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
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.
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;