Lodgepole: Idle Rambling

In recent daily activity reports, there has been an occasional permit for Stark County. I associate Stark County, North Dakota (USA) with the Lodgepole where most wells have been conventional vertical wells. [Since this was originally posted, some additional information is available at the discussion boards.]

The Lodgepole doesn't get much notice, being driven off the front page by the Bakken. However, maybe someone can check my numbers.

(Note: the Lodgepole formation is part of the Madison group. The Madison group has produced the most oil in the state of North Dakota since discovery of the Williston Basin.)

In a press release dated March 16, 2010, CLR noted that 41 wells in the Dickinson (Stark County) have produced 55 million barrels of oil since 1993. At $20/bbl that works out to $1.1 billion or $27 million/well at the wellhead. Notice: I used $20/bbl.  Someone should check my math.

In that press release, CLR reported its second Lodgepole discovery in Stark County: Gruman 18-3, 474. It's first discovery, the Laurine Engel #1, was completed in September, 2009, with an IP of 463, and a cumulative production of 76,000 bbls as of March, 2010.  Vertical wells are much less expensive than horizontal wells. At $40/bbl, the Laurine Engel #1 should be paid off. Armstrong Operating, Inc., of Dickinson, ND, is the operator for both these wells. The third partner is Tom Jordan, representing Jordan Oil and Gas Company of Healdsburg, California (USA), which, by the way, sits in the middle of Sonoma County, home of some of the finest Napa Valley wine.

A reminder: the Dinsdale 2-4, another Lodgepole in the Dickinson area, has produced more than 4.6 million bbls of oil as of October, 2009; that well was completed in 1996. That same link notes a new operator targeting the Lodgepole in Stark County, which says it has 18 Lodgepole prospects.

And, as long as I'm rambling, take another look at Teegue's blog dated June 2, 2009, for a bit more background regarding the Lodgepole.

Even Fidelity is looking at Stark County. Fidelity was granted a permit, #19264, July 14, 2010, for Kostelecky 31-6H, Lot 2, 6-139N-97W, west of Dickinson and just northeast of South Heart. With the "H" (horizontal designation), I assume this is not a Lodgepole well, but who knows? The successful Lodgepole wells were mounds/reefs and it was very hard to find them, many dry holes that were drilled directionally (not horizontally). Maybe the drillers are going to see if they have better luck with horizontal wells.