Wednesday, January 4, 2012

Update of OXY USA Since They Entered The Bakken Having Acquired Anschutz -- The Bakken, North Dakota, USA

Summary of Issue

In January, 2012, I posted a stand-alone noting the low IPs being reported by OXY USA. These were so far outside the mainstream, folks started suggesting these IPs were calculated before the wells were fracked, and on March 14, 2012, a reader noted that the low amount of oil being returned the first month, suggested that indeed, that was the case: the IPs were being calculated/released before the wells were fracked. Below is some original data, that I update periodically.

I would recommend that folks ignore the commentary and pay attention only to the factual data (IPs; cumulative production; frack data; etc). In many cases, the commentary is out of date, and well information is being added and updated on a regular basis.

From my perspective, the low IPs mean nothing, if the one year-, two year-, and three-year production levels are similar to others. So focus on yearly cumulatives.


Note: this page may or may not be updated in the future. All updates will be shown at "OXY in the Bakken."

July 9, 2012
  • 21642, 298, OXY USA, Georgia Fisher/Coyote Creek 1-20-17H-142-97, Willmen, t4/12; cum 6K 5/12;
July 5,  2012: a better well (based on IP)
  • 21293, 217, OXY USA, Maurice Hecker 1-19-18H-142-97, Willmen; t1/12; cum 10K 5/12;
July 3, 2012
  • 21829,  840, OXY USA, Elroy Kadrmas 2-10-3H-143-96, Fayette, t6/12; cum
June 11, 2012: Again, OXY does not disappoint.
  • 19642, 42, OXY USA, Darlene Dvorak 1-27-34H-143-95, Murphy Creek, t2/11; cum 24K 5/12;
June 6, 2012 (one very good well for OXY; the other so-so)
  • 21334, 755, OXY USA, Kenneth Stroh 2-12-1H-143-97, Cabernet; my data base shows an IP but it is on confidential July 12, 2012
  • 21505, 349, OXY USA, State Watkins 1-26-35H-143-95; Murphy Creek; my data base shows an IP but it is on confidential July 12, 2012Murphy Creek
  • 22262, 352, OXY USA, Little Butte 1-21-28H-160-90, Dimond; my data base shows an IP but it is on confidential July 12, 2012
  • 22369, 499, OXY USA, State Jablonsky B 1-36-25H-142-95, Murphy Creek; my data base shows an IP but it is on confidential July 12, 2012
June 4, 2012: One cannot say that OXY is not consistent.
  • 21448, 82, OXY USA, Mogren 159-90-5-P-1H,Vanville, t2/11; cum 20K 5/12;
June 1, 2012
  • 20749, 101, OXY USA/Anschutz, Marlene Steffan 1-5-8H-141-97, St Anthony, t12/11; cum 13K 5/12;
May 30, 2012
  • 20300, 488, OXY USA/Anschutz, Lillian Sadowsky 1-15-22H-142-96, Manning, t1/11; cum 34K 5/12;
May 22, 2012
  • 20659, 74, OXY USA/Anschutz, Kudrna 1-17 (No "H" designation), St Anthony, t2/11; cum 4K 5/12; a Red River well
May 21, 2012
  • 21686, 286, OXY USA, Kubik Trust 2-18-19H-143-95, Murphy Creek; my data base shows an IP but it is on confidential July 12, 2012
  • 20580, 540, OXY USA, Terry Dvorak 1-15-22H-142-95, Murphy Creek; my data base shows an IP but it is on confidential July 12, 2012
May 14, 2012: OXY USA surprises everyone with a great well based on IP:
20278, 936, OXY, David Kovash 1-12-13H-142-96; Manning field; t11/11; cum 50K 4/12; Manning field is in southeast McKenzie County; Fayette is on the north border; Murphy Creek is on the east; both of those fields are good fields;
May 8, 2012: OXY USA manages to report another lousy well, based on IP:
  • 21089, 75 (no typo), OXY, Staael 160-90-33-D-1H, Dimond; t11/11; cum 13K 5/12;
April 23, 2012: add another less-than-spectacular OXY USA well
  • 20092, 155 (no typo), OXY USA, Gordon Pavlicek 1-17-20H-141-95, Three Forks, Simon Butte, Dunn County; s7/11; t10/11; F; cum 11K 3/12; 39 stages; 1 million pounds sand; 
March 13, 2012: add a 10th OXY well reporting a lousy IP
  • 20194, 63, OXY USA, Wannemacher 1-4-9H-142-95, Murphy Creek, Bakken, s3/11; t9/11; F; cum 24K 3/12; 18 stages; <500K sand; 
January 18, 2012: add a 9th OXY well reporting a lousy IP, this time in Murphy Creek, a great oil field for others:
  • 19642, 42, OXY USA, Darlene Dvorak 1-27-34H-143-95, Murphy Creek, Bakken; still on confidential 1/12; cum 11K 3/12;

January 17, 2012: add an 8th OXY well reporting a lousy IP:
  • 20364, 20 (no typo), OXY USA, Jacobson 160-90-6-P-1H, Dimond, Bakken, 21 stages, 1.11 million lbs; s7/11; t11/11; F; cum 11K 3/12;
January 5, 2012: see original post below -- six of six OXY USA wells since entering the Bakken had IPs less than 80 bbls; add a seventh one. Baytex with wells in Divide County continues to drill despite IPs also less than 80.

January 4, 2012: see comments -- OXY USA owns (not rents) facilities in three cities: Los Angeles, Houston, and Dickinson, ND.
Original Post 
In the comment section elsewhere on this blog there has been some discussion of OXY USA.

This is a quick look at OXY USA since it entered the Bakken in 2011.

OXY USA announced in December, 2010, that it was acquiring Anschutz, a private company. Folks might remember that Anschutz, a private company, had struck an incredible sweet spot in two fields: Cabernet and Fayette oil fields.

NOTE: comments -- OXY acquired Dimond oil field assets from Cirque. 

In 2012:
  • 19642, 42, OXY USA, Darlene Dvorak 1-27-34H-143-95, Murphy Creek, Bakken, still on confidential list, 1/12
    In 2011:

    Anschutz: 26 permits in 2011; last one in April; of those 26 permits, 9 were canceled, including 5 in Murphy Creek

    OXY USA: 54 permits in 2011; 5 canceled;  IPs reported on 77, 75, 10, 55, 48, 65; permits in many fields, but almost all (all?) IPs were in Dimond field; large number of OXY USA wells on DRL status; unable to get their wells fracked;
    • 20317, 77, (Dimond), 18 stages; 2.5 million lbs sand, t8/11; F; cum 23K 3/12
    • 20364, 20, Dimond, 21 stages; 1.1 million lbs sand; t11/11; cum 11K 3/12
    • 20389, 75, (Dimond), 21 stages; 2.8 million lbs sand, t9/11; F; 928 bbls (not a typo; 3/12)
    • 20657, 10, (Dimond), 20 stages; 2.8 million lbs sand, t8/11; F; cum 25K 3/12
    • 20722, 215, OXY USA, Ankenbauer 160-90-34-P-1H, Dimond, Bakken, 21 stages, 2.8 million lbs total; sand frac; no details; s8/11; t11/11; F; cum 28K 3/12;
    • 20743, 55, (Dimond), 20 stages; 2.8 million lbs sand; s5/11; t8/11; F; cum 19K 3/12
    • 20779, 75, Dimond, s7/11; t9/11; F; cum 14K 312; no production in 2/12 and 3/12
    No Anschutz 2011 permits drilled/reported; of 26 Anschutz 2011 permits, OXY canceled 9 of them (five of them in Murphy Creek)

    Compare this to Anschutz activity in 2010, prior to being bought out by OXY USA

    In 2010: 
    Anschutz: 40 permits in 2010
    • 18272, 199, OXY USA, Jaeger 1-10-15H-141-96, St Anthony, Bakken, s9/11; t11/11; F; cum 10K; 1/12
    • 18427, 876, OXY USA, Matthew Schmidt 1-35-2H-143-97, Cabernet, Bakken, s2/10; t5/10; F; 112K 1/12
    • 18599, 1,003, (Cabernet) 22 stages; 0.8 million lbs sand; s6/10; t1/11; F; cum 57K 1/12
    • 18644, 1,148, (Cabernet) NOT STIMULATED; t4/10; F; cum 254K 1/12; this well is still producing 8,000 bbls/month; s1/10; t4/10;
    • 18847, 353, (Murphy Creek) Back on confidential list; production down to 2K/month 1/12;
    • 18985, 1,556, (Little Knife) 19 stages; 1.1 million lbs, s7/10; t1/11; F; cum 68K 1/12;
    • 20083, 25, OXY USA, Richard Dvorak 1-33-28H-143-95, Murphy Creek, Bakken, s5/11; t9/11; F; cum 24k 1/12; 20 stages; 1.1 million lbs sand frackk on confidential list
    • 20194, 63, OXY USA, Wannemacher 1-4-9H-142-95, Murphy Creek, Bakken, s3/11; t9/11; F; cum 18K 1/12; 18 stages; <500K sand; 
    • 19088, 629, (Simon Butte) 30 stages; 2.8 million lbs sand; s7/10; t10/10; F; cum 70K 1/12
    • 19159, 912, OXY USA, Reuben Schneider 1-27-34H-143-96, Fayette, Bakken, s4/11; t5/11; F; cum 48K 1/12;
    • 19180, 1,272, OXY USA, Lamey 1-30-31H-143-96, Fayette, Bakken; s4/11; t7/11; F; cum 77K 1/12;
    In 2009:

    Anschutz: 24 permits in 2009
    • 17961, 339, OXY USA, s11/09; t2/10; cum 66K 1/12;
    • 17984, 308, OXY USA, s6/09; t8/09; cum 39K 1/12;
    • 18056, 615, OXY USA, s5/10; t8/10; cum 40K 1/12;
    • 18079, PNC, Anschutz, Wolberg 11-18H,
    • 18093, 1,465, OXY USA, s3/10; t8/10; F; cum 139K 1/12;
    • 18193, 1,666, OXY USA, s8/09; t10/09; 229K 1/12;
    • 18234, 283, OXY USA, s9/09; t1/10; F; cum 43K 1/12;
    • 18237, PNC, Anschutz, State 34-36H,
    • 18240, PNC, Anschutz, Kary 24-24H,
    • 18272, 199, OXY USA, s9/11; t11/11; F; cum 10K 1/12;
    • 18296, EXP, Anschutz, Kubik 21-13H;
    • 18300, 1,562, OXY USA, s12/09; t2/10; cum 145K 1/12;
    • 18343, 48, OXY USA, s5/10; t12/10; F; cum 87K 1/12;
    • 18353, 2,374, OXY USA, s2/10; t4/10; cum 216K 1/12;
    • 18359, 1,138, OXY USA, s11/09; t4/10; cum 115K 1/12;
    • 18360, DRY, Anschutz, State 1-25-36H-144-97; wildcat, s1/10;
    • 18395, 2,207, s2/10; t6/10; cum 157K 1/12;
    • 18406, 2,079, s3/10; t8/10; cum 165K 1/12;
    • 18423, 2,405, s3/10; t11/10; cum 117K 1/12;
    • 18424, 2,409, s3/10; t9/10; cum 250 1/12;
    • 18427, 876, s2/10; t5/10; cum 112 1/12;


    OXY has a huge number of wells on the DRL status; I predicted that OXY would have a devil of a time getting their wells fracked in 2011, and that turned out exactly right; they can't get their wells fracked*

    OXY's reported IPs in 2011 were all in their Dimond oil field; previously "owned" by Cirque; Dimond oil field is in Burke County, north of Mountrail

    Anschutz's cash cow was clearly in the Fayette and the Cabernet fields; since OXY USA entered the Bakken, there has been relatively little news out of these two fields

    Either OXY has a problem with completing their wells, or Dimond oil field is a dud (look at those IPs -- all below 80) -- and look at cumulative -- 365 bbls in one case after two months, and it was fracked with 21 stages; 2.8 million pounds

    Obviously with so many wells on DRL status, the jury is still out whether OXY will sort this out

    A  lot of Anschutz permits were canceled by OXY; that is not unusual in general; a lot of locations will be re-permitted with new parameters; but it certainly looks like to this amateur that when OXY acquired Anschutz, the former cleaned house, canceling a lot of permits, and emphasized Dimond oil field (acquired from Cirque)

    Of the six (6) OXY USA wells with IPs all below 80, two of them are back on the confidential list. Being re-worked?

    Finally, again, look at: 

    18644, 1,148, OXY USA/Anschutz, State 1-25-36H-144-97X; Cabernet;  NOT STIMULATED; t4/10; F; cum 247K 11/11; this well is still producing 8,000 bbls/month; pretty impressive, huh? -- An Anschutz well

    *This is what I posted December 12, 2010:
    I will be curious to see what kind of wells OXY can deliver in the Bakken. My hunch is it will be several months before we see an OXY permit, and we won't know until next summer how OXY does in the Bakken. They will be competing for frac crews as the neighborhood newcome, but they will be able to pay top dollar for frac crews. A company that size may have its own dedicated frac crews. Look for OXY to set up "regional Bakken headquarters" somewhere in North Dakota.
    Note: since posting this, I have been told that OXY has two dedicated frack spreads


    Disclaimer: this was done pretty quickly; mistakes and typos may be present; if something doesn't look right, check it out.


    1. Oxy is said to have 2to frac crews and are having problems keeping ahead of them. They are building lots of facilities and building pads that wont populate till december. 75 new locations to be built by jan 2013

    2. Bruce, I believe Oxy acquired the wells in the Dimond field from Cirque resources, not from Anschultz.

    3. Thank you. I will update my FAQ page to show OXY with two dedicated frac spreads.

    4. You are correct, no doubt. I forgot all about that. I will correct the note above. Thank you.

    5. More on the above comments regarding Dimond oil field, Cirque, and OXY.

      "Anonymous" was exactly right. I even blogged about it earlier:

      But had forgotten. Just to much to keep track of. I should have checked my own site!

      But as noted, I put that post together pretty quickly and didn't explore it fully.

      A big "thank you" to "anonymous" for catching this/reminding me.

      By the way, Cirque is still active in North Dakota; see recent NDIC dockets.

    6. OXY owns (not rents) three facilities in the entire world. Los Angeles, Houston and Dickinson ND (currently under construction). The rest are rented facilities. They plan on being in Dickinson for the next fifty years. They will be discussed and analyzed for a long time.

    7. That is very, very interesting. Thank you -- you know me very, very well. I love such trivia. It's data point like that that help fill in the entire picture.

      Hmmm...I'm actually kind of blown away by that.

      It's sort of like the three huge BHI supersites: Williston, Minot, and Dickinson.

    8. hmmmm...OXY being the 4th largest Oil company in the United States and they OWN only 3 facilities? According to their corporate portfolio, Occidental owns refineries, chemical plants, offices, and crude Petroeum and natural gas extraction facilities throughout the world. Sorry, but I seriously doubt that OXY only OWNS property in Los Angeles, Houston and Dickinson.

    9. Here is a link to one such project that Occidental has invested and OWNS.

    10. I too have read many articles on Oxy (Occidental) they own and operate all kinds of oil refineries, gas plants, and chemical plants all over the world. They have large investments overseas in the MidEast as well as Latin America. Not sure how you can be the 4th largest oil company in the U.S. and not own any of your facilities. Very unlikely.