Wednesday, October 22, 2014

And So It Begans, The Evening News -- October 22, 2014

Bloomberg is reporting:
OXY said profit from the California oil producer it’s spinning off to shareholders next month fell during the third quarter as crude prices slid and production costs increased.
California Resources Corp. (CRC-W), as the unit will be known when it becomes a stand-alone company, had net income of $188 million during the July-to-September period, compared with $235 million a year earlier, Houston-based Occidental said in a statement today.
From a press release, ONEOK increases it's quarterly cash dividend:
The board of directors of ONEOK, Inc. today increased ONEOK's quarterly cash dividend by 1.5 cents per share, or 3 percent, to 59 cents per share, effective for the third quarter 2014, resulting in an annualized cash dividend of $2.36 per share. The dividend is payable Nov. 14, 2014, to shareholders of record at the close of business Nov. 3, 2014. 

Wells coming off confidential list Thursday:
  • 27965, drl, XTO, Kathy 31X-15H, Tioga, no production data,
  • 27983, drl, Statoil, Paulson 36-1 8TFH, Briar Creek, no production data,
Active rigs in North Dakota:

Active Rigs193182185195151

Fifteen (15) new permits:
  • Operators: Slawson (5), Zavanna (4), Whiting (2), Abraxas (2), Crescent Point, Zargon
  • Fields: Big Bend (Mountrail), Stockyard Creek (Williams), Timber Creek (McKenzie), North Fork (McKenzie), Little Muddy (Williams), Mackobee Coulee (Renville)
  • Comments:
Six (6) producing wells completed:
  • 26267, 1,672, Petro-Hunt, Van Hise Trust 153-95-28D-21-6H, Charlson, t9/14; cum --
  • 26801, 663, Hess, SC-Tom-153-98-1514H-6, t9/14; cum --
  • 27226, 1,051, Hess, BW-R Peterson-149-99-1102H-3, Cherry Creek, t9/14; cum --
  • 27297, 589, Hess, EN-Ortloff-156-94-2635H-4, Big Butte, t9/14; cum --
  • 27592, 780, Slawson, Challenger Federal 5-29-32TFH, Big Bend, t8/14; cum 10K 8/14;
  • 27593, 519, Slawson, Challenger Federal 3-29-32H, Big Bend, t9/14; cum 12K 8/14;


  1. When we will we start seeing drops driven by the low prices? Is there a lag because of contracts?

    1. I assume you are talking about royalties. I don't own any minerals so I cannot talk from experience. But yes, companies generally sell the bulk of their oil on contracts -- I believe six-month contracts. The operators contract with a refiner or a pipeline company or another party to deliver a certain amount of oil on a certain day at a set price (the price is on a "sliding scale" somewhat related to spot price, generally -- to protect both parties from wide swings).

      I don't know how long will take for royalties to start reflecting lower prices. I have had one person tell me his royalties are already less but that could be due to a lot of reasons.

  2. Bruce, How can you see how many frac stages occurred? I have looked through the well file but 122 pages is a lot. Is there an easier way? I am specifically asking about the Hess 149-99 Peterson wells just completed. Thanks

    1. You did not miss anything. The frack report for this well has not yet been filed (at least I did not see it). That is not uncommon. Sometimes the frack reports are delayed; they are not always there when the wells come off confidential list.

      The good news: if the well is fracked and if the data is there, it's almost always within the first few pages at the very top. Three "sundry forms" make up the "well completion report: the first form shows the IP at the very bottom of the form; the second page shows the stratigraphy; and, the third page shows the frack data.

      In permit #21000, another Hess well, for example, the frack data is a little farther down (page 15 of 133 pages, but one can scroll down very, very fast and see these forms once one gets used to what they look like. They do stand out.

      The other form I find very, very useful is the permit application, near the very end of the file. It too can be found very, very quickly by scrolling to the bottom. The application permit is ALWAYS there and is ALWAYS preceded by a NDIC form letter in black and red.

      Hope this helps.