Sunday, November 23, 2014

Random Look At Two Recently-Reported CLR Wells In Elidah Oil Field -- November 23, 2014

Recently CLR said it was changing its completion techniques. Note the number of stages and the amount of proppant used in these two recently-reported Elidah oil field wells:
  • 27562, 993, CLR, Rolfsrud 2-11H, middle Bakken, t7/14, started lateral May 31; reached TD June 8; background gases as high as 3,216 units; 30 stages; 6 million lbs sand/ceramic; cum 25K 9/14;
  • 27561, 960, CLR, Rolfsrud 3-11H1, Three Forks, gas as high as 9,225 units recorded; 30 stages; 6 million lbs sand/ceramic; t7/14; cum 29K 9/14;
The number of stages is unremarkable; the amount of proppant is quite remarkable.

As an example, here is a previously reported CLR well from the Elidah oil field; note the dates and the amount of proppant:
  • 19083, 183, CLR, Shafer 1-21H; t10/10; cum 146K 9/14; fracked 4/11; 24 stages; 2.5 million lbs
With a slump in oil prices, there is an expectation that fewer wells will be drilled in US shale (whether that occurs or not is yet to be seen). If fewer wells are drilled, there is an expectation that costs of wells will go down as demand drops for oil services and for sand/ceramic. CLR's announcement that it might increase the volume of proppant was made PRIOR to the slump in the price of oil, if I recall correctly. Whether that is accurate or not, CLR was certainly aware of their findings prior to the slump in the price of oil. Funny how things work out.

Day prices for rigs will also drop. 

I track the Elidah oil field here.

Regular readers have probably noticed an increase in the number of permits being issued for the Elidah oil field in the past few months.

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