding stuff on this blog they find useful to post and/or link. Don was the one who originally alerted me to the link: outstanding presentation.


February 21, 2017: amazing how far we have come!
Original Post

They are also talking about Whiting's unimpressive Arthaud well in Gaylord oil field. The writers are talking about stand-up and lay-down wells. For newbies, this has to do with the orientation of the horizontal laterals. Stand-ups run, generally, north-south; whereas, laydowns generally run east-west. These are the two wells being compared:
  • 18833, 1,832, Whiting, Froehlich 44-9TFH, Bell, s5/10;t9/10; cumulative 108,767 bbls, laydown; 28 stages, 3.2 million pounds sand
  • 19809, 222, Whiting, Arthaud 21-29TFH, Gaylord s3/11; t5/11; cum 11,128 bbls, stand-up; 30 stages; 2 million lbs sand
As noted, folks are discussing the orientation of the wells.

Here are five other stand-up wells in Gaylord:
  • 19820 (directly north of Arthaud),843, Whiting, Dietz 21-17TFH, Gaylord
  • 19816 (directly east of Arthaud), 202, Whiting, Paluck 21-28TFH, Gaylord
  • 19937, 404, Whiting, Paluck 21-27TFH, Zenith
  • 19926, 161, Whiting, Roller 21-26TFH, Zenith
  • 19923, 865, Whiting, Richard 21-15TFH, Zenith
Unfortunately, except for the Froelich, I cannot find any other laydown horizontals to compare.

If the folks are unto something, that the laydowns are better than the stand-ups, this is very, very problematic. All of the spacing units are 1280-acres in this area, and they are all oriented for stand-ups (sections stacked vertically), except for two spacing units, including the one the Froehlich happened to be in. There is currently a second Froehlich being drilled -- in the same spacing unit as the first Froehlich and almost the same orientation:
  • 21291, DRL, Whiting, Froehlich 41-9TFH, Bell.
I recently saw a request for a permit for "overlapping 1280" which I did not know what that meant, but I now have an idea what is meant by an "overlapping 1280." If it turns out that there is something to this (laydowns vs stand-ups) we may see some horizontals crossing adjacent 1280-spacing units.

It will be important to sort this out: if folks recall, acreage in the Bell area was acquired for an enormous sum of money/acre.