Week 36: September 7 -- September 13, 2010

Another CLR Eco-Pad Permit: Where The "Two-Formation Question" Was Tested Head-On

The Owan Wells West of Williston

CLR Announces 21% Increase in Proved Reserves

Commentary About Hess Wells

BEXP Operational Update

$500 Million Natural Gas Plant To Be Built Near Tioga, ND, USA

Analysis of Seven Incredible WLL Wells

A Great Opportunity to Invest in EOG

Whiting: Five (5) Wells in One Section -- And, No Doubt, More To Come

With another Whiting permit granted today in section 4-152N-92W, Whiting will have five wells in that section, all long laterals undoubtedly.

So, here's where Whiting stands in section 4-152-92:

• Peterson 11-4H, Lot 4, #17552, producing
• Foreman 11-4TFH, Lot 4, #18724, confidential

• Peterson 13-4H, #18882, confidential
• Foreman 21-4TFH, Lot 3, #19555, permit

• Brehm 21-4TFH, Lot 3, #19320, permit

So, without calling these Eco-Pads, they are certainly very similar to CLR's Eco-Pads, with two closely spaced horizontals targeting the Three Forks Sanish and the Middle Bakken in parallel.

Since the wells are still on confidential status, we don't know which sections these wells will target. Be that as it may, Whiting is now up to five wells in a section in the highly productive Sanish.

So, now, a waiting game, to see how these wells pan out.

It should be noted that Whiting also has "infill" wells among their Bakken wells which they designate as "X" wells.

[Remember the good ol' days when folks said the EUR for a section would be 500,000 bbls of oil. Then they said the EUR for a good Bakken well would be 700,000 bbls of oil, but implying that there would only be one well per section. Now, we have five wells in one section -- does this mean 3.5 million bbls of oil/section in the core Bakken [five times 700,000] -- just "back-of-the-envelope" calculations. And my hunch is that very few wells are being super-fracked yet.]


Wooly Bully, Sam the Sham and the Pharoahs

As someone said about this video: Mexican-Americans dressed in faux-Arab costumes rocking the 60's with a classic nonsense-lyrics two-chord song. What's not to love? That's about how I feel about five wells in one section -- what's not to love.

New KOG Presentation

I had not looked at a KOG presentation in a long time, so I enjoyed a quick look at their presentation at the Rodman and Renshaw Annual Global Investment Council. I have not had a chance to take an-depth look at the presentation but three slides jumped out at me:

• Slide 6: significant increase in daily production coming out of the Bakken; of course, this has to be looked at in light of increased number of shares outstanding when anticipating earnings/share
• Slide 10: XOM jumps out at you as a major oil company in the Bakken; this has to impress Wall Street investors who may not understand the significance of the Bakken; of course, that is due to XOM buying XTO
• Slide 15: the difference between short laterals and long laterals

I still don't think folks understand why there is such a huge decline following the initial production number. Porosity, natural fractures, stimulated fractures, and thickness of the formation appear to be the four most important factors. I get that, but I don't understand the steep decline immediately following most of these wells. And based on an accumulation of data, it certainly appears to me that fracturing doesn't "reach out" more than 400 feet laterally, and maybe even less. That thinking may be very naive but it certainly seems that is true.