Thursday, January 20, 2011

Three (3) New Permits -- North Dakota, USA

Producers: SM, KOG, and Zenergy.

Fields: Squaw and two wildcats. Both wildcats are in McKenzie County.

In today's daily activity report, Denbury reports a nice well:
  • 18998, 2,208, Denbury, Lundin 14-33HEH, McKenzie County, Bakken
Reported earlier:
  • 19215, 1,872, BEXP, State 36-1 2H, Williams, Bakken
Remember, Denbury acquired Encore, who had a fair amount of Bakken exposure. See also other posts today regarding DNR and enhanced oil recovery.

Other than that, pretty quiet.
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2 comments:

  1. AnonymousJanuary 20, 2011 at 5:27 PM

    Bruce - Do you have any rhyme or reason why permitting is so slow right now?

    ReplyDelete
  2. Bruce OksolJanuary 20, 2011 at 7:17 PM

    No, I am as perplexed as you are. I know someone who follows this even more closely than I do and knows the Bakken better than I do. I will ask him.

    I assume assume the new companies (XOM/XTO; WMB; OXY/Anshutz; DNR/Encore) are still trying to figure out their strategy.

    Perhaps others at end of year are doing same thing. Their boards have agreed to CAPEX but now geologists/others need to figure out how/where to allocate. I'm just making this stuff up; I really don't know.

    There's a huge backlog of permitted locations that need to be drilled (I think more than a 1,000) and I'm sure a lot of their leases are now held by production, so no need to hurry with more leases.

    I'm sure we're aren't the only ones wondering; maybe we will know more in another week.

    ReplyDelete

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