Wednesday, April 24, 2013

Random Update On The Cottonwood Oil Field

A reader asked if there was any new pad drilling in 157-92 in the Cottonwood oil field. I provided the answer at the Cottonwood oil field post, but it's an important development, so I am re-posting it here:

Prior to this 4-well pad, to the best of my knowledge there was only one multi-well pad in the Cottonwood, and I hardly consider it a multi-well pad: just two wells, one horizontal going south and one horizontal going north.

But the 4-well multi-well pad in section 3-157-92 is notable. One rig is one site; two others are on DRL status; and the fourth, LOC:
  • 23804, drl, Oasis, Lars 5792 13-3H, Three Forks, Cottonwood, sections 3/10 (running south)
  • 25135, drl, Oasis, Nels 5792 13-3T, Cottonwood, sections 3/10 (running south)
  • 25136, drl, Oasis, Beth 5792 13-3B, middle Bakken, Cottonwood,
    sections 3/10 (running south)
  • 25230, loc, Oasis, Sara 5792 13-3B, middle Bakken, Cottonwood, sections 3/10 (running south)
The Cottonwood has an interesting back story that has been discussed several times in the past. This multi-well pad in the Cottonwood is notable. There is a lot of discussion elsewhere about the economic viability of some of these "smaller" oil wells and some less productive fields. I've always thought these discussions were premature. Some of the discussions were taking place as early as 2009, when the Bakken boom in North Dakota had hardly taken off. I found it interesting/surprising/crazy/short-sighted/whatever that folks were already talking about the viability of some of these Bakken wells.

The Cottonwood oil field, from my perspective, has not been a particularly noteworthy/successful/whatever oil field in the Bakken compared to others (especially compared to the Sanish or the Parshall, for example). In fact, after the first dozen or so wells I really thought there would not be all that much activity in the Cottonwood.

I am pleasantly surprised.

Based on the siting it looks like the wells will all run south, and that's what the well files confirm.

Oasis wouldn't be drilling a four-well pad if it didn't make financial sense. So, to see a four-well pad in the Cottonwood is very encouraging.

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