Slawson To Drill As Many As 30 Wells On One 640-Acre Drilling Unit -- March 30, 2017

Updates

November 13, 2019: new graphic --

Original Post

Disclaimer: this was done very, very quickly. There will be factual and typographical errors. I have not had a chance to proofread this. I may not get back to this until later this evening. Don't quote me on any of this for now. 

Remember: each well stands on its own. Generally speaking, operators will not drill a Bakken well (middle Bakken, four benches of the Three Forks) without expecting a EUR of at least 750,000 bbls. 

Back-of-the-envelope: 24 x 750K = 18,000K = 18 million bbls from one section x $40/bbl = $720 million at the wellhead. There are already 6 wells projected for this section, thus another 4.5 million bbls. 

In fact, in this area, one should expect EURs of 1.5 million bbls/well. Maybe not all the wells at all the target formations, but certainly for the "better" formations (at least two, maybe three, of the five).

Back on  April 5, 2013, this was posted:

If one moves the needle to 6%, 600,000-bbl EURs, and four wells per section, one gets in the neighborhood of 40 million bbls/section/OOIP in the Bakken on the North Dakota side of the border. 

But don't take my word for it. This is from Legacy Oil talking about the Spearfish:

"In terms of resource potential, the regional extent of the Spearfish is still being delineated, however, in areas already shown to be prospective, reservoir parameters can suggest potential OOIP to be in the realm of 9.0 to 15.0 million barrels per section, which could represent 2-3 times what the southeastern Saskatchewan Bakken offers on average."

That's the Spearfish, and the Bakken is known to be a whole lot better.

My hunch is, based on what some operators said some years ago, some operators are getting more than 6% of the OOIP on primary production.

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From the April, 2017, NDIC hearing dockets (link here):

• 25789, Slawson, Clarks Creek-Bakken, 24 wells on an existing 640-acre unit, section 12-151-95, McKenzie County

The graphics:

A) overview of 640-acre units in the area of this drilling unit:

B) The 640-acre drilling unit:

C) Closer view of the multi-well pads in the immediate area: