Social Distancing In The Bakken -- Remember Alamo -- April 19, 2020

Updates

April 20, 2020: wells released from confidential status; data posted below. 

April 19, 2020: be sure to see the first comment regarding growing up in Alamo.

April 19, 2020: from a reader regarding these Kraken wells -- see below:

Some rough, inaccurate - yet illustrative - numbers involving these Kraken wells ... 300, 000 barrels @$50 brings $15 million gross revenue in a little over 4 months. $25/barrel brings in $7 1/2 million gross for 3 wells, first ~4 months.

(The Red and White wells could have restricted output in February by the looks of it).

Close proximity of 3 wells portends lowered overall cost - relatively speaking - for drilling and completion. Two middle Bakken, 1 Three Forks wells, it seems. [That is correct.]

If these wells are shallower (data available shortly?), then overall costs will be lower yet. [Data will be available later this week.]

The details from these 3 wells could be far more important than an initial, cursory view might indicate. This scrappy, private little outfit (like Slawson and a few others) may offer glimpses into future shale development throughout the country.

Microscopically examining 'fringe' areas of various shale plays, these little outfits will put up their own money - incorporating best, cutting edge practices - to either succeed or go 'down' valiantly trying in their efforts to economically extract hydrocarbons. Your characterization - accurate and yet, possibly, understating the potential ramifications - of this Burg field as Tier 2/3 holds enormous, exciting future possibilities.

Can you imagine Kraken's discussions if (when?) WTI hits $75/bbl? These types of scenarios - planning/evaluations of Tier 2/3 areas - are playing out on the fringes of the Permian, Appalachian Basin, and probably other more mature shale plays. T

hese Kraken guys - and these 3 wells in particular - bear close watching in future months, IMHO. [Great note; this will be fascinating. I do not forget the original estimates of OOIP (original oil in place in the Bakken) and the percent of likely primary production.]

Original Post

Kraken Operating -- bless their heart(s) -- is reporting some nice wells in a very remote area in North Dakota -- for the Bakken, Tier 2 at best, maybe Tier 3 if one is a pessimist. Whatever.

This area is so remote that in the screenshot below of the NDIC map to include the 2.5-township-sized oil field (about 78 sections) I don't even see any "city boundaries" in the screenshot.

Wow. Oh, I'm wrong. I missed it. There is a bit of blue ("city boundary"): Alamo, at the southern end of the field.

Alamo, ND: population, 57, in 2010.  I hope the "kids" know how incredibly lucky they are to be raised in this part of the world. Most of them will undoubtedly move on when they turn 18 years old, but some day, it may be decades later, but some day they will look back on these days in Alamo as the best days of their lives. There will be "life-altering events" and "coming-of-age" years but every so often they will think back to what they were doing when they were six years old. It's too bad the census count does not include horses.

Gosh darn it. I see I missed another one: Wildrose, ND, about 14 miles ENE of Alamo. Population: 110, and founded in 1910, six years before Alamo, ND, was founded. With only 96.4% of the population white, it is slightly more ethnically diverse than Alamo which was 100% white in the 2010 census.

And, yes, there are other towns/cities in this area, but they don't show up on this particular screenshot.

But I digress.

The oil field: Burg oil field.

The wells:

• 36652, 897, Kraken Operating, Red 22-15 1H, Burg, t11/19; cum 100K 2/20; 60 stages; 10.2 million lbs; TD = 20,185 feet; middle Bakken, 9,631 feet (TVD);

	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	2-2020	29	13600	13827	28020	16306	0	15929
BAKKEN	1-2020	31	24352	24332	45879	28488	0	28040
BAKKEN	12-2019	31	36073	36220	72204	41267	0	40822
BAKKEN	11-2019	27	22301	21893	56176	25513	0	25160
BAKKEN	10-2019	11	3895	3703	31146	4051	0	3919

• 36651, 1,017, Kraken Operating, White 23-14 1H, t11/19; cum 108K 2/20; 60 stages;10.2 million lbs; TD = 20,420 feet; middle Bakken, 9,638 feet (TVD);

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	2-2020	24	9641	9858	16749	12305	0	11991
BAKKEN	1-2020	31	20158	20176	38049	26979	0	26533
BAKKEN	12-2019	30	32332	32750	59318	33076	0	32642
BAKKEN	11-2019	26	30320	30239	72120	31018	0	30684
BAKKEN	10-2019	11	15145	14398	69597	14979	0	14850

• 36650, 779, Kraken Operating, Blue 26-35 1TFH, t11/19; cum 91K 2/20; 60 stages, 10.2 million lbs; TD = 20,557 feet; middle Bakken, 9,741 feet (TVD); 10' target zone between 11' and 21" below the top of the Three Forks; curve built overnight, from 21:15, August 1, 2019, to 08:46, August 2, 2019; max gas at 3,128 units near end of lateral;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	2-2020	29	20622	20695	38317	27242	0	26866
BAKKEN	1-2020	31	22855	22689	53594	26855	0	26405
BAKKEN	12-2019	30	21707	21988	61410	24311	0	23874
BAKKEN	11-2019	28	20573	20281	88915	23042	0	22677
BAKKEN	10-2019	11	5359	5095	27331	5429	0	5297