Thursday, February 25, 2010

Update: Bakken Gets Even More Crowded

I think I first saw this development when I updated the Alger field a few weeks ago, and among those following the Bakken, I think I was one of the first to notice it (pat on back). I could be wrong; I forget how I first became aware that two producers were about to put three laterals in the same section. There was some "back and forth" at the NDIC, and I don't think it's over yet, but it appears there is a recommendation that the request by one of the producers to revoke the permit of a competing producer be dismissed. Is that confusing?

Bottom line: if the request is dismissed by the NDIC, there will be three laterals in one section by two different producers.

One would thing that with all the drilling that needs to be done, producers would not fight over one section. On the other hand, it certainly suggests no producer is going to cede any of its acreage to another producer.

Specifics regarding the permit numbers, names of wells, and names of the producers are at the link above.