Tuesday, March 21, 2017

Whiting Reports Another Big Rolla Federal Well -- March 21, 2017

Active rigs:


3/21/201703/21/201603/21/201503/21/201403/21/2013
Active Rigs5032107197184

Wells coming off confidential list Wednesday:
  • 32328, 2,053, Whiting, Rolla Federal 11-3-2TFH, Twin Valley, 35 stages 7.1 million lbs, t10/16; cum 112K 1/17;
  • 32499, SI/NC, XTO, Werre Trust Federal 14X-34EXH2-N, Bear Creek, no production data,
Five (5) new permits:
  • Operators: Kraken (2), MRO (2), Enerplus
  • Fields: Ellisville (Williams), Reunion Bay (Mountrail), Mandaree (Dunn)
  • Comments:
One permit cancelled:
  • North Plains Energy II, LLC: a State permit in Divide County
Ten (10) permits renewed:
  • Whiting (4): four Charging Eagle permits in Dunn County
  • BR (2): two Cleetwood permits in McKenzie County
  • Enduro (2): one LDCMU permit, and one NSCU permit, the former in Renville County; the latter in Bottineau County
  • Resource Energy: one Shorty permit in Divide County
  • Armstrong Operating: a Pederson permit in Divide County
Four producing wells (DUCs) reported as completed:
  • 31063, 1,609, Whiting, Smokey 2-16-21-16HU3, Pembroke, 4 sections, t3/17; cum --
  • 31187, 571, Enerplus Resources, Wooly Torch 149-92-35A-04H, Heart Butte, ICO, t3/17; cum --
  • 32003, 2,640, BR, CCU Zephyr 34-34 TFH, Corral Creek, t2/17; cum --
  • 32004,  1,272, BR, CCU Zephyr 44-34 MBH, Corral Creek, t2/17; cum --
****************************************

32328, see above, Whiting, Rolla Federal 11-3-2TFH, Twin Valley:

DateOil RunsMCF Sold
1-20171980955673
12-20162653664048
11-20162772962041
10-20163571091885
9-201610761590

Oasis' Patsy Wells In Siverston Oil Field

Updates

March 25, 2018: early production numbers have been posted


Original Post

The Patsy wells:
  • 32949, 837, Oasis, Patsy 5198 11-5 3XT, Siverston, t12/17; cum 142K 7/18;
  • 32948, 683, Oasis, Patsy 5198 11-5 2BX, Siverston, t12/17; cum 195K 7/18;
  • 33078, 1,475, Oasis, Patsy 5198 12-17 6B, Siverston, t12/17; cum 174K 7/18;
  • 33077, A, Oasis, Patsy 5198 12-17 5T, Siverston, t --; cum 123K 7/18;
  • 33076, 1,873, Oasis, Patsy 5198 12-17 4B, Siverston, t12/17; cum 181K 7/18;
  • 33049, 1,269, Oasis, Patsy 5198 14-17 13B, Siverston, t1/18; cum 216K 7/18;
  • 33048, 614, Oasis, Patsy 5198 14-17 12T, Siverston, t1/18; cum 161K 7/18;
  • 33047, 354, Oasis, Patsy 5198 14-17 11B, Siverston, t1/18; cum 145K 7/18;
  • 33041, 606, Oasis, Patsy 5198 12-17 10B, Siverston, t1/18; cum 197K 7/18;
  • 33040, 12 (no typo), Oasis, Patsy 5198 12-17 9T, Siverston, t1/18; cum 120K 7/18;
  • 33039, A, Oasis, Patsy 5198 12-17 8B, Siverston, 50 stages; 10 million lbs, t--; cum 282K 7/18;
  • 33038, A, Oasis, Patsy 5198 12-17 7T, Siverston, t--; cum 69K 5/18; still offline as of 5/18;
  • 29167, dry, Oasis, Patsy Pow 5198 33-5, Siverston, 
  • 20689, 1,202, Oasis/Zenergy, Patsy 5-8HTF, Siverston, Three Forks Third Bench, 25 stages, 2.8 million lbs , t11/12; cum 157K 8/17; went off-line as of 9/17, suggesting that rest of wells are being completed; after all the other Patsy wells were completed, this well -- a Third Bench Three Forks well -- was put back on line and showed a significant jump in production for two months, but then settled back down to what it had been production prior to being taken off-line.
The Patsy wells in the graphic below will run south to north. Two Patsy wells, not seen in the graphic below, are sited farther north and run north to south (#32948, #32948).

The horizontals/completed wells in the graphic below are the Rolfson wells. 



A well runs south to north, right in between the Patsy wells:
  • 20465, 1,305, Oasis/Zenergy, Rolfson 29-17H, Siverston, 30 stages, 2.6 million lbs, t9/11; cum 269K 8/17; taken off-line 6/16; off-line through 12/16; back on line as of 1/17;
That well is discussed in depth at this post.

Some Basic Geology -- Bakken -- Claystone -- March 21, 2017

This is somewhat embarrassing. After ten years of blogging, I'm still learning about basic geology in the Bakken. My hunch is that I know 1% of what most roughnecks have forgotten. If that make sense.

Whatever.

This all comes about because of a recent question about "claystone." A reader mentioned that claystone was one of many names associated with mudstone and shale.

So, with that, let's see what google leads us to:

From Pitt.edu:
Mudstones and shales are made of silt- and clay-sized particles that are too small to see.
The only difference between mudstone and shale is that mudstones break into blocky pieces whereas shales break into thin chips with roughly parallel tops and bottoms. Both are made of ancient mud.
From the point of view of understanding the ancient conditions of sediment deposition, it is more useful to subdivide mud rocks into siltstone and claystone. We cannot see the difference between these rocks, but it turns out that siltstone feels gritty when nibbled or rubbed against a tooth whereas claystones feel smooth.
If you find a claystone, you know that it accumulated in a very quiet environment with almost still water.
Wiki, of course, goes into great depth (no pun intended).

And, it makes sense, a site called Geology.com would cover the topic, also.

*************************
DNA USA: A Genetic Portrait of America,
Bryan Sykes (author of The Seven Daughters of Eve),
c. 2012
DDS: 559.93 SYK 


Starting at page 36.

So, back to A, B, C, and D among Native Americans. 

A, C, and D: Siberian origin.

B: not of Siberian origin.

B is predominant in Polynesia: 189 217 247 261.

Taiwan: 189 217 and 189 217 216

Polynesians did not reach North America but they did manage to cross the entire Pacific Ocean, reaching South America, and returning with the sweet potato, a decidedly Andean crop. Polynesians did not take part in colonization of America except in Hawaii.

Although the magical Polynesian "motif" in not found in America, the ancestral sequences certainly are: 189 217 and even 189 217 216 are right there at the center of the cluster B  sequences of Native Americans.

But how did "B" arrive in America? A, C, and D are of Siberian origin, as noted above. The author conjectures that "B" may have made it to Siberia/Alaska, but did not stop there. Rather, they traveled along the coast, south to Central and South America. A, C, and D were stopped by mountains and glaciers on the North American land mass.

Chapter 4
The Mystery of Cluster X

So, to review: among the Native Americans, A, B, C, and D have closest matches in Asia; but A, C, and D trace back to Siberia; B back to Taiwan and China.

Some years after the discovery of A, B, C, and D, a fifth cluster was found among some American Indian tribes. Much of the alphabet had already been taken for other clusters of non-American Indian peoples around the world, so near the end of the alphabet, the "X" was chosen for this new cluster among Native Americans.

The catalyst was a study of the Ojibwa.  The Ojibwa are the third-largest Indian nation in America, surpassed in numbers only by the Navajo and the Cherokee. They live in the general area of the Great Lakes. Cluster X is highest among Ojibwa, but is also found among the Sioux, the Yakima (Washington State), and the Navajo. The genetic connection between Ojibwa and Navajo also mirrors their related languages and may be an echo of a southward migration of the Dine -- the name the Navajo give to themselves -- mentioned in their mythology. Cluster X did not find its way south of the Mexican border.

Where did cluster X come from? No traces in Siberia or Alaska; only a single example in China. But plenty of matches in Europe. Seems to trace back to one of the "seven daughters of Eve," Xenia. 

Dating: cluster X in America is 15,800 years.

Research took the author to Norris Farms in central Illinois. 

23 of 25 clusters fit the A, B, C, D clusters.

Two did not.

One: 189 270 -- at the heart of U5 (the clan of Ursula, another of the "seven daughters of Eve").

The other: core motif of X (189 223 278) plus two other mutations, 227 and 357. 

Research took the author to Windover, FL -- near NASA/Cape Canaveral; Windover is a very unusual site, discovered accidentally. 

Genetic studies of Windover -- highly variable and only one cluster that is anywhere near Native American cluster A. Reliability is in question. But one of them as the core cluster X 223 278, which if genuine, would put a lower limit of 8,000 years on the antiquity of the cluster in America. 

This puts a European basis for some Native Americans; caused a huge outcry when published. 

The research takes us to "Kennewick Man," Washington State, discovered in 1996. Anthropologist thought the skull looked "European" which caused a huge stink, again. 

Who owned the skull? Went to court; settled in 2005, but genetics still had not settled the question.

Kennewick Man: probably no DNA left to recover. 

With this the author moves into the Native American beliefs, legal questions, etc. and uses the Havasupai as a case study (page 58). To make a long story short, it's unlikely "we" will ever get any more genetic research from Native Americans. But the author does discuss the most fascinating connection between diabetes type 2 and the Pima Indians.

The Oasis Ceynar Wells

Updates

July 13, 2018: preliminary production data is now available.

Original Post

The Banks wells:
  • 32965, 692, Oasis, Ceynar 5198 12-5 4B, Banks, t3/18; cum 172K 7/18;
  • 32964, 978, Oasis, Ceynar 5198 12-5 5T, Banks, t3/18; cum 162K 9/18;
  • 32963, 867, Oasis, Ceynar 5198 12-5 6B, Banks, t3/18; cum 173K 9/18;
  • 32962, 827, Oasis, Ceynar 5198 12-5 7T, Banks, t3/18; cum 150K 9/18;
  • 32961, conf, Oasis, Ceynar 5298 44-32 12T, Banks, producing; a very nice well;
  • 32960, SI/NC, Oasis, Ceynar 5298 44-32 13B, Banks, t--; cum 139K 9/18; 
  • 32959, SI/NC, Oasis, Ceynar 5298 44-32 14TX,  Banks, t--; cum 103K 9/18;
  • 32958, SI/NC, Oasis, Ceynar 5298 44-32 15BX,  Banks, t--; cum 106K 9/18;
  • 32947, 408, Oasis, Ceynar 5198 11-5 3TX,  Banks, t2/18; cum 107K 7/18;
  • 32946, 678, Oasis, Ceynar 5198 11-5 2BX,  Banks, t2/18; cum 137K 7/18;
  • 32945, 645, Oasis, Ceynar 5298 42-32 10B, Banks, t6/18; cum 95K 9/18;
  • 32944, SI/NC, Oasis, Ceynar 5298 42-32 9T,  Banks, t--; cum 69K 9/18;
  • 32943, 818, Oasis, Ceynar 5298 43-32 8B,  Banks, t6/18; cum 113K 9/18;
  • 32801, SI/NC, Oasis, Ceynar 5298 42-32 11T,  Banks, t--; cum 51K 9/18;
  • 19350, 1,162, Oasis, Ceynar 29-32H, Banks, t3/11; cum 281K 7/18; small jump in production when it came back online 6/18;
An outlier:
  • 25847, 2,701, Oasis, Ceynar 5200 11-28B,  Camp, t12/13; cum 196K 7/18;
The Poe wells:
  • 23526, 885, Oasis, Ceynar 4-18HB, Poe, t2/13; cum 218K 7/18;
  • 23525, 1,096, Oasis, Ceynar 4X-18H, Poe, t3/13; cum 162K 7/18;
  • 23524, 1,004, Oasis, Ceynar 4-18HA, Poe, t2/13; cum 205K 7/18;

Workover - Re-Complete - New Target -- Trendwell / Cornerstone -- March 21, 2017

The well:
  • 19947, 208 (original IP, Bakken drilled in 2012), Trendwell Energy Corporation (2016)/Cornerstone, Matter State 3-17H, Bakken, Woburn, acquired from Cornerstone Resources in 2016; originally drilled/stimulated late 2011/early 2012;  208, 1 stage, 80,456 lbs sand/proppant; stimulated 11/12/2011; followed by second frack, 17 stages, 1.31 million lbs; stimulated 1/3/2012; cum 25K as of 8/16; producing very, very little on a monthly basis through 8/16; 
Update: in late 2016, Trendwell acquires this well from Cornerstone. Sundry form received September 20, 2016, details of work:
  • abandon Bakken completion and recomplete to Midale (Madison reservoir) by exiting 7" casng and drilling approximately 4,000 feet of lateral south from existing wellbore within Midale reservoir
  • drill lateral south approximately 4,000 feet with 6" bit in Midale reservoir
  • install frack tree
  • stimulate lateral with 13-stage plug & perf proppant stimulation and return well to production
Work completed, December 23, 2016, from sundry form:
  • perforate and frack from 6,524 feet to 10,060 feet using plug and perf treatment. Frack consisted of 33,850 bbls of slick water and 1.2 million lbs of 20-40 sand. 
  • return well to completion
The graphic:



For production profile, see this post: http://wellsofinterest.blogspot.com/2017/03/workover-re-complete-new-target.html.

Other: Trendwell has two permits in ND: #1147 and #16220, a Madison well, active and in Lignite oil field; Trendwell increased production of the Madison well (#16220) from 150 bbls/month to 1,800 bbls/month in January, 2017, when it came back on line after being off-line for about five months. Trendwell Energy has been added to "Bakken Operators."

Marathon Pays $33,000 / Permian Acre In New Deal -- March 21, 2017

See this post. Now, Marathon has bought another 21,000 acres of Permian basin for $700 million cash. Data points:
  • Marathon now has 90,000 net cares in the Permian; 70,000 concentrated in the Northern Delaware (compare with CLR and Whiting, each with around a million acres in the Bakken at one time)
  • latest acreage: largely in the Northern Delaware basin of New Mexico
  • bought from Black Mountain Oil & Gas and other private sellers
Back-of-the-envelope: $700 million / 21,000 = $33,000/acre.

The Market And Energy Page, T+60 -- March 21, 2017

Break-evens: this was a most surprising article to find break-evens in the Gulf of Mexico. This is an article on Shell drilling in the Gulf of Mexico Mars oil field. This is deep-water drilling, not shallow shore drilling. Implications for the Bakken. At The Wall Street Journal. There was only one thing that caught my eye in this article, and it may be the best story of the week or the month. From the article:
Shell is going back into old, deep wells and using them to drill out horizontally into shallower layers of oil-bearing rock. It is also using water to flood reservoirs once thought to be played out, hoping to flush more crude to the surface.
Shell can also produce oil for $10 to $15 a barrel by reopening old wells and using water and chemicals to flush more fuel out of the ground, Mr. McMahon said. The company is retapping a dozen wells near Mars in the first half of 2017, with another dozen tentatively scheduled for the second half of the year.  
Other data points:
When Shell initially discovered Mars in 1989, it was the largest find in the U.S. since oil was struck in Alaska’s Prudhoe Bay in the 1960s.
But think about that: if an operator can produce oil fro $10 - $15 / bbl in deep-sea drilling, imagine what they can do in the Bakken.

**********************************
Other News

Deep doo-doo: in The Wall Street Journal, Saudi Arabia's oil supremacy falters.  

Pricing: under-$50 WTI will be short-lived -- Rigzone staff.

Apple: eagerly awaiting a "refresh" on the Apple page. By the way, it's up. Now to get the real story over on Macrumors. Here it is:
Saudi exports: Riyadh-based/supplied figures -- exports fall for second month to 7.713 million bopd in January, 2017. The graphic shows that exports in January, 2017, now only slightly higher than exports in October, 2016, a month before the cuts were announced. The reason fro the decrease in January was because of a huge increase in November, surging from 7.6 million bopd to 8.3 million bopd.  No link; over at Twitter from Platts.

Climbing a wall of worry: if one watches the news closely, this is really quite remarkable. So much "scary" news and the market is up about 40 points. Technology stocks are all at record highs. AAPL: up another dollar, now around $142.60. Headwinds:
  • market with huge surge in last three months, from 18,000 to 21,000
  • one talking head: the world looks like it is getting ready for war
  • NOKO releases video taking out US a/c carrier with missile
  • Saudi in fight for its life; Iran continues to increase oil production
  • Trump has incredibly icy meeting with Germany's Merkel
  • Comey hearings 
  • Fed raised rates last week and is poised to raise rates twice more this year

The Political Page, T+60 -- March 21, 2017

March 21, 2017, T+60: Ivanka moves into West Wing and the mainstream press doesn't know how to handle this. Can you imagine if a disbarred lawyer running a "pay for play" foundation were in the West Wing? My hunch is that it would not even be a news story.

We Start The Day With 50 Active Rigs In North Dakota -- March 21, 2017

Active rigs:


3/21/201703/21/201603/21/201503/21/201403/21/2013
Active Rigs5032107197184

RBN Energy: how drag-reducing agents (DRAs) are changing the economics of pipeline takeaway capacity. This was in the news not too long ago; now an opportunity to learn more about the subject.

Scott Adams: my take on wiretapping, Trump, and Comey (I'm glad to see Scott Adams use the Oxford comma).