Friday, March 30, 2012

NDIC's April Dockets

Comments regarding this month's docket hearings:

1. You will see a lot of requests for multiple wells on 2560-acre spacing. 2560-acre spacing is not new. This was being addressed back in March, 2010:
  • 12244: Commission; 2560-acre spacing for all future BAKKEN POOL horizontal drilling
  • 12245: Commission; 1280-acre spacing for standup and / or laydown horizontal drilling
  • 12246: Commission; eliminate/reduce the setbacks currently established for heel and toe of horizontal wells in ND
2. There are scores of pooling cases in this month's hearings. Because I consolidate pooling cases into a single line, it is not as obvious, but there are literally scores of pooling cases, pretty much one of the last administrative steps before drilling.

3. 6 wells on a 640-acre unit. We're used to seeing 6 - 7 wells on a 1280-acre spacing unit, but we don't often see six wells in one section (at this point in the boom; later on it will be routine). One example is case 17434, a request by Hess to place as many as wells in one section in the Manitou-Bakken field. The Manitou field is near the bull's eye of the Bakken; and just west of "ground zero" for the oil industry in North Dakota. Another example is case 17499, in which Hess wants to put 6 wells in a 640-acre unit in Alger field, another very, very good field. By the way, the rumored 12-well pad for $100 million is in Alger field. (You know, when Filloon first rumored this, it seemed like a big deal; no longer such a big deal -- and that was just a week ago or so.)

4. The Lodgepole well north of Williston continues to excite some folks, including me. Case 16897, continued from last month, concerns the Oasis Clark well.

5. Marmon oil field is getting a lot of attention. Petro-Hunt wants the field extended by 18 sections in the township to the west. One section (section 34) is already part of the Otter oil field, so I am not sure how that will work out. Case 17444. Marmon field is about 20 miles west-northwest of Ray, which should end up being a pretty good field.

6. BR wants to put 14 wells on a 2560-acre spacing unit. Case 17446.

7. Some crazy trivia. Petro Uno Resources has one (1) permit in the state of North Dakota, file #15167. Petro Uno has an active well, Beta Race Federal 22-6, drilled back in 2001. In this month's hearing, Petro Uno is asking for temporary spacing for this well. Case 17551. This is a Duperow/Red River well that is producing less than 100 bbls/month; cumulative is about 72K since it was spudded in 2001. Initially targeting the Red River, it last produced from that formation on a regular basis in 2006. It re-entered the Duperow in 2010.

8. Hess is requesting to place as many as 6 wells on 1280-acre spacing units in no less than 16 oil fields in the Willison Basin.

9. I've talked often about the legacy formations (Madison, Red River, Duperow). I've opined often that "they" didn't quit drilling the Madison because it had nothing else to offer; they quit drilling when opportunities got better elsewhere. At $100/bbl, the Madison is looking good again. So, Zenergy is going after the Madison with requests for 17 640-acre units and 8 320-acre units in McKenzie and Williams counties. Cases 17579 - 17581. Petro-Harvester is also going after the Madison, case 17444.

10. More interesting trivia. Zenergy is requesting to create 20 1280-acre units in Foreman Butte. This field is already spaced for the most part as 1280-acre units, and yet almost every well in that field is a short lateral. (It's possible, they were drilled when the field was spaced with 640-acre units and has since been changed to 1280-acre, but I have no idea). Case 17582.

11. This is about as active as I've seen Zenergy in any docket. Zenergy is requesting up to 147 wells in four cases, 17750 - 17753.

12. Remember the Cottonwood field that Fidelity discovered, and then sold to Oasis? Look at case 17456: Oasis is requesting spacing for as many as 54 wells in 9 new 1280-acre units, 6 wells each on those units.

Wednesday, April 25, 2012

17432, BEXP, proper spacing for Sandrocks-Bakken, McKenzie
17433, Hess, designate a 1280-acre unit, 6 wells; South Meadow-Bakken, Williams
17434, Hess, add a 640-acre unit; 6 wells, Manitou-Bakken, Mountrail,
17435, Hess, revoke an OXY USA permit, Dunn County
17436, Hess, violated flaring rule, Ross-Bakken, Mountrail
16899, cont'd, Hess, revoke a CLR permit, Williams County
16890, cont'd, Hess, revoke a CLR permit, Williams County
17437, SM, temporary spacing, Nelson 15-11H, McKenzie
17438, SM, to drill Dahl Federal 2-15H within 121 feet of line, Baker-Bakken, McKenzie
16897, cont'd, Oasis, temporary spacing, Clark 12-13H, Williams; enact special field rules as may be necessary; this is the Lodgepole formation well north of Williston
17439, New Millenium Resources, to terminate the Zenith-Tyler "A" Unit, Stark County
17430, cont'd, New Millenium Resources; injection; Zenith-Tyler "A" Unit, Stark County
17440, Petro Harvester, establish a 960-acre unit; Columbus-Madison Pool, 4 horizontal wells; Burke
17441,  Cornerstone Natural Resources, establish a 1280-acre unit, Northeast Foothills-Bakken, Burke
17442, Sequel Energy, establish a 1280-acre unit, McGregor-Bakken; allow 2 hz wells in Temple-Bakken, Williams
17443, Sequel Energy, establish 6 1280-acre units, one well each, Bakken, McKenzie
17444, Petro-Hunt, include 18 new sections in Marmon-Bakken; 5 hz wells on 3 existing 1280-acre spacing units and 5 hz wells on nine proposed 1280-acre units, Williams
17445, BR, establish 3 overlapping 2560-acre units, one or more hz wells between the existing 1280-acre units; Keene-Bakken/Three Forks, McKenzie
17446, BR, establish a 2560-acre unit, 14 wells; up to 7 wells on an existing 1280-acre unit, Sand Creek-Bakken, McKenzie
17447, BR, 2 wells in 640-acre units, Flat Top Butte-Bakken, McKenzie
17364, cont'd, Oasis, establish 2 1280-acre unit; 1 well each, Bakken, Burke
16634, cont'd, Windsor Energy, establish 5 1920-acre units, Van Hook-Bakken, Mountrail
16125, cont'd, XTO, revoke a CLR permit, McKenzie
15676, cont'd, XTO, revoke a CLR permit, McKenzie
16913, cont'd, Whiting, establish a 1280-acre unit, 4 wells, Billings
17448, American Eagle, amending field rules in Colgan-Bakken, Divide
17372, cont'd, CLR, revoke a Liberty Resources LLC permit, Williams
17449, QEP, create 2 1280-acre unit, 1 hz well each, McLean County
17450, QEP,  4 wells in 640-acre unit; 4 wells in another 640-acre unit, Heart Butte-Bakken, Dunn
17451 - 17454, Petro Harvester, pooling
17455, Cornerstone Natural Resources, pooling
17456, Oasis, 6 wells each on 9 1280-acre units, Cottonwood-Bakken, Mountrail (54 wells)
17457, Oasis, 6 wells on a 1280-acre unit, Sanish-Bakken, Mountrail
17458 - 17488, Oasis, pooling
17489, Hess, 6 hz wells on a 1280-acre unit, Rainbow-Bakken, Williams
17490, Hess, 6 hz wells on 2 1280-acre units, Marmon-Bakken, Williams
17491, Hess, 6 hz wells on a 1280-acre unit, Midway-Bakken, Williams
17492, Hess, 6 hz wells on a 1280-acre unit, White Earth-Bakken, Mountrail
17493, Hess 6 hz wells on a 1280-acre unit, Tioga-Bakken, Mountrail
17494, Hess, 6 hz wells on a 1280-acre unit, Pleasant Valley-Bakken, Mountrail
17495, Hess, pooling
17496, Hess, 6 hz wells on 3 1280-acre units, Sorkness-Bakken, Mountrail
17497, Hess, 6 hz wells on 3 1280-acre units, Tyrone-Bakken, Williams
17498, Hess, 6 hz wells on 2 1280-acre units, Baskin-Bakken, Mountrail
17499, Hess, 6 hz wells on a 640-acre unit, and on a 1280-acre unit, Alger, Mountrail
17500, Hess, pooling
17501, Hess, 6 hz wells on  a 1280-acre unit, Capa-Bakken, Williams
17502, Hess, 6 hz wells on a 1280-acre unit, Alkali Creek-Bakken, Mountrail
17503, Hess, 6 hz wells on a 1280-acre unit, Truax-Bakken, Williams
17504, Hess, 6 hz wells on a 1280-acre unit, Robinson Lake-Bakken, Mountrail
17505, Hess, 6 hz wells on a 1280-acre unit, Banks-Bakken, McKenzie
17506, Hess, 6 hz wells on a 1280-acre unit, Lone Butte-Bakken, Dunn
17507, Hess, 6 hz wells on a 1280-acre unit, Jim Creek-Bakken, Dunn
17508, Hess, 6 hz wells on a 1280-acre unit, Beaver Lodgge-Bakken, Williams
17509, Hess, 6 hz wells on a 1280-acre unit, Big Butte-Bakken, Mountrail
17510, Hess, 6 hz wells on a 1280-acre unit, Dollar Joe-Bakken, Williams
17511, Hess, 6 hz wells on a 1280-acre unit, Lone Tree Lake-Bakken, Williams
17512, Hess, 6 hz wells on a 1280-acre unit, Manitou-Bakken, Mountrail, Williams
17513, Hess, 6 hz wells on a 1280-acre unit, Oliver-Bakken, Williams
17514, Hess, 6 hz wells on a 1280-acre unit, Ray-Bakken, Williams
17515, Hess, 6 hz wells on a 1280-acre unit, Wheelock-Bakken, Williams
17516, BR, pooling
17517, BR, pooling
17518, Petro-Hunt, 5 hz wells on 2 1280-acre units, Dublin-Bakken, Williams
17519, Petro-Hunt, 5 hz wells on 4 1280-acre units, Ellisville-Bakken, Williams
17520 - 17522, Petro-Hunt, pooling
17523 - 17524, BR, pooling
17525, BR, 7 hz wells on a 1280-acre unit, Westberg-Bakken, McKenzie
17526, BR, 7 hz wells on 2 1280-acre units, North Fork-Bakken, McKenzie
17527, MRO, commingling Strommen wells, Dunn
17528 - 17529, American Eagle, pooling
17530, Slawson, Davis Exploration, risk penalty legalese, Mountrail
17531, Slawson, Davis Exploration, risk penalty legalese, Mountrail
17532, KOG, risk penalty legalese, Divide
17533, KOG, risk penalty legalese, Williams
17534, KOG, risk penalty legalese, Williams
17535, KOG, risk penalty legalese, Williams
17536, KOG, risk penalty legalese, Williams
17537, KOG, risk penalty legalese, Williams
17538, KOG, risk penalty legalese, Williams
17539, SBG, SWD
17540, Petro Harvester, SWD
17541, Petro Harvester, SWD
17542, Petro Harvester, SWD
17543, Maverick, SWD
17544, Marquis, SWD
17545, Bosque, SWD
17546, Mann, SWD
17547, SB, SWD

Thursday, April 26, 2012

17548, Fidelity, temporary spacing, Wanner 44-23H, Stark
17549, Slawson, temporary spacing, Condor 1-36-25H, McKenzie
17550, Slawson, a dual lateral in each of 2 640-acre units, Big Bend-Bakken
17210, cont'd, Slawson, establish a 1280-acre unit, 7 wells, Sand Creek-Bakken, McKenzie
17551, Petro Uno Resources, temporary spacing for Beta Race Federal 22-6, Billings
17552, EOG, proper spacing for developemnt of Little Butte-Bakken, Burke
17553, Sinclair, extend and establish a 1280-acre unit, 1 well, Parshall-Bakken, Mountrail
17554, BEXP, temporary spacing, McKenzie
17555, CLR, KOG, proper spacing for Wildrose-Bakken, Divide
17556, CLR, KOG, Newfield, proper spacing for Pembroke-Bakken, McKenzie
17557, CLR, establish a 1280-acre unit, 1 hz well; Antelope-Sanish, McKenzie
17558, CLR, create 4 overlapping 2560-acre units; Brooklyn-Bakken, multiple hz wells; Williams
17559, CLR, create 3 overlapping 2560-acre units; Dollar Joe-Bakken, multiple hz wells, Williams
17560, CLR, create an overlapping 2560-acre unit, Oliver-Bakken, multiple hz wells, Williams
17561, CLR, create 2 overlapping 2560-acre units, Rainbow and Oliver-Bakken, multiple hz wells, Williams
17562, CLR, create an overlapping 2560-acre unit, multiple hz wells, Indian Hill, McKenzie
17563, CLR, create a 2560-acre unit, multiple hz wells, Indian Hill, MeKenzie, Williams
17564, CLR, create an overlapping 2560-acre unit, multiple wells, North Tobacco Garden-Bakken, McKenzie
17565, CLR, create an overlapping 2560-acre unit, multiple wells, Squires-Bakken, Williams
17566, CLR, create an overlapping 2560-acre unit; 2 overlapping 2560-acre units; and, an overlapping 2240-acre unit; multiple wells, Hebron-Bakken, Williams
17567, CLR, create an overlapping 2560-acre unit, multiple wells, Camp-Bakken, McKenzie
17568, CLR, create an overlapping 2560-acre unit, and an overlapping 2880-acre unit, multiple wells; Crazy Man Creek-Bakken, McKenzie, Williams
17569, CLR, create three overlapping 2560-acre units, multiple wells, Banks-Bakken, McKenzie, Williams
17570, CLR, extend, create 2 1920-acre units, 1 well each, Baker and/or Last Chance-Bakken, McKenzie, Williams
17571, CLR, extend, create a 1280-acre unit, 1 well, Little Knife-Bakken, Billings
17572, Encore Energy Partners Operating LLC, create a 640-acre unit, 1 well, Horse Creek-Red River "B", Bowman
17573, Encore, create an overlapping 320-acre unit, 1 well, Buffalo Wallow-Madison, McKenzie
17574, Enerplus, 4 wells on a 1280-acre unit, Eagle Nest-Bakken, McKenzie
17575, Hunt, create  an overlapping 1280-acre unit, 3 wells, Parshall-Bakken, Mountrail
17576, Hunt, create a 1280-acre unit, 1 wells, Bear Butte-Bakken, McKenzie
17577, Hunt, create 2 1280-acre units, 1 well on each, Buffalow Wallow-Bakken, McKenzie
17578, Denbury, alter the stratigraphic limits of the pool, Siverston-Bakken, McKenzie
17579, Zenergy, establish 15 640-acre units; and, 2 320-acre units; 2 wells on each, Nobly Lake, Dore, and/or Assiniboine-Madison pools (34 wells), McKenzie
17580, Zenergy, create 4 320-acre units, 1 well each, Dublin-Madison, Williams
17581, Zenergy, create 4 320-acre units, 1 well each, Marmon-Madison, Williams
17582, Zenergy, create 20 1280-acre units, 7 wells each, Foreman Butte-Bakken, McKenzie
17583, Scott Environmental Services, statewide portable waste treatment
17584, 212 Water Serivces, multiple portable waste treatment plants
17187, cont'd, Chesapeake, temporary spacing for Zent 30-138-95, Stark
15737, cont'd, Legacy Oil, temporary spacing, Bottineau County
16425, cont'd, Zavanna, temporary spacing for Koufax 3-10 1H, McKenzie
17212, cont'd, Liberty Resources, revoke a Zenergy permit, McKenzie
17585, Clean Fluid Solutions, treatment of drilling fluids, Dunn
17586, Sawyer Disposal, portable waste treatment
17587, Atlas Oilfield Construction, operate portable waste treatment
17588, GADECO, complete the Golden 25-13H well, Williams
17213, cont'd, GADECO, establish a 1280-acre uit, 1 well; Williams
17589 - 17619, Slawson, pooling
17620, Slawson, flaring, Ross-Bakken, Mountrail
17621, Slawson, 4 640-acre units, 2 wells each; 2 overlapping 1280-acre units, 5 wells each, Big Bend-Bakken, Mountrail
17622, Slawson, 4 1280-acre units, 6 wells each, Boxcar Butte-Bakken, McKenzie
17623, XTO, pooling
17624, XTO, flaring, Sorkness-Bakken, Mountrail
17625, XTO, 2 1280-acre units, 8 wells each, Bear Creek-Bakken, Dunn
17626, XTO, 2 1280-acre units, 8 wells each, Truax-Bakken, Williams
17627, CLR, risk penalty legalese, Divide
17628 - 17636, CLR, pooling
17220, cont'd, CLR, risk penalty legalese, Divide
17637, CLR, flaring, East Fork-Bakken, Williams
17638, CLR, 3 1280-acre units, 7 wells each, East Fork-Bakken, Williams
17639 - 17640, BEXP, pooling
17641 - 17644, BEXP, flaring
17645, BEXP,  8 wells on a 1280-acre unit, Lake Trenton-Bakken, Williams
17646, BEXP, SWD
17647, BEXP, SWD
17648 - 17689, EOG, pooling
17690, EOG, 3 1920-acre units, 2 wells each, Parshall-Bakken, Mountrail
17691, EOG, flaring
17692, EOG, SWD
17693, EOG, Swd
17694, Arsenal, pooling
17695 - 17697, Triangle, pooling
17698, Hunt, pooling
17699, Hunt, risk penalty legalese, McKenzie
17700, Hunt, risk penalty legalese, McKenzie
17701, Hunt, flaring
17702, Hunt, 3 1280-acre units, 4 wells each, Lake Ilo-Bakken, Dunn
17703, Hunt, 1 1280-acre unit, 4 wells, Bailey-Bakken, Dunn
17704, Hunt, 4 1280-acre units, 4 wells each, Werner-Bakken, Dunn
17705, Newfield, pooling
17036, cont'd, risk penalty legalese, McKenzie
17706 - 17723, WPX, pooling
17724, WPX, a 1280-acre unit, 7 wells, Reunion Bay-Bakken, Dunn
17725, WPX, a 640-acre unit, 3 wells, Spotted Horn-Bakken, McKenzie
17726, WPX, a 320-acre unit, 2 wells, Mandaree-Bakken, Dunn
17727 - 17736, Samson Resources, pooling
17737, Samson Resources, flaring
17738, Samson Resources, commingling Duperow, Red River, and Birdbear pools, Golden Valley
17739, Samson Resources, flaring
17740, Samson Resources, flaring
17741, Samson Resources, flaring
17742, Samson Resources, flaring
17743, Samson Resource, flaring
17744, Baytex, flaring
17745, Baytex, 3 1280-acre units, 7 wells each, Lone Tree Lake-Bakken, Williams
17746, Liberty Resources, flaring
17747, Crescent Point, flaring
17748, Crescent Point, flaring
17749, Zenergy, flaring
17750, Zenergy, 11 1280-acre units, 7 wells each, Banks-Bakken, McKenzie (77 wells)
17751, Zenergy, 5 1280-acre units, 7 wells each, Siverston-Bakken, McKenzie (35 wells)
17752, Zenergy, a 1280-acre unit, 7 wells, Elidah-Bakken, McKenzie
17753, Zenergy, 4 1280-acre units, 7 wells, Painted Woods-Bakken, Williams (28 wells)
17754, Denbury, SWD
17755, Zavanna, SWD
17756, Silver Oak, SWD
17757, Kihle, SWD
17758, Alexander, SWD
17759, Environmentally Clean Systems, SWD
17760, Flatland, SWD
16863, cont'd, Corinthian, commingling, Bottineau

Eight (8) New Permits -- The Williston Basin, North Dakota, USA

Daily activity report, March 30, 2012 --

Operators: Hess (6), EOG (2)

Fields: Alkali Creek, Cottonwood, Parshall

Eight (8) wells released from "tight hole" status; only one (1) was completed/fracked (incredible; still a backlog).

The one well that was completed was Petro-Hunt's Pankake well sited just inside Dublin oil field, but a wildcat, so probably running north of Dublin oil field.

Whiting had four more wells approved for "tight hole" status.

Dublin Oil Field North of Williston Along Divide County Line Is Now A Bit Bigger

Link here.

NDIC April Dockets are Posted

I will work on them over the weekend.

But to whet your appetite: one case requesting 14 wells on a 2560-acre spacing unit.  (Earlier today I mentioned the possibility of CLR putting in 16 wells on one 2560-acre spacing pad, so I wasn't hyping the Bakken potential.)

Also, I might comment on this new story.

But I may not be blogging for the rest of the day.

Good luck to all.

Another Obama First!

Come April 1, 2012 -- this Sunday -- the US will have the highest corporate tax rate in the world.

It is ironic. Who would have thought the country known for free market capitalism now has the highest corporate tax in the world...and then we wonder why our economy is in the shape it's in.

Anyone who tells me taxes need to be raised....well, they probably won't see their comment posted.

Random Discussion on Spacing Units in the Bakken -- The Brooklyn Oil Field, North Dakota, USA

Much has been discussed elsewhere regarding size of spacing units in the Bakken. If you go to that link, you can search for other discussions regarding size of spacing units.

So this is of interest:
March 28, 2012, NDIC hearing dockets; Case No. 17195:  
Application of Continental Resources, Inc. for an order amending the field rules for the Brooklyn-Bakken Pool to create two 2560-acre spacing units comprised of Sections 14, 23, 26 and 35; and Sections 18, 19, 30 and 31, T.155N., R.98W., Williams County, ND, authorizing the drilling of multiple horizontal wells from said well pad within each 2560-acre spacing unit; eliminating any tool error requirements and such other relief as is appropriate.
All spacing units in the Bakken-Brooklyn are currently 1280-acre, according to the NDIC GIS map server; and all units are currently held by production (Continental Resources), including the eight sections noted above in case no 17195.

Unless I am missing something CLR is not asking for larger spacing units as "a land grab" to hold leases by production. The horizontals will continue to be long horizontals (two sections) but mineral owners in any of the four sections will benefit from a successful well.  Obviously CLR can put 8 - 16 wells on one pad with 4 - 8 wells going south and 4 - 8 wells going north.

If nothing else, the oil from all four sections, from the entire 2560-acre unit, can be commingled into one set of tank batteries. It seems this would make the entire operation much more efficient. If trucks are still picking up the oil, one truck can pick up oil from multiple wells; once pipelines are in place, the same thing; one does not have to worry about what oil is coming from which well. Extrapolate this to a unitizing the entire field and one can see the efficiencies. My 2 cents worth. Hopefully someone can provide "professional" insight.

Of course, it goes without saying, all the efficiencies with multiple wells on one pad, but CLR could have done that with the current 1280-acre spacing so that is not an explanation for the request of 2560-acre spacing units.

[August 18, 2012: I missed a big reason why 2560-acre spacing is of value. Heels and toes of horizontal wells must be set back a minimum number of feet from the spacing unit line. If the requirement is 500 feet and the spacing unit is one section (one mile, or 5,280 feet on a side), 500 feet at the heel and 500 feet at the toe = 1,000 feet, or almost 20% of the length of the spacing unit is lost. With 2560-acre spacing, at most the operator loses 500 feet at the toe. Since they are still drilling long laterals, that is 500 feet over two miles (10,560 feet), or less than 5%. This is the reason the operators want larger spacing units with horizontal wells in the Bakken. In one of the polls at the blog I asked whether it was better to have 1280-acre or 2560-acre spacing; the majority said 1280-acre spacing. The majority was wrong.]

Update on the Whiting Sanish Oil Field Wells -- The Early Years

Just how good has the Sanish oil field been for Whiting? Below are the permits/file numbers from 16000 to 17999 that are Whiting wells in the Sanish oil field. We are starting to get data from wells that are five years old (just a few), but even these "old" wells only go back to 2008/2009/2010 for the most part, and thus most are still less than four years old. And these wells will go on to produce for 30 years.

No dry wells. Two permits were canceled.

Anyone doubt that all of these wells have EURs of 750, and some will eventually hit a million bbls? I assume these wells are pretty much paid for by now.

File number, spud month/year; cumulative as of 1/12; current monthly production (for selected)
  • 16068, s6/08, 140K; currently 1,000 bopm
  • 16081, PNC
  • 16092, s3/06, 28K; currently 400 bopm
  • 16463, s12/06, 331K; currently 3,000 bopm
  • 16731, s8/07, 392K, currently 4,000 bopm
  • 16734, s12/07, 156K, currently erratic production; 9,000 bbls/month as recently as 10/11
  • 16780, s9/07, 385K, currently 4,000 bopm
  • 16781, s11/07, 368K, currently 4,000 bopm
  • 16852, 1/08, 313K, currently erratic production; before taken off-line for 5 months, 5K bopm
  • 16871, s3/08, 260K, currently erratic production; last two months, 5K bopm
  • 16902, s2/08, 289K, currently 4,000 bopm
  • 16905, s5/08, 162K, currently 1,800 bopm
  • 16934, s3/09, 214K, currently 4,000 bopm
  • 16938, PNC
  • 17023, s3/08, 506K, currently 1,500 bopm
  • 17032, s2/08, 256K, off line
  • 17035, s5/08, 584K; HUGE; currently as much as 10,000 bopm; Kannianen 11-4H, currently 3.5 wells on this 1280-acre spacing unit, including #17907
  • 17072, s5/08, 395K, erratic; 5,000 bopm most recent month
  • 17080, s8/09, 240K, erratic; 5,000 bopm
  • 17081, s8/08, 496K, erratic; 8,000 bopm
  • 17092, s4/08, 789K, erratic; 10,000 bopm, Behr 11-34H, 34-154-91; currently there are only two wells in this section (the other being #17872; a third is in DRL status); eventually there will be as many as 8 wells in these spacing 1280-acre spacing units; some evidence (but the jury is still out on this) that neighboring wells can affect each other's EURs
  • 17115, s1/09, 203K, 4,000 bopm
  • 17133, s6/08, 350K; off line last few months; prior, 4,000 bopm
  • 17134, s6/08, 331K, 4,000 bopm
  • 17137, s6/08, 168K, erratic, 3,000 bopm
  • 17157, s2/09, 122K
  • 17158, s8/08, 669K, Richardson Federal 11-9H; currently three wells on this spacing unit including #17917; see comments above for #17092
  • 17240, s8/08, 136K
  • 17253, s7/08, 310K
  • 17284, s9/08, 98K
  • 17285, s12/08, 105K
  • 17326, s3/10, 197K
  • 17337, s1/09, 119K
  • 17357, s1/09, 96K
  • 17443, s11/08, 297K
  • 17544, s3/09, 241K
  • 17552, s11/08, 121K
  • 17554, s11/08, 109K
  • 17575, s11/08, 413K
  • 17586, s9/08, 298K
  • 17603, s2/09, 319K
  • 17605, s9/08, 181K
  • 17612, s8/09, 529K
  • 17643, s2/09, 120K
  • 17700, s12/08, 377K
  • 17776, s2/10, 248K
  • 17794, s1/09, 366K
  • 17827, s4/09, 101K
  • 17872, s2/10, 322K
  • 17892, s4/09, 79K
  • 17895, s4/09, 256K
  • 17907, s12/09, 338K
  • 17908, s1/10, 231K
  • 17912, s12/09, 465K
  • 17917, s2/10, 285K
  • 17939, s8/10, 73K
  • 17935, s2/10, 147K
  • 17964, s5/09, 84K
  • 17991, s9/09, 87K
If one does the math, calculating production per acre based on EURs of 500K and 8 wells per 1280-acre spacing unit, the numbers are staggering: 3,000 bbls per acre over the lifetime of a Sanish well. At $50/bbl, $150,000/acre. 

    State to Give Oil Patch $12 Million for Emergency Services and $5 Million for Schools

    Link to Bismarck Tribune here.

    It may be just me, but it certainly seems the state is moving aggressively to assist infrastructure needs in the oil patch (this story) plus the earlier story on the highway projects planned for this summer.

    From the link:
    The state will give strained emergency services in western North Dakota a $12 million boost — $5 million more than initially planned — plus $5 million for fast-growing Oil Patch schools.

    Gov. Jack Dalrymple said the needs for dealing with the oil boom are much greater than anybody thought even a few months ago. The $12 million “will make a significant difference in the delivery of emergency services in oil country,” he said.

    The state Board of University and School Lands unanimously agreed Thursday to add $5 million for emergency services to the initially planned $7 million.
    The additional money for the schools is wonderful news. It was only a few months ago I blogged that the schools needed help. It was amazing the amount of "hate mail" I received for suggesting that the taxpayers should provide more assistance to the schools.  I did not post those comments: vulgar and did not add anything to the discussion. But I was quite surprised. Regardless, this is great news -- the additional state money for the schools.

    Stark County Okays Oil Waste Facility -- But NOT BEFORE HAMMERING THE COMPANY -- Dickinson Press


    April 4, 2012: zoning commission receives petition to stop this waste facility.
    A zoning commissioner thinks other Stark County representatives were too hasty in approving an oil waste facility near Belfield, and recommends the North Dakota Department of Health take a closer look at the project.

    Zoning Commissioner Chuck Steffan, who lives near the building site, represented many of his neighbors when he presented Stark County commissioners with a petition opposing the project during Tuesday’s meeting at the Stark County Courthouse in Dickinson. Steffan added that the petition included “at least 125” signatures, and he thinks county representatives should revisit the project.
    Suggestion: put it in Billings or Dunn County. 

    Original Post

    Link here to Dickinson Press.
    Stark County commissioners gave an Oklahoma company the green light to build an oil waste facility near Belfield, but not before hammering the company’s lead representative with questions and hearing out concerns of unsupportive residents.
    And, of course, NIMBY:
    Connie Fulton, who lives east of the building site, said she has a problem with the site’s location, not its existence.
    And then talking out of both sides of his mouth:
    Hoff said he voted against the project, but only because he thought it might have been beneficial to wait to make a decision. However, he believes the facility is a worthy project.

    “I just want to say I do think this is an OK thing,” Hoff said.

    Update on Highway Projects Planned For This Summer in North Dakota's Oil Patch


    November 29, 2012: from The Bismarck Tribune -- Williston's truck reliever route just hit a speed bump. Huge speed bump. Back to square one.
    An amazing array of archaeological features ended hopes of building a bypass around northwest Williston preferred by officials because it’s shortest, closest and cheapest.
    The State Department of Transportation built a temporary northwest bypass earlier this year, but a preferred route for a permanent one has been fairly well stopped in its tracks by the discovery of more than 8,000 ancient archaeological features, including burials and cemeteries along both sides of the route.
    This is too big a deal for the DOT to overcome. Oh, well. It looks like the temporary route is going to be a bit more permanent.
    November 28, 2012: from The Dickinson Press --
    The widening of North Dakota Highway 22 in north Dickinson is near completion as crews install traffic lights.
    Once the lights are running, control of them will be turned over to the city, Olson said.
    The project, which began May 29, cost $17 million, said North Dakota Department of Transportation spokeswoman Jamie Olson. The paving and addition of three lanes was complete at the end of October.
    “It’s to help control the flow of traffic, there’s an increase of traffic in that area,” she said. “It sounds like that (area) will continue to grow.”
    It is one of many major road construction projects NDDOT began in 2012 in the Oil Patch. Others include improvements to the intersection of U.S. Highway 2 and N.D. Highway 85, N.D. Highway 8, N.D. Highway 23 and developing a truck reliever route for Williston.
    Original Post

    Last summer, the state did a great job widening the highway between Williston and Watford City, but it was an interim fix to the ultimate goal: four-lane, divided highway. The governor says an additional environmental document is needed. No further details were provided in the Bismarck Tribune article.

    The governor also said that plans were afoot to build a new Little Missouri River bridge on Highway 85 south of Watford City.

    The article listed the other projects planned for this summer in the oil patch:
    • rebuilding and additional road repairs to U.S. Highway 2 north of Williston to the U.S. Highway 85 junction and east of Ray
    • widening and adding passing and turning lanes to N.D. Highway 23, east of New Town to N.D. 37.
    • expanding N.D. Highway 22 north of Dickinson to the county line
    • adding turn lanes and passing lanes to N.D. Highway 22, 12 miles north of Killdeer to Lost Bridge
    • widening and adding passing and turning lanes to N.D. Highway 22, from N.D. 73 to N.D. 23
    • developing Williston’s temporary and permanent truck-reliever routes

    Statoil Using Natural Gas to Power Rigs -- Maybe This Will Make The F&C Asset Management Folks Happy -- The Bakken, North Dakota, USA

    Statoil using natural gas directly from the wellhead to power their rigs. For newbies: Statoil recently bought a Bakken pioneer: BEXP.

    Here's the story:
    A new use for natural gas flares is making an entrance in the Williston Basin. Diesel engines are being converted to use a diesel and natural gas mixture instead of straight diesel fuel. Eco Alternative Fuel Systems, Inc (ECO AFS). has installed the bi-fuel system on five Statoil rigs in North Dakota, according to Jeff Anderson, Eco AFS regional manager.

    By doing the bi-fuel system on the diesel engines and also converting their boiler to operate on natural gas, one rig in one year will save approximately $1 million in diesel costs. Not only that it creates better emissions. It’s a cleaner fuel, and we triple the run time of the diesel they have,” Anderson said.

    Anderson said 50-60 percent of the fuel mixture, after conversion, is natural gas. The gas can be piped to the rig from a nearby gas flare or pipeline. It can also be trucked in if no flare is nearby, which will cut down on some of the truck traffic, he said.

    “Right now this gas is just the raw gas coming right out of the Bakken formation,” Anderson said.
    Link here to an Encana initiative to use natural gas to power drilling rigs in the field
    The North American natural gas industry is in search of an environmental and economic solution to address significant fuel use. Because natural gas has potential for widespread applications, it is critical that early adopters within the industry help trigger greater use.

    With testing and improvements, growing infrastructure and industry-wide collaboration regarding natural gas viability, powering rig operations with natural gas is becoming a reality for several operators–paralleling broader trends in the U.S. transportation sector and the growing movement to convert over-the-road trucks and fleet vehicles from diesel and gasoline to natural gas.

    By using this engine technology to fuel drilling rigs, we have the opportunity to make an enormous impact on overall fuel consumption across the United States and on a global level. Encana tested its first natural gas-powered rig in the United States in 2005. With the success of that initial test, we have expanded our portfolio, both in the United States and Canada, with 16 natural gas-powered rigs running this summer in Encana’s field operating areas. Two additional gas-fired rigs are planned by year’s end.

    ­There are two main types of engine technology used to implement natural gas into our operations. Among the natural gas-powered rigs Encana is operating, six use dual-fuel technology and 10 have dedicated natural gas engines. The source or type of natural gas used as a fuel also varies. Twelve of the rigs use field gas produced from the fields in which they are drilling. Four use liquefied natural gas because of limited natural gas distribution availability in the field, or the need to supply fuel that is highly mobile because of frequent rig moves or short drilling cycles. LNG offers the ability to move rigs outside of an area that is using field gas and provides a high-quality and reliable source of fuel.
    Again, new technology being used and studied in the Bakken.

    Hopefully this will help make the folks over at F&C Asset Management happy. I doubt it.