Samson has been notified that the frac jobs for the Rodney #1-14H and Earl #1-13H wells have been delayed due to the scarcity of available frac crews.I have opined that the difficulty in completing wells due to lack of fracking crews and the increasing cost of acreage will likely result in significant consolidation in the Bakken. The moat is getting wider. One can almost predict what is going to happen.
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Wednesday, November 24, 2010
Delay in Completing Wells Due to Lack of Fracking Crews -- Rodney 1-14H and Earl 1-13H -- Bakken, North Dakota, USA
Anyone who has followed the Bakken knows that there is a shortage of fracking crews. Some of the larger operators have contracted dedicated fracking crews to deal with the problem. The smaller operators, of course, have more difficulty in contracting dedicated fracking crews and / or scheduling fracking crews. I have talked about the latter on numerous occasions. Here is an example:
Now also the weather gets to be a BIG factor in all outside work. Temps yesterday in western ND we below Zero with blowing snow and wind.This morning Thanksgiving day the temps in Bowman ND are Now -3 below Zero. Try to heat water and keep it hot so it does not freeze before you get it injected into the ground, try to keep warm while you put plumb the maze of pipe connections and fitting for a frac job.. The winter season will be over by the end of March, but that makes many tortorus days of working outside..
ReplyDeleteBruce,
ReplyDeleteHappy Thanksgiving and thanks for maintaining this site.
How is it that NOG is buying acreage for $ 1100 while others are paying between $ 6,000 and $ 10,000 Thanks...Peter
Yeah, I saw that, too. I wouldn't take that too seriously.
ReplyDeleteFirst of all, early players in the Bakken were buying up acreage very inexpensively (CLR was one of the best at doing this) and NOG has been in the area for years. So, in their presentation they are averaging out their costs over the years.
Going forward, they will be paying top dollar, too, I assume. Also, some acreage is just not as good as other acreage. It depends a lot where they are buying the acreage.
But, although I read their presentation to suggest they were still spending only $1,100 / acre, I took that with a grain of salt. It all has to do with location, location, location; how early they got in, etc.
It's also possible they are offering a bigger percentage of the royalties to offset a lower acreage cost.
So, lots of factors.
Not to mention lack of frac tanks, water trucks, Fw sources, and most of all PEOPLE to operate all of thwe above!!
ReplyDeleteThank you. And not only people, but experienced people. Thanks for stopping by. And I hope you are able to enjoy this Thanksgiving week and weekend. Or at least part of it if working.
ReplyDeleteNOG explains their low acreage cost in their Enercom presentation. As I understand it, it is analogous to gold mining. Because of pooling the big guys are looking to lock up about 80 percent of the acreage in a unit (large gold nuggets) and NOG is is locking up small acreage positions (usually about 10 percent of the unit) like placer mining.
ReplyDeleteThat makes more sense. Thank you for clarifying.
ReplyDelete