Wednesday, December 21, 2011

Just How Big Was That Decline?

Link here.
Crude futures jumped Wednesday after a government report showed a giant decline in U.S. oil stockpiles.

The U.S. Energy Information Administration said U.S. crude inventories fell by 10.6 million barrels last week, the largest weekly drop in more than a decade. Analysts said a portion of the decline is due to refineries looking to cut costs at the end of the year, but the size of the drop still raised concerns about rising demand.

"A 10-million-barrel draw in crude inventories is massive," said Peter Donovan, vice president and broker at Vantage Trading in New York. "Guys on the floor were definitely taken aback."

Crude stocks often fall at the end of the year as refiners and other companies cut excess supplies to reduce their tax burden. But the size of the drop topped estimates that had called for, on average, a 2.4-million-barrel decline.

Analysts at BNP Paribas said about half of the reported decline was due to a drop in U.S. imports that forced refineries to draw on stockpiles to keep up with foreign demand.

U.S. crude stockpiles have fallen by more than 45 million barrels from a 2011 peak of 369 million barrels in June. Demand for fuel products globally has prompted domestic refineries to churn out diesel for export to Europe and developing markets, such as Brazil.
In addition, the demand for diesel in the Bakken is setting records on a regular basis. 

But is there something else going on? When analysts expect a 2-million-barrel decline and it ends up being a 10-million-barrel decline and analysts can't explain it, it gets real interesting, real fast.

The price of WTI continues to "melt up." Futures show oil up another 16 cents after rising about $4 in the past two days.

This is what I find most interesting: the big jump in the price of oil was Tuesday, a day before the numbers were released; today, the decline was reported, the jump in oil price was significant but not as big as it was the day before. Interesting.

Here's another link confirming this was a HUGE decline

For Investors Only -- CVX and XOM Up Today -- US Oil Supplies Drop

Link here.
Exxon Corp. and Chevron Corp. moved up Wednesday after data showed a big drop in U.S. crude oil supplies, while oil-service shares reversed course and rose in volatile trading.

Exxon Mobil rose 1.3% and Chevron advanced 1.7%. The two oil majors ranked among the top gainers in the 30-stock Dow Jones Industrial Average, which rose about 4 points after spending much of the session in the red. 
Not a small drop, not a mediocre drop, but a "big" drop.

Magic Maps -- More -- Link With Google Earth For An Even Better Experience

As you can probably guess, I am quite impressed and excited with the Magic Maps link.

A reader has pointed out something else, worthy of a stand-alone post.

When one locates a well on the Magic Maps site, one also gets the GPS coordinates (longitude and latitude).

One can type the coordinates in to Google Earth and it will bring you directly to where the location is.

Corral Creek-Bakken Unit -- The Bakken, North Dakota, USA -- A Unit Plan -- A First -- A Model? -- My Math May Be Off -- The Bakken, North Dakota, USA

Updates
Remember: all wells tested after 7/14 might have been affected by new flaring rules put into effect in 2014.

December 22, 2016: note a comment from a reader today. "PH" in the name of some of the wells noted in this field stands for "PILOT HOLE." Pilot holes were drilled for monitoring purposes; the wells were not planned to be producers; some may be converted to SWD wells once their purpose has been fulfilled.

July 1, 2016: CLR with 18 new permits in the Jim Creek / Corral Creek oil fields.

June 30, 2016: random update of the Corral Creek oil field

June 3, 2014: random update of one area of Corral Creek oil field

December 29, 2013: new pipeline announced -- Bakken Oil Express -- Killdeer to Dickinson.
December 16, 2012: human interest story on Corral Creek.
The permits have been updated below. Note that "they" are starting to drill the Three Forks, also, in this field. On this date, the field is 60 sections; on the west edge (but outside) of the reservation; mostly T147N-95W; approximately six sections with part or all surface under the river; drilling concentrated in the southwest corner of this field; only one wells in the 17 sections in the north; two rigs now; COP says they will be moving in a third rig in the spring;the most interesting location today is the four-corner area where sections 19-20-29-30 meet:
Sited:
  • 6464, PA/298, GPE-ALAQ-19-147-95 BN 1, Duperow (Red River dry); t7/78,  40K total;
  • 8298, PA/238, 29-147-95 Burlington Northern 1/Coastal Oil & Gas, Red River, 9/81; 16K total;
  • 17308, drl, BR, CCU Meriwether 44-19TFH, 4/12; no IP yet;
  • 17313, 68, BR, CCU Williams 14-20H, Bakken; t10/08; cum 129K 10/12;
  • 19856, 130, BR, CCU Meriwether 44-19MBH, t7/12; cum 900 bbls 10/12;
  • 22814, see below
  • 22815, see below
  • 24245, see below
  • 24246, see below
  • 24247, see below
  • 24481, see below
  • 24482, see below
  • 24483, see below
  • 24484, see below
 Toe-end of horizontals at the four-corner area:
  • 17082, 75, BR, CCU Powell 14-32H, Bakken, t6/08; cum 57K 10/12;
  • 17590, 698, BR, CCU Carol 44-31H, Bakken, t3/09; cum 93K 10/12;
And a bit farther to the west, another toe-end:
  • 16798, 453, BR, CCU Prairie Rose 24-31H, Bakken, t4/08; cum 196K 10/12;
November 3, 2012: another link regarding minimizing pad drilling in the Little Missouri State Park.
The Little Missouri State Park is a hideaway in western North Dakota with 47 miles of backpacking and horseback trails. But with 10 million barrels of oil beneath the park, it is becoming another target for drilling.

"This area should probably have never been developed anyway. But in a state park, we would think that there would automatically be a a prohibition on oil development," said Clay Jenkinson.

But there is nothing stopping oil companies to develop in the state park. Not even the state can stand in the way because it only owns seven percent of the minerals in the park.

"If the state made a decision that it was not going to lease its minerals, it really could not stop the development. It would just be forgoing revenue. So the best thing to do is sit down with a potential operator and work out an agreement about where the wells are going to be placed so that to the extent possible you keep them out of the way," said Lynn Helms, North Dakota Department of Mineral Resources Director.

The state made that agreement with Burlington Resources to create a large 30,000 acre drilling pad known as unitization, that will house 80 wells. Five additional well pads will be located inside the park with up to 15 wells.
May 18, 2012: Five new permits for Burlington Resources in Corral Creek on this date (see below: 22965, 22966, 22967, 22968, and 22970).  Note the "P" designation on one of the wells (#22970).  Whiting is using the "P" designation for the Pronghorn Sand. Is BR targeting three payzones in Corral Creek: middle Bakken, Three Forks, and Pronghorn Sand? This will put three wells in one of these spacing units, and four wells in another spacing unit.

Permits

2016
32511, conf, BR, CCU Mainstreeter
32510, conf, BR, CCU Mainstreeter
32509, conf, BR, CCU Mainstreeter
32508, conf, BR, CCU Mainstreeter
32467, conf, BR, CCU Boxcar
32466, conf, BR, CCU Audubon
32465, conf, BR, CCU Golden Creek
32464, conf, BR, CCU Burner

2015 (list is complete)
32422, conf, BR, CCU Boxcar
32421, conf, BR, CCU Boxcar
32420, conf, BR, CCU Audubon
32348, conf, BR, CCU Mainstreeter
32347, conf, BR, CCU Mainstreeter
32346, conf, BR, CCU Mainstreeter
32334, conf, BR, CCU Red River
32332, conf, BR, CCU Red River
32331, conf, BR, CCU Red River
32330, conf, BR, CCU Dakotan
32269, conf, BR, CCU Atlantic Express
32268, conf, BR, CCU Pacific Express
32267, conf, BR, CCU Pacific Express
32208, conf, BR, CCU Atlantic Express
32207, conf, BR, CCU Atlantic Express
32206, conf, BR, CCU Pacific Express
32136, conf, BR, CCU Pacific Express
32135, conf, BR, CCU Pacific Express
32134, conf, BR, CCU Atlantic Express
32079, drl, BR, CCU Badger 3-3-14 MBH,
32078, drl, BR, CCU Badger 2-3-14TFH,
32077, drl, BR, CCU Badger 2,3-154MBH, 
32076, drl, BR, CCU Badger 1-3-14TFH,
32005, SI/NC, CCU Zephyr
32004, SI/NC, CCU Zephyr
32003, SI/NC, CCU Zephyr
32002, SI/NC, CCU Zephyr
32001, SI/NC, CCU Zephyr
32000, SI/NC, CCU Zephyr 24-34 MBH,
31999, SI/NC, BR, CCU Zephyr 14-34TFH,
31950, 2,035, BR, CCU Crosby USA 41-6H, t1/16; cum 57K 10/16;
31937, 481, BR, CCU Plymouth 21-29TFH, t2/16; cum74K 10/16;
31936, 2,204, BR, CCU Plymouth 11-29MBH, t2/16; cum 91K 10/16;
31935, 521, BR, CCU Plymouth 11-29TFH, t2/16; cum 91K 10/16;
31934, 2,245, BR, CCU Atlantic Express 41-30MBH, t2/16; cum 128K k10/16;
31906, conf, BR, CCU Burner
31905, conf, BR, CCU Golden Creek
31904, conf, BR, CCU Golden Creek
31760, 2,352, BR, CCU Audubon 3-7-22TFH, t12/15; cum 152K 10/16;
31759, 2,472, BR, CCU Boxcar 4-7-22TFH, t12/15; cum 146K 10/16;
31581, conf, BR, CCU Audubon
31580, conf, BR, CCU Audubon
31579, conf, BR, CCU Boxcar
31402, 1,824, BR, CCU Burner 31-26 TFH; t12/15; cum 94K 10/16;
31401, 1,848, BR, CCU Golden Creek 34-23 TFH; t12/15; cum 78K 10/16;
31180, 3,287, BR, CCU Atlantic Express 23-19 MBH; t2/16; cum 121K 10/16;
31179, 2,124, BR, CCU Atlantic Express 13-19 TFH; t2/16; cum 109K 10/16;
31178, 2,044, BR, CCU Pacific Express 12-19 TFH; t1/16; cum 118K 10/16;
30940, 2,405, BR, CCU Bison Point 34-34MBH; t12/15; cum 126K 10/16;
30939, 2,325, BR, CCU Bison Point 34-34TFH; t1/16; cum 102K 10/16;
30938, 2,445, BR, CCU Bison Point 24-34MBH; t1/16; cum 106K 10/16;
30937, 2,164, BR, CCU Bison Point 24-34TFH, t1/16; cum 134K 10/16;
30780, 2,525, BR, CCU Gopher 22-15MBH, t9/15; cum 149K 10/16;
30779, 2,325, BR, CCU Gopher 1-2-15TFH, t9/15; cum 105K 10/16;
30778, 1,844, BR, CCU Red River 8-2-15MBH, t9/15; cum 135K 10/16;
30777, 1,960, BR, CCU Red River 7-2-15TFH, t10/15; cum 92K 10/16;

Permits issued in 2014 (list is complete)
30367, SI/NC, CLR, Brandvik
30366, SI/NC, CLR, Brandvik
30365, SI/NC, CLR, Brandvik 5-25H1,
30364, SI/NC, CLR, State Weydahl
30363, SI/NC, CLR, State Weydahl
30362, SI/NC, CLR, State Weydahl 5-36H1,
30117, 875, BR, CCU Dakotan 5-8-17MBH, t8/15; cum 150K 10/16;
30116, 1,899, BR, CCU Dakotan 4-8-17TFH, t9/15; cum 110K 10/16;
30115, 1,823, BR, CCU Dakotan 3-8-17MBH, t8/15; cum 153K 10/16;
30092, 2,664, BR, CCU Dakotan 7-8-17MBH, t8/15; cum 178K 10/16;
30091, 2,445, BR, CCU Dakotan 7-8-17TFH, t9/15; cum 118K 10/16;
30089, 2,577, BR, CCU Dakotan 5-8-17TFH, t8/15; cum 106K 10/16;
29982, 1,848, BR, CCU Dakotan 2-7-17TFH, t8/15; cum 134K 10/16;
29981, 2,352 BR, CCU Dakotan 1-7-17MBH, t8/15; cum 166K 10/16;
29980, 1,968, BR, CCU Dakotan 1-7-17TFH, t8/15; cum 100K 10/16;
29979, 1,824, BR, CCU Dakotan 2-7-17MBH, t8/15; cum 133K 10/16;
29555, 1,497, CLR, State Weydahl 4-36H1, t7/15; cum 238K 10/16;
29533, 1,964, BR, CCU Main Streeter 24-24TFH, t3/15; cum 181K 10/16;
29532, 1,924, BR, CCU Main Streeter 14-24MBH, t2/15; cum 187K 10/16;
29220, 2,044, BR, CCU Golden Creek 44-23MBH, t2/15; cum 207K 10/16;
29219, 1,643, BR, CCU Golden Creek 44-23TFH, t2/15; cum 139K 10/16;
29218, 1,643, BR, CCU North Coast 4-8-23TFH, t3/15; cum 126K 10/16;
29217, 2,244, BR, CCU North Coast 4-8-23MBH, t3/15; cum 127K 10/16;
29070, conf, BR, CCU Audubon 31-27TFH,
29069, conf, BR, CCU Audubon 21-27MBH,
29068, conf, BR, CCU Boxcar 34-22TFH,
29067, conf, BR, CCU Boxcar 24-22MBH,
28369, 2,766, BR, CCU Pullman 6-8-7MBH, t116K 10/16;
28368, 2,004, BR, CCU Pullman 7-8-7TFH, t3/15; cum 68K 10/16;
28367, 2,886, BR, CCU Pullman 7-8-7MBH, t3/15; cum 144K 10/16;
28366, 1,403, BR, CCU Pullman 8-8-7TFH, t3/15; cum 92K 10/16;
28365, 1,320, BR, CCU Pullman 6-8-7TFH, t1/15; cum 93K 10/16;
28364, 2,160, BR, CCU Pullman 5-8-7MBH, t/15; cum 128K 10/16;
28363, 2,160, BR, CCU Pullman 5-8-7TFH, t2/15; cum 111K 10/16;
28355, 2,244, BR, CCU Pullman 3-8-7MBH, t2/15; cum 155K 10/16;
28354, 2,445, BR,  CCU Pullman 3-8-7TFH, t2/15; cum 108K 10/16;
28352, 2,445, BR, CCU Pullman 1-8-7TFH, Corral Creek, t2/15; cum 153K 10/16; the file report contains BR's 2014 plan for developing the Corral Creek;
27890, 1,008, BR,  CCU Olympian 11-2TFH, t10/14; cum 106K 10/16;
27889, 1,992, BR, CCU Olympian 11-2MBH, t9/14; cum 202K 10/16;
27808, 2,705, BR, CCU Olympian 31-2MBH, t9/15; cum 129K 10/16;
27807, 2,333, BR, CCU Olympian 31-2TFH, t10/15; cum 116K 10/16;
27806, 2,059, BR, CCU Olympian 21-2MBH, t10/15; cum 139K 10/16;
27754, 1,536, BR, CCU Olympian 44-35TFH, t9/14 cum 161K 10/16;
27753, 1,848, BR,CCU Olympian 44-35MBH, t9/14; cum 190K 10/16;
27745, 2,416, XTO, Brandvik 44X-13C, t11/14; cum 223K 10/16;
27744, 2.026, XTO, Brandvik 44X-13H, t11/14; cum 198K 10/16;
27743, 2,510, XTO, Brandvik 44X-13D, t11/14; cum 219K 10/16;
27742, 2,937, XTO, Brandvik 44X-13G, t12/14; cu 184K 10/16;
27741, 1,649, XTO, Brandvik 24X-13F, t9/14; cum 226K 10/16;
27740, 2057, XTO, Brandvik 24X-13E2, t10/14; cum 218K 10/16;

Permits issued in 2013 (list complete)
27269, 2,324, BR, CCU Red River 24-9MBH, t6/14; cum 168K 10/16;
27268, 1,803, BR, CCU Red River 34-9TFH, t6/14; cum 3K 9/14;
27267, 2,525, BR, CCU Red River 34-9MBH, t6/14; cum 5K 9/14;
27132, 2,164, BR, CCU Corral Creek 31-28MBH, t8/14; cum 13K 9/14;
27130, 1,964, BR, CCU Four Aces 34-21MBH, t8/14; cum 10K 9/14;
27129, 1,362, BR, CCU Four Aces 34-21TFH, t8/14; cum 13K 9/14;
26681, 1,844, BR, CCU North Coast 11-25TFH, t5/14; cum 52K 9/14;
26680, 2,664, BR, CCU Burner 41-26MBH, t4/14; cum 56K 9/14;
26679, 1,776, BR, CCU Burner 41-26TFH, t3/14; cum 38K 9/14;
26439, 2,084, BR, CCU Four Aces 14-21TFH, t4/14; cum 27K 9/14;
26438, 2,405, BR, CCU William 44-20MBH, t4/14; cum 75K 9/14;
26437, 2,124, BR, CCU Corral Creek 11-28TFH, t4/14; cum 25K 9/14;
26436, 1,944, BR, CCU Powell 41-29MBH, t11/14; cum 158K 10/16;
26409, 1,964, BR, CCU Corral Creek 11-28MBH, t8/14; cum 6K 9/14; 
26408, 1,283, BR, CCU Corral Creek 21-28TFH, t8/14; cum 7K 9/14;
26407, 1,884, BR, CCU Four Aces 24-21TFH, t8/14; cum 9K 9/14;
26406, 2,164, BR, CCU Four Aces 24-21MBH, t8/14; cum 8K 9/14;
26390, 1,272, BR, CCU North Coast 21-25TFH, t3/15; cum 102K 10/16;
26389, 1,920, BR, CCU North Coast 21-25MBH, t3/15; cum 232K 10/16;
26388, 1,680, BR, CCU North Coast 31-25TFH, t4/15; cum 80K 10/16;
26387, 2,112, BR, CCU North Coast 31-25MBH, t3/15; cum 150K 10/16;
25910, 2,544, BR, CCU Columbian 33-1MBH, t2/14; cum 16K 4/14;
25909, 2,880, BR, CCU Columbian 33-1TFH, t3/14; cum 12K 4/14;
25908, 2,976, BR, CCU Columbian 43-1MBH, t3/14; cum 14K 4/14;
25907, 2,712, BR, CCU Columbian 43-1TFH, t3/14; cum 8K 4/14;
25822, 1,403, BR, CCU Columbian 24-36TFH, t2/14; cum 6K 4/14;
25821, 2,164, BR, CCU Columbian 14-36TFH, t3/14; cum 14K 4/14;
25784, 1,924, BR, CCU William 14-20TFH, t2/14; cum 3K 4/14;
25783, 2,485,, BR, CCU William 14-20MBH, t2/14; cum 4K 4/14; 
25510, 2,766, BR, CCU William 44-20TFH, t2/14; cum 7K 4/14;
25509, 2,886, BR, CCU William 34-20MBH, t2/14; cum 30K 4/14;
25508, 1,202, BR, CCU Powell 41-29TFH, t815; cum 75K 10/16;
25507, 2,926, BR, CCU Powell 31-29MBH, t2/14; cum 5K 4/14;
25439, 2,979, BR, CCU Bison Point 44-34TFH, t10/13; cum 66K 4/14;
25438, 2,972, BR, CCU Bison Point 44-34MBH, t9/13; cum 75K 4/14;
25280, 1,964, BR, CCU William 34-20TFH, t10/13; cum 61K 4/14;
25279, 2,966, BR, CCU William 24-20MBH, t10/13; cum 84K 4/14;
25278, 2,605, BR, CCU William 24-20TFH, t10/13; cum 59K 4/14;
24982, 2,992, BR, CCU Four Aces 44-21MBH, t11/13; cum 91K 4/14;
24981, 2,559, BR, CCU Four Aces 44-21TFH, t11/13; cum 71K 4/14;
24980, 2,894, BR, CCU Corral Creek 41-28MBH, t10/13; cum 58K 4/14;
24979, 2,982, BR, CCU Corral Creek 41-28TFH, t10/13; cum 31K 4/14;
24906, 2,971, BR, CCU Meriwether 34-19TFH, t7/13; cum 50K 4/14;
24905, 2,846, BR, CCU Prairie Rose 31-30MBH, t8/13; cum 204K 10/16;

Permits issued in 2012
  • 22814, 2,365, BR, CCU Powell 31-29MBH, 29-147-95; 2-well pad; t10/12; cum 96K 4/14;
  • 22815, 1,643, COP/BR, CCU Powell 21-29MBH, 29-147-95; 2-well pad;  t10/12; cum 66K 4/14;
  • 22965, 2,896, BR, CCU Golden Creek 34-23MBH; 4-well pad; t4/13; cum 165K 4/14;
  • 22966, 1,648, BR, CCU Golden Creek 24-23MBH; 4-well pad; t4/13; cum 87K 4/14;
  • 22967, 2,242, BR, CCU Burner 21-26MBH; 4-well pad; t8/13; cum 4K 4/14;
  • 22968, 2,129, BR, CCU Burner 21-26TFH; 4-well pad; t7/13; cum 83K 4/14;
  • 22970, dry, BR, CCU Golden Creek 33-23PH, a Birdbear well, single well; sited in an unusual location within the section; PH = pilot hole; drilled as a monitoring hole; never expected to be a production well; some PH wells converted to SWD wells;
  • 23133, 2,004, BR, CCU, Prairie Rose 41-30MBH, 3-well pad; t2/13; cum 90K 4/14;
  • 23134, 2,124, BR, CCU Powell 11-29TFH, 3-well pad; t2/13; cum 50K 4/14;
  • 23135, 1,844, BR, CCU Powerll 11-29MBH, 3-well pad; t2/13; cum 78K 4/14;
  • 23208, 240, BR, CCU Boxcar 44-22PH, Corral Creek, single well; t10/13; cum 1K 4/14;
  • 23783, 640, CLR, Brandvik 4-25H, 2-well pad (in same section as 2-well pad for #23785), t10/13; cum 74K 4/14;
  • 23784, 632, CLR, Brandvik 3-25H, 2-well pad; t10/13; cum 79K 4/14;
  • 23785, 400, CLR, State Weydahl 3-36H, 2-well pad (in same section as 2-well pad for #23783); t8/13; cum 84K 4/14;
  • 23786, 691, CLR, State Weydahl 2-36H, 2-well pad; t8/13; cum 94K 4/14;
  • 24245, 2,445, BR, CCU Prairie Rose 11-30 TFH, Corral Creek, 3-well pad; t7/13; 60K 4/14;
  • 24246, 2,164, BR, CCU Meriwether 14-10TFH, Corral Creek, 3-well pad; t7/13; cum 85K 4/14;
  • 24247, 2,966, BR, CCU Meriwether 14-19MBH, Corral Creek, 3-well pad; t7/13; cum 69K 4/14;
  • 24481, 1,824, BR, CCU Meriwether 24-19TFH, Corral Creek, 4-well pad; t7/13; cum 29K 4/14;
  • 24482, 2,963, BR, CCU Meriwether 24-19 MBH, Corral Creek, 4-well pad; t7/13; cum 51K 4/14;
  • 24483, 2,840, BR, CCU Prairie Rose 21-30MBH, Corral Creek, 4-well pad; t7/13; cum 63K 4/14;
  • 24484, 2,932, BR, CCU Prairie Rose 31-30TFH, Corral Creek, 4-well pad; t8/13; cum 90K 4/14;
Earlier permits of interest:
  • 16912, IA/266, BR, CCU Burner 41-26H, t4/08; cum 138K 10/13;
  • 17781, exp-->LOC, BR, Golden Creek 44-23H,
  • 18080, 999, BR, CCU North Coast 11-25H, t10/09; cum 111K 4/14;
  • 18120, 2,966, BR, CCU Mainstreeter 14-24TFH,t2/14; cum 172K 10/16;
Original Post
Link here.

This is huge, literally and figuratively.

Some time ago, it was reported that all the permits in a certain area of the Bakken, North Dakota, were declared null and void by the NDIC. At the time I opined that the NDIC was working to come up with a solution to minimizing the oil industry's footprint in a state park. It looks like they have come up with a great plan.
North Dakota regulators on Tuesday approved a huge new oil production unit north of Killdeer that includes a state park and thousands of acres of rugged, scenic land in the state’s western Badlands.
The formation of the Corral Creek-Bakken unit, which covers almost 50 square miles, will allow production of up to 43 million barrels of oil while using fewer oil drilling pads and tank storage batteries, said Lynn Helms, director of the state’s Department of Mineral Resources.
“The number of trucks will be much, much less because the gas, the oil and the water are all going to move by pipeline,” Helms said. “It’s much more efficient in terms of the impacts and use of the landscape.”
The unit plan is the first for the Bakken and Three Forks oilfields in western North Dakota, which have been mostly responsible for the state’s boom in energy development.
Some data points:
  • Burlington Resources (COP) will manage the unit
  • Burlington, the state, and the federal government own more than 60 percent of the unit's mineral production rights
  • >60 percent ownership is large enough to seek unit approval
  • to drill 80 oil wells over six years or more; already has 12 producing wells
  • now, BR says they can finish the unit in 3.5 years
  • 30,000-acre unit
  • 43 million bbls of oil vs the 28 million if the unit was broken into smaller drilling units
  • the unit sits in Dunn County, about 15 miles north of Killdeer, south of the Little Missouri River
  • the unit includes the Little Missouri State Park
43 million bbls/30,000 acres --> 1,433 bbls/acre --> 1 million bbls/section: that's the "official" word. Others can correct/review/check the math.

Bakken/Three Forks wells in Dunn County:
  • at least four wells/1,280-acre unit
  • as many as eight wells/1,280-acre unit
  • EURs for a well in the core Bakken approaching 1 million bbls
  • 30,000 acres --> close to 50 sections --> 25 1,280-acre units
  • I'll let others do the math -- I've already done it
Somewhere my math must be off.

Wow, Wow, Wow -- The KOG/BTA Deal -- The Bakken, North Dakota, USA

Wow, wow, wow.

There have been any number of articles on the recent North Plains assets and acreage acquired by KOG.

Some time before that, there were press releases reporting KOG's acquisition of BTA assets and acreage.

But in today's daily activity report, one can actually see how great the BTA deal was. This is really quite incredible.

Here is a list of wells that will be transferred from BTA to KOG. The "XK/month" is the current production of these wells. These wells are in three incredibly good fields (all in Williams County): the Stockyard Creek, East Fork, and the Epping field. The Stockyard Creek has been known for quite some time to be a great field; the Epping is just starting, and it appears to be a great field, also, based on early production. And, if that doesn't get your attention, this should: the record TFS well to date was drilled in East Fork. Wow.

Here are the new KOG wells (previously BTA wells):
  • 11975, 20711 Paulson 9-42 SWD
  • 18758, 714, 20711 Paulson 49 1H, 7K/month; off-line; pump?, Stockyard Creek
  • 18890, 721, 20711 Springbrook 58 1H, 13K/month, Stockyard Creek
  • 19220, 1,057, 20711 Saccaro 310 1H, 10K/month, Stockyard Creek
  • 19329, 1,261, 20711 Bibler 67 1H, 10K/month, Stockyard Creek
  • 19576, 1,223, 20711 Erickson 3130 1H, 10K/month, Epping
  • 19906, 823, 20711 Kreidle 3229 1H, 10K/month, Stockyard Creek
  • 20507, 827, 20711 Swanson 3328 1H, 14K/first month, Epping; t10/12; cum 148K 1/13;
  • 20515, 2,462, 20711 Alice 3427 1H, Epping; t8/12; cum 83K 1/13;
  • 20563, 1,710, 20711 Peterson 1522 1H, Epping
  • 20730, 1,706, 20711 Long 112 1H, Stockyard Creek; s10/11; t10/12; cum 146K 1/13;
  • 20838, 1,205, 20711 Lind 211 1H, DRL, Stockyard Creek; t10/12; cum 75K 1/13;
  • 21041, 1,415, 20711 State 1621 1H, Epping
  • 21042, 1,204, 20711 Mildred 94 1H, Epping
  • 21078, 2,129, 20711 Alexander 112 1H, East Fork; t8/12; cum 67K 1/13;
  • 21081, 341, 20711 Gafkjen 103 1H, East Fork
This acquisition is better than I first realized. Along with the recent North Plains acquisition, KOG is getting very, very interesting.

Ten (10) New Permits -- The Bakken, North Dakota, USA

Daily activity report, December 21, 2011 --

Operators: Petro-Hunt (3), MRO (2), Dakota-3 (2), CLR, Denbury Onshore, Whiting

Fields: Wildrose, Van hook, North Tioga, Siverston, and Ellsworth

Reported elsewhere are the four wells that came off the confidential list; only one was completed; the other three are waiting to be fracked.

Some interesting trivia about:
18212, re-entry, Red Willow Great Plains, MHA 1-11H-148-90-SESW, McLean County. Red Willow, back in May, 2011, requested that Red Willow take over the well operations from Stetson Oil & Gas, and abandon the Bakken horizontal and "test" the Dakota formation. The only think I know about the Dakota formation is to use it for salt water disposal (maybe I'm wrong).

The NDIC did not give permission to abandon the horizontal and test the Dakota formation. So, that appears to still be in flux. If you check the well file, note that the first page of the well file has a sundry form from a different well (the Vanvig #1 will in Billings County, a wildcat targeting the Tyler, #18216). 
Of more interest are the three wells previously on DRL status have have now been completed, including:
  • 20251, 313, Samson Resources, Blue Jay 32-29-16-95H, Divide County
  • 20630, 3,179, BEXP, Banks State 16-21 1H, McKenzie, previously reported
  • 20632, 1,933, Enderud 9-4 2H, McKenzie
This is interesting, the list of BTA wells that will be transferred to KOG; all are in Williams County, T154N-R99W and T155N-99W, current production, bopd:
  • 11975, 20711 Paulson 9-42 SWD
  • 18758, 20711Paulson 49 1H, 7K/month; off-line; pump?, Stockyard Creek
  • 18890, 20711Springbrook 58 1H, 13K/month, Stockyard Creek
  • 19220, 20711Saccaro 310 1H, 10K/month, Stockyard Creek
  • 19329, 20711 Bibler 67 1H, 10K/month, Stockyard Creek
  • 19576, 20711 Erickson 3130 1H, 10K/month, Epping
  • 19906, 20711 Kreidle 3229 1H, 10K/month, Stockyard Creek
  • 20507, 20711Swanson 3328 1H, 14K/first month, Epping
  • 20515, 20711 Alice 3427 1H, conf, Epping
  • 20563, 20711 Peterson 1522 1H, conf, Epping
  • 20730, 20711 Long 112 1H, conf, Stockyard Creek
  • 20838, 20711 Lind 211 1H, DRL, Stockyard Creek
  • 21041, 20711State 1621 1H, conf, Epping
  • 21042, 20711Mildred 94 1H, conf, Epping
  • 21078, 20711Alexander 112 1H, East Fork
  • 21081, 20711 Gafkjen 103 1H, East Fork

Billings Gazette Provides Beautiful Photo Gallery of Bakken Activity Around Sidney -- The Bakken, Montana, USA

Link here.

About 18 great photos. Enjoy.

Interesting Routing Proposal for the Keystone XL

CRC alerted me to this:
As far as the Keystone XL pipeline I like what North Dakota PUC Commissioner Keven Cramer proposes for routing. He would start it in Montana and turn it southeast enough to enter North Dakota at the Williams County line and carry it into McKenzie County staying away from crossing Lake Sakakwea. Then running the pipeline in a diagonal line along an existing gas pipeline to the South Dakota border in southeast North Dakota.

In South Dakota it would connect up with the existing Keystone pipeline right away to Oklahoma. This gives better access to the pipeline for Bakken and other North Dakota crude.

Put the pipeline in. As long as it doesn't cross Canadian-US border, it wouldn't require State Department approval. The six states involved should form a coalition, complete the routing proposal (working with TransCanada), and lay the pipeline.
Once the construction is complete: a) new administration to give this a fair hearing, i.e., immediate approval; or, b) current administration to say "yes" or "no." If "no" fill the pipeline with Bakken oil.

Here's a video of the proposed Keystone XL route (I am not taking a political position with regard to individual running for Congress.  I'm just interested in the pipeline route proposal.

Proposed Keystone XL Route

3 Out of 4 Wells Not Completed -- Waiting To Be Fracked -- The Bakken, North Dakota, USA

Three out of four wells are waiting to be fracked!

That might be the headline if The National Enquirer followed the Bakken.  In fact, it's not quite that bad (but almost).

Today's reporting revealed that three of four wells coming off confidential list were not completed / not fracked. Over time, it appears that about 50 percent of wells coming off the confidential list are not completed, and go onto DRL status.

Having said that, there a few additional comments that could be made regarding these four wells:
  • 20977, DRL, ERF, Morrison 149-93-10AH, Mandaree, Bakken, 
  • 20435, DRL, BR, Scott 21-36MBH, Murphy Creek, Bakken, 
  • 19958, DRL, MRO, Rhoda 24-31H, Big Bend, Bakken, 
  • 19684, 2,423, Whiting, Arnegard 21-26H, Wildcat, Bakken, s2/11; t6/11; cum 50K 10/11; middle Bakken, 30 stages, 2.3 million lbs proppant; sand, no ceramics
First, notice the nomenclautre of the ERF well ("AH").

The first three are in great oil fields: the Mandaree, Murphy Creek, and Big Bend.

Whiting's wildcat is right in the bull's eye of the Bakken; one mile south of Arnegard, about six miles west of Watford City, in Timber Creek oil field, a field that is composed of only 6 sections. 

Idle Rambling -- Wednesday Morning

For those who came to this site strictly for Bakken information, please disregard this post.

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North Dakota census: new record.
The Census Bureau's data shows North Dakota's population is pegged at 683,932 residents. That's up from the previous record of 680,845 residents set in 1930.
The most interesting thing about that article: the "Bakken" was not mentioned. Although in fairness, it it did mention "the oil patch."

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Perhaps the biggest story of the day: Chevy Volt costing taxpayers $250,000 per car.
Each Chevy Volt sold thus far may have as much as $250,000 in state and federal dollars in incentives behind it – a total of $3 billion altogether, according to an analysis by James Hohman, assistant director of fiscal policy at the Mackinac Center for Public Policy.

Hohman looked at total state and federal assistance offered for the development and production of the Chevy Volt, General Motors’ plug-in hybrid electric vehicle. His analysis included 18 government deals that included loans, rebates, grants and tax credits. The amount of government assistance does not include the fact that General Motors is currently 26 percent owned by the federal government.
And then this:

Talking head: being bought by taxpayers and by GE. A few wealthy elites might be buying this car but the working stiffs are paying for it. Let's stop this madness.


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I see oil is up another $1.15 today (on a day when the US dollar is stronger, go figure) and this $1.15 is on top of the $3.00 yesterday. And this is not peak driving season. Looks like the oil market is starting to find a new floor. The old floor was $70.

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Nope, I was wrong. The top story of the day is not the story on the Volt (above) but rather the story (and even better, the picture) of the two Navy women kissing upon return to port. A great Navy tradition just got better. 

And every US Navy sailor loved it. Smile.

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Has the US Senate adjourned for the year? The misinformation regarding the payroll tax cut is astounding
If the payroll-tax cut expires, it will affect 160 million workers and would average nearly $1,000 in higher taxes for them next year.
That may be true, but the tax cut extension everyone is referencing is for a two-month extension. There's no way a two-month extension equates to a $1,000 tax cut. And even the White House agrees that a two-month extension could not be implemented in time to make any difference. By the time it was implemented the months (January and 28-day February) would have passed.

This is what bothers me:
Senators couldn’t reach a similar long-term agreement, so on Saturday they passed a two-month extension of those provisions, though they cut out the new unemployment benefit changes that would have let states conduct drug testing and would have required the unemployed to have a high school diploma or GED certificate, or be working toward one.
Anyone who can't agree on these two items ... the president's mantra has been education for the unemployed, and taking one hour credit every year or so would not have been burdensome --- and drug testing .. that's a no-brainer... the military is drug tested, truck drivers are drug tested, TSA folks are drug tested (or are they?), NFL players are drug tested, Olympians are drug tested....and if someone tests positive, a note from her physician will explain it away ...

Remember, the president and the GOP are on the same side of this year: they both want a full-year extension; it was the Harry Reid-led Senate that couldn't pull it together.

But if the extension is that important, the president needs to decree a one-year extension by executive order; certainly he can find a connection to homeland security.

Oh, by the way, they say taxes will go up if this extension is not passed. "Payroll tax" was a misnomer to begin with: if I'm not mistaken, this "tax" funds worker's  retirement (called "social security"). The "payroll tax" was lowered as part of the program to stimulate the economy: right, wrong, or indifferent, it was meant to expire at this time. To be perfectly honest, Congress should let this expire as the law was originally passed, and then if stimulus is still required and if this is the way Congress wants to stimulate the economy, then pass a new bill altogether. This is not rocket science.

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SeekingAlpha.com article today mentions seven companies in which insiders bought yesterday. Of the seven, only one energy company: KOG.

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Southern Company and American Electric Power Company, Inc. are protesting the White House’s newly finalized rules for the curbing of toxin emissions from coal-fired power plants, saying they would have to shut down plants in order to install new equipment. The Environmental Protection Agency estimates the rules will cost utilities, which will have to install scrubbers in order to be compliant, $10.6 billion by 2016.
It takes a bit of time, but death by a thousand cuts comes to mind.  $10 billion is the EPA's estimate; something tells me the estimate is being low-balled.

By the way, it's no longer in the "what-if" column: the rules have been issued. Now that this is behind them, the EPA can get on with banning hydraulic fracking.

The public utilities should go to their state public utility commissioners and tell them they have no plans to retrofit the utilities unless they have the money in their coffers before retrofitting begins. Period. Dot. If not retrofitted, the power plants come off line.