Saturday, June 2, 2012

Huge Energy Potential In The Arctic

Link here to AFP/Yahoo News:
US Secretary of State Hillary Clinton took a first-hand look Saturday at the way a warming climate is changing the Arctic, opening the region to competition for vast oil reserves.

Experts here estimate the value of the Arctic's untapped oil alone -- not including natural gas and minerals -- at $900 trillion, making it a huge prize for the five countries that surround the Arctic if they can reach it.

And with climate warming opening up some 46,000 square kilometres (18,000 square miles) a year that had once been bound in ice, the region is expected to burst open, not just with oil exploration but with East-West trade along a more accessible northern route.
I could be off in my math a bit, but if the five countries divide the $900 trillion evenly, the US should be able to cover its deficit.

Foreman Butte Field -- Update

Updates

September 15, 2013: production data updated.

September 5, 2013: this is why Oasis is in this area now -- Oasis acquired 160,000 net acres from Zenergy.
 
Original Post

This case from the May, 2012, dockets suggested perhaps it would be interesting to look at the Foreman Butte oil field:
Case 17838, Zenergy, Foreman Butte-Bakken, request to establish 16 new 1280-acre units; 8 wells each;  that's 128 wells; McKenzie Count;
The Foreman Butte oil field is approximately 60 sections in size, directly west of Alexander, North Dakota. It is "owned" by Zenergy but Zavanna has gotten all of the permits in this field (except for one by Petro-Hunt) in the past 18 months.  When one quickly glances at the NDIC GIS map server, it looks like there is one short directional lateral in about 75 percent of the sections. These are generally Madison wells drilled back in 2003 - 2007. A quick run through the file reports suggests the average IP was about 150 bbls, with a range from 50 to 300. It looks like many (most?) of the wells have produced about 75,000 bbls of oil, some have produced more than 100,000 bbls.

PERMITS

Permits issue in 2015
31866, loc, Zavanna, Hunter
31685, loc, Zavanna, Hunter
31864, loc, Zavanna, Hunter
31863, loc, Zavanna, Hunter
31862, loc, Zavanna, Hunter
31861, loc, Zavanna, Hunter
31860, loc, Zavanna, Hunter


Permits issued in 2014
None issued.


Permits issued in 2013 (list is complete)
  • 26939, 1,391, Oasis, Monson 18-19H, t3/14; cum 63K 6/15;
  • 26717, 1,452, Emerald, Pirate 4-2-11H, t5/14 cum 75K 6/15;
  • 26716, 1,212, Emerald, Pirate 3-2-11H, t5/14; cum 61K 6/15;
  • 26715, 1,725, Emerald, Pirate 2-2-11H, t5/14; cum 86K 6/15;
  • 26451, PNC, Oasis/Zenergy, Ranger 28-34H2,
  • 26410, 1,339, OasisZenergy, Prairie USA 1-12H, t2/14; cum 63K 6/15;
  • 26271, 1,346, Emerald, Pirate 6-2-11H, t12/13; cum 82K 6/15;
  • 26270, 1,332, Emerald, Pirate 5-2-11H, t12/13; cum 92K 6/15;
  • 25660, 1,896, Oasis/Zenergy, Safely USA 5-8H, t10/13; cum 96K 6/15;
  • 25559, 338, Oasis, Domino 5002 43-11H, t11/13; cum 82K 6/15;
  • 25421, 1,597, Oasis/Zenergy, Lnk 14-23H, t10/13; cum 105K 6/15;
  • 25353, 872, Oasis/Zenergy, Link 13-24HTF, t11/13; cum 66K 6/15;
  • 25112, 2,400, Oasis/Zenergy, Link 15-22H, t7/13; cum 113K 6/15;
  • 24741, 3,192, Oasis/Zenergy, State Wolf 16-21H, t10/13; cum 86K 6/15;
Permits issued in 2012:
  • 24668, 1,579, Emerald, Pirate 1-2-11H, t3/13; cum 52K 7/13;
  • 24302, PNC, Zenergy,
  • 24301, PNC, Zenergy,
  • 24240, PNC, Zenergy,
  • 24239, PNC, Zenergy,
  • 24215, 2,448, Oasis/Zenergy, Wolf 9-4H, t10/13; cum 122K 6/15;
  • 24214, PNC, Zenergy,
  • 24189, 3,192, Oasis/Zenergy, link 10-3H, t7/13; cum 141K 6/15;
  • 24188, PNC, Zenergy, Kuykendall 25-36H,
  • 23901, 628, Zavanna/Zenergy, Young 31-30 1H, t8/13; cum 113K 6/15;
  • 23770, PNC, Zenergy,
  • 22760, 412, Zavanna, Rogers 1-12 1H, t6/13; cum 88K 6/15;
  • 22759, 594, Zavanna, Martinez 36-25 1H, t2/13; cum 45K 7/13;
  • 22458, 454, Zavanna, Witt 34-27 1H, t11/12; cum 60K 7/13;
  • 22314, 1,545, Zavanna, Browning 28-33 1H, t4/13; cum 32K 7/13;
Permits issued in 2011: 
  • 20414, 682, Zavanna, Larsen 32-29 1H, t6/12; cum 83K 7/13;
  • 20478, 674, Zavanna, Koufax 3-10 1H, t11/11; cum 109K 7/13;
  • 20868, PNC, Zavanna, Hunter 2-11 1H,
  • 21372, 742, Zavanna, Bunning 35-26 1H, t1/13; cum 55K 7/13;
  • 21725, 230, Whiting/Petro-Hunt, USA 150-102-6A-7-1H, t7/13; cum 120K 6/15;
  • 21864, 561, Zavanna, Wells 6-7 1H, t7/12; cum 70K 7/13;
Permits issued in 2010: None

Random Note On Cluster of Wells in Banks Oil Field, Heart of the Bakken

Updates

June 23, 2012: three rigs are on site in the following area -- 22806, 22839, and 20555. In total, there are eight rigs in Banks oil field. 

Original Post

There's an interesting cluster of wells in Banks oil field, heart of the Bakken, 20 miles southeast of Williston, south of the river. It may be only 20 miles as the crow flies, but due to the river, it's a lot longer to drive there. 

21814, dry, Statoil/BEXP, Cheryl 17-20 1H, s1/12; comp1/16;
21815, 4,680, Statoil/BEXP, Richard 8-5 1H, t4/13; cum 283K 9/16;
22322, 4,630, Statoil/BEXP, Cheryl 17-20 2TFH, t4/13; bcum 223K 9/16;

22806, 3,464, Statoil/BEXP, Cheryl 17-20 3H, Banks, t2/13; cum 162K 9/16;
22807, 3,793, Statoil/BEXP, Richard 8-5 2H, Banks,t4/13; cum 236K 9/16;
22808, 4,439, Statoil/BEXP, Cheryl 17-20 4H, Banks, middle Bakken, t2/13; cum 297K 9/16; 48 stages; 3.7 million lbs; 37% sand; 73% ceramics; shortest geologic summary I've seen (smile);

17755, 543, Statoil/BEXP, Roscoe 2H-8, t5/09; cum 182K 9/16;

19876, 2,879, Statoil/BEXP, Enderud 9-4 1H, t10/11, cum 284K 9/16; (NOTE: 112K in 6 months)
20630, 3,179, Statoil/BEXP, Banks State 16-21 1H, t9/11; cum321K 9/16;
20631, 3,166, Statoil/BEXP, Enderud 9-4 2H, t10/11, cum 304K 9/16;
22938, 2,945, Statoil/BEXP, Banks State 16-21 4TFH, t5/13; cum 169K 9/16;
22939, 3,042, Statoil/BEXP, Enderud 9-4 4TFH, Banks, t7/13; cum 199K 9/16;
22940, 4,295, Statoil/BEXP, Banks State 16-21 3H, t5/13; cum 230K 9/16;

16001, PA/75/DRY, Madison/Bakken, MBI, State 16-1H, t2/06; cum 71K 5/14; Bakken is TA; still producing from the Madison (9/12);
 
The Gunderson wells in section 15-22:
  • 22577, 3,129, Statoil/BEXP, Gunderson 15-22 4TFH, 15-152-98, t4/14; cum 183K 9/16;
  • 22578, 3,906, Statoil/BEXP, Gunderson 15-22 3H, 15-152-98, t3/13; cum 263K 9/16;
  • 22839, TA, Statoil/BEXP, Gunderson 15-22 5H, 15-152-98, no production;
  • 20345, 2,746, Statoil/BEXP, Gunderson 15-22 1H, t7/1l; cum332K 9/16;
  • 23005, 1,964, Statoil/BEXP, Gunderson 15-22 2TFH, t12/12; cum 88K 9/16;
  • 23006, 2,590, Statoil/BEXP, Gunderson 15-22 6H, t12/12; cum 206K 9/16;
16135, AB/240, Madison, MBI, LM 2, t5/06, cum 66K 6/13;

18756, 522, Oasis/Zenergy, Pederson 10-3H, t6/10; cum 263K 9/16;

16196, 65, Madison, Samson Oil & Gas/Zenergy, Pederson1-10H, t11/06; cum 21K 2/14;

20554, 1,802, Oasis/Zenergy, Nelson 11-2H, t4/12; cum 213K 9/16;
20555, 1,765, Oasis/Zenergy, Nelson 14-23H, t8/12; cum K 9/16;

19741, 1,234, Oasis/Zenergy, A. Johnson 12-1H, t6/11; cum 234K 9/16;

Will Ten Walking Rigs Be Enough?

How about them high-powered walking rigs coming up from San Antonio? Someone noted that CLR is getting ready to drill a number of 2560-acre spacing units.

For newbies: the horizontals are not going to underlie 4 linear sections (4 miles long). They will be configured in such a way that one well drilling two sections south (or west) will be paired with another well drilling two sections north (or east). Even though each horizontal will only "drain" 1280 acres, the pair of wells will be "draining" a 2560-acre spacing unit (at least that's how I understand it; and I could be wrong, but the horizontals are not going out four miles)

The May, 2012, NDIC hearing dockets was notable for many 2560-acre spacing units. For example:
  • 17841, CLR, Sauk-Bakken, create an overlapping 2560-acre unit; multiple wells; Williams
  • 17842, CLR, Border and Stoneview-Bakken; create an overlapping 2560-acre unit; multiple wells; Divide
  • 17562, cont'd, CLR, Baker and Indian Hill-Bakken, create an overlapping 2560-acre unit; multiple wells; McKenzie County
  • 17563, cont'd, CLR, Indian Hill-Bakken, create a 2560-acre unit; multiple wells; McKenzie/Wms
  • 17565, cont'd, CLR, Squires-Bakken, create an overlapping 2560-acre unit; multiple wells; Wms
  • 17566, cont'd, CLR, Hebron-Bakken, create an overlapping 1280-acre unit; create 2 overlapping 2560-acre units; create an overlapping 2240-acre unit; multiple wells from each; Williams Co
  • 17567, cont'd, CLR, Camp-Bakken, create an overlapping 2560-acre unit; multiple wells; McKenzie
  • 17568, cont'd, CLR, Crazy Man Creek-Bakken, create an overlapping 2560-acre unit; and, create an overlapping 2880-acre unit; multiple wells; McKenzie, Williams Counties
  • 17953, CLR, Stoneview-Bakken, 8 wells each, 3 existing overlapping 2560-acre units;  24 wells; Divide, Williams 
  • 17954, CLR, Sauk-Bakken, 8 wells on an existing overlapping 2560-acre unit; Williams
  • 17956, CLR, Hamlet-Bakken, 10 wells on an existing overlapping 2560-acre unit; Divide, Wms
  • 18101: CLR, Rattlesnake-Bakken Pool, create an overlapping 2560-acre unit, multiple wells; Dunn
  • 18102: CLR, Jim Creek-Bakken Pool, creat two overlapping 2560-acre units; multiple wells; Dunn
But other drillers are about to do the same:
  • 17781, SM Energy, Siverston-Bakken, establish an overlapping 2560-acre unit, 1 or more wells; and, 2 wells on each of 2 existing 1280-acre units, McKenzie
  • 17785, KOG, Twin Buttes-Bakken, designate 1 2560-acre unit, and 3 1280 acre units; 6 wells on some of the units; 4 wells on other units including the 2560-acre unit
  • 17830, QEP, Heart Butte-Bakken,  a) convert 2 640-acre units to 1 1280-acre unit; 2 wells; b) modify a 1280-acre unit from allowing up to 7 wells to allowing 2 wells; c) creating 1 overlapping 2560-acre unit, allowing up to 12 wells;
  • 17838, Zenergy, Foreman Butte-Bakken, establish 16 new 1280-acre units; 8 wells each; 128 wells; McKenzie; (not a 2560-acre spacing unit, but look at all those wells from that May docket)
From the April dockets:
  • 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

Back in March, 2012, the NDIC commission proposed these changes (I do not know the results):
  • 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

South Side of San Antonio With Explosive Growth Due to Eagle Ford

Carpe Diem link here.

My permanent residence (as permanent as anything in this life) is on the north side of San Antonio.

For people unfamiliar with San Antonio, four things:
a) it is one of the best-laid out commuting big cities I have ever seen; separated nicely into small communities; envision a huge pecan pie with at least four pieces, the northwest, the northeast, the southeast, and the southwest;
b) in addition to those four quadrants, one can divide the city a simple way, north/south. The north looks like me; the south looks like my wife (one of us is Scandinavian; one of us is Hispanic whose grandfather swam across the river, and was subsequently deported);
c) the city hosts the largest Martin Luther King parade in the US; and,
d) we're all united by one team, the Spurs.
The story linked at CarpeDiem is a huge, huge story. San Antonio is the second largest city in Texas, second only to Houston, and still feels like a small town because of item a) above.

Oh, five things. I forgot: the River Walk. And it's getting longer. 

Saturday Morning Ramblings

1. First of all, there are some great Bakken links that were posted earlier this morning. The link provided by CRC is particularly interesting. When a San Antonio-based company announces they are sending 70 percent of their huge, new walking rigs to the Bakken (and only one of ten of these walking rigs) to the Eagle Ford in their backyard it provides some insight how far along the Bakken is compared to the Eagle Ford. The walking rigs will be used for pad drilling. Regular readers noticed in a post yesterday that operators are now up to 9 wells in one spacing unit in the Bakken. A year ago, local folks were looking at one well per spacing unit. It quickly went to four, then six, and occasionally seven or eight. Now it's nine.

2. I was not a fan of Facebook. I opened an "account" a couple years ago and have almost no "friends," by choice. I didn't visit Facebook for months at a time. Then with the recent IPO debacle I became interested in Facebook again. Now I am back on it, at least three times daily and posting regularly. The photograph feature is what caught my attention. After being back on Facebook for two weeks now, I am convinced that Facebook is a "keeper." The reason I post this today is because I see that it is rumored that Apple and Facebook will "partner." There have been a number of dots that make this plausible. Maybe more to follow in my ramblings. I think iTunes is to Apple, as iPhoto is to Apple/Facebook, as "apps" are to iPad. There are some very interesting niches being carved out in all this digital technology.

3. Outbox. After someone alerted me to this "application," I tried to figure out who the target audience was.  I think I have it. It's the same business model for DISH and others with commercial-skipping television technology. Years ago I helped sort mail for the military postal service. I saw it and you still see it every day, folks throwing about 75 percent of their mail away -- junk mail -- not opened, directly into the waste paper for recycling. (Okay, the recycling part is made up.) This is a huge waste of effort and expenses for an agency that is going bankrupt -- delivering all this mail (at cut-rate prices) only to have it thrown out. Outbox comes along and tells the post office, "hey, send that mail to us first; and we will get rid of the mail that people don't want. We will return the mail that people do want for the USPS carriers to deliver." It's a huge win-win for the postal service. The post office still gets all the revenue for the junk mail postage, but then it doesn't deliver the junk mail.  It's counter-intuitive, but I know I'm right on this. It will be interesting to see if Outbox is still around five years from now. [Something tells me third class advertisers could sue; paying the postal service to deliver a product to an address, but the USPS diverts that mail to a company to shred it.]

4. Books I am currently reading: Richard Dawkins' The Ancestor's Tale; David Abulafia's The Great Sea; an anthology of H. L. Mencken articles; and, Alison Light's book on Virginia Woolf's servants.  It's a rainy, cool day in Boston so plenty of time to catch up on a few things.

5. Oh, speaking of Facebook, above, BranchOut went viral with its relationship with Facebook. I read somewhere that BranchOut has more folks registered than the much-longer-lived Linked In. For some reason I never cared for Linked In; seemed geeky; for higher-level managers, whereas BranchOut with Facebook will be much broader-based. I can't articulate it well because I don't visit Linked In, though I am registered there; I don't know what Linked In is up to these days. On the other hand, with a click at Facebook, I am branched out to BranchOut.

6. Warning: political comment. I see the wanna-be emperor has no clothes. Harvard's first woman of color was in the business of flipping homes before it was cool. Sort of reminds me of cattle futures in Arkansas.

From Twitchy:
This happened. This actually happened.
See, Sacaja-whiner doesn’t just understand minority issues. She lives them. Every. Single. Day. And what better way for Elizabeth Warren to prove her Native American authenticity than by addressing the minority caucus at the Massachusetts Democratic Party convention this morning?

I Was Country (When Country Wasn't Cool), Barbara Mandrell

7. Warning: political comment. The graph the administration doesn't want you to see.

8. Warning: political content. Remember this back on May 24, 2012?
Drudge links a story stating "The Amateur" is will debut #1 on the NY Times book list.  Wow. 
It is.

9. Warning: political comment. NYTimes: don't blame Obama. His hands are tied.
Without mentioning Republicans, Mr. Obama said Congress had not passed measures he had proposed to get jobless construction workers rebuilding roads, bridges and runways; to give small businesses a tax break for new hires; and to help states pay teachers, firefighters and police officers. The steady elimination of public sector jobs has offset increased hiring in the private sector for more than two years.
If you listened to his Minnesota speech, Mr Obama added tax breaks for renewable energy; never once mentioned domestic oil and gas industry. I'm not sure how "helping states to pay teachers, firefighters and police officers" will help add NEW jobs. I'm not sure what "Without mentioning Republicans" added anything to the article. I assume the reporter originally had written "Without mentioning that he had killed Keystone XL," which was replaced by the editor.

10. Warning: political content. From Twitchy:
The Smartest Man Alive was floundering during a campaign stop when he had to talk about jobs. Jobs are hard! So is common sense and reality, evidently. President Obama said that Americans need to buy more “thingamajigs” and stuff and things and such. To make jobs. Or something.

Seven Huge Walking Rigs Headed to the Bakken

A huge "thank you" to CRC for this link: San Antonio-based company building ten walking rigs to accommodate pad drilling; seven of those ten rigs will be going to the Bakken.

Data points:
  • seven rigs headed for the Bakken
  • two rigs for the Marcellus
  • one rigs to the company's backyard, the Eagle Ford
  • 1,500 hp rigs with 2,000 hp mud pumps
  • with the additional delivery, Pioneer will operate 16 drilling rigs in the Bakken
  • walking rigs preferred to skidding
When the Eagle Ford is in their backyard, and they still plan to send 70% of their new rigs to the Bakken it tells me that the Bakken is well into the mining stage, as they call it. I assume you all noticed in the June dockets that Hess would be drilling up to 9 wells in their spacing units

Week 22: May 27, 2012 -- June 2, 2012

New record: 218 active rigs in North Dakota

NDIC hearing dockets for June, 2012.

Radisson Hotel to Williston.

Update on TAT refinery reservation.

Heel-to-toe siting in the Sanish -- Whiting wells.

Crew camp for South Heart -- center of Whiting's Pronghorn Prospect.

Flashback: first hints of the Pronghorn Prospect.

Oil fields inside Whiting's Pronghorn Prospect

On track for nearly 2,100 new permits in North Dakota for 2012.

Six more Brooklyn oil field permits.

Some Great News For Chesapeake -- Nothing To Do With The Bakken

It appears Chesapeake has a significant discovery on its hands -- a well that produced a solid 5,000 bopd over eight consecutive days in the Anadarko Basin. Link to Rigzone.com.

This is their Hogshooter play in the Anadarko Basin (western Oklahoma, Texas panhandle) where Chesapeake has drilled two horizontal wells, short laterals about the same vertical depth as Bakken wells in North Dakota.
During its first eight days of stabilized production, the well averaged daily production of 5,400 barrels (bbls) of oil, 1,200 bbls of natural gas liquids (NGL) and 4.6 Million cubic feet of natural gas (MMcf), or approximately 7,350 boepd. Total cumulative production, which includes five days of flowback testing, is 68,400 boe. Current daily production is approximately 7,000 boe.

Administration Will Assert US Claims in The Arctic

Very interesting piece in Rigzone regarding oil prospects in the Arctic.
U.S. Secretary of State Hillary Clinton will assert her country's interest in the Arctic, where the prospects for abundant oil, gas and new trade routes has been likened to a modern-day gold rush, when she visits the region on Saturday.

As the sea ice recedes with climate change, huge oil and gas fields are adding vast amounts to global reserves, while sea passages are opening for longer periods each year and cutting thousands of kilometres off trade routes between Europe and Asia.

Flashback: 2010 Peak Oil Call For Green Energy Revolution

As Independent Stock Analysis says: this whole issue of "peak oil" sounds quaint.

Several nice energy links at ISA.

Update on Continental Resources in the Bakken -- Seeking Alpha

Mike Filloon has a very nice update of Continental Resources at Seeking Alpha.com

This may be one of his best posts; I highly recommend it to all newbies even if they are not interested in CLR.