Wednesday, May 18, 2016

EOG EOR In Clarks Creek? -- May 18, 2016

Note: for a closer look at two wells mentioned in this long post, this this post: http://themilliondollarway.blogspot.com/2016/05/random-look-at-two-eog-wells-in-clarks.html

Note: in a long note like this, there are likely to be typographical and/or factual errors. There may be errors in the graphics. Some items are conjectures at this point based on my understanding of the Bakken. There may be errors in the graphics. I have not triple-checked this post. If this is important to you, go to the source.

It's easy to forget just how incredible the Bakken is.

Maybe this will help.

EOG has recently talked about EOR. When I get a chance, and if I remember, I will provide the link.

Hold that thought.

Today, EOG has renewed eight permits.

Hold that thought.

Down below, I have three graphics to help tell the story of these eight renewed permits.

Near the area of interest, EOG has a permit for a monitoring well.

Hold that thought.

Based on what little I know, the wells in the graphic below are targeting the middle Bakken and the Three Forks, the first bench. There are at least two more benches that can be targeted.

Hold that thought.

Finally (can there be more? oh yes), operators in the Bakken pretty much aren't drilling a well right now if they can't expect a EUR of 900,000 bbls in this part of the play.

Okay, that's the final thought you have to hold. Now look at the graphics.

This is the first graphic that shows the general area of the area of interest: Clarks Creek in the Bakken:

This second graphic zooms in a bit. Note the area of interest. Note the four numbered existing horizontals that run north to south. These are among the longest horizontals in the Bakken, "three sections" long. Most Bakken horizontals are now "two sections" long; in the beginning, back in 2007, they were only "one section" long.


The third graphic. There are eight existing horizontal wells in this graphic. Three of them run from the north, to the south. Five of them run from the south, to the north. There are already 15 wells on confidential status in this area. And now, the eight (8) permits in this immediate area that have been renewed. Note the EOG "monitoring" well, #29679 (text/arrow in blue); it will target the Duperow formation, not for production but for monitoring.


Okay, the fourth graphic. Not much except to show the 15 wells on confidential status and where the area of interest is today (the eight permits that were renewed).


Summary: eight existing horizontals + 15 wells on confidential status + eight permits renewed = 31 wells. These 31 wells target only the middle Bakken and the first bench of the Three Forks. There are two more benches in the Three Forks that could be targeted.

Note: one well below, on-line for less than four (4) years, has produced over 700,000 bbls of oil. 

Now go back to all those thoughts you were holding.

31 x 900,000 = 28 million bbls EUR / 1280 acres = 22,000 bbls/acre.

*********************************

Eight permits renewed May 18, 2016:
  • 31246, loc, EOG, West Clark 8-0136H,  
  • 31251, loc, EOG, West Clark 107-0136H,
  • 31252, loc, EOG, West Clark 116-0136H,
  • 31253, loc, EOG, West Clark 126-0136H,
  • 31254, loc, EOG, West Clark 127-0136H,
  • 31255, loc, EOG, West Clark 134-0136H,
  • 31256, loc, EOG, West Clark 128-0136H,
  • 31257, loc, EOG, West Clark 129-0136H,
Fifteen wells on confidential status at time of posting:
  • 31388, conf, EOG,
  • 31387, conf, EOG,
  • 31386, conf, EOG,
  • 31385, conf, EOG,
  • 31384, conf, EOG,
  • 31383, conf, EOG,
  • 31382, conf, EOG,
  • 31381, conf, EOG,
  • 31380, conf, EOG,
  • 31379, conf, EOG,
  • 31378, conf, EOG,
  • 31377, conf, EOG,
  • 31376, conf, EOG,
  • 31375, conf, EOG,
  • 31374, conf, EOG,
Of the eight additional horizontals in this sections: the four running north to south (three sections long):
  • 22485, 1,926, EOG, Hawkeye 01-2501H, Clarks Creek, t1/13; cum 578K 6/16;  only 21 days 3/16;; only 2 days 5/16; only 9 days; 6/16;
  • 22486, 2,421, EOG, Hawkeye 100-2501H, Clarks Creek, t9/12; cum 703K 6/16; only 22 days 3/16; see production profile below; only 7 days in 5/15;
  • 22487, 67, EOG, Hawkeye 02-2501H, Clarks Creek, t12/13; cum 623K 6/16; only 22 days 3/16; 0 days 4/16; 1 day 5/16; 22 days 6/16;
  • 22484, 2,946, EOG, Hawkeye 102-2501H, Clarks Creek, t1/13; cum 529K 6/16; only 21 days 3/16; 0 days 4/16; 2 days 5/16; 6/16;
Of the eight additional horizontals in this section: the four running south to north:
  • 31403, SI/NC, EOG, West Clark 117-0136H, Clarks Creek, as of 6/16, producing,
  • 31247, SI/NC, EOG, West Clark 103-0136H, Clarks Creek, as of 6/16, producing,
  • 31248, SI/NC, EOG, West Clark 104-0136H, Clarks Creek, as of 6/16, producing,
  • 31249, SI/NC, EOG, West Clark 105-0136H, Clarks Creek,  as of 6/16, producing,
****************************

22486, 2,421, EOG, Hawkeye 100-2501H, Clarks Creek, t9/12; cum 702K 3/16; only 22 days 3/16:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN3-2016221836186316434036339478
BAKKEN2-20162928972860239859104969141
BAKKEN1-20163131243101281773786211319
BAKKEN12-2015313785374134439053811799
BAKKEN11-20151319011951162975837047191
BAKKEN10-2015315411541148801916118105201
BAKKEN9-201530513951864793242462339725
BAKKEN8-201531574856955199212832034781
BAKKEN7-2015315911590749862126017404614
BAKKEN6-2015264513455336901497711931384
BAKKEN5-2015316287630651362172417829653
BAKKEN4-2015307235722556852475221414227

Silly Days -- May 18, 2016; Tesla To Sell About 10 Million New Shares; Raise $2 Billion In Cash

This is so cool. We just talked about it the other day. Tesla would offer more shares to raise badly needed cash. MuskMelon did that today. The only question: how much dilution? Let's see. The original talk was 11%. I said 10% was typical. So, let's see: $2 billion. But how many shares? The sources don't say. But at $211/share today, and $2 billion, that equates to about 10 million shares in round numbers. Outstanding: 135 million in round numbers. 10/135 = 7%.

Back on May 13, 2016, this was posted:
Analyst Brian Johnson of Barclays projected a $3 billion equity raise sometime in the second quarter. At current stock prices, a transaction of that size would be about 14.5 million shares, an increase of 11 percent to the number of shares outstanding.
So 7%. Way less than the typical 10%, and way less than projected by at least one analyst. This is a no-brainer for raising cash.

But what a snake salesman. To make this a bit more palatable, MuskMelson says 1.2 million shares will be donated to charity. Whom is he trying to kid?

****************************************
Silly Days

The market was up nicely today, and then finished down slightly, almost flat.

Oil was up nicely today, and then finished down slightly, almost flat.

What accounted for the positive move to slightly negative, almost flat? There was talk that the Fed might possibly, but not very likely, but could, if the stars aligned right, could possibly raise the Fed rate from ... oh, about zero ... to about ... oh, about one-quarter point.

And that takes up from a nice upside to slightly negative. Great buying opportunities, eh?

***************************
Venezuela -- Tick, Tick, Tick
Unrest continues to grip Venezuela as president threatens to make opposition-controlled legislature 'disappear' -- Los Angeles Times. I assume President Obama wishes he had had similar powers.

***************************
Bullet Train

Lifeline for the bullet train. President Obama extends federal funding deadline for California's bullet train by four years.

************************************
Perspective

From her perspective, all those visitors and no one was paying attention to the brochures. She figured that if she spread them out for folks to see, they might take more interest.

DistributingBrochures_May_18_2016

And, yes, we replaced all the brochures after we finished filming.

Oasis Reports Three Nice Tyrone Wells; Four More DUCs In The Bakken -- May 19, 2016

Wells coming off confidential list Thursday:
  • 27685, 872, Oasis, Logan 5601 11-26 8T, Tyrone, t11/15; cum 43K 3/16;
  • 27689, 1,325, Oasis, Logan 5601 13-26 4T, Tyrone, t11/15; cum 63K 3/16;
  • 29042, 914, Oasis, McCauley Logan 5601 11-26 6T29, Tyrone, t12/15; cum 40K 3/16;
  • 29133, SI/NC, Hess, BW-Erler-LE-149-99-1522H-1, Cherry Creek, no production data,
  • 31201, SI/NC, XTO, Kaye Federal 13X-3G, Lost Bridge, no production data,
  • 31226, SI/NC, XTO, Harley Federal 24X-15A, Sand Creek, no production data, 
  • 31788, SI/NC, XTO, Lund 21X-17B, Siverston, no production data,  
  • 31881, drl, CLR, Corsican Federal 8-15H2, Sanish, no production data,
Nine (9) permits renewed:
  • EOG (8), eight West Clark permits in McKenzie County, it looks like all on one pad, one middle Bakken, and seven Three Forks wells
  • BR, a Gladstone permit, in McKenzie County
One (1) new permit --
  • Operator: SM Energy
  • Field: Whiteaker (Divide)
  • Comments:
*******************************

29042, see above, Oasis, McCauley Logan 5601 11-26 6T29, Tyrone:

DateOil RunsMCF Sold
3-2016131579369
2-201653432784
1-201699912732
12-2015101095390

27689, see above, Oasis, Logan 5601 13-26 4T, Tyrone:

DateOil RunsMCF Sold
3-20161335711196
2-2016143048574
1-2016115767337
12-2015175547100
11-201561163782

27685, see above, Oasis, Logan 5601 11-26 8T, Tyrone:

DateOil RunsMCF Sold
3-201698107078
2-2016118528231
1-201667140
12-2015121902545
11-201520031340

**************************************
Ten (10) Minutes Prep
Salmon: 16 minutes (for this size) in the oven (400); 
a little Teriyaki sauce before going into oven
Tuna, 2-hour marinade (if possible): 5 minutes stove top
Asparagus: 2 minutes in microwave; 
1 minute or so stove top to finish, flavor



The "Trillion-Dollar-Mistake" -- It May Be Worse Than "We" Think -- May 18, 2016

Bloomberg is reporting:
Saudi Arabia has told banks in the country that it is considering giving contractors IOUs to settle some outstanding bills.
A projected budget deficit this year is prompting the government to weigh alternatives to limit spending. Contractors would receive bond-like instruments to cover the amount they are owed by the state which they could hold until maturity or sell on to banks.
Contractors have received some payments from the government in cash and the rest could come in "I-owe-you" notes.
"It" may be worse than we are being led to believe. More from the story:
The government started delaying payments last year to prevent the budget deficit from exceeding $100 billion after the oil slump.
Deputy Crown Prince Mohammed bin Salman told Bloomberg News in an interview in March that authorities have started paying companies back.
Note: it was back in March, 2016, that it was reported that the Saudibinladin Group was struggling due to low prices (see below).

The picture becomes a bit more clear why Prince Salman needs to launch a Saudi Aramco IPO, albeit, incredibly small.

I track the Salman Plan here.

The big dots that now connect, in the chronological order they appeared:

Huge Well Taken Off-Line -- Slawson's Hunter In Big Bend -- May 18, 2016

Updates

July 13, 2016: #18575 was noted to have been taken off-line earlier this year. This is one of six wells on this pad. It turns out all six wells were taken off-line at the same time and it appears all were placed back on-line in 5/16. I can't find explanation at the file report.  This is a Hunter / Jeriyote pad. It appears that Hunter 1-8-17H and Hunter 2-8-17H may have interfered with each other during frack operations.
  • 19993, 1,242, Slawson, Hunter 2-8-17H, Big Bend, t11/11; cum 251K 5/16;  
Original Post
 
If I remember, I will come back to this one later; NDIC map not loading now.

The well:
  • 18575, 1,007/IA, Slawson, Hunter 1-8-17H, Big Bend, t6/11; cum 430K 3/16; off-line all of 11/15; only one day production 1/16; only one day production 2/16; IA as of 3/16; back on-line 5/16;
Production profile (has been update):
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN5-20164109038433383675264
BAKKEN4-201616100500
BAKKEN3-20160000000
BAKKEN2-20161000610
BAKKEN1-2016117133814315511634
BAKKEN12-201528322930152841260724670
BAKKEN11-201500390000
BAKKEN10-201530458347762086364623521144
BAKKEN9-20153070056671242954234697576
BAKKEN8-201531492051074615400822371616
BAKKEN7-20153168086929427052374677405
BAKKEN6-201530458845684657375823641244
BAKKEN5-2015314482444235793830366015
BAKKEN4-20153033173340285421241377597
BAKKEN3-201531500750623927376110352571
BAKKEN2-20152829642889302431864382608
BAKKEN1-201531872089025693787656512070
BAKKEN12-201431134781337687251162099671498
BAKKEN11-20143017198171981013616345121214074
BAKKEN10-20143125844258911462024638203754108
BAKKEN9-201430143621432039721236760526165
BAKKEN8-2014155021464223227500
BAKKEN7-201412523701050
BAKKEN6-20140000000
BAKKEN5-20140000000
BAKKEN4-20140000000
BAKKEN3-20140000000
BAKKEN2-20141652380500
BAKKEN1-20140000000
BAKKEN12-20130000000
BAKKEN11-20130000000
BAKKEN10-20130000000
BAKKEN9-20130000000
BAKKEN8-201322448748151253284127310
BAKKEN7-201331640361721898378634760
BAKKEN6-201330593961371695379234920
BAKKEN5-201331651268761870403837280
BAKKEN4-201329612757711637363333430
BAKKEN3-201331685065511937383735270
BAKKEN2-20131831112883830180316230
BAKKEN1-201323527162031385303628060
BAKKEN12-20121120131573875116310530
BAKKEN11-201225624263131550565854080
BAKKEN10-2012319810101522502720468940
BAKKEN9-2012301102910809276810981106810
BAKKEN8-2012301583015806374013944136440
BAKKEN7-201231777377032306543151210
BAKKEN6-201227710066712022474544750
BAKKEN5-2012311435015035336110501101910
BAKKEN4-20123012645122003412819378930
BAKKEN3-20123111427120394021733570250
BAKKEN2-20122914320140873735819479040
BAKKEN1-201223713470621250352732970
BAKKEN12-201120566456511434342532250
BAKKEN11-20112914913154365464963996390
BAKKEN10-20112312774127993839859983690
BAKKEN9-2011301779618312486611507112070
BAKKEN8-20112818475175085053575554750
BAKKEN7-2011312188122818660931000
BAKKEN6-2011302773527066892030000
BAKKEN5-2011101417512932342210000

Interim Production Update On SHD Three Forks Well With Huge Frack, #19296, Golden 22-31H -- May 18, 2016

Updates

March 25, 2018: production update; nothing in sundry form to explain jump in production back in October, 2017. But look how incredible this well is. But look at this: still flaring all its natural gas; on the reservation.

There are three more wells on this pad on confidential status: 31109, 3110, 3111. This is -- to put it simply -- an incredible well

The updated production since 3/16:


PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN1-2018309477960012671576305763
BAKKEN12-2017318185807011052569005690
BAKKEN11-20173092679473698212054012054
BAKKEN10-201731106551050113754818108181
BAKKEN9-2017309449935912482673906739
BAKKEN8-201731117661158414079912509125
BAKKEN7-201731116381154614762853608536
BAKKEN6-201730128351296816318837208372
BAKKEN5-201717659764649392337403374
BAKKEN4-201724133411365915457924509245
BAKKEN3-201731144381409016896950609506
BAKKEN2-201728148631520617197998409984
BAKKEN1-201730139921374217928762107621
BAKKEN12-201627113811156712009555705557
BAKKEN11-201629144691434218037832808328
BAKKEN10-201631161961595119279870408704
BAKKEN9-201630158271559623118822408224
BAKKEN8-201631169131643523912923609236
BAKKEN7-20163119195187032931210760010760
BAKKEN6-201630173981730028221926909269
BAKKEN5-201631174261705828779915709157
BAKKEN4-20163017658176800921909219
BAKKEN3-201631180091748228734927352584015

Original Post

If I remember I will come back to this one; take a better look at production jump in October, 2015; NDIC map not loading now.

The well:
  • 19296, 2,388, SHD, Golden 22-31H, Deep Water Creek Bay, TF Bench 1, 62 stages, 15 million lbs, t3/15; cum 622K 1/18;
Production profile:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN3-201631177591748228734927309273
BAKKEN2-201628151881485226159797707977
BAKKEN1-20163120664203703023310665010665
BAKKEN12-20153120810205233934613444013444
BAKKEN11-20153022221221663620416791016791
BAKKEN10-20153121570214203090116005016005
BAKKEN9-20152913597137312773810789010789
BAKKEN8-20153117615172371247435799035799
BAKKEN7-20153118846184162925013299013299
BAKKEN6-201530214522059729348146377612971
BAKKEN5-2015312754527019403071761015838129
BAKKEN4-20153030953298964622621505167763139
BAKKEN3-20153150914483486872839880218936048
BAKKEN2-20152330105295027034623000023000