Friday, October 19, 2012

CLR Hawkinson Permits in Oakdale -- Testing The Lower Benches?

Before reading the rest of this post, look at the earlier post regarding the Oakdale oil field, all of 8 sections in northwest corner of Dunn County (just across the county line from McKenzie County).

Then look at section 22-147-96:
  • 18275, 1,020, CLR, Hawkinson 1-22H, Oakdale, t2/10; cum 413K 9/12; still producing 10K bbls/month; Three Forks well; 1.9 million lbs; trip gas peaked at 9,300 units; 30 - 40 foot flare;
Then south of this section, in 27-147-96, CLR has an Eco-Pad
  • 20208, 960, CRL, Hawkinson 2-27H, Oakdale, Bakken; s1/11; t9/11; F; cum 167K 9/12; 24 stages; 2.4 million lbs; Three Forks (TF1); runs north;
  • 20210, 803, CLR, Whitman 2-34H, Oakdale, Bakken, s1/11; t9/11; F; cum 497K 9/12; 24 stages; 2.4 million lbs; middle Bakken; runs south;
  • 20211, 263, CLR, Hawkinson 3-27H, Oakdale, Bakken; s1/11; t9/11; F; cum 185K 9/12; 24 stages; 2.4 million lbs; middle Bakken; runs north;
  • 20212, 482, CLR, Whitman 3-34H, Oakdale, Bakken; s1/11; t9/11; F; cum 64K 9/12; frack data not available? Three Forks (TF1); runs south;
Today, CLR was issued three more permits for section 22-147-96:
  • 24223, loc, CLR, Hawkinson 4-22H2, Oakdale,
  • 24224, loc, CLR, Hawkinson 5-22H, Oakdale,
  • 24225, loc, CLR, Hawkinson 6-22H3, Oakdale
They will all run south; are these testing the second and third benches of the Three Forks?

Sixteen (16) New Permits

Active rigs: 186 (steady, no change all day)

Sixteen (16) new permits
  • Operators: CLR (3), MRO (2), Slawson (2), Zenergy (2), SM Energy (2), BR, OXY USA, Newfield, G3 Operating, Baytex
  • Fields: St Anthony (Dunn), Colgan (Divide), Twin Valley (McKenzie), Foreman Butte (McKenzie), Frazier (divide), Big Bend (Mountrail), Bailey (Dunn), Pembroke (McKenzie), Sand Creek (Mckenzie), Werner (Dunn), Oakdale (Dunn)
Comments: OXY USA and Newfield each have one permit; this makes about two new permits for each since September 27, 2012

Wells coming off confidential list were posted earlier; see sidebar at the right.

Producing wells completed:
  • 19682, A, Legacy Oil, Legacy Etal Fett 12-19H 1H, Red Rock, Spearfish well; minimal production after many months;
  • 22553, 527, Zavanna, Sabertooth 1-24H, Stony Creek, t8/12; cum 22K 9/12;
  • 22949, 993, Whiting, Lydia 11-14PH, Bell, t9/12; cum --
  • 22950, 1,494, Whiting, Solberg 14-11PH, Bell, t9/12; cum --

Week 42: October 14, 2012 -- October 20, 2012

TransCanada temporarily shuts down Keystone pipeline
MLPs and pipelines
NuStar's Niobrara to Wichita Falls, TX, pipeline
Natural gas pipelines: the Marcellus effect

BNI's huge crude-by-rail operation

Williston economic development
Wall Street money trying to put together $60 million --> $100 million projects in the Bakken
Williston Wire -- including 122-room addition at Four Bears Casino

Bakken operations
On track for 2,535 new permits this year; new record
Slawson proving that upper Bakken shale will produce oil -- huge article 
Clear Creek oil field: three rigs in one section
Random observation: close working relationship between CLR and BR
Several related posts on CLR's study on the "three benches":
XOM to buy small Alberta/Canadian Celtic Exploration
More companies seeking oil export licenses (export US crude oil to Canada)
IEA: US is turning global oil market on its head; BP has license to export US crude oil to Canada

Green fracking
Nitrogen fracking -- XOM/Celtic exploration

Short Update From Mr Hofmeister -- Peak Lite, Peak Oil, and The Long Recession

Over at The Oil Drum.
In a nutshell, we all know that peak oil is a phenomenon in which global oil production begins an irreversible decline, and the shortages that ensue drive global oil prices very high and cause widespread hardship. However, as I began to see spare global oil production capacity erode away over the past decade, I began to ask myself how that situation was really distinct from peak oil. Technically the difference is that production can continue to grow in that scenario, but if demand growth is higher than production growth, for practical purposes you have a situation that mimics peak oil. I referred to this situation as peak lite.

“And so what I actually anticipate is that even with the shale oil of North America, the Canadian oil sands, the bare beginnings of Arctic development, with Brazil coming in on time, which is late in the decade, and the other kinds of basin development that are taking place, I am not sure that in this decade supply will keep up with demand. And I anticipate shortages, gas lines — at any price — because of the growing demand, without alternative fuel technologies yet grabbing hold and picking up some of that demand.”
When do they anticipate significant challenges -- as soon as the mid-point of this decade: 2015. 

Minor Bakken Note: Geologic Storage of Carbon Dioxide in the Williston Basin

The commission has added a new case to the agenda in October:
17431, on a motion of the Commission to consider adopting new rules and amendments to the "Geologic Storage of Carbon Dioxide."

The case number is lower than oil-and-gas related cases, so not sure if this is new, or carried over, or something else. Regardless, the case number is unimportant; the subject is interesting.

Another Masterly Analysis -- This Time On Halcon -- Z-Man at Seeking Alpha


September 15, 2015: excllent RBN Energy update.

October 3, 2013: EOG / ZaZa farm-in.
The Eaglebine is a shorthand term for a complex, stacked pay horizontal oil play in the East Texas Basin which combines conventional sand plays in the Woodbine Group and unconventional shale formations in the Eagle Ford Group. 
A success in the Eaglebine, even with EOG holding the steering wheel, cannot be taken for granted. The Eaglebine still remains a highly technical and structurally complex exploration play. Even though ZaZa has made important progress in addressing its "going concern" issues, thanks to the success of its EOG deal, major risks still remain.
July 29, 2013: RBN Energy provides an update of the Eaglebine

Original Post

Steve Zachritz again provides another outstanding report, and tells much of it in a down-to-earth conversational style, ending with a long piece on "the numbers."

In addition to the "big" story, as it were, there is a lot of trivia in the article as well as in the comments.

I'm not going to do my usual data points on the article; there is just too much there. It will be very sad if sites like ever archive or make unavailable these articles. Even after their "investing" comments have passed their actionable point, articles such as these provide wonderful historical perspective.

HK: multiple oil plays around the US.

The article mentions the "Eaglebine" formation, which was new to me. This website has a quick view of the Eagle Ford geology, including the Eaglebine:
The Eaglebine isn’t a single geological formation, but is the name used by operators to describe wells that target both the Woodbine and Eagle Ford formations in a single wellbore. The Woodbine formation is best known as the prolific reservoir in the famous East Texas Oil Field. The Eaglebine is largely targeted at the northern extent of the Eagle Ford region (e.g. Gastar in Leon County, Chesapeake in East Texas).

Human Interest Story -- UK (United Kingdom) -- Financial Times Has Story On Williston/The Bakken

Link here to the Financial Times.

Human interest story on changing culture in Williston; nothing new for regular readers of the blog.