This is an update from the Bakken Shale Discussion Group, a thread started in early April, 2010:
The 500,000 bbls club (500KBC):
As of February, 2010, there are at least four wells that have produced > 500,000 barrels of oil:
- Behr 34: 500,725 bbls in 591 days
- Austin 28: 504,554 bbls in 517 days
- Austin 21: 514,353 bbls in 522 days
- Chandler James: 500,234 bbls in 484 days
The Austin 28 is now producing over 1,000 bbls/day after getting a submersible pump in December, 2009. At $50/bbl, that's $1.5 million/month at the wellhead.
The Chandler James and the Behr well are still flowing according to the posting, referencing the NDIC website. Wow!
The PetroHunt USA 2D has produced 933,366 bbls and is still producing 586 bbls/day well into its third year of production. 1 million barrels = a minimum of $40 million at the wellhead.
A few points:
1. Oilmen are optimistic and always looking to the next well. I don't think they think much about wells that have already been drilled. They are only looking for cash flow to drill that next well, hoping for a game changer.
2. In the old days in North Dakota, I remember a lot of "dry" wells. I don't see many dry wells in the current boom. Even poor wells (not "uneconomic" and abandoned wells) produce some cash flow. Wells that are only producing 300 barrels/day (about $0.5 million at the wellhead) are reasons for yawning.
3. As one can see by the "monster wells" above, one well can pay for a lot of future drilling with one great well.
"16 months; that's barely more than a year."
ReplyDelete..$90.. ..another $30 that's a huge amount."
Love the blog, but is a 33% increase barely more, huge, or both?
Cheers,
TM
Both items are huge.
ReplyDelete1. With regard to monster wells, these wells have produced in excess of $25 million at the wellhead in just 16 months. Rounding to the nearest year, that would be one year. And these wells are still very active, two of them flowing without a pump. Once a pump is put on, production could increase. By the way, the problem we have now is that with oil prices dropping, the wells could be choked back, making future comparisons difficult if not impossible.
2. With regard to natural gas collection, the recent announcement by WBICP is huge. When I first read it, I was unimpressed by the 33% because I have been numbed by the staggering numbers coming out of the Bakken since 2008. But when I re-read the article for posting, I noted that WBICP capacity is currently 90 units (million cubic feet/day). Adding another 30 units is truly huge. This is not a marginal increase.
Thank you for your kind comments. I am concerned about Dutch Disease affecting North Dakota. Having said that, I remain inappropriately exuberant about the activity in this small section of the state.
Wells producing 300 barrels/day are nothing to yawn at...
ReplyDeleteThank you, thank you, thank you. I agree whole-heartedly: the Bakken is a victim of its own success -- some folks no longer get excited about 300 barrels/day. Re-reading my note above, I have to apologize: I did not intend to mean that I was yawning at 300 bopd. I get tired of reading of others (not you) "complaining" about some of these Bakken wells. I agree with you 100%. I am sorry I was not clearer in my remarks.
ReplyDeleteAnyone that has read my blog for the past couple of years knows that I am irrationally exuberant about the Bakken and would never yawn about any of these wells.