- 1246, 161, Hess, Hawkeye-Madison Unit G-603HR, Madison, Hawkeye, s9/56; re7/05; t10/56; cum 482K 6/16; still producing 700 bbls/month in 6/16;
Think about it:
A Madison well that was first drilled in 1956 (56 years ago)
- maintained production with minimal decline
- re-entered in 2005 and boosted production
- 500,000 bbls (average consensus for EURs in the Bakken; I think it will be much higher)
- we haven't even talked about enhanced oil recovery; some feel that EOR will result in slightly greater production than initial recovery (the first 50 years -- smile)
So, at least two pay zones (Madison and the Bakken) before we even get to enhanced oil recovery.
And in other areas, if not this area, several other pay zones including the Three Forks and the Tyler.
And then there is the Red River in some areas of the Williston Basin, and even the Lodgepole.
And the Spearfish.
A lot of Madison wells have been abandoned over the years for financial reasons. My hunch is that if the price of oil stays above $100, the Madison is going to be getting more attention.
By the way: "anonymous" recently pointed out something that I've mentioned before -- some wells were probably shut in / temporarily abandoned / permanently abandoned because the cost of maintaining the wells were not worth it, especially if they were not on a pipeline and oil had to be trucked out. Remember, 75% of all oil produced in North Dakota is still trucked at least part of the journey. As more and more wells go in (the manufacturing phase), more and more pipeline will be laid, reducing the need for trucking the oil from the wellhead to a pipeline or a rail loading facility. Marginal wells will become interesting again, especially as oil stays above $100.
Bottom line: $100 oil will trump a lot of politics. Iran opens a 10-day exercise in which they "practice" shutting down the Strait of Hormuz.