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Monday, October 4, 2010
146 Active Rigs (Bakken, North Dakota, USA)
We're back up to 146 active drilling rigs in North Dakota -- that ties the record and the trend has been "up" after the last few days. Wanna bet "we" go over 146 before the year is over despite winter coming?
Another Nice Well in Murphy Creek Oil Field (Bakken, ND, USA)
Tracker reported another nice well in Murphy Creek field today:
- 18523, 1,447, Kudrna 10-1H, SESE 10-144N-95W
Decreased CAPEX; Increased Reserves (2009)
Well, well, well, this is interesting.
From the Oil and Gas Journal, there is a report from IHS Herold that oil and gas reserves rose in 2009. Okay, so? In a recession? Hmmm.
But this is the kicker: oil and gas reserves rose in 2009 despite drillers spending less money to develop their reserves. And that decrease in worldwide upstream investments was not trivial: worldwide investment by 224 oil and gas companies decreased 23% -- repeat, 23% -- last year.
The report:
IHS Herold expects increased spending in 2010. It certainly has in the North Dakota Bakken.
Peak oil theory, anyone?
From the Oil and Gas Journal, there is a report from IHS Herold that oil and gas reserves rose in 2009. Okay, so? In a recession? Hmmm.
But this is the kicker: oil and gas reserves rose in 2009 despite drillers spending less money to develop their reserves. And that decrease in worldwide upstream investments was not trivial: worldwide investment by 224 oil and gas companies decreased 23% -- repeat, 23% -- last year.
The report:
- Oil reserves, up 3% to 164 billion bbl, reversed a 2-year decline
- Natural gas reserves climbed 3.7%
IHS Herold expects increased spending in 2010. It certainly has in the North Dakota Bakken.
Peak oil theory, anyone?
The Good News Does Not Quit: Now ONEOK Announces Plans to Invest Another $300 Million in the Bakken
Note: when I first posted the story below, I was just thinking about the huge investment that ONEOK is making in North Dakota. In fact, it's even more exciting than that for some folks. This investment is literally going to take place in just a few western counties. It looks like Williams and McKenzie counties will be the biggest recipients of this ONEOK investment.
In the last fifteen minutes I have been posting as fast as I can. I was substitute teaching today and not able to post until now.
I thought it would be a slow day in the oil patch. Wow, was I surprised.
BEXP announces two great wells, one each in the Three Forks Sanish and in the middle Bakken.
NDIC announces twelve (12) more permits.
I see evidence of consolidation in the Bakken: BEXP obtains more core acreage, through a deal with Zavanna.
I have yet to post General Electric's newest wrinkle with regard to fracturing.
And now this: ONEOK announces ... drum roll ... drum roll ... that it plans to invest more than $300 million in additional growth projects in the Bakken.
I may be confused, it gets difficult keeping up with all this, but if I'm correct, this is what I see regarding ONEOK:
MDU is THE natural gas company and utility in North Dakota and headquartered in Bismarck. I am eager to see their quarterly and annual report to see what they are doing.
Original Blog
In the last fifteen minutes I have been posting as fast as I can. I was substitute teaching today and not able to post until now.
I thought it would be a slow day in the oil patch. Wow, was I surprised.
BEXP announces two great wells, one each in the Three Forks Sanish and in the middle Bakken.
NDIC announces twelve (12) more permits.
I see evidence of consolidation in the Bakken: BEXP obtains more core acreage, through a deal with Zavanna.
I have yet to post General Electric's newest wrinkle with regard to fracturing.
Now, The ONEOK Story
And now this: ONEOK announces ... drum roll ... drum roll ... that it plans to invest more than $300 million in additional growth projects in the Bakken.
I may be confused, it gets difficult keeping up with all this, but if I'm correct, this is what I see regarding ONEOK:
- $175 million natural gas processing project near Watford City, announced September, 2010, to be operation by December 2011;
- $205 million natural gas processing plant -- Stateline I -- in "western Williams County, to process another 100 million cubic feet per day;
- $90 million more for expansions and upgrades ot its existing gathering and compression infrastructure
- $60 million more in 2011 and 2012 for new well connections adjacent to the Stateline I facility
- Another natural gas processing plant, Stateline II, is being evaluated and could add another 100 million cubic feet per day of capacity if additional volumes become available for processing
- I may be wrong on how I read this press release, but that's what I see.
In July 2010 the partnership announced approximately $700 million for natural gas liquids growth projects in the region. Included is the construction of a 525- to 615-mile NGL pipeline that will have the capacity to transport 60,000 barrels per day of unfractionated NGLs from the Bakken Shale in the Williston Basin in North Dakota to the partnership's 50-percent interest in Overland Pass Pipeline; related capacity expansions for the Overland Pass Pipeline; and expansion of the partnership's fractionation capacity at Bushton, Kansas.Note: less than 24 hours after posting this, this story is a front-page story in the Bismarck Tribune. Yes, it's a very, very big deal.
MDU is THE natural gas company and utility in North Dakota and headquartered in Bismarck. I am eager to see their quarterly and annual report to see what they are doing.
Twelve (12) New NDIC Permits Today (Bakken, North Dakota, USA)
If three data points make a trend, we now have a trend. NDIC reports today another double-digit number of permits issued. Today, twelve (12) permits were issued.
Encore and Slawson were each issued two permits for one multi-well pad (one multi-well pad for Slawson, and one multi-well pad for Encore). Encore's permits were in Bear Creek, Dunn County; Slawson was in the Van Hook oil field, Mountrail County.
More to follow.
Encore and Slawson were each issued two permits for one multi-well pad (one multi-well pad for Slawson, and one multi-well pad for Encore). Encore's permits were in Bear Creek, Dunn County; Slawson was in the Van Hook oil field, Mountrail County.
More to follow.
Are We Seeing Evidence of Consolidation Of Bakken Acreage
Based on permits in entirely new areas in the Williston Basin, someone much smarter than I wrote to tell me that this suggested the core areas of the Bakken have been completely leased.
If that is accurate, if companies want to increase their core Bakken acreage, about all they can do it horse-trade, merge, or buy leases already held by other drillers.
Is this an example? This is from the BEXP press release of October 4, 2010:
If that is accurate, if companies want to increase their core Bakken acreage, about all they can do it horse-trade, merge, or buy leases already held by other drillers.
Is this an example? This is from the BEXP press release of October 4, 2010:
"Since early August 2010, Brigham has expanded its acreage position in the Williston Basin by approximately 10,200 net acres to an estimated 368,400 net acres. In its core Rough Rider project area, Brigham has expanded its acreage position by approximately 7,600 net acres, including a large acreage position obtained as a result of a transaction entered into with Zavanna, LLC. Inclusive of the acreage acquisitions, Brigham now has total core acreage of approximately 205,600 net acres."
BEXP Announces Another Nice Well
Here's the link. More later.
State 36-1 2H, a Three Forks well: 2,356 IP (early 24-hour peak flow back rate). This is BEXP's Three Forks well west of the Nesson Anticline. Rough Rider prospect.
Domaskin 30-31 1H, a middle Bakken well: 4,675 IP (early 24-hour flow back rate).
In the same press release, BEXP announces acquisition of an additional 10,200 net acres for leasing, approximately 7,600 in its core Rough Rider prospect area. BEXP Williston Basin core acreage: 205,600 net acres. BEXP total Williston Basin acreage: 368,400 net acres.
According to the press release: "Domaskin represents the fourth highest initial production rate Bakken well in the Williston Basin. Brigham has completed seven long lateral high frac stage Bakken wells in Ross at an average early 24-hour peak flow back rate of approximately 3,835 barrels of oil equivalent. Brigham maintains an approximate 65% working interest in the Domaskin. Also participating in the Domaskin is Lario Oil & Gas Company with a 12% working interest."
Back to the new acreage, according to the press release: "Since early August 2010, Brigham has expanded its acreage position in the Williston Basin by approximately 10,200 net acres to an estimated 368,400 net acres. In its core Rough Rider project area, Brigham has expanded its acreage position by approximately 7,600 net acres, including a large acreage position obtained as a result of a transaction entered into with Zavanna, LLC. Inclusive of the acreage acquisitions, Brigham now has total core acreage of approximately 205,600 net acres."
State 36-1 2H, a Three Forks well: 2,356 IP (early 24-hour peak flow back rate). This is BEXP's Three Forks well west of the Nesson Anticline. Rough Rider prospect.
Domaskin 30-31 1H, a middle Bakken well: 4,675 IP (early 24-hour flow back rate).
In the same press release, BEXP announces acquisition of an additional 10,200 net acres for leasing, approximately 7,600 in its core Rough Rider prospect area. BEXP Williston Basin core acreage: 205,600 net acres. BEXP total Williston Basin acreage: 368,400 net acres.
According to the press release: "Domaskin represents the fourth highest initial production rate Bakken well in the Williston Basin. Brigham has completed seven long lateral high frac stage Bakken wells in Ross at an average early 24-hour peak flow back rate of approximately 3,835 barrels of oil equivalent. Brigham maintains an approximate 65% working interest in the Domaskin. Also participating in the Domaskin is Lario Oil & Gas Company with a 12% working interest."
Back to the new acreage, according to the press release: "Since early August 2010, Brigham has expanded its acreage position in the Williston Basin by approximately 10,200 net acres to an estimated 368,400 net acres. In its core Rough Rider project area, Brigham has expanded its acreage position by approximately 7,600 net acres, including a large acreage position obtained as a result of a transaction entered into with Zavanna, LLC. Inclusive of the acreage acquisitions, Brigham now has total core acreage of approximately 205,600 net acres."
Oil Activity in Montana; the Montana Dockets (Bakken, USA)
For those interested, here is the link to the Montana dockets.
If you don't bookmark that link, you can easily find the link on my "Data Links" page, one of the tabs at the top of the website.
The last few Montana dockets confirm all the talk about drillers going back into Montana. The two counties where most of the action is includes Richland County where Elm Coulee is, west of McKenzie County in North Dakota; and, Roosevelt County.
Roosevelt County is of particular interest. It is directly north of Richland County, and immediately west of Williston, North Dakota. US Highway 2 and the Burlington Northern railroad run right through Roosevelt County. The highway has been widened to four lanes. This is a very, very active part of Montana and one can see much of the oil activity along the highway.
The prominent players, according to the dockets, in this area are two very familiar North Dakota names: CLR and BEXP. In addition, as expected, EOG is there. Among the many others that could be there, I was surprised to see all the XTO activity. One company that we don't hear much about in North Dakota but is very active in Montana is Enerplus (ERF), a Canadian company in the process of reorganizing / restructuring. Last, but not least, is a company with a fairly decent presence in North Dakota, Zenergy.
I don't have time to follow Montana closely but I may have to start reporting on involvement of these companies as they move back into Montana a bit more often. We'll see.
If you don't bookmark that link, you can easily find the link on my "Data Links" page, one of the tabs at the top of the website.
The last few Montana dockets confirm all the talk about drillers going back into Montana. The two counties where most of the action is includes Richland County where Elm Coulee is, west of McKenzie County in North Dakota; and, Roosevelt County.
Roosevelt County is of particular interest. It is directly north of Richland County, and immediately west of Williston, North Dakota. US Highway 2 and the Burlington Northern railroad run right through Roosevelt County. The highway has been widened to four lanes. This is a very, very active part of Montana and one can see much of the oil activity along the highway.
The prominent players, according to the dockets, in this area are two very familiar North Dakota names: CLR and BEXP. In addition, as expected, EOG is there. Among the many others that could be there, I was surprised to see all the XTO activity. One company that we don't hear much about in North Dakota but is very active in Montana is Enerplus (ERF), a Canadian company in the process of reorganizing / restructuring. Last, but not least, is a company with a fairly decent presence in North Dakota, Zenergy.
I don't have time to follow Montana closely but I may have to start reporting on involvement of these companies as they move back into Montana a bit more often. We'll see.