CLR: 21% Increase in Proved Reserves

CLR announces a 21 percent increase in proved reserves, mostly as a result of drilling in the Bakken. To see what this means for investors, click here.

In the same press release, CLR announced the completion of thirteen (13) company-operated gross wells (7.4 net) in the North Dakota Bakken since July 1, 2010, and their one-day test results:

• 18769, Roadrunner 1-15H, Murphy Creek, 1,722
• 18679, Medicine Hole 2-27H, Jim Creek, 1,702
• 18909, Rollefstad 2-3H, Antelope, 1,689
• 18795, Bonney 2-3H (Bonney 2-3M), Jim Creek, 2,435
• 18958, Howard 1-5H, Dolphin, 1,201
• 18584, Ravin 1-1H, wildcat -- 150-97, 1,034
• 18851, Bjella 1-24H, Temple, 1,029

The best thing about this list? Except for two wells in the Jim Creek oil field, these wells are all in different fields, showing the potential of CLR.

How have other wells in immediate area of these wells done?

• Near the Roadrunner well, there were two wells, the Bartlet 21-16H, file #18074, a BR well, with an IP of 25. Yes, 25. Also, the Nanette Strommen 21-13H well, file # 17608, a MRO well, with an IP of 120. Yes, 120.
• There are four wells practically on the same pad as the Medicine Hole well: 19168, 17574, 16548, and 18679. I have data for only one of these (besides 18679): 17574 a CLR well, had an IP of 273.
• Near the Rollefstad well are 18159 and 17609. The former is a CLR TFS well with an IP of 754, and the latter is a Hess well with an IP of 504.
• Near the Bonney well are two: the 17135, a BR well with an IP of 143; and 17379, another BR well, with an IP of 83. 

Comment: by today's standards those "old" IPs are pathetic. If folks were excited two and three years ago with these wells with IPs less than 250, can you imagine the excitement of these 2,000 bopd IP wells? (Yes, I know that the way IPs are measured and reported has changed over the years, but still, 250 vs 2,500.)

Also, for investors, see this article in Barron's.

A "Green Energy" Headline Story That I Like

I like the headline because, finally, we see some honesty. "Green energy" is not going to result in many new jobs in this economy. That's according to our President, our number one "green energy" cheerleader.

Flashback: from my "Green Energy: Notes From All Over." And then scroll down to February 2, 2010.  I guess everyone but the administration knew this.

By the way, Jim Cramer is bailing out of solar. So is President Obama: "No solar panels on the White House roof."

Meanwhile, the US will see the highest increase in poverty rate in decades -- maybe back to those rates we saw in the 1960s. I guess this is what you get when the president and his inner circle have never run a business.

Another Lackluster Hess Well

In today's (September 10, 2010) daily activity report, Hess reported an IP of 342 for EN-Skabo Trust-155-93-0631H-1 in the fairly productive Alger oil field.  The initial 45 day production was pretty good and then it dropped back the next 15 days suggesting Hess might be doing something more with this well.

The comments below are better than the posting.

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Update (further comments) -- September 14, 2010: the discussion continues regarding the Hess IPs (see comments). It has been pointed out that the IPs that Hess reports are based on some methodology involving a "60-day average."  So, repeating the above: Hess reported an IP (close to the 60-day average of 342 bopd).

From the September corporation presentation from Whiting. These are all of the wells that Whiting reported in the month of September, 2010, the IP, and the 60-day average:

• Lahti 24-22H:  2,058; 953
• Hansen 12-20H: 4,144; 982
• Iverson 21-14H: 2,551; 1,056
• Olson 11-14 TFH: 1,640; 601
• Littlefield 12.34H: 1,942, 1,139
• Lacey 12-1H: 3,445; 1,007
• Fladeland 21-12H: 2,690; 1,109
• Fladeland 44-9H: 2,301; 684
• Jorgenson 12-27H: 2,893; 1,276

ND #3 in Oil Rig Activity; Still #4 in Production

North Dakota overtook Oklahoma as the number three state in terms of number of rigs active drilling.

Drilling into the Bakken formation and into the Three Forks Sanish formation will eventually get to Ward County (Minot, North Dakota) but not for quite some time.

Update: 77-Mile Four Bears Pipeline

This is the pipeline:

Wyoming-based Bridger Pipeline, LLC is vying to construct Four Bears Pipeline, a 12-inch thick steel pipeline system spanning Billings, Dunn and McKenzie counties, with an initial capacity of 60,000 barrels a day and the future possibility of moving 110,000 barrels a day, according to PSC documents.

This may not increase overall takeaway capacity but it will decrease road traffic in local area.