Flashback: $20 Oil Predicted

About  a year ago, July 15, 2009, the energy expert Philip Verleger, 64, a professor at the University of Calgary and head of consultant PK Verleger LLC, predicted oil would plummet to $20 by the end of 2009 due to the huge glut of oil sitting offshore in oil tankers.

Just saying.

In September, 2005, oil was at $65/bbl. Steve Forbes said $64-oil was a bubble and we would see oil go back under $50. 

CLR's First Eco-Pad

Continental Resources, Inc., (NYSE: CLR) spudded its first Eco-Pad well.The Kennedy 2-31T is located in the Dimmick Lake oil field, McKenzie County. If you are not familiar with the concept of an Eco-Pad, click here.

If you want to see history in the making, and can't drive there yourself, go to the GIS map server: it's pretty exciting. CLR has four permits/wells aligned, sort of like Orion's belt: #18541, #18542, #18543, and #18544. The wells are about eleven (11) miles northeast of Watford City.

Kennedy 2-31T is #18544, and the farthest east of the four.
Kennedy 1-31M is #18543, and second from the west.

Miles 1-6M is #18541, farthest to the west.
Miles 2-6T is #18542, second from the east.

By the nomenclature, one can tell that #18544 and #18542 (the even ones) are targeting the Three Forks Sanish, and the other two, the odd-numbered ones, are targeting the Middle Bakken.

So, it's M-M-T-T, one going north; one going south; one going north; one going south.

From the McKenzie County Farmer:

“The concept allows us to drill four rigs on a single location,” says Jeff Hume, Continental Resources president/COO. “The Eco-Pad drills all four wells simultaneously by completing the first step for one hole and then moving to the next until step one has been completed on each of the four holes. Then it returns to the first hole and moves to step two. It’s really amazing to see how fast the rig moves from hole to hole. The company is excited to see this new concept up and running.”

Normally, for a company to drill four wells, it would need four pads, each one about five acres in size. The company would drill one hole and then rig down and drive the rig to another location, a process that takes around five days, and then rig up and start the second hole. The Eco-Pad Concept allows the rig to move from one hole to the next using hydraulic legs instead of rigging down and moving it with trucks.

This area is not particularly active at the moment. The nearest producing well to this Eco-Pad for which I have an IP is a Burlington Resources well, long lateral, two miles south (#17635): 740 bbls/day. South of that well is another long lateral BR well, #17371, with an IP of 695. These are nice wells, but not exactly "the Parshall."

So, now we wait and see.

Fayette Field Update

Permits

2014
30146, loc, OXY USA, Elroy Kadrmas 5-3-10H-143-96,
30145, loc, OXY USA, Elroy Kadrmas 5-3-10H-143-96,
30144, loc, OXY USA, Elroy Kadrmas 5-3-10H-143-96,
30053, SI/NC, OXY USA, Elroy Kadrmas 5-3-10H-143-96,
28759, 854, OXY USA, Raphael Stroh 3-13-24H-143-97, t2/15; cum 21K 3/15;
28758, 963, OXY USA, Raphael Stroh 4-13-24H-143-97, t2/15; cum 22K 3/15;
28583, 661, OXY USA, Schneider 3-28-33H-143-96, t2/1/5; cum 18K 3/15;
28582, 438 OXY USA, Schneider 2-28-33H-143-96, t2/15; cum 12K 3/15;
28581, 226, OXY USA, State 4-21-16H-143-96, t3/15; cum 6K 3/15;
28164, conf, OXY USA, Federal Bud 4-29-32H-143-96, producing,
28163, 94, OXY USA, Federal Bud 3-29-32H-143-96,
28162, dry, OXY USA, Evelyn Stroh 4-20-17H-143-96,
28039, 504, OXY USA, William Kubischta 4-11-14H-143-96, t10/14; cum 59K 3/15;,
27924, 105, OXY USA, Elroy Kadrmas 5-3-10H-143-96, t7/14; cum 13K 3/15;
27923, 94, OXY USA, Elroy Kadrmas 4-3-10H-143-96, Fayette, t7/14; cum 58K 2/15;

2013 (list is complete)
26893, 607, OXY USA, Leiss 4-26-23H-143-96, t3/14; cum 82K 3/15;
26649, PNC, OXY USA, State 3-25-36H-143-97,
26648, PNC, OXY USA, State 2-25-36H-143-97
26643, PNC, OXY USA, Raphael Stroh 4-24-13H-143-97,
26642, PNC, OXY USA, Raphael Stroh 3-24-13H-143-97,
26079, 1,336, OXY USA, Harry Stroh 2-8-5H-143-96, t5/14; cum 179K 3/15;
26078, 842, OXY USA, Evelyn Stroh 2-17-20H-143-96, t5/14; cum 138K 3/15;
26077, 940, OXY USA, Evelyn Stroh 3-17-20H-143-96, t5/14; cum 117K 3/15;
26076, 688, OXY USA, Harry Stroh 3-8-5H-143-96, t5/14; cum 128K 3/15;

2012

23028, 803, OXY USA, State 3-16-21H-143-96, Fayette; t4/13; cum 115K 6/14;

23027, 1,388, OXY USA, Dennis Kadrmas 3-9-4H-143-96, Fayette; t4/13; cum 145K 6/14;

22925, 1,336, OXY USA, Emerson 3-24-25H-143-96, Fayette; t1/13; cum 121K 6/14;

22896, 592, OXY USA, William Kubischta 3-14-11H-143-96, Fayette; t8/13; cum 104K 6/14;

22895, 536, OXY USA, William Kubischta 2-14-11H-143-96, Fayette; t8/13; cum 81K 6/13;

22894, 589, OXY USA, Leiss 3-23-26H-143-96, Fayette; t8/13; cum 85K 6/14;

22893, 813, OXY USA, Leiss 2-23-26H-143-96, Fayette; t8/13; cum 86K 6/14;

22678, 1,291, OXY USA, State 2-16-21H-143-96, Fayette; t1/13; cum 140K 6/14;

22677, 1,191, OXY USA, Dennis Kadrmas 2-9-4H-143-96, Fayette; t1/13; cum 161K 6/14;

22590, 621, OXY USA, Lamey 2-30-31H-143-96, Fayette; t11/12; cum 112K 6/14;

23056, 354, OXY USA, Federal Bud 2-32-29H-143-96, Fayette; t1/14; cum 54K 6/14;

2011

21832, 795, OXY USA, Beatrice Kubischta 3-15-22H-143-96, Fayette, t11/12; cum 130K 6/14;

21831, 806, OXY USA, Elroy Kadrmas 3-10-3H-143-96, Fayette, t6/12; cum 192K 6/14;

21830, 1,824, OXY USA, Beatrice Kubischta 2-15-22H-143-96, Fayette, t6/12; cum 207K 6/14;

21829, 840, OXY USA, Elroy Kadrmas 2-10-3H-143-96, Fayette, t6/12; cum 137K 6/14;

21678, 1,107, OXY USA, Emerson 2-24-25H-143-96/Beatrice Kubischta 3-15-22H-143-96, Fayette, t1/13; cum 110K 6/14;

21333, 108, OXY USA, Raphael Stroh 2-13-24H-143-97, Fayette, t2/12; cum 148K 6/14;

21299, 1,242, BR, Cecilia Stroh 34-7MBH, Fayette, t3/12; cum 142K 6/14;

 

2010

19710, 360, OXY USA, Alina Tormaschy 1-32-29H-143-96, Fayette, t4/11; cum 203K 6/14;

19423, 691, OXY USA, Elroy Kadrmas 1-10-3H-143-96, Fayette, t12/11; cum 169K 6/14;

19422, 1,536, OXY USA, Beatric Kubischta 1-15-22H-143-96, Fayette, t12/11; cum 198K 6/14;

19180, 1,272, OXY USA, Lamey 1-30-31H-143-96, Fayette, t7/11; cum 225K 6/14;

19171, 128, OXY USA, Schneider 1-33-28H-143-96, Fayette, t9/11; cum 135K 6/14;

19159, 912, OXY USA, Reuben Schneider 1-27-34H-143-96, Fayette, t912, cum 127K 6/14;

19113, PNC, OXY USA, Rhonda Semerad 1-32-2(H-143-96, Fayette,

18823, 906, OXY USA, State 1-16-21H-143-96, Fayette, t4/11, cum 298K 6/14;

18822, 1,304, OXY USA, Dennis Kadrmas 1-9-4H-143-96, Fayette, t1/11; cum 262K 6/14;

18773, 350, OXY USA, William Kubischta 1-14-11H-143-96, Fayette, t9/11; cum 127K 6/14;

18772, 192, OXY USA, Leiss 1-23-26H-143-96, Fayette, t5/11; cum 134K 6/14;

18722, 582, OXY USA, State 1-36-25H-143-97, Fayette, t7/10; cum 120K 6/14;

18611, 584, OXY USA, Evelyn Stroh 1-17-20H-143-96, Fayette, t8/11; cum 294K 6/14;

18610, 877, OXY USA, Harry Stroh 1-8-5H-143-96, Fayette, t10/11; cum 452K 6/14;

 

News
January 17, 2012: nice well reported

• 19180, 1,272, OXY USA, Lamey 1-30-31H-143-96, Fayette, Bakken, t7/11; cum 249K 3/15;

December 5, 2011: Huge Harry Stroh well with an interesting twist (#18610). At the main post, I did not say what my hunch was, but since few folks actually go to these other links, I can post my hunch here: this was was re-fracked in late September, early October.

January 3, 2010: Just a reminder. Anschutz oil operations in the Bakken, which "owns" the Fayette and the Cabernet oil fields, was acquired by Occidental in late 2010.

January 3, 2010: click here for update on the Stroh wells.

September 23, 2010: Stroh wells in the Fayette.

March 31, 2010: Anschutz #18722 is now being drilled. This is just a single well on this pad, so far, but with the spate of Anschutz "dual well pads" I wouldn't be surprised to see another permit/another well drilled here. This is in section 36-143-97, in the very southwest corner of Fayette field.

March 17, 2010: Anschutz was granted two more permits today; both are on the same pad, 9-143-96: Dennis Kadrmas and State. Kadrmas will go north (sections 9 and 4) and State will go south (section 16 and 21. 

Original Posting: The Fayette Field Update

Snapshot: The Fayette is a small field, only 32 sections. At one time it was the farthest south of any of the active fields in the Bakken but CLR and WLL are now moving farther south and even a bit east. The most notable thing about this field was the number of pads with two wells that Anschutz was putting in (Anschutz assets in the Bakken have since been bought by Occidental.)

Fourteen permits were granted for Fayette oil field in 2010, all of them Anschutz.

Update: Anschutz reported a nice well in the Cabernet with an IP of 1,661. That got my attention, especially after the Bakken Shale blog posting some months ago.

Later, Anschutz was granted two permits, #18772 and #18773, in the Fayette field, a field adjoining the Cabernet field, and just a few miles from the recently reported Anschutz well. And that's the reason I decided to take a closer look / update of the Fayette oil field.

Those two wells (18772 and 18773) will be on the same pad, less than 25 feet from each other. Anschutz has two more pads in the Fayette, each with two permits. I don't know if the "dual wells" will target two different formations or whether they will target the same formation in different sections. Time will tell for these two dual permits, #18423 and #18424; and, #18610 and #18611. My hunch: the laterals will go in opposite directions, targeting the TFS.

On March 17, Anschutz added two more permits, #18822 and #18223.

At the end of 2010, Anschutz had four pads in Fayette field, each to have two wells. The other permits were for single-well pads.

Two well pads:

• 18610, 877, Harry Stroh 1-8-5H-143-96 (section 8); t10/11; cum 283K 11/12;
• 18611, 584, Evelyn Stroh 1-17-20H-143-96 (section 8); t8/111; cum 181K 11/12;

• 18772, 192, Leiss 1-23-26H-143-96 (section 23); t5/11; cum 66K 11/12;
• 18773, 350, William Kubischta 1-14-11H-143-96 (section 23); t9/11; cum 68K 11/12;

• 18822, 1,304, Dennis Kadrmas 1-9-4H-143-96 (section 9); t1/11; cum 191K 11/12;
• 18823, 906, State 1-16-21H-143-96 (section 9); t4/11; cum 216K 11/12;

• 19422, 1,536, Beatrice Kubischta 1-15-22H-143-96 (section 15); t12/11; cum 108K 11/12;
  
• 19423, 691, OXY USA, Elroy Kadrmas 1-10-3H-143-96 (section 15); t12/11; cum 81K 11/12;

It should be noted that Anschutz has another well, permit # 18463, sited on section 18 just inside the Fayette oil field; however, this is a Cabernet well according to the permit. That was the Elizabeth Stroh 1-7-6H-143-96 well which was PNC'd.

So, what do we have? We have a company with a proven record outside the Bakken, with a recently reported great well with an IP of 1,661 just a few miles north of the area under discussion, and now four pairs of wells inside the Fayette.

The Fayette is a very small field. It is all of 32 sections and is, for the most part, T143N-96W. As noted earlier, it adjoins the Cabernet to the immediate northwest. It adjoins the very active Murphy Creek field to the north. The Fayette's northeast corner is 25 miles southwest of the southwest corner of the FBIR. The Fayette is the farthest south of all the active oil fields in North Dakota except for the far southwest corner.

Anschutz "owns" the Fayette. Other than the four pairs of Anschutz wells and a single Anschutz well (all confidential), there is nothing else going on in the Fayette except for an old lateral, #12840. 

There are no hamlets, villages, towns or cities in the Fayette field. ND State Highway 22 forms the eastern boundary of the Fayette field for about two miles, along sections 24 and 25. It's a very beautiful drive, directly south of Killdeer. In fact, I believe highway 22 is highlighted as a "scenic route" on the official North Dakota state map.

Reviewed: News updated January 3, 2010 -- field information has been updated, but it is always changing. Check out the NDIC GIS map server for most current information. 

98

NDIC reports 98 active rigs in North Dakota today.

This sets an all-time record. At least as far as I know. It is certainly the record in the current boom. The previous record was 97 -- that record was set a few weeks ago. Prior to that, 96 -- a few days before that. Prior to that, 95, a few days earlier. Prior to that, 95 in 2008.

Hot fields: a) Parshall; b) Sanish; c) Clear Water; d) Alger; e) Little Knife; f) Moccasin; g) Big Bend; h) Van Hook.

Interesting companies: Slawson, Questar, EOG, CLR.

98 rigs.

By the way, BEXP has one less active rig right now. I assume it's being moved, and in another day or two we will see 99 active rigs.