Saturday, August 2, 2014

CLR IPs In Alkali Creek Oil Field; KOG Talks About Aging Bakken Wells; Apache Pulling Out Of Australia To Concentrate On North American Shale -- July 31, 2014

Note: this page was originally written several days ago; I put it in draft and posted it later. For some reason, the "blogger" app chose today to post it. The "blogger" app works in mysterious ways. In fact, one comment was dated "August 1, 2014" confirming that this page was posted no later than yesterday, although I think I first wrote it several days ago. The context of the blog will provide further clues, I assume. Whatever.

CLR and IPs
Regular readers and long-time followers of the Bakken "understand" the relevancy of IPs.

After reporting the IPs on a daily basis for every well that comes off the confidential list in North Dakota for the past several years, I have a pretty good feeling for IPs as reported by various operators. I've discussed this before.

So, that I don't get a whole bunch of "anonymous" comments pointing out the error of my ways, I will speak in generalities. I am updating the Alkali Creek oil field. Regular readers and long-time followers of the Bakken "know" what to expect with IPs reported by CLR. Things may be changing, or things may be different in Alkali oil field. The IPs recently reported by CLR coming out of Alkali Creek oil field are quite out of the ordinary for CLR. Very, very impressive, to say the least.

Just saying.

I follow the Alkali Creek oil field here.

KOG Press Release; 2Q14 Earnings

This caught my attention, interesting to see it in the press release. KOG could have ignored this, or waited to see if they could buy this "unwelcome" note in the conference call.
"The Company has continued to experience an incremental increase in LOE. The increase is primarily a result of continuing costs for winterization work and increased workover expenses, including but not limited to the installation of new, more effective pumps
Additionally, as the portfolio of producing wells age, LOE per barrel sold has increased as the production on older wells has declined, yet the Company continues to incur ongoing fixed costs to operate these wells. Kodiak has experienced an even larger incremental per barrel increase in LOE from non-operated properties."
KOG reported earnings that missed analysts' expectations by 10 cents. Not trivial. 

Apache To Completely Exit LNG Projects

Reuters via Rigzone is reporting:
Apache said it intends to completely exit LNG projects - in which it partners with Chevron Corp - in Wheatstone in Australia and Kitimat in Canada. Apache is also evaluating its international assets for a potential spinoff to shareholders, outright sale or other options, Chief Executive Officer Steve Farris told analysts on a conference call.
U.S. oil and gas company Apache Corp, under pressure from activist investor Jana Partners, said on Thursday it plans to sell interests in two liquefied natural gas (LNG) projects as it sharpens the focus on developing North American shale fields.
The move, a significant pullback from the LNG market, relieved investors worried about the potential project costs. Apache shares rose to their highest level in more than two years.
Over the last year, Apache has sold $10 billion worth of assets to focus its drilling on more profitable and predictable shale oil wells in places like the Permian Basin and the Eagle Ford in South Texas.
Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here. I have never invested or traded in Apache, never have, and probably never will.

An Operator Returns To The Bakken

While transcribing the August, 2014, NDIC hearing dockets agenda this evening I noted: Wapiti Operating, LLC, has been in North Dakota, but this is the first time I've seen them in the current boom; last file # for Wapiti was: #13329, Weinmann 1-5, Lucy oil field:
  • 13329, 23, Wapiti Operating LLC, Weinmann 1-5, Lucy oil field, a Madison well, t5/92; cum 49K 6/14;
So that was back in 1992 when they completed that Madison well; they are now back in North Dakota will be on the agenda for a new permit in the August, 2014, hearings.


  1. What are numbers you are referring to? I looked all over this front page and linked one, but couldn't figure out what you were referring to.

    P.s. If CLR IPs increase, there could be two reasons: (1) better wells, and (2) starting to flow them fast like EOG for the "flash" appeal.

    P.s.s. Don't be mean to us anonymi! :)

    1. The recent CLR wells in Alkali Creek recently reported:

      26445, 1,260, CLR, Vachal 4-27H, t6/14; cum 32K 5/14;
      26444, 1,703, CLR, Vachal 5-27H1, t4/14; cum 48K 6/14;
      26440, 1,368, CLR, Vachal 3-27H1, t5/14; cum 45K 6/14;
      25966, 955, CLR, Rehak Federal 5-25H1, t5/14; cum 32K 6/14;
      25965, 1,112, CLR, Rehak Federal 4-25H, t5/14; cum 29k 5/14;

      The IPs are significantly more than what I come to expect of CLR.

  2. There was a Bentek/Platts story out claiming 1.1 million of ND Bakken in June. (Sometimes we get these pre director's cut stories.) Have a hard time believing it though. Would be like a 12% increase (120MM bpd) when we were promised about 5-6% by Helms. Maybe they are including Montana (even though they say ND) or maybe it's boe/day.

    In any case, can't wait for AUG 15th. Will be fun to watch the Bakken cross that magic million. Watch the peak oilers cry. Especially all the ones who were skeptical about the Bakken. Red Queen posts and all that. Looking stupid now.

  3. Yes, generally speaking it's my impression that when Bentek/Platts talk about Bakken production, they are talking about all Bakken production, including Montana (not sure whether they include Canada; probably not), but again, Bentek/Platts generally talk about "all" of the Bakken. In addition, Helms generally doesn't separate out Bakken production from total North Dakota production in his monthly summaries.

    Maybe that would be worthy of a poll: North Dakota production (bopd) in the next Director's Cut. Thank you for another great comment; taking time to write; and, giving me an idea for another poll.