Wednesday, March 27, 2013

Rig On Site In Far Southwest Corner of North Dakota; One Well With Over 600,000 Bbls After 40 Years And Still Producing

Updates

March 28, 2013: disregard comments in the original post below regarding flaring. A reader writes:
I think I read somewhere once that the gas produced ended up being used in these air injection wells. So basically since the gas is not sold it is probably considered flared but not above ground, rather underground.  
March 28, 2013: The original post was "raw data." I did not have a chance to explore the "whys and wherefores." That's not unusual for me. At my age, I sometimes just don't have time. Ha. I'm getting to that age where my dad would tell me not to buy any green bananas. But I digress. A couple of readers wrote me -- thank you -- providing the background to these wells in MHPU.

First, a link to a CLR presentation, April 15, 2011, at Montana Tech, The University of Montana, Annual Spring Technology Symposium. This is a PDF/PowerPoint presentation. This explains what CLR is doing in the Medicine Pole Hills field to generate these returns. I assume this is what is meant by "huff and puff." The latter is considered secondary production, I believe; whether that's the right term or not, the presentation says "this" is secondary production in the MPHU. Primary production (vertical wells?) resulted in 6% recovery of original oil in place; air injection results in 22% recovery. Start-up costs very expensive.

Then, another reader provided some other observations by digging through the well files. Specifically the reader looked at #5749 below. The reader noted, correctly, that the "location" was less important than re-entering, laying new horizontals, and using new technology (second recovery as noted above). The reader also noted that the geologist was Kathy Neset Consulting, which was wonderful to see. Kathy Neset reports, as the reader noted, "seem so much easier to read than some others." That been my impression also: I am always happy when I see a geology report from Kathy Neset.

Original Post 

We haven't seen this in quite awhile: a rig in the far southwest corner of North Dakota (of if it's been there, I've missed it).

Fifteen miles southwest of Bowman, ND:
  • 25013, 23 (no typo), CLR, MPHU 13-10H, Medicine Pole Hills, Red River pool, t5/13; cum 37K 1/20;
and a half mile from:
  • 23818, AB-->IA/97, CLR, MPHU 32-10H, Medicine Pole Hills, West Red River, t1/13; cum 53K 11/18;
  • 23818, AB-->IA/57, CLR, MPHU 32-10H, Medicine Pole Hills, Red River, t1/13; cum 21K 11/18;
In the immediate area; all of these wells are active and very productive:
  • 5456, 200, CLR/Rainbow Resources, Wallman-Rausch 1-8, West Red River formation, Medicine Pole Hills oil field, t12/74; cum 719K 1/20; unitized; 1,500 bbls/month; producing since 1974, almost 40 years, this well is still producing 1,500 bbls/month;
  • 7656, 66, CLR, Wallman 1-9, West Red River, Medicine Pole Hills, t7/80; cum 192K 1/20; unitized; 300 bbls/month;
  • 5749, 100, CLR, MPHU 43-16, Red River, Medicine Pole Hills, t5/76; cum 668K 1/20; unitized; 
  • 11891, 6, CLR, MPHU 31-10, Red River, Medicine Pole Hills, t1/86; cum 242K 1/20; unitized; 500 bbls/month;
  • 13602, 206, CLR, MPHU 21-15, Red River; Medicine Pole Hills, t12/93; cum 458K 1/20; 1,300 bbls/month;
  • 16375, 228, CLR, MPHU 43-16SH, Red River, Medicine Pole Hills, t1/07; cum 94K 1/20; 1,500 bbls; month
  • 16375, N/D, CLR, MPHU 43-16SH, West Red River, Medicine Pole Hills, t1/07; cum 253K 1/20; 1,500 bbls; month
  • 22856, 40, CLR, WMPHU 11-9H, Red River, Medicine Pole Hills, t8/12; cum 66K 1/20; about 1,400 bbls/month and flaring a lot of gas;
  • 22856, N/D, CLR, WMPHU 11-9H, West Red River, Medicine Pole Hills, t8/12; cum 66K 1/20; about 1,400 bbls/month and flaring a lot of gas;
***********************
Spend some time looking at those wells. Some observations.

1. Almost all the wells, if not all of them, flare more natural gas than they sell. It is my understanding that NDIC requires wells to be choked back if they continue to flare gas after the first 12 to 18 months. If so, this suggests, these wells could be producing more oil.

2.  For newbies, this is a good example of how oil companies manage their wells. Look at the production (fourth column) of oil for #16375:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
RED RIVER1-2013315565562497524214563786
WEST RED RIVER1-20133115041504675114174393710237
RED RIVER12-2012315475332284523916483591
WEST RED RIVER12-2012311478144061751416544559710
RED RIVER11-2012305325332045508414653619
WEST RED RIVER11-2012301436144155281374539619784
RED RIVER10-2012315495492036526112424019
WEST RED RIVER10-20123114861485550514225335810867
RED RIVER9-2012305465412186554512564289

3. Look at the IP of #11891 and its production. This well, drilled in 1986, had an IP of 6 (not a typo). It has produced almost 200,000 bbls to date and demonstrates almost no decline rate, producing 500 bbls per month; flaring a lot, so probably choked back.

4. Look at #5749: this well produced about 500 bbls/month its entire life (spud in 1976). Then in July, 2011, it jumped to 2,000 bbls/month; then in September, 2012, 5,000 bbls/month; and, for the most recent month for which we have data, 6,000 bbls/month in January, 2013. Notice all the flaring: the well is probably choked back:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
RED RIVER1-2013316432633825131115930998060
RED RIVER12-201223465345811693821525845631
RED RIVER11-2012306040606320241064230677575
RED RIVER10-2012316355630420491160927418868
RED RIVER9-2012304883487817071272928839846
RED RIVER8-20123149654967168421072385117221
RED RIVER7-20123148354752213622983509117892
RED RIVER6-201230225022446731216330309133
RED RIVER5-20123120532058750902620147012
RED RIVER4-201230166616631002869311927501
RED RIVER3-201231164816768501149226468846
RED RIVER2-201229173117048471020426387566
RED RIVER1-201231209920811094785922495610
RED RIVER12-20112720772571762000
RED RIVER11-20113021671993384745327254728
RED RIVER10-20113121812521667724523594886
RED RIVER9-20113020501427142608020973983
RED RIVER8-2011316781028451550713154192
RED RIVER7-20113120141801234550511684337
RED RIVER6-201130176917914432078156420217
RED RIVER5-20113114511356494302613311695
RED RIVER4-201126801689111731637109

5. Look at #5456: producing since 1974, this vertical well has produced over 600,000 bbls, and is producing as much each month as some "good" Bakken wells, and it is flaring a lot of gas, suggesting that it, too, is choked back.

6. Finally, look at #22856, getting us into the modern era. Look at the monthly production on this one:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
RED RIVER1-2013311481145442791059819228676
RED RIVER12-20123114541471528238979292968
RED RIVER11-20123014401441564128396322207
RED RIVER10-20123113461329621924705031967
RED RIVER9-201230893873763414703071163
RED RIVER8-201213298285506853647
RED RIVER7-20120000000

It seems that while Bakken wells have horrendous decline rates, Red River wells get better with age.