Tuesday, April 6, 2010

"As The Bakken Turns"

Some months ago Hess and BEXP were sparring over a couple of sections (29 and 32) in the Alger field: T155N-92W. I found it interesting enough to make the Alger field one of the first fields I reviewed.

Hess had two permits in section 32 and BEXP had one permit in section 29. Hess went to the NDIC requesting that the BEXP permit be revoked. It was reported on February 6, 2010, that the hearing was scheduled for February 26, 2010.

Three days later, February 9, 2010, Nabors moved its rig, Rig 52, onto section 29, and commenced operations for BEXP shortly after that.

I didn't hear the results of the hearing to revoke the BEXP permit, but on February 25, 2010, the day before the scheduled hearing, the NDIC posted a recommendation to dismiss the Hess request to revoke the BEXP.

Subsequently the BEXP well, the Sorenson 29-32 1-H was reported by BEXP to have set a record for highest backflow rate. BEXP, with 95% working interest in that well, reported an initial backflow rate of 5,133 boepd. The "official" figure reported by the NDIC was significantly lower, as they generally are, about 3,000 bopd.

Hess still holds two permits in section 32 for long laterals, for both to go into section 29.
18685: RS-PANZER FARMS-155-92- 3229H-1, SWSE 32-155N-92W
18686: RS-PANZER FARMS-155-92- 3229H-3, SESW 32-155N-92W
BEXP has requested that the NDIC revoke the two Hess permits. See case 12298, cont'd, in the April 29, 2010, NDIC hearing docket.

And that should bring us up to date, in "As the Bakken Turns," in the Alger oil field, sections 29-32, T155N-92W.