Hess and IPs

At least one company in the Bakken doesn't appear to be exaggerating its initial production numbers.

These are the results of the most recent Hess well to come off the confidential list:

• 18524, 67, Hess, RS-Rudolph-157-90-1708H-1, 17-157-90, long lateral, Bakken, Clear Water

Deep in this thread is a possible explanation for these poor results. It has to do with "old well" designs. It should also be noted that this well is in the Clear Water field, which is "owned" by EOG (most of the leases in Clear Water are by EOG; only a couple by Hess). Recent wells in this field that have been reported so far all have IPs well below 400, and generally 200 or less:

• 18096, Hess, 210, RS-State H-157-90-1609H-1
• 18148, EOG, 322, Clearwater 2-01H
• 18150, EOG, 234, Clearwater 3-12H
• 18292, EOG, 148, Sidonia 4-10H
• 18329, EOG, 249, Clearwater 100-19H
• 18337, EOG, 142, Clearwater 17-01H
• 18482, EOG, 110, Kandiyohi 10-33H
• 18524, Hess, 67, RS-Rudolph-157-90-1708H-1

I have no idea if there is any validity to the argument about the "old well" designs. But it appears that Hess is not the only one having difficulty coaxing oil out of the Clear Water.

Having said all that, EOG must think these wells are economical. They were granted two more permits in the Clear Water field yesterday (August 6, 2010), and they both appear to be on the same pad:

• 19381, Crowfoot 36-3018H, NENW 30-158N-89W
• 19382, Crowfoot 35-3031H, NENW 30-158N-89W

They both start in section 30; one lateral will go north, one lateral will go south.

It should be noted that early on, EOG had some success with some Clear Water wells.

In T158-90W, EOG was granted the first permit (17676 -- section 6) in early 2008. It has been drilled and the IP was reported as 1,131 barrels/day, a very good well. 

Back on February 21, 2010, I posted: in just the past few weeks, this section has gotten very, very busy. Almost every section now has a permit or a well being drilled. Two wells are producing; one with an IP of 1,131, and one with an IP of 626.