CLR Earnings Blow Away Consensus

Consensus: 40 cents/share. Actual: 60 cents/share.

Story here, 2Q, 2010.

Overall: Production increased Nine (9) Percent Over 1Q, 2010.
Bakken: Production increased 93% in North Dakota, compared to 2Q, 2009.
Bakken: IPs averaged 1,265 boepd; all IPs are 24-hour tests.
EBITDAX grows 99 percent to $212 million

Average realized crude oil price was $68.44/bbl in the 2Q, 2010.  This speaks volumes about success of hedging.  Price of North Dakota sweet was in the 50's most of the 2nd quarter.

Notable company-operated wells that targeted the TFS:

• Meldahl 1-23H (35% WI) in McKenzie Co. - 2,489 Boe;
• Ole 1-29H (36% WI) in McKenzie Co. - 1,864 Boe;
• Bang 2-33H (45% WI) in Dunn Co. - 1,860 Boe;
• Roger 1-18H (22% WI) in Dunn Co. - 1,486 Boe;
• Stortroen 1-13H (49% WI) in McKenzie Co. - 1,461 Boe;
• Lundberg 1-8H (39% WI) in Dunn Co. - 1,238 Boe;
• Strid 1-26H (35% WI) in Williams Co. - 1,092 Boe.

Notable company-operated wells that targeted the Middle Bakken:

• Franklin 1-20H (34% WI) in Divide Co. - 1,288 Boe;
• Bohmbach 2-35H (68% WI) in McKenzie Co. - 1,271 Boe;
• Brockmeier 1-1H (59% WI) in McKenzie Co. - 1,217 Boe;
• Anseth 1-29H (69% WI) in Williams Co. - 1,088 Boe.

CLR is completing the first of three Eco-Pad projects that it began drilling in the second quarter of 2010.

Eco-Pads also allow longer horizontal bores.

Generally, 24-stage fractures, but is testing 30-stage completions.

CLR's press release says they have 18 operated rigs in North Dakota, but I count 19 on NDIC's daily active rig page.

Whiting Reports a ... What's Bigger Than a Gusher?

Updates

September 26, 2015: 

• 18409, 2,404, Kinnoin 21-14H, Sanish, NENW 14-154-91, Sanish, t3/10; cum 574K 7/15;

Original Post

 

18409, 2,404, Kinnoin 21-14H, Sanish, NENW 14-154-91
Cumulative: 98,265 bbls in 83 days.

At $50/bbl, that's $4.9 million at the wellhead. In less than 90 days.

Other operators in the Bakken opine that these wells will have an economic life-time of 39 years. They have horrific decline rates, but something tells me the technology will keep improving over the years. I wonder if a pump has even been put on this well yet?

It would be great to hear some of the details of the well: number of frac stages; sand or ceramics?

Hat Trick: Whiting Reports Three Gushers

First:

• 17908, 3,226, Leo 12-29H, Sanish, SWNW 29-153-91
• Cumulative: 60k bbls in 77 days, well below 90 days

Second:

• 18392, 2,530, Smith 12-7H, Sanish, Lot 2 7-153-91
• Cumulative: 41k bbls in 73 days, well below 90 days

Third:

• 18401, 2,251, TTT Ranch 21-16H, Sanish, NENW 26-154-92
• Cumulative: 61k bbls in 82 days

(I just started accumulating WHX a couple days ago, so this is an "emotional" high. Smile.)

Anschutz Reports a Very, Very Good Well

18353, 2,374, Kubik Trust 1-19-18H-143-95, Murphy Field, 16 frac stages

Cumulative oil in less than 90 days: 60,100 bbls

I don't associate Anschutz with "hyping" their IPs, so this is a very, very good well.


Murphy Creek Field has had a record of good wells.

Comment: 16 frac stages is at the middle of the range for number of frac stages based on the few reports I have. WLL generally uses 24 frac stages and is considering going to 30. (I forget if that was WLL or another operator; I will try to confirm.)

More and More Believers That This Boom is Real

See opinion in Grand Forks Herald.com: "Evidence that this oil boom is serious just grows and grows."

This paragraph was particularly interesting (note two observations were made):

Oil recovery in North Dakota has reached a level of efficiency unequaled elsewhere. Fully 98 percent of wells drilled produce oil, and the percentage of known reserves recovered from the Bakken and Three Forks formations is higher than anywhere else.

The author could have also noted that the percentage of known reserves recovered is not only higher than anywhere else, but the percent recovered exceeds expectations and continues to grow.

They are believers.

So am I. It's interesting to go back to 2008 and re-read all the nay-sayers about the Bakken. I won't link them; they're easy to find.


I'm a Believer, The Monkees (just substitute "oil wealth" for "love")

Kudos to North Dakota Industrial Commission

I seldom look at websites for other oil and natural gas states in the Rocky Mountains but when I do, I am always surprised how difficult these other websites are to navigate. Maybe I'm just not familiar with them.

But the NDIC website is absolutely excellent. It is amazing how easy it is to navigate the website and it is amazing how much information is available for free. The site always seems to be up-to-date. Just yesterday the state held their quarterly lease sales auction, and already the results are posted, easy to find, and easy to read.

So, NDIC, thank you.

ND State Lease Sales Results for August: Still Paying $6,500/Acre

The results of the August, 2010, North Dakota state lease sales have been released. Some folks got some very good buys, paying well under $100/acre in much of the state.

However, companies are still willing to pay $6,500/acre for acreage in McKenzie County.

The best prices in Williams County were in the $2,000/acre range.

No acreage was leased in Mountrail County in this go-around.