Monday, June 17, 2019

Fifteen Wells Coming Off The Confidential List Today, Weekend -- June 17, 2019

SCOOP/STACK: from Reuters, an update -- data points --
  • SCOOP (South Central Oklahoma Oil Province)
  • STACK (Sooner Trend, Anadarko, Canadian and Kingfisher)
  • interest dims in Oklahoma shale as drilling results disappoint
  • the problem: the region's geology has proved more inconsistent than expected
  • also: more gas than initially expected
  • oil window across the play is limited
  • also the parent-child problem
    • poorer results form subsequent wells
    • perhaps more than any other US shale basin, the SCOOP/STACK has suffered from the "parent/chld" well problem, where secondary wells produce less oil than the original
  • the area has become a higher-cost US shale are for producers
  • this is probably the data point that led Reuters to the story in the first place:
    • Alta Mesa Resources Inc, which turned a $3.8 billion investment in the oilfield into under $30 million in just two years, last month said it may not be able to pay creditors. 
  • others also cutting CAPEX in Oklahoma
  • others narrowing development to best areas
    • CLR and MRO anchoring activity on two sub-areas
    • the STACK-Meramec
    • the SCOOP Woodford
  • breakeven since the start of 2018, per Rystad: around $54
  • higher than the Permian, Bakken, DJ, and much of the Eagle Ford
Back to the Bakken

Wells coming off confidential list over the weekend, today -- 
Monday June 17, 2019: 60 for the month; 249 for the quarter;
  • 34657, SI/NC, Petro-Hunt, USA 153-95-3B-10-3H, Charlson, no production data
Sunday, June 16, 2019: 59 for the month; 248 for the quarter;
  • 34867, SI/NC,  Hess, BB-Eide-151-95-3328H-13, Blue Buttes, no production data,
  • 34604, SI/NC, Slawson Wolverine Federal 10-31-30TF2H, Elm Tree, no production data, 
  • 34242, 969, Oasis, Nelson 5298 42--23 6B, Banks, t1/19; cum 86K 4/19;
  • 34241, 1,138, Oasis, Nelson 5298 42-23 6B, Banks, t1/19; cum 139K 4/19;
  • 34224, 492, Oasis, Nelson 5298 11-14 4T, Banks, t1/19; cum 90K 4/19;
  • 32897, 863, CLR, Colter 14-14H, Bear Creek, t3/19; cum 72K 4/19;
  • 32894, 1,563, CLR, Colter 11-14H2, Bear Creek, t3/19; cum 78K 4/19;
  • 32892, n/d, CLR, Colter 9-14H, Bear Creek, t--; cum --;
  • 27436, SI/NC, Petro-Hunt, State 154-94-31C-32-1HS, Charlson, no production data,
Saturday, June 15, 2019: 50 for the month; 239 for the quarter;
  • 34690, 1,058, CLR, Springfield 6-8H1, Brooklyn, t4/1; cum 15K after 18 days;
  • 34656, SI/NC, Petro-Hunt, USA 153-95-3B-10-3H, Charlson, no production data,
  • 35789, SI/NC, XTO, Bullberry Federal 24X-2DR, Lost Bridge, no production data, 
  • 34937, SI/NC, XTO, Darlean 41X-2G2, Alkali Creek, no production data,
  • 34866, SI/NC, Hess, BB-Eide-151-95-3328H-12, Blue Buttes, no production data,
Active rigs:

Active Rigs6162572878

Flashback: Director's Cut for June, 2016 -- (current data - April, 2019 -- here)
  • rig count: 27
  • crude oil production:
    • June, 2016: 1.03 million bbls
    • May, 2016: 1.05 million bbls
  •  natural gas production
    • June, 2016: 1.7 billion cfpd
  • ND sweet crude price: $33.74 / bbl
  • producing wells: 13,239 (all-time high at that time)
  • DUCs: 887
  • inactive well count: 1,486
RBN Energy: crude oil shippers start signing up for at least a few new pipes -- part 2. Archived.
A few months back, we discussed the quandary that crude oil shippers face when deciding whether to commit to proposed new pipeline capacity out of the Bakken and the Niobrara, and from the Cushing, OK, hub to the Gulf Coast.
The dilemma boils down to this: more capacity is needed, based on current constraints or projected growth (or both), but there’s some reluctance among shippers to make long-term commitments. Their worries are that production gains might slow and too much takeaway capacity might be built, resulting in bidding wars for barrels at the lease to fill shipper commitments. Well, in recent weeks there’s been a bit of a break in the project logjam; among other things, P66 and its partners have decided to proceed with the construction of both the Liberty Pipeline, from the Bakken and Niobrara to Cushing, and the Red Oak Pipeline, from Cushing to Houston and Corpus Christi via Wichita Falls, TX.
And that’s not all. Today, we provide an update on efforts to develop new pipeline capacity from North Dakota and the Rockies to Oklahoma and beyond.


  1. SCOOP/STACK article was skimpy. Didn't analyze in detail; style of "news article" not helpful for examining a trend. Also lots of differences amongst different parts of OK play--not well treated as one.

    1. Agree with you completely. As noted in the post, but probably lost -- I think Reuters noted the "Alta Mesa" story and that formed the basis of the story. But other than that, not much there.