Tuesday, September 29, 2020

Today's Update On GM - Nikola -- September 28, 2020

Random Update Of A Petro-Hunt USA Well In Charlson Oil Field -- September 29, 2020

On SI/NC for quite some time,  now completed and producing:

  • 31491, F/IAW, Petro-Hunt, USA 153-95-1A-7-4H, Charlson, no production data, was SI/NC 2/19; API 33-053-07044; fracked, 8/20/19 - 8/31/19; 21.2 million gallons of waters; 93.42 percent water by mass; a huge frack;

Production:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN7-20200003000
BAKKEN6-20200000000
BAKKEN5-20200000000
BAKKEN4-20202185968895733919156019154
BAKKEN3-202031226542264218894789482371855230
BAKKEN2-20202928780287142454571142283968303
BAKKEN1-20203137561377612921591648091648
BAKKEN12-201975641510011965220522

From the file report:

  • spacing unit: 2560 acres
  • spud date: September 4, 2017;
  • cease drilling: September 29, 2017;
  • target: middle Bakken
  • TD: 21,980'
  • logging services began in the Charles formation at 11:30 p.m. CDT, September 10, 2017;
  • KOP reached on September 12, 2017, at 2:40 a.m. (if no typo, about 27 hours of drilling the vertical)
  • drilling ahead in the curve began on September 12, 2017, at 9:50 p.m.
  • curve was landed at 8:30 a.m., September 14, 2017
  • lateral began: at 6:30 p.m., September 19, 2017; the lateral was run in four runs;
  • TD reached at 12:10 a.m. CDT on September 29, 2017;

Now we know why an older neighboring well, a short lateral showed a 50x jump in production. See this post

WTI Back Below $40; One New Permit -- September 29, 2020

Active rigs:

$39.11
9/29/202009/29/201909/29/201809/29/201709/29/2016
Active Rigs1157675834

One new permit, #37867 --

  • Operator: Whiting
  • Field: Sanish (Mountrail)
  • Comment:
    • Whiting has a permit for another Maki well, NWNW 27-154-91; 385' FNL and 245' FWL

That was all. 

***************************************
A Closer Look At That New Whiting Maki Permit

Graphics:



The wells of interest in the graphics above:

  • 17612, IA/4,345, Whiting, Maki 11-27H, Sanish, t10/09; cum 882K 11/29; off line 12/19; remains off line 7/20; open hole frack; 3.6 million lbs sand;
  • 21629, 461, Whiting, Jorgensen 11-27H, Sanish, t2/12; cum 362K 7/20; 26 stages; 1.9 million lbs sand;
  • 20358, 337, Whiting, Ray 12-27TFH, Sanish, t12/11; cum 153K 7/20; intermittent production after 4/20;
  • 27842, IA/327, Whiting, Jorgensen 31-27H, Sanish, t8/14; cum 188K 11/19; off line 12/19; remains off line 7/20;

CLR's Sakakawea Wells In Elm Creek Are Huge Wells -- Coming Back On Line -- September 29, 2020

CLR's Sakakawea wells in Elm Creek are huge wells. Link here. One example:

  • 33094: MB 1280; 3,043, Sakakawea Federal 14-19H, t1/19; cum 385K 7/20;

Production:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN7-2020311165512083696367895719720
BAKKEN6-20200000000
BAKKEN5-202024614541561031437
BAKKEN4-202026145681431788291719016251618
BAKKEN3-2020312079620475136962512924509266
BAKKEN2-20202917358174381264727891843679
BAKKEN1-2020311792017933125681587114904704
BAKKEN12-2019311959019645128011471114275210
BAKKEN11-201930205422044815985323011861805
BAKKEN10-201924158791579115130632937612476
BAKKEN9-201930161391616710349937682351038
BAKKEN8-20192814406144739424641445081814
BAKKEN7-20193123085230031313927933250392789
BAKKEN6-20193024273243111440330922262804528
BAKKEN5-20193126023260111473633672313992153
BAKKEN4-20192924008240741420030962263024513
BAKKEN3-20193131111310841885640671383132185
BAKKEN2-20192833673338142045042784403242422
BAKKEN1-20192751285509823662757685551922414
BAKKEN12-20180000000
BAKKEN11-20180000000
BAKKEN10-20180000000
BAKKEN9-20180000000
BAKKEN8-201852507250797342103421

Families: S - Z

Sakakawea Federal Wells (CLR, Elm Creek)

Salers / Salers Federal Wells (CLR, Antelope, Sanish pool)

SC-5WX / SC-4WX Wells (Hess, Banks oil field)

SC-Hoving Wells (Hess, Truax)

Schaffer Wells (Oasis, Epping)

Shenandoah Wells (BR, Keene oil field)

Schettler Wells (XTO, Cedar Coulee)

Shell Wells (EOG, Parshall oil field)

Shepherd Wells (Oasis, Missouri Ridge)

Shepherd Wells (Zavanna, Stony Creek)

Simmental Federal Wells - 1 (CLR, Elm Creek) 

Simmental Wells (Zavanna, Long Creek, east of Williston)

Skaar Federal (Newfield, Sand Creek)

Skaar Federal (Whiting, Twin Valley)

Skarston Wells (Statoil, Banks)

Skunk Creek (Whiting/KOG, South Fork, Heart Butte, Mandaree)

Skybolt Federal Wells (Slawson, Big Bend)

Smokey Wells (Pembroke oil field, in sections 7, 8, 17, 18 - 149-97)

"Snake" Pad (Enerplus, Antelope)

Snakeeyes, Rebel, Bandit Wells (Slawson, Big Bend/Van Hook)

Sorenson Wells (CLR, Alkali Creek)

Sorenson Wells (Petro-Hunt, Union Center, 20 miles northeast of Watford City)

Sorenson Federal Wells (Newfield, Sand Creek)

Sorkness Wells (XTO, Sorkness, Sorkness oil field)

Sovig Wells (Whiting, Arnegard)

Spratley Wells (Oasis, Alkali Creek)

State Wells (QEP, Spotted Horn)

State Weydahl Wells (CLR, Corral Creek)

Steele Federal (CLR, Banks)

Stenseth Trust Wells (Whiting, Sanish)

Storm Pad (Enerplus, Mandaree)

Stranger / Usher Wells (Zavanna, Poe) 

String Instrument Pad (Enerplus, Mandaree oil field)

Stroh Wells (Anschutz/OXY USA; Fayette oil field)

Submariner Federal Wells (Slawson, Big Bend oil field)

Syracuse/Chicago Wells (CLR, Banks) 

Syverson / Gariety Wells (Newfield, Siverston) Tailgunner Wells (Slawson, North Fork)

"Tailor Pad" (Enerplus, Mandaree)

Tangsrud Wells (CLR, Hayland, Divide County)

Tarentaise Wells (CLR, Elm Tree)

Tarpon Federal Wells (Whiting, Twin Valley / Sand Creek)

TAT State Federal Wells (XTO, Bear Creek, 36-148-96)

TAT Wells, Section 35-149-95  (QEP, Grail)

Teton / Kings Canyon Wells (BR, Camel Butte oil field)

The Kraken Wells (Kraken Operating, Epping oil field)

Thompson Wells (Petro-Hunt, Charlson oil field)

Thorvald/Cuskelly (CLR, Rattlesnake Point)

Tipi V Wells (QEP, Spotted Horn oil field)

Tom State (XTO, Alkali Creek oil field)

Torpedo Federal Wells (Slawson, Big Bend)

Tortoise/Turtle/Butterfly Pads (Enerplus, Antelope-Sanish) -- incredibly good wells

Two Shields Butte Wells (Rimrock Oil & Gas, Heart Butte oil field)

Uhlman Federal / Pittsburgh Wells (CLR, Banks)

Usher / Stranger Wells (Zavanna, Poe)

Vachal Wells (CLR, Alkali Creek, 27/34-154-94)

Vachal Wells (Equinor, Alger)

Van Hise Trust Wells (Petro-Hunt, Charlson)

Van Hook Wells (EOG, Parshall oil field)

Vardon Wells (CLR, Siverston)

Veeder Wells (BR, Blue Buttes)

Wahpeton Wells (CLR, Banks oil field, early test, high-density infill wells)

Warrior Pad (Enerplus, Spotted Honor, huge wells)

Washburn Wells (BR, Charlson) 

Waterton Wells (BR, Keene)

Wayzetta Wells (EOG, Parshall Oil Field)

Werre Trust Wells (XTO, Bear Creek Field)

West Clark Wells (EOG, Clarks Creek)

Weydahl Wells (CLR, Corral Creek)

Weyrauch Wells (Hess, Robinson Lake)

Whitman Wells (CLR, Oakdale, 34-147-96)

"Wild Flower" Pad (Enerplus, Mandaree oil field)

"Wild Kingdom" Pad (Enerplus, multiple adjoining fields)

Wiley Wells (CLR, Pershing; see also, Bailey)

Wold Wells (Whiting, Banks)

Wold Wells (Whiting, Sand Creek)

Wolverine Federal Wells (Slawson, Elm Tree)

Wood Wells (for "P Wood" wells, see above) (XTO, Whiting/KOG, Truax oil field)

Yellowfin Wells (Newfield, Siverston oil field)

Young Bird Wells (WPX, Spotted Horn)

Zorro Wells (QEP, Grail oil field) 

Devon - WPX: Merger Of Equals -- Forbes -- September 29, 2020

Link here.
In what’s being billed as a merger of equals, Devon Energy will acquire WPX Energy in an all-stock deal that gives WPX shareholders five out of 12 board seats and .5165 Devon shares for each of theirs, amounting to 43% of “New Devon.” 
With a combined capital structure involving $6 billion in debt against $6 billion in equity, and daily production volumes of roughly 525,000 barrels per day of oil (and natural gas equivalents), the new Devon will be bigger than Apache Corp and Marathon Oil, and just a notch below EOG Resources. 
The deal, first rumored over the weekend, comes on the heels of Chevron’s takeover of Noble Corp., and features a popular new recipe for consolidating America’s beleaguered oilpatch — the stock-for-stock deal gives WPX just a 3% premium. In a ringing endorsement, Devon shares closed up 11% Monday, while WPX was up 16% (both issues are down by more than 2/3rds YTD).

Washington State Utility On Wind Energy: No More, Please -- September 29, 2020

Washington state utility sees the futility in more wind. Great essay at windwatch, September 20, 2020:

Benton Public Utility District, based in Kennewick, has about 55,000 residential, commercial and industrial connections. Most of its electricity supply comes from the Bonneville Power Administration, the federal marketing agency for dams on the Columbia and Snake rivers and for one nuclear plant. Eighty percent of Benton PUD’s total supply comes from hydro; about 5 percent is generated by wind, through power purchase contracts with the operators of two wind projects in the state.

The future and composition of the Northwest energy portfolio are in flux with such factors as demand growth, retirements of coal-fired plants and mandates for utilities to go green. Benton PUD says it’s aware of “a resurgence in proposed wind power development activity in the Pacific Northwest, including projects proposed for eastern Washington and Benton County specifically.”

But in a recently released report, “Wind Power and Clean Energy Policy Perspectives,” the utility’s commissioners say they “do not support further wind power development in the Northwest.”

More large-scale wind farms they say, will “contribute very little to keeping the regional power grid reliable and will not help Benton PUD solve our seasonal energy deficit problems” (when it needs to purchase additional power for winter and summer peaks), will drive up customer rates, won’t make a significant contribution to reducing greenhouse gases that contribute to climate change, will hurt revenues that utilities like Benton receive from the sale of surplus hydropower and will needlessly clutter up the “scenic hillsides, canyons and desert vistas in our region for little if any net environmental benefit.”

“We are continuing to sound the alarm regarding the unacceptably high risk of power grid blackouts in the Pacific Northwest being precipitated by overly aggressive clean energy policies and deepening dependence on wind power to replace retiring coal plants,” the commissioners say in a news release. “Benton PUD is calling on Governor Inslee and our state legislators to learn from California’s experience and to believe what utilities in Washington State are telling them. Rolling blackouts jeopardize the health, safety and well-being of all citizens and cannot be accepted in a region that, thanks to hydropower, is the envy of the nation when it comes to clean and low-cost electricity …

“While development of wind farms may be politically fashionable and appeal to many in the general public as a harmonization of nature with electricity production, the science and economics indicate powering modern civilization with intermittent generation resources like wind and solar power comes at a high financial and environmental cost.”

US Retail Bankruptcies, Store Closures Set Record -- WSJ -- September 29, 2020

A reader sent this link from The WSJ:


From the linked article:

Retail bankruptcies, liquidations and store closings in the U.S. reached records in the first half of 2020 as the Covid-19 pandemic accelerated industry changes, particularly the shift to online shopping, according to a report.

In the first six months, 18 retailers filed for chapter 11 protection, mostly concentrated in apparel and footwear, home furnishings, grocery and department stores
They include department-store operators Neiman Marcus Group Ltd., J.C. Penney Co. and Stage Stores Inc., home-goods retailers Pier 1 Imports Inc. and Tuesday Morning Corp. and vitamin seller GNC Holdings Inc.

From July through mid-August, 11 more retailers filed, including apparel retailers Lucky Brand Dungarees LLC, Brooks Brothers Inc., Ann Taylor parent Ascena Retail Group Inc., Stein Mart Inc., and Men’s Wearhouse and Jos. A. Bank parent Tailored Brands Inc.

This year is on pace to rival 2010, when 48 retailers filed for bankruptcy in the wake of the 2007-09 recession, BDO said. Retail bankruptcies in 2020 have already surpassed the 22 such filings recorded last year.

“This is almost certainly the worst year in recent history for retail,” said Kyle Sturgeon, a managing partner at Atlanta-based turnaround advisory firm Meru LLC.

My e-mail reply, not ready for prime time:

This is a huge story. I don't think folks realize how the pandemic telescoped 2020 - 2035 into 2020 - 2022.

These retail stores were on their way out any way, and would have been dead by 2035, but the pandemic simply hastened the inevitable. Do any of the stores on that list above surprise you? JC Penney was on its way out well before the pandemic. Same with Pier 1 imports. 
Most interesting: men's clothing stores. Men aren't going into work; they don't need new outfits. 
Women? I'll have to let the women advise me on this one, but I didn't see a lot of women's stores in that list. If accurate, speaks volumes. Women buy clothes for all seasons, all reasons.

Anyone working in NYC sees it and anyone with kids in school see it: the telescoping of 2020 - 2035 into 2020 - 2022. This is simply amazing. Expect to see a number of books on the subject arriving any day now.

Universities and colleges are going to have a devil of a time competing with "learning centers" that don't require living on campus. None of three granddaughters have been "IN" school yet this year, and are probably learning more than ever before. Just their technology skills alone are incredible. Six-year-old Sophia is reading at a much higher level because the instructions are written for adults with at least an 8th grade education.

And I can't believe how she zips through applications on her school iPad and my iPad.

And retail. Last night at 11:00 p.m. I decided I wanted to buy an outfit for Sophia's closest friend, and I simply went to Amazon and bought it. With all the points on my credit card item was free with free shipping. And while I was there, bought more printer ink.

When Obama said "these jobs weren't coming back," he was just talking about the wrong industries. 

Restaurants:

This will also change dining out habits for Americans. In the 1950s, a short-term fad: microwave and TV dinners. Then fast food craze -- McDonald's. Then dining out in general. I think I read a couple of years ago, Americans ate 50% of their meals outside the home. Then pizza delivery. And, of course, Starbucks. 

Now, people are getting used to contactless delivery. And they're finding out how convenient it is. And how expensive. They're finding out what travels well and what doesn't (French fries don't travel well at all, and can't be re-heated in the microwave). 

Six individual meals in the restaurant at $25/person? Families are now ordering "family meals" for much less. And now drinks. And no desserts.

They're also realizing the $40 bottle of wine at the restaurant can be had at home for about $12. That $4 bottle of bottled water at the restaurant; about twenty cents at home. They're finding that the mark-up on sides is not worth it: vegetables, particularly. They can heat fresh or frozen vegetables in the microwave while waiting for delivery.

More Whiting Wold Wells Are Coming Off Confidential List This Week -- September 29, 2020

Wold Wells (Whiting, Sand Creek).

More Whiting Wold wells in Sand Creek are coming off confidential list this week. Today:

  • 34661, drl/A, Whiting, Wold Federal 44-1-1TFH, Sand Creek, t--; cum 82K 7/20; a 34K month;

Production:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN7-2020241277712789156073546635151315
BAKKEN6-2020302106921158178735880058616184
BAKKEN5-2020313392134171289816459664405191
BAKKEN4-202081425013813158784015138988977
BAKKEN3-2020137003253250

From the file report:

  • spud date: October 27, 2019
  • cease drilling: November 8, 2019
  • target: the Three Forks B1 member
  • TD: 10,285.51' ("point 51 feet" = 6.12 inches)
  • lateral:
    • first day of drilling: November 4, 2019; drill rates averaged 280 to 335 feet per hour
    • into the morning of the second day, November 5, 2019, the rig reached bottom after a trip for a new BHA
    • trip gas: 5,184 units; with a 5' - 10' flare
    • the wellbore on the second day of the lateral section averaged 233.8 feet/hour
  • TD reached at 2140 hours on November 8, 2019, finishing just into the top of the second bench of the Three Forks
  • entered Three Forks at 10,471' TVD
  • ten-foot target window; top set at 22 feet below the Three Forks top; assuming the wellbore would have been near the middle of the formation, maybe a seam 40' thick or so?

My hunch is that with oil prices this low, operators are not maxing out initial production.

New permits added May 17, 2018, SESE 1-153-97 are now starting to report production: 

34914, SI/NC-->SI/A, Whiting, Wold Federal 44-1-3H, Sand Creek,

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN7-2020262089320853216887057169945626
BAKKEN6-2020252514525180169047821477969245
BAKKEN5-2020312966129965219348641086155255
BAKKEN4-202081505414632106513101830120755
BAKKEN3-2020278008418410

34915, SI/NC-->SI/A, Whiting, Wold Federal 44-1-3TFH, Sand Creek,

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN7-2020201431514319142344602045612408
BAKKEN6-2020302208722111206877182671601225
BAKKEN5-2020312511525235242527227872065213
BAKKEN4-2020886218335126292971028850723
BAKKEN3-20201000694460234

34916, SI/NC-->conf, Whiting, Wold Federal 44-1-4H, Sand Creek

DateOil RunsMCF Sold
7-20201808657420
6-20201855659759
5-20202646176419
4-20201244730346

Notes From All Over With Item On ND Flaring -- September 29, 2020

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. 

Dividend calendar: 119 ticker symbols -- go ex-dividend today. Link here. With commission-free trades, this has been the most fun I've had in years. Taking a small portion of my portfolio and "re-balancing" simply on dividends every month. I'm probably not making any money but it provides a bit of cash for other long-term investments which really interests me. 

Survey of consumer finances (SCF): the rich keep getting richer. Actually, more to the point, the investing class keeps getting richer. Link here to the Board of Governors of the Federal Reserve System.

Entertainment: I've been binge watching Leverage for the past few nights, starting about 11:00 p.m. and going well into the wee hours of the morning. I am just blown away by the iPad. And the  Pencil. The ads are annoying, but one can effortlessly "shrink" the picture into the corner, and then open another video, let's say Schitt's Creek on Pop. Both are free -- Pluto Television and Pop. Or if not interested in another television show, check my mail or any other site. When the add is over, bring Leverage back to full screen. And it's completely effortless, especially using the  Pencil. 

Speaking of the  Pencil, Sophia absolutely loves using the pencil when she is learning Spanish on Duolingo. She can't wait to get to the apartment complex to start using Duolingo. Biggest problem. Temporarily losing the pencil several times a day. Can't wait until Apple release air tags or whatever they're going to be called.

CBR: Alberta to Alaska. It's in the news again; Trump supports it. I won't link it; the story doesn't have legs. Pie in the sky. 

*************************************
For The Archives: ND Flaring

From Geoff Simon's top North Dakota energy stories last week:

The North Dakota Industrial Commission approved revisions this week to the state's gas capture policy that don't change gas capture targets, but do tweak the regulations to encourage additional investment to allow the state to meet its gas capture goals.

Producers are currently required to capture 88% of produced natural gas, a target that will increase to 91% as of November 1. Thanks in part to the recent market downturn, producers are now capturing 92% of gas produced in the Bakken.

Lynn Helms, director of the Department of Mineral Resources, noted that producers also exceeded capture targets in the previous oil price downturn five years ago, but couldn't keep pace when growth resumed, so it's important to adjust the rules to make sure producers continue to meet capture targets.
 
Helms said the changes, which include removing exemptions in some areas while tightening restrictions in others, are the byproduct of extensive dialogue with the industry. He said there is general agreement among all parties that revisions are appropriate.

Graphic:

One Well Coming Off Confidential List -- September 29, 2020

First things first: last night's football game should end the debate regarding the two best quarterbacks in the NFL. But it won't. Link here. From what I've read, Kansas City Chiefs schooled the Ravens.

Later: watching the sports talk television this morning -- wow, it's fun to watch these guys -- I love the guy that says he's not a "Dak apologist" and then goes on to defend Dak. As I noted earlier, the Dallas Cowboys are 1 - 2 in the season but lucky they are not 0 - 3. They can argue all they want about Lamar Jackson (Ravens) and Patrick Mahomes II (Chiefs) but no amount of spin will change the game played last night. Dak apologist: if the Cowboys lose, it's the fault of the defense; if the Cowboys win, it's because of Dak. LOL. 
A day later: the day after the Kansas City / Baltimore game, the "Monday-morning sports shows -- and the re-running of the videos -- until today I had never seen Lamar Jackson in a post-game interview: is it just me or does he look incredibly effeminate? Reminds me of Michael Jackson. His hairstyle? Seems confused. I did not know this: he was the MVP of the league? Say what?

And then this: German inflation drops to a negative 0.4%; forecast: -0.1%. Inflation? Some call that deflation. Link here. Very, very interesting. Divergence between theory and actual?

Furniture: office? Herman Miller may need a new business plan.

  • Manhattan offices are nearly empty -- WSJ link here.
  • Herman Miller waits for employers to step up new furniture orders. Could be a long wait. WSJ link here.

Apple: surprised! Social media favors Apple over Fortnite in Epic battle. Link here

Cheniere: Blackstone closes $7 billion Cheniere sale. Link here.

California ban on gasoline-powered cars: EPA skeptical. WSJ link here.

OPEC basket, link here: $41.61. Down again.

New book review: The New Map, Daniel Yergin, 2020. Link here. Doesn't buy into renewable energy hype. I'm impressed.

**********************************
Back to the Bakken

Active rigs:

$40.38
9/29/202009/29/201909/29/201809/29/201709/29/2016
Active Rigs1157675834

Only one well coming off confidential list:

Tuesday, September 29, 2020
: 146 for the month; 217 for the quarter, 663 for the year

  • 34661, drl/A, Whiting, Wold Federal 44-1-1TFH, Sand Creek, t--; cum 82K 7/20; a 34K month;

RBN Energy: my favorite subject. US ethane exports rise with international steam cracker demand. Wow, I thought this was a dead subject. LOL. Archived here.

The run-up in U.S. production of natural gas liquids over the past 10 years spurred the development of a whole lot of infrastructure. More pipelines to transport mixed NGLs from production areas to NGL storage and fractionation hubs, especially Mont Belvieu, TX.

More fractionators to split y-grade into ethane, propane, and other “purity” products. And, specifically for ethane — the lightest, quirkiest, and most plentiful NGL — a number of ethane-only steam crackers were built along the Gulf Coast to take advantage of the new supply abundance, as were ethane-only pipelines, export terminals, and a whole new class of cryogenic ships — Very Large Ethane Carriers, or VLECs — to move the product to markets in Europe and Asia.

Today, we begin a new series on the unique nature of overseas ethane exports, including why most incremental export volumes are tied to long-term supply deals with a handful of global ethylene plants designed — or reconfigured — to “crack” ethane.