November, 2010, Hearing Dockets

Thursday, November 18, 2010

13546: Oasis, proper spacing for Leaf Mountain-Bakken; Burke County
13364, cont'd: Oasis, proper spacing for Gros Ventre-Bakken, Burke and Mountrail counties
13547: Hess, temporary spacing for AV-Schwartz-163-93-0211H-1, Burke County
13548: Hess, temporary spacing for AV-Kimball 162-95 1102H-1, Divide County
13549: Hess, request to drill a Lodgepole well in Williams County (that's interesting)
13550: Hess, pooling for the Baukol-Noonan-Bakken pool, Divide County
13551: Hess, pooling for the Big Butte-Bakken pool, Mountrail County
13552: Hess, pooling for the Robinson Lake-Bakken pool, Mountrail County
13553: Hess, pooling for the Robinson Lake-Bakken pool, Mountrail County
13554: Hess, pooling for the Antelope-Sanish pool, McKenzie County
13555: Hess, pooling, for the Antelope-Sanish pool, McKenzie County
13556: Hess, pooling for the Westberg-Bakken pool, McKenzie County
13557: Hess, pooling for the Blue Buttes-Bakken pool, McKenzie County
13410, cont'd: Hess, pooling for the Pleasant Valley-Bakken pool, Mountrail County
13558: KOG, amend, two horizontal wells on two 1,280-acre spacing units, McKenzie County
13559: Cornerstone, establish, 800-acre unit, one horizontal well, Burke County
13560: Cornerstone, establish 22 640-acre drilling units; one horizontal well each, Burke County
13561: Whiting, amend, two horizontal wells on two 640-acre units, McKenzie and Mountrail
13562: Whiting, amend, Bicentennial-Bakken pool, 1,280 acre units within Zone VI
13563: Whiting, pooling in Bicentennial-Bakken pool McKenzie County
13564: Whiting, amend, 1,280-acre unit within Zone V
13565: Whiting, pooling Elkhorn Ranch-Bakken, Billings County
13566: Whiting, pooling for four spacing units in Elkhorn Ranch or Ash Coulee-Bakken, Billings
13567: Whiting, pooling for four spacing units in Elkhorn Ranch-Bakken pool, Billings
13568: Whiting, pooling for two spacing units in Ash Coulee-Bakken pool, Billings
13569: Whiting, pooling for three spacing units in Roosevelt-Bakken pool, Billings
13570: Whiting, pooling for five spacing units in DeMores-Bakken pool, Billings
13571: Whiting, pooling for seven proposed 1,280-acre units in Billings County
13572: Whiting, pooling for forty-four proposed 1,280-acre units in Stark County
13380, cont'd: Whiting, amend, Bicentennial-Bakken pool to include four 1,280-acre units in Zone VI, McKenzie
13543, cont'd: Whiting, extend, Elkhorn Ranch or Ash Coulee-Bakken by two additional sections, Billings
13373, cont'd: Whiting, temporary spacing for Kubas 11-13TFH, Stark
13374, cont'd: Whiting, temporary spacing for Froehlich 44-9TFH, Stark
13573: SM, establish, 1,280-acre unit, McKenzie County
13574: SM, amend, West Ambrose to field include 8 additional sections and create three 1,280-acre spacing units, Divide County
13575: SM, pooling four spacing units in West Ambrose, Divide
13576: Petro-Hunt, temporary spacing for Hoiby 158-94-4B-3-1H, Mountrail
13577: Petro-Hunt, to allow up to seven horizontal wells on three spacing units for the Four Bears-Bakken pool, McKenzie County
13578: Petro-Hunt, to allow up to seven horizontal wells on one spacing unit for the Eagle Nest-Bakken pool, Dunn County
13579: Petro-Hunt, to extend Antelope field, by two sections, and allow up to seven wells to be drilled on six spacing units for the Antelope-Bakken pool, McKenzie
13580: Petro-Hunt, to extend McGregory Buttes field, by two sections; and, allow up to seven horizontal wells on seven spacing units, Dunn County
13581: Petro-Hunt, extend Bailey, Antelope, McGregory Buttes, Eagle Nest, Corral Creek or Grail fields to include an additional 22 sections; and, allow up to seven horizontal well on eleven spacing units, Dunn County
13582: Helis, amend, to include two sections in Zone II, McKenzie County
13583: Helis, pooling for Blue Buttes-Bakken, McKenzie County
13584: Helis, to include eight sections in Zone II, Grail-Bakken pool, McKenzie
13585: Helis, pooling for spacing units in Grail-Bakken pool, McKenzie
13586: MRO, amend, Deep Water or Parshall-Bakken to establish four 1,280-acre spacing units, McLean
13587: MRO, up to four horizontal wells on each 1,280- or 1,600-acre unit within Zones II, IV, V, and VI, Bailey-Bakken pool, Dunn County
13588: MRO, to allow up to four horizontal wells on each 1280-acre unit, Killdeer-Bakken, Dunn
13589: MRO, up to four horizontal wells on each 1280-acre unit, Lake Ilo-Bakken, Dunn
13590: MRO, to allow one horizontal well, Bailey-Bakken pool, Dunn County
13026, cont'd: Paul Rankin; one Lodgepole well, Williams/McKenzie Counties (interesting)
13357, cont'd:  BR, to suspend North Plains permit for Hellandsaas 16-8H, McKenzie County
13591: QEP, temporary spacing for Rupple 1-4H-150-90, McLean County
13592: QEP, temporary spacing for MHA 1-06-31H-150-92
13593: QEP, amend, up to two horizontal wells in each spacing unit in 35 sections, Deep Water Creek Bay-Bakken,Dunn and McLean
13460, cont'd: QEP, pooling in Heart Butte-Bakken, Dunn, McLean and Mountrail
13426, cont'd: QEP, risk penalty legalese, MHA 1-06-01H-149-92 and MHA 2-06-01H-149-92, Dunn, McLean, and Mountrail
13594: Peak, proper spacing for South Fork-Bakken pool, Dunn County
13595: North Plains Energy, risk penalty legalese for Eide 5-13H, Truax-Bakken, Williams County
13596: North Plains Energy, pooling for Eide 5-13H, Truax-Bakken, Williams County
13597: Peak Grasslands, risk penalty legalese for Schilke 8-24H, McKenzie County
13598: Peak Grasslands, pooling for Schilke 8-24H, Pembroke-Bakken pool, McKenzie
13599: Peak Grasslands, risk penalty legalese for Wisness 21-34H, Pembroke-Bakken, McKenzie
13600: Peak Grasslands, pooling  for Wisness 21-43H, Pembroke-Bakken, McKenzie
13601: Zenith, salt water disposal
13602: MRO, to allow completion of TAT USA 13-23H, and produce from a single spacing unit in Reunion Bay composed of 2.5 sections

Friday, November 19, 2010

13603: Tracker, proper spacing for Hans Creek-Bakken, Dunn
13604: Tracker, risk penalty legalese for Danielle 12-1H, Little Knife-Bakken pool, Dunn County
13456, cont'd: Tracker, risk penalty legalese for Kudna 10-1H, Murphy Creek-Bakken, Dunn
13457, cont'd: Tracker, risk penalty legalese for Olson 3-1H, Little Knife-Bakken, Dunn
13605: BEXP, temporary spacing for Larsen 3-10 1-H, Williams County
13606: BEXP, create four 1280-acre units; one horizontal well in each, McKenzie County
13607: BEXP, extend Todd-Bakken field to create two 1280-acre units; one horizontal well each; Williams County
13608: BEXP, risk penalty legalese for Boots 13-24 1-H, Painted Woods-Bakken, Williams
13609: BEXP, risk penalty legalese for Mortenson 5-32 1-H, Painted Woods-Bakken, Williams
13610: BEXP, risk penalty legalese for Abe Owan 21-16 1H, Painted Woods-Bakken, Williams
13611: BEXP,  risk penalty legalese for Wright 4-33 1-H, Alger-Bakken, Mountrail
13612: BEXP, risk penalty legalese for Ross-Alger 6-7 1-H, Alger-Bakken, Mountrail
13613: BEXP, risk penalty legalese for Abelmann-State 21-16 1-H, Camp-Bakken, McKenzie
13614: BEXP, risk penalty legalese for Papineau Trust 17-20 1-H, Elk-Bakken, McKenzie
13284, cont'd: BEXP, risk penalty legalese for Abe Owan 21-16 1-H, Painted Woods-Bakken, Williams
13615: ERF, temporary spacing for Henry Bad Gun 16B-21-1H, Dunn
13616: Notice to dismiss
13617: ERF, to extend McGregory Buttes-Bakken pool; to create two 1280-acre units and not more than four wells on each spacing unit (a trend of four to six wells on one spacing unit)
13618: ERF, to extend Mandaree-Bakken pool; to create two 1280-acre units; not more than four wells on each unit; Dunn
13619: ERF, to extend Spotted Horn-Bakken; to create two 1280-acre units; not more than four wells on each unit; McKenzie
13620: ERF, to extend Antelope-Sanish pool; to create two 1280-acre units; not more than four wells on each unit; McKenzie
13621: ERF, amend, Squaw Creek-Bakken, to establish one 1280-acre unit; not more than four wells on each unit, McKenzie
13622: EOG, temporary spacing for Model 1-05H, Mountrail
13623: EOG, amend, Clear Water-Bakken; establish one 1280-acre unit; not more than three wells o that unit; Mountrail
13624: Notice to dismiss
13625: EOG, amend, Parshall-Bakken pool; to create a 320-acre unit; one horizontal well, Mountrail
13626: EOG, re-entry; Mont 11-28M for testing Ratcliffe, Nesson or Lodgepole formations before converting it to salt water disposal
13627: EOG, risk penalty legalese, Austin 30-13H, Parshall-Bakken, Mountrail
13628: EOG, risk penalty legalese, Mandaree 10-05H, Squaw Creek-Bakken, McKenzie
13629: EOG, risk penalty legalese, Mandaree 7-17H, Squaw Creek-Bakken, McKenzie
13630: EOG, risk penalty legalese, Clearwater 10-03H, Clear Water-Bakken, Mountrail
13631: EOG, risk penalty legalese, Burke 24-08H, Stanley-Bakken, Mountrail
13632: EOG, risk penalty legalese, Fertile 34-31H, Parshall-Bakken, Mountrail
13633: EOG, risk penalty legalese, Fertile 17-21H, Parshall-Bakken, Mountrail
12844, cont'd: EOG, temporary spacing for Hardscrabble 1-16H, Williams County
13429: EOG, temporary spacing for Boundary 4-27H, Bottineau County
13634: Baytex, to complete the Larson 3-162-99N well, Divide County
13635: Zenergy, to extend Painted Woods for another 1280-acre unit; one horizontal well, williams
13636: Withdrawn
13427, cont'd: Zenergy, to extend Van Hook-Bakken; to create a 3840-acre unit with not more than nine wells
13637: XTO, extend the Truax-Bakken pool; one 1280-acre unit and one horizontal well, Williams and McKenzie
13638: XTO, risk penalty legalese, Feiring State 31X-16, Big Butte-Bakken, Mountrail
13639: XTO, risk penalty legalese, Sorkness State 34X-36, Sorkness-Bakken, Mountrail
13640: XTO, risk penalty legalese, Sundhagen 31X-3, Midway-Bakken, Williams
13641: XTO, risk penatly, Eide 31X-29, McGregor-Bakken, Williams
13642: XTO, risk penalty, H M Hove 34X-33, West Capa-Bakken, Williams
13643: XTO, risk penalty, Thomas 44X-18, Grinnel-Bakken, McKenzie, Williams
13644: XTO, risk penalty, Ward 11X-23, Charlson-Bakken, McKenzie, Williams
13645: XTO, risk penalty, Carus Federal 24X-36, Lost Bridge-Bakken, Dunn
13646: Zavanna, to create five 1280-acre units and one well on each; McKenzie
13647: Zavanna, risk penalty legalese, Hanson 28-33 1-H, Stockyard Creek-Bakken, Williams
13648: Zavanna, risk penalty legalese, Gary 1-24H, Stockyard Creek-Bakken, Williams
13649: Sinclair, extend the Sanish-Bakken, for three 640-acre units; two wells on each, Mountrail
9465, cont'd: temporary spacing for Saetz Federal 6-25, McKenzie
13650: Samson, extend the Stockyard Creek-Bakken, to establish a 1280-acre unit, Williams
13651: Newfield, to create a 1280-acre unit, one well, Williams
13652: Newfield, to create a 1280-acre unit, one well, Williams
13653: Newfield, to creat a 1280-acre unit, South Tobacco Garden-Bakken, McKenzie
13654: Newfield: create a 1280-acre unit, Catwalk-Bakken, Williams
13544, cont'd: Newfield, amend, Fertile Valley-Bakken, to create a 1280-acre unit; three wells
13109, cont'd: temporary spacing for Heidi 1-4H, Williams
13655: Newfield, risk penalty legalese, Ursus 1-20H, Haystack Butte-Bakken, Dunn
13656: Fidelity, amend, Alger-Bakken to establish two 1280-acre units, not more than two wells on each, Mountrail
13657: Fidelity, risk penalty legalese, Anderson 11-13H, Alger-Bakken, Mountrail
13658: Fidelity, amend, Stanley-Bakken, create a 1280-acre unit; two wells, Mountrail
13659: Fidelity, risk penalty legalese, Harstad 44-9H, Stanley-Bakken, Mountrail
13660: Fidelity, risk penalty legalese, Kinnoin 24-13H, Sanish-Bakken, Mountrail
13458, cont'd: Fidelity, risk penalty legalese, Domaskin 19-30-29H, Sanish-Bakken, Mountrail
13459, cont'd: Fidelity, risk penalty, Lynn 19-20-29H, Sanish-Bakken, Mountrail
13661: Encore, create a 1280-acre unit, McKenzie
13662: Encore, extend, North Tobacco Garden-Bakken; four 1280-acre units, one well each
13444, cont'd: Encore, risk penalty legalese, Klamm 34-9NWH, Siverston-Bakken, McKenzie
13663: To dismiss
13664: CLR, to create a 1280-acre unit, McKenzie, one well
13665: CLR, extend Haystack Butte-Bakken, to create a 1280-acre unit; McKenzie; one well
13666: CLR, risk penalty legalese, Hegler 2-13H, Little Knife-Bakken, Dunn
13667: CLR, risk penalty legalese, Hegler 1-13H, Little Knife-Bakken, Dunn
13447, cont'd: CLR, amend, Stoneview-Bakken, two 320-acre units; one well each, Burke
12014, cont'd: CLR, temporary spacing for Traxel 1-31H, Mercer County
13669: Hunt, amend, Ross-Bakken, establish a 960-acre unit; one well, Mountrail
13670: Anschutz, risk penalty legalese, Brew 1-13-12H-143-96, Murphy Creek-Bakken, Dunn
13671: Cirque, risk penalty legalese, Feast of Fools 12-16H, Dimond-Bakken, Burkey
13672: Sagebrush, risk penalty legalese, Kallberg 1H, Thompson Lake-Bakken, Burke
13673: Sagebrus, risk penalty legalese, Earl Chrest Jr 1H, Little Butte-Bakken, Burke
13435, cont'd: Summit Resources, proper spacing for Beaver Creek-Stonewall, Golden Valley
13436, cont'd: Summit Resources, proper spacing for South Boxcar-Bakken, McKenzie
13455, cont'd: Abraxas, risk penalty legalese, Ravin 26-35-1H, North Fork-Bakken, McKenzie
13674: Missouri Basin Well, salt water disposal conversion, Stark
13675: Missouri Basin Well, salt water disposal conversion, Mountrail
13676: Slawson, salt water disposal, Mountrail
13677: Slawon, pooling, Painted Woods-Bakken, Williams
13678: Hunt, pooling, Ross-Bakken, Mountrail
13679: Zenergy, complete two wells on a 1280-acre unit; Rosebud-Bakken, Williams
13680: Zenergy, pooling, Spotted Horn-Bakken, McKenzie
13681: Zenergy, pooling, Mandaree-Bakken, McKenzie
13682: Zenergy, pooling, Mandaree-Bakken, Dunn
13683: Zenergy, pooling, Mandaree-Bakken, Dunn
13684: Zenergy: pooling, Mandaree-Bakken, Dunn
13685: Zenergy, pooling, Mandaree-Bakken, Dunn
13686: Zenergy, pooling, Eagle Nest-Bakken, Dunn
13687: EOG, salt water disposal conversion, Williams
13688: EOG, salt water disposal conversion,Mountrail
13689: EOG, three wells on 1280-acre unit, Clear Water-Bakken, Burke
13690: To dismiss
13691: EOG, three wells each on five 1280-acre units; ten wells; Ross-Bakken, Mountrail
13692: EOG, three wells on two 1280-acre units; Kittleson Slough-Bakken, Mountrail
13693: EOG, three wells on a 1280-acre unit; Thompson Lake-Bakken, Burke
13694: EOG, pooling, Clear Water-Bakken or Vanville-Bakken, Burke
13695: EOG, pooling, Ross-Bakken, Mountrail
13696: EOG, pooling, Van Hook-Bakken, Mountrail
13697: EOG, pooling, Van Hook-Bakken, Mountrail
13698: EOG, pooling, Van Hook-Bakken, Mountrail
13699: EOG, pooling, Spotted Horn-Bakken, McKenzie
13700: EOG, pooling, Squaw Creek-Bakken, McKenzie
13701: EOG, pooling, Squaw Creek-Bakken, McKenzie
13702: EOG, pooling, Squaw Creek-Bakken, McKenzie
13703: EOG, pooling, Squaw Creek-Bakken, McKenzie
13704: XTO, salt water conversion, Williams
13705: XTO, three wells on a 1280-acre unit, Lost Bridge-Bakken, Dunn
13706: Encore, salt water conversion, Dunn
13707: Encore, pooling, North Tobacco Garden-Bakken, McKenzie
13708: Encore, poolng, North Tobacco Garden-Bakken, McKenzie
13709: Encore, pooilng, North Tobacco Garden-Bakken, McKenzie
13710: Encore, pooling, North Tobacco Garden-Bakken, McKenzie
13711: Encore, pooling, North Tobacco Garden-Bakken, McKenzie
13712: Encore, pooling, North Tobacco Garden-Bakken, McKenzie
13713: Encore, pooling, North Tobacco Garden-Bakken, McKenzie
13714: Encore, pooling, North Tobacco Garden-Bakken, McKenzie
13715: Encore, pooling, Bear Creek-Bakken, Dunn
13716: Encore, pooling, Bear Creek-Bakken, Dunn
13717: Encore, pooling, Corral Creek-Bakken, Dunn
13718: Encore, pooling, Murphy Creek-Bakken, Dunn
13719: Encore, pooling, Murphy Creek-Bakken, Dunn
13720: Encore, pooling, Murphy Creek-Bakken, Dunn
13721: Encore, pooling, Murphy Creek-Bakken, Dunn
13722: Encore, pooling, Ray-Bakken, Williams
13723: Anschutz, pooling, Murphy Creek-Bakken, Dunn
13724: Anschutz, pooling, Murphy Creek-Bakken, Dunn
13725: Anschutz, pooling, Murphy Creek-Bakken, Dunn
13726: Anschutz, pooling, Manning-Bakken, Dunn
13727: Anschtuz, pooling, Manning-Bakken, Dunn
13728: Anschutz, pooling Manning-Bakken, Dunn
13729: ERF, complete four wells on 1280-acre unit, Eagle Nest-Bakken, Dunn
13730: Newfield, pooling, South Tobacco Garden-Bakken, McKenzie
13731: Newfield, pooling, South Tobacco Garden-Bakken, McKenzie
13732: CLR, complete seven wells on a 960-acre unit, Hebron-Bakken, Williams
13733: CLR, pooling, Upland-Bakken, Divide
13734: CLR, pooling, Stoneview-Bakken, Burke
13735: CLR, pooling, Dolphin and/or Hamlet-Bakken, Divide
13736: CLR, pooling, Stoneview-Bakken, Divide
13737: CLR, pooling, Hanson-Bakken, Williams
13738: CLR, pooling, Brooklyn-Bakken, Williams
13739: CLR, pooling, Dollar Joe-Bakken, Williams
13740: CLR, pooling, Dolalr Joe-Bakken, Williams
13741: CLR, pooling, Banks-Bakken, McKenzie, Williams
13742: CLR, pooling, Banks-Bakken, McKenzie, Williams
13743: CLR, pooling, Banks-Bakken, McKenzie, Williams
13744: CLR, pooling, Banks-Bakken, McKenzie, Williams
13745: CLR, pooling, Banks-Bakken, McKenzie, Williams
13746: CLR, pooling, Banks-Bakken, McKenzie
13747: CLR, pooling, Banks-Bakken, McKenzie
13748: CLR, pooling, Oakdale-Bakken, Dunn
13749: CLR, pooling, Jim Creek-Bakken, Dunn
13750: CLR, pooing, Chimney Butte-Bakken, Dunn
13751: BEXP, three wells on each 1280-acre unit; 3 units; 9 wells; Alger-Bakken, Mountrail
13752: BEXP, pooling, Alger-Bakken, Mountrail
13753: Samson Resources, pooling, Blooming Prairie-Bakken, Divide
13754: Samson Resources, pooling, Blooming Prairie-Bakken, Divide
13755: Samson Resources, pooling, Forthun-Bakken, Divide
13756: Fidelity, three wells on a 1280-acre unit, Sanish-Bakken, Mountrail

Monday, November 29, 2010

13588: MRO, amend, Killdeer-Bakken, four hz wells on each 1280-acre spacing

2011: The Year of Tectonic Shifts in the Bakken?

A couple of days ago I posted a comment in which I stated that I felt that 2011 will be a year of mergers, acquisitions, and major acreage deals in the Bakken.

Within a day or two of posting that comment, a well-researched analysis posted on the Bakken Shale Discussion Group board added weight to my earlier comment.

It is simply becoming more and more difficult for the smaller operators to keep competing with the bigger operators in the Bakken.

Bigger cap companies are able to out-bid on top leases; smaller operators are losing their leases because they have neither the money nor the rigs to drill a well to hold the lease by production; they are unable to compete for the little spare takeaway capacity; and, they don't have the cash necessary to build their own infrastructure for gathering and shipping their oil to regional pipelines. Larger operators have dedicated fracking crews and are less subject to delays in well completion due to lack of fracking crews. I would assume larger operators have better access to capital markets and/or folks experienced in working with Wall Street venture capitalists.

(Let me digress for a moment: it is said that there is more than enough takeaway capacity for the Bakken production, but in the same breath it is said that 10 percent is still shipped by rail and 10 percent is trucked to Canada, both more expensive modes than pipeline. When Enbridge shut down pipelines for repair recently, my hunch is that there were temporary hiccups in moving oil out of the Bakken, and the bigger operators were able to nudge out the smaller operators if push came to shove for access to the pipelines.)

Although the reasons were said to be related to changes in tax law, it is also possible that Anschutz saw the writing on the wall and was one of the first relatively large operators to get out while the getting out was good. Just an opinion, but the comments on the discussion board certainly make one wonder.

Week 43: October 25 - October 31, 2010

Who's On First?

Oops! BEXP Does It Again!

Hess to Add a Tenth Rig

North Dakota #1 in Wheat ... 2nd Consecutive Year

Flurry of Whiting Activity North of Belfield

Using Google Earth and Earth Point to See Your Oil Well Pad

Overview of the Bakken Through The Lens of a Whiting Presentation

Coal Beneficiation: A Huge Success Story

ERF: Recovering as Much as 20% of the Bakken Reserves?

Alaska's Reserves Cut by 90%

North Dakota Oil Production Now Represents Six Pvercent of Total US Output

Scenario For a Price Spike in Oil

Who's On First?

Early this morning I posted a link to a story about the Bakken in the Bismarck Tribune and overlooked some important points. Tonight, trying to correct that oversight I mixed up who has spent $1 billion and will spend another $2 billion (MRO), and who has spent $1 billion and plans to spend another $1 billion annually for the next five years (Hess).

And ONEOK cumulatively, it seems, has also surpassed the $1 billion mark but don't quote me on that.

When news starts coming out of the Bakken this fast it's hard for me to keep track of who's on first.

I couldn't resist, especially during the World Series.


Who's On First? Abbott and Costello

The amazing thing is that Abbott and Costello carried on this conversation without cue cards as far as I can tell for almost seven minutes, live and without re-takes.

So, who's on first, what's one second, and I (definitely) don't know who's on third.

Oops! BEXP Does It Again!

You can't deny that BEXP adds some excitement to the Bakken on an otherwise typical Bakken day (if you count another fifteen permits as a typical day - smile).

Today's BEXP announcements:

• 18896, 5,061, Clifford Bakke 26-35 1-H, 38-stage fracture, second highest IP in the Williston Basin, Ross Project Area; Alger oil field
• 18868, 4,169, Abelmann 23-14 1-H, 33-stage fracture; record initial production rate west of the Nesson Aniticline; Camp oil field, just south of Williston -- ten (10) miles south of the river on US Highway 85, and then east (left-hand turn) four miles.
• 19086, Brad Olson 9-16 2-H, 32-stage fracture; an Increased Density Pilot Project well; IP might be announced within 24 hours; Painted Woods, west of Williston; this is BEXP's first infill test west of the Nesson Anticline; by monitoring the well with a deployed microseismic array and monitoring continued well performance, BEXP hopes to delineate the potential to drill incremental infill wells beyond the currently envisioned three wells per spacing unit. If results indicate that four to six wells may be required to effectively drain spacing units, Brigham's de-risked Rough Rider drilling inventory could increase by approximately 120 to 360 net locations, which would represent a significant net asset value enhancement event. Subject to results, Brigham plans to commence additional increased density pilots in Rough Rider and Ross in the first half 2011, including four well density units.
• 19002, 2,417, Smith Farm 23-14 1-H, 32-stage fracture; Cow Creek field; two miles north of Williston, one-half mile west of US Highway 85.

Rigs

BEXP has six rigs in the Bakken [Rough Rider (3); Ross (2); and Roosevelt County, Montana (1)] and a seventh rig is expected to arrive in mid-November, approximately two weeks ahead of schedule. BEXP's eighth rig is expected to arrive in May, 2011. 

Comment

It should be noted that Whiting is putting in six to seven wells in each of its 1,280-acre spacing units in its Sanish oil field, so 4 - 6 wells in a BEXP spacing unit is not beyond the pale.

More Good News From the Bakken: Hess to Add Another Rig (Bakken, ND, USA)

Some folks are starting to think that the Bakken is starting to mature in the sense that companies have maxed out their metal on site, and are now simply doing the spade work (and there's a lot of spade work to be done -- at least a decade).

But then, every so often, we get another story that yet another operator will add more metal. In this case, Hess says they will add a tenth rig to the North Dakota Bakken play.

Hess also noted that it costs them about $11 for each dual lateral well with a EUR of about 1 million barrels per dual lateral ($50 million at the wellhead at $50/barrel).

A spokesman for Hess said that the 30-day average IP rates are around the order of 400 to 500 b/d per lateral from 18-stage fracs,

By the way, in the story I referenced earlier today from the Bismarck Tribune, Hess said the company has invested more than $1 billion in the Bakken and intends to invest another $1 billion annually over the next five years.

Fifteen (15) New Permits (Bakken, ND, USA)

Operators: WLL (2), North Plains (2), Hess (2), BR (2), CLR, BEXP, Anschutz, Peak North Dakota, Tracker, Halek, ERF.

Fields: McGregory Buttes, Sanish, Banks, Manning, Truax, Big Butte, Squaw Creek, Roosevelt, Elidah, Killdeer, Elk, Dickinson, and Antelope and two wildcats.

I believe the Halek well west of Dickinson will be a vertical well into the Lodgepole (I could be wrong on that).

North Dakota is on track for 1,580 new permits for calendar year 2010.

Speaking of Creepy (Halloween): The Price of Natural Gas Crept Up on Me

I have been so focused on the oil industry in North Dakota I have sort of forgotten about the price of natural gas.

But last week it went over $4.00 and today futures show natural gas up another dime to over $4.10. I opined sometime ago that if natural gas went above $5.00 some of the energy companies would be outstanding buys for investors. Especially companies like EOG, a prominent Bakken company.

I assume the recent rise in price of natural gas is somewhat seasonal, as we approach winter.

Time will tell.

Updates

Update, November 3, 2010: Price-wise, is the worst over for natural gas?

Update, November, 1, 2010: That (natural gas above $4.00) didn't last long. Natural gas closed well below $4.00 today.  Note also this bearish article on natural gas.

Wind Turbines Generate Less Than 10% of Advertised Capacity (Not a Bakken Story)

You all know how I feel about wind power and solar power as being the answer to the energy needs of the United States.

We're starting to see some reporting exactly how efficient these two sources of power are. It's a bit tough to find the bottom line in this link, but it's there: the actual amount of energy produced by wind energy is less than 10% of its nameplate capacity.

Three years ago I did not know what "nameplate capacity" meant. This is one definition:

Nameplate capacity is the full-load continuous rating of a generator, prime mover or other electric power production equipment under specific conditions as designated by the manufacturer. Installed generator nameplate rating is usually indicated on a nameplate physically attached to the generator.

Basically, the nameplate capacity is the amount of electricity a generator is expected to provide.

To sell wind energy projects, sponsors had to maximize the nameplate capacity of their wind turbines. Common sense told me the numbers would be based on optimum conditions and would never reach their theoretical potential.

Well, the numbers are in and are much worse than even critics would have guessed, including me.

Wind power generators (wind turbines) are producing less than ten (10) percent of their nameplate capacity.

In some places, producing less than ten (10) percent of advertised would be considered false advertising or worse.

We get about ... 9.2% of the total installed capacity.  This is somewhat less than the 25-30% and beyond reported as the so-called “load factor” for wind power generation.

"Somewhat less" -- that's putting it mildly. I would say 9.2% is a significantly less than 25 - 30%.

Interestingly enough: during heavy windstorms, wind turbines are "feathered" -- disconnected from the generators to prevent damage to the equipment.

Here are some reasons given why wind turbines are turning out to be so inefficient:

• wind didn’t blow as much as planned
• there was too much wind too much of the time requiring the machines to be shutdown
• wind machines are not as efficient as thought
• electrical demand did not require using wind power machines–they used other generation machines and fuel
• a significant portion of the installed capacity is running but not connected to national grid
• the data being analyzed is wrong
• the analysis is wrong

Some opine that the numbers are even worse for solar energy. But the news is not all bad. Investors can make a lot of money off these scams.

For utility customers: wind energy will cost even more than expected. The folks in Boston who bought into the Cape Wind project are now finding that out. The state's attorney general is investigating.

Two things will help: increase the efficiency of the turbines themselves, and place them near government buildings where there is an excess of hot air blowing.

Updates

Update, November 2, 2010: The Pipestone, Minnesota, wind turbine factory is idled: No new orders. That says it all. Once this was one of the busiest wind turbine factories in the US but this sort of tells us where the wind energy is headed in this country. With regard to solar, solar energy is even more costly than wind and less able to supply meaningful energy answers for the US.

North Dakota #1 In Wheat

This is surprising. I figured we would be in the top three, but never guessed we would be #1.

For the second year in a row, North Dakota has taken the number one spot in wheat production in the United States. Kansas comes in second, again.

All spring, winter and durum wheat harvested in North Dakota this year totaled 375 million bushels, just below the record — since at least 1992 — of 377 million bushels produced last year. Kansas’ crop was pegged at 360 million bushels this year, pretty much all of it hard red winter wheat; that was down from about 370 million bushels in 2009.

Despite few acres planted, yields are soaring.

The average wheat yield this year will be about 44.6 bushels an acre, barely lower than last year’s record 44.8 bushels.
The past two years represent a big leap — a full 32 percent — over the previous decade’s average yields. In the 10 years from 1999-2008, the state’s growers averaged 33.4 bushels an acre.

Growers in the Red River Valley average even more, up to 70 bushels/acre for spring wheat. 

North Dakota produces more than half of the nation's durum wheat, used to make pasta.

Bakken Used As Model Around the World

Article in today's Bismarck Tribune: technology and processes in the Bakken are being used around the world.

Companies say they are aiming to apply technology learned from the Bakken to geologically similar shales in China, France, Poland, Canada and in some U.S. states, including Wyoming, Utah and Colorado. Companies already have used Bakken technology to successfully tap the rich Three Forks-Sanish formation, directly below the Bakken. 

"We've become the world research center for unconventional plays," said Lynn Helms, Director ND Department of Mineral Resources, who recently hosted a contingent of Polish officials sent to study North Dakota's oil patch.

Initially developed to exploit gas shales, horizontal drilling and hydraulic fracturing were first used in North Dakota early in the decade. They flopped.

 Some other tidbits in the article:

Marathon said the company has invested more than $1 billion in the Bakken and intends to invest another $2 billion.

Meanwhile, not to be outdone Hess has invested more than $1 billion in developing its Bakken holdings and plans to invest another $1 billion annually over the next five years.

The time needed to drill a well in the Bakken has dropped from 55 days four years ago to about 20 days now.