Sunday, April 18, 2010
Week 15, 2010: April 13 - April 19, 2010
1. Louisiana receives first shipment of Bakken oil.
2. Arrow Midstream partners with XTO to lay more pipeline in Heart Butte oil field (inside the reservation).
3. Olson 10-15 1-H, a pretty good well, passes 100,000 barrels of oil, cumulative.
4. New record for number of active rigs in North Dakota: 108.
5. NOG offers 5 million shares in new share offering.
6. Olympic housing (Canadian Winter Olympics) moving to Williston, ND.
7. Global oil demand predicted to hit new record in 2010.
8. Blasting the Bakken: a new technique to increase oil production.
9. Waiting time to frack a well approaches six months.
For Traders / Investors
The sell-off on Friday may or may not continue, but some great Bakken stocks dropped back significantly.
Just saying.
US set record in March for gasoline production.
IEA predicts a new record for oil demand in 2010.
Venezuela (Chavez) outsourcing oil fields to Russia and China.Somehow, whatever happens with the folks on Wall Street, the above three facts are not going to change.
Just saying.
Cool: Louisiana Receives First Shipment of Oil From the Bakken
This is cool, really cool: Louisiana receives its first shipment of oil from the Bakken.
NuStar Energy unloaded its first shipment of Bakken oil at a terminal in St James, Louisiana. The press release says NuStar says it plans to ship up to 10,000 barrels per day; this first shipment was 5,000 barrels.
The press release goes on to say that NuStar is working with BNSF, Union Pacific and Canadian Pacific railroads on the initiative.
This is just one more story that suggests to me the Bakken is a bigger story than some of us realize. National attention like this would not come if this were an inconsequential oil basin.
EOG is using the railroad to ship its oil to Cushing.
NuStar Energy unloaded its first shipment of Bakken oil at a terminal in St James, Louisiana. The press release says NuStar says it plans to ship up to 10,000 barrels per day; this first shipment was 5,000 barrels.
The press release goes on to say that NuStar is working with BNSF, Union Pacific and Canadian Pacific railroads on the initiative.
This is just one more story that suggests to me the Bakken is a bigger story than some of us realize. National attention like this would not come if this were an inconsequential oil basin.
EOG is using the railroad to ship its oil to Cushing.
Arrow Pipeline / XTO Partnership in the Reservation
Update, August 2, 2010: Spotted Hawk Development, LLC, will present Case 13121, requesting an order affecting Heart Butte, Van Hook, and or Deep Water Creek Bay-Bakken Pools to create and establish:
Update, April 24, 2010: While reviewing corporate presentations, I now understand why Arrow and the The Three Affiliated Tribes chose three particular townships for the pipeline in the reservation. When I originally posted this I opined that KOG might be the biggest benefactor. Slide 10 of KOG's most recent presentation states in a green dialogue box that Kodiak has partnered with XTO in this area. That's an interesting slide in its own right. First, it appears Kodiak has a 50% working interest, partnering with XTO, in its Two Shields Butte and Saddle Butte prospects, about 60 sections. Second, it appears that KOG has a 60% working interest, partnering with "a private company" (Slawson?) in its Moccasin Creek prospect.
Arrow recently announced that it has an agreement to transport XTO production through a new pipeline system which should be completed by November, 2010. The pipeline will support production in three townships: 148N92W, 149N92W, and 149N91W. This is the Heart Butte oil field.
Arrow Midstream Holdings is the only pipeline company currently operating inside the reservation. It built an 18-mile pipeline from Johnsons Corner to Mandaree last year. Johnsons Corner is at the intersection of ND Highway 23 and ND Highway 73, northwest of Mandaree. Arrow Pipeline is a joint venture of Arrow and the Three Affiliated Tribes.
XOM recently announced plans to buy XTO.
Comment:
This is an interesting developement.
Currently XTO has no wells in any of these three townships. Practically every other company is there, though Questar, KOG, Peak, Zenergy, and others.
There are a string of wells in the south of that oil field, but other than that, it is pretty much undeveloped. Obviously XTO has a lot of acreage there, and it explains why the other companies are where they are (the big gaps of undeveloped area belong to XTO).
This all fits: XTO said it was moving to oil (like all the other "gas" indies) and XOM is in the process of buying XTO -- lots of cash available all of a sudden.
I would say that this is HUGE news for landowners / mineral rights owners in that area.
The new pipeline will be in McKenzie and Dunn Counties, just south of Reunion Bay on the west side of the river. Looking at the map that accompanied the article, Arrow will complete the new pipeline in three phases, cleverly called Phase 1A, Phase 1B, and Phase 2.
Note: the article said it would support production in three townships (in bold below). The pipeline, in fact, will traverse at least eight township (see below). Does this suggest that XTO's acreage is in the three townships in bold?
T149N91W
T148N-92W
T149N-92W
T149N-94W
T148N-93W
T149N-93W
T150N-94W
T151N-94W
T148N-94W
KOG might benefit the most. Just a gut feeling.
- One 6400-acre unit
- One 1920-acre unit
- Three 1280-acre units
- Three 1600-acre units
Update, April 24, 2010: While reviewing corporate presentations, I now understand why Arrow and the The Three Affiliated Tribes chose three particular townships for the pipeline in the reservation. When I originally posted this I opined that KOG might be the biggest benefactor. Slide 10 of KOG's most recent presentation states in a green dialogue box that Kodiak has partnered with XTO in this area. That's an interesting slide in its own right. First, it appears Kodiak has a 50% working interest, partnering with XTO, in its Two Shields Butte and Saddle Butte prospects, about 60 sections. Second, it appears that KOG has a 60% working interest, partnering with "a private company" (Slawson?) in its Moccasin Creek prospect.
ORIGINAL POST
Arrow recently announced that it has an agreement to transport XTO production through a new pipeline system which should be completed by November, 2010. The pipeline will support production in three townships: 148N92W, 149N92W, and 149N91W. This is the Heart Butte oil field.
Arrow Midstream Holdings is the only pipeline company currently operating inside the reservation. It built an 18-mile pipeline from Johnsons Corner to Mandaree last year. Johnsons Corner is at the intersection of ND Highway 23 and ND Highway 73, northwest of Mandaree. Arrow Pipeline is a joint venture of Arrow and the Three Affiliated Tribes.
XOM recently announced plans to buy XTO.
Comment:
This is an interesting developement.
Currently XTO has no wells in any of these three townships. Practically every other company is there, though Questar, KOG, Peak, Zenergy, and others.
There are a string of wells in the south of that oil field, but other than that, it is pretty much undeveloped. Obviously XTO has a lot of acreage there, and it explains why the other companies are where they are (the big gaps of undeveloped area belong to XTO).
This all fits: XTO said it was moving to oil (like all the other "gas" indies) and XOM is in the process of buying XTO -- lots of cash available all of a sudden.
I would say that this is HUGE news for landowners / mineral rights owners in that area.
NITTY GRITTY
The new pipeline will be in McKenzie and Dunn Counties, just south of Reunion Bay on the west side of the river. Looking at the map that accompanied the article, Arrow will complete the new pipeline in three phases, cleverly called Phase 1A, Phase 1B, and Phase 2.
Note: the article said it would support production in three townships (in bold below). The pipeline, in fact, will traverse at least eight township (see below). Does this suggest that XTO's acreage is in the three townships in bold?
T149N91W
T148N-92W
T149N-92W
T149N-94W
T148N-93W
T149N-93W
T150N-94W
T151N-94W
T148N-94W
KOG might benefit the most. Just a gut feeling.
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