Jim Cramer's Interview With North Dakota Senator Hoeven

For those who missed it or want to see it again, here's the link to Jim Cramer's interview with Senator John Hoeven.

If the link is broken, there is nothing new there that is not already know to regular followers of the Bakken.

Oil.
Wind.
Common sense.

North Dakota has an abundance of all three.

First Deepwater Drilling Permit Since the Gulf Spill

Updates

March 1, 2011: a "talking head" on CNBC today opined that this first permit was "political."  He warned investors not to get excited about deep water drilling in the Gulf. He expects the next permit won't be issue for quite some time. In addition, I don't expect BP and others to rush back in.

Original Post

Rigzone is reporting that the first deep water drilling permit has been issued for drilling in the Gulf of Mexico since drilling was suspended on June 12, 2010 following the blowout/spill.

I am very happy to see that this may be the beginning of a return to a normal economy in Louisiana. Let's hope so. Those folks have been through a lot.

Good luck to all. That's a cliche. I know "luck" has very little to do with. Godspeed? May the force be with you.

Australia, Wyoming, and Enhanced Oil Recovery -- Denbury

Before reading the rest of this post, you may want to review coal beneficiation, above-ground coal gassification, and below-ground gassification.

Although this story pertains to an event in Wyoming, it is relevant to the energy story in North Dakota.

An Australian company has bought three oil fields in Wyoming. These are old fields but may give up more oil with enhanced oil recovery (EOR), i.e., flooding the reservoirs with carbon dioxide.

Linc Energy Limited, an Australian firm has plans to conduct underground coal gassification in the Powder River Basin. Carbon dioxide is a byproduct of the gassification process and will be used for EOR in these Wyoming oil fields.

An American company most associated with EOR (at least in my mind) is Denbury. Denbury recently entered the Bakken in a big way by acquiring Encore.

Denbury Promotional Presentation on EOR

How "GOOD" Is the Bakken? Very, Very Good -- Bakken, North Dakota, USA

In 2009, North Dakota produced 80 million barrels of oil.

In 2010, North Dakota produced 113 million barrels of oil. That represents an increase of more than 40 percent.

The state set production records almost monthly in 2010, jumping from an average of 236,200 barrels daily in January to nearly 343,900 in December. A record 356,505 barrels a day was pumped in November, with nearly 10.7 million barrels produced for the month, state documents show.

One year ago there were 94 rigs drilling in the state. There are now as many as 172 rigs drilling in the state. 

BEXP: Microseismic Data Support Eight Wells In One 1280-Acre Spacing Unit -- Bakken, North Dakota, USA

This has been reported earlier, but some folks may have missed it: BEXP's micro-seismic data shows that one 1280-acre unit will support eight (8) horizontal wells, a combination of Bakken formation and Three Forks formation wells.

Microseismic data accumulated during the Brad Olson 9-16 2H well fracture stimulation indicates that frac wings appear to extend laterally 500 ft on either side of the wellbore. The results imply an increase to 782 total net locations from 590 in the Ross-Parshall-Austin and Rough Rider project areas, according to BEXP.

Speaking of Electric Vehicles ...

Update

June 9, 2012: The verdict is in (again): it makes little sense to buy a hybrid based on an LA Times analysis. They are less fun to drive; significantly slower; less storage space. Counter-intuitive: the hybrid Prius is noisier than its all-gasoline counterpart, the Camry. At $4.00/gallon it takes about five years to start realizing savings. If you bother to read the article, note one glaring omission: if batteries wear out, and if so, when they need to be replaced and at what cost? As far as I know, all batteries eventually need to be replaced.

February 28, 2011: "Chevrolet Volt makes little economic sense," Consumer Reports.

Consumer Reports offered a harsh initial review of the Chevrolet Volt, questioning whether General Motors Co.'s flagship vehicle makes economic "sense."The extended-range plug-in electric vehicle is on the cover of the April issue — the influential magazine's annual survey of vehicles — but the GM vehicle comes in for criticism.

"When you are looking at purely dollars and cents, it doesn't really make a lot of sense. The Volt isn't particularly efficient as an electric vehicle and it's not particularly good as a gas vehicle either in terms of fuel economy," said David Champion, the senior director of Consumer Reports auto testing center at a meeting with reporters here. "This is going to be a tough sell to the average consumer." 

And that's only the beginning. It gets worse.

By the way, someone recently wrote in asking about batteries in electric vehicles and if severe weather (heat or cold) affected them. Consumer Reports pretty much put that question to rest: severe cold does affect the battery. Big time. I would assume that severe weather will also shorten the life of these $7,000 batteries. Re-sale value at three years?  Hmmm.

Original Posting

.... has anyone seen any television commercials for the two coal-powered automobiles, the Chevrolet Volt or the Nissan Leaf?

Seriously.

It may just be me, watching the wrong channels, but I have not seen a television commercial for the Chevrolet Volt or the Nissan Leaf.

Some might say they are selling so well that advertising is not necessary, but if that were true, we would not see so many Apple iPad commercials either.

Just saying.

[Nissan sold 87 Leaves in January, 2011; up from 19 in December.
Chevrolet has delivered 647 Volts through January. The Volt was launched in November. Link here. The Prius, incidentally, dropped off the top 10 list in January, 2011.]

[As a reminder, for current EV's to be economical, oil has to cost between $174 and $250/bbl based on a year-long study by unbiased academic team.]

Ten (10) More Permits in North Dakota

Producers: CLR (3), Marathon (2), BEXP (2), G3 (2), and Whiting.

Fields: Reunion Bay, Banks, Sanish, Dollar Joe, Cabernet, Pembroke and two wildcats.

The two wildcats will be G3 wells on a single pad about 18 miles north-northwest of Williston.

Two BEXP wells will also be on a single pad in the Banks field. The Banks field is opposite the Stockyard Creek on the other side of the river (Banks is on the south side; Stockyard Creek is on the north side.)

[Inside the original post: "Interestingly enough, the company that first advocated multiple wells on one pad, received three new permits today but all three of CLR's new permits will be in different locations (different fields, for that matter)." See first comment below: CLR is concentrating on getting current lease activity tied up; according to recent earnings call, in two to three years, most of their rigs will be back on Eco-Pads.]

Whiting has another permit in its cash cow, the Sanish.

The state is on track for 1,819 new permits for calendar year 2011.

On today's daily active report, Slawson's Silencer 1-29H, reported an IP of 1,026 bopd.  Burlington Resources' Phantom Ship 24-22H reported an IP of 1,885 bopd.

But this is what is most interesting: eleven wells were released from confidential status, but two were canceled permits. So, we're talking about nine wells. Of those nine wells, only three reported an IP.  Six wells were completed; they reached total depth, but did not report any production. This tells me that they are still waiting to be fracked. If the well went on the confidential list the day it was spudded, and it reached total depth in 30 days, that means the folks have waited five months to get it fracked. Huge backlog for fracking. I haven't seen this in a long time (if ever), where six out of nine wells (2/3rds) are not reporting production at end of six months confidential status because they are waiting to be fracked.

Marginal players, under-capitalized companies, small producers, etc., are not going to be able to survive financially if they have to wait five months to get a well fracked that was otherwise completed in less than 30 days.

EOG: To Sell 14 Million New Shares -- Explains EOG's Share Price Drop Today

Link here.

EOG will offer up to 11.8 + 1.77 million new shares = 13.57 million shares.

Total outstanding shares right now: 254.08 million.

13.57/254.08 = 5.3%.

EOG is transitioning from natural gas company to oil company faster than any other natural gas company, according to some analysts.

Folks worried about dilution of earnings are missing the big picture.

14 million new shares when there are already 254 million shares out there: doesn't amount to a hill of beans, as they say, in the Bakken.

Issuing 5.3% more shares doesn't get may attention (except to report it). What gets my attention is when someone pays $17,000/mineral acre in the Bakken in North Dakota.

Finally, Some Are Speaking Out: Too Much Regulation and Companies Will Go Elsewhere

Updates

March 1, 2011: Although he is no longer CEO of GE, he is still seen by a CEO by many. Jack Welch is now the second well-known CEO to go public regarding the Obama administration: President Obama's move to the center is all talk so far.


Original Post

It has always been perplexing to me why CEOs have not been more vocal about government regulations and how they can negatively impact a company. (The most obvious reason CEOs don't talk about it is because they fear they will government contracts, I assume. Others don't want to get dragged into the political arena for any reason.)

Finally, a Fortune 500 company CEO is speaking out. I doubt he will be the last.

Transcocean (RIG) moved to Switzerland a couple of years ago. RIG is a deep-sea driller and last time I looked, not a lot of ocean-going activity anywhere near Switzerland.

3M is also in a state that is well-known for high taxes and cumbersome regulations. One of Minnesota's iconic companies has recently shifted its manufacturing plants to North Dakota. 3M probably took note.

Wow, wow, wow -- Obama Supports Letting States Opt Out of ObamaCare Earlier

Link here.

This is very, very interesting. If a new bill is passed, allowing this, expect a few other things to be added to the bill.

ObamaCare is starting to unravel. It goes without saying that almost any union or corporation that wants to opt out of the plan is being given a waiver. If unions, corporations, and,  now, the states, can opt out, who's left?

LINN Energy Enters The Bakken

Link here.

More to follow.

The Company signed a definitive purchase agreement to acquire certain oil properties in the Bakken play from Concho Resources for a contract price of $196 million, subject to closing conditions.

I was unable to find a recent summary of Concho Resources (CXO) holdings in the Bakken, but based on CXO's 2009 annual report, CXO had 11,193 net acres with 146 gross drilling locations. Cost / acre works out to: $196 million / 11,193 acres = $17,510. I am told by others that the price paid worked out to $16,500/acre. So, let's call it $17,000/acre. That would be the highest amount paid/acre in the Bakken that I am aware of; the previous record was $12,000/acre. Does it make sense? I'll post on that later. But, yes, it makes sense.

*******

Recently I noted that with the huge backlog in fracking, undercapitalized E&P companies, or individuals / companies owning relatively small acreage, will probably realize that they will face a long delay in seeing their assets developed. Many will decide the wait is not worth it, and look to sell.

The backlog in fracking is very likely going to lead to accelerated consolidation in the Bakken, as well as larger, better capitalized companies buying in for the first time.

The backlog can result in a delay as long as six months for an otherwise completed well to be fracked. That's a lot of time to have one's money tied up in a $7 million Bakken well that is not producing at maximum rates.

Investors: Newfield Update at SeekingAlpha

Link here.

Newfield operates around the world, but with respect to the Williston Basin:

Newfield has 271,000 net acres in the Williston Basin. 171,000 net acres are currently in active development while the remaining 100,000 are exploratory phase. Newfield has several areas of particular interest including 55,000 net acres in the Elm Coulee field, and several areas on or adjacent to the North Dakota Nesson anticline. Recent 9,000 ft laterals have had IP rates of 3417 to 3311 boepd.

Newfield wells reported so far this quarter (1Q11) from the Williston Basin:

• 19179, 2,674, Newfield, Johnsrud 150-98-6-7-1H, Siverston, Bakken. 53K in first two months
• 19112, DRL, Newfield, Charlotte 150-98-17-20-1H, Siverston, Bakken
• 17918, 2,166, Newfield, Clear Creek Federal 1-26H, Bakken
• 18497, 1,878, Newfield, Ursus 1-20H, Bakken
• 18641, 1,856, Newfield, Megamouth 1-8H, Siverston, Bakken
• 18741, 407, Newfield, Dahl 1-5H, Siverston, Bakken
• 19026, 1,507, Newfield, Sawfish 1-1H, Poe, Bakken, 21K in first 60 days

Hitting on All Cylinders -- Minot, North Dakota, USA

In addition to oil impact, the Minot Air Force Base north of the city, increased economic impact eight (8) percent year-over-year, from $475 million to $500 million. (As usual, figures rounded.)

Link here. (Regional links break early and break often.)

How Bad Was January, 2011, In North Dakota?

Just  how bad was the winter in North Dakota in January, 2011?

The winter weather shut in hundreds of wells, most of them in the northwestern area of the basin, but most areas were hit. To get an idea of just how badly the oil industry was hit, here are some data points from some selected areas and selected fields.

In each field, the December, 2010, production is listed first, and the production in January, 2011, when the wells were shut in, is listed second and in bold.

It should be noted that the December weather affected production also, but I did not want to show the November production figures since the page might become too busy / too confusing.

Field; December, 2010 production; January, 2011 production
Numbers rounded

Williston area

• Hebron: 17,000; 0 (and even worse, because the field produced 27,000 in November)
• Squires: 79,000; 250 (yes, that's not a typo: 250 barrels produced in this field in January 2011)
• Painted Woods: 71,000; 0 (this field produced as much as 101,000 in September, 2010)
• Todd: 18,000; 0 (even worse, because this field produced 33,000 in November)
• Stockyard Creek: 56,000; 27,000

The Big Ones

• Sanish:  1.3 million; 110,000
• Parshall: 1.0 million; 9,000
• Murphy Creek: 192,000; 65,000
• Alger: 258,000; 31,000

The Reservation (no problem except for Van Hook, for some reason)

• Big Bend: 111,000; 114,000
• Reunion Bay: 111,000; 109,000
• Van Hook: 317,000; 12,000
• Mandaree: 7,000; 6,000
• Spotted Horn: 47,000, 27,000

Data Points for Hess for 2011 -- Bakken, North Dakota, USA

The Minot Daily News provided an update of Hess Corp plans for 2011 and impact on North Dakota, and Minot. I don't think there is anything new here for those following Hess closely but for others, it's nice to see it in one spot.

The data points come from the finance manager for Hess Corp in North  Dakota:

• One-third of Hess' entire corporate budget will be spent in the state of North Dakota
• Hess Corp CAPEX for North Dakota for 2011 is $1.8 billion
• Tioga Gas Plant will be expanded; will be doubled in size and completed in 2012
• A new large rail terminal at Tioga will be completed by the end of the year
• An oil stabilization facility, now being built, will allow oil to be conditioned before going on the rail
• Hess will drill 180 wells this year; half targeting the Bakken, half the Three Forks formation
• Hess currently controls 730,000 net acres, second to Continental Resources (in North Dakota)
• Hess currently operates 248 Bakken wells and participates in 226 non-operated wells
• Hess' Minot's regional headquarters will soon move into the IRET Corporate Plaza
• The company currently has 90 employees in Minot; the new headquarters has room for 200 -- you do the math

And that's just one of many oil companies in North Dakota, albeit one of the bigger ones.

The most incredible data point for me:

• One-third of Hess' entire corporate budget will be spent in the state of North Dakota. That's pretty incredible.

The most important data point for the state:

• The continued emphasis on expanding natural gas gathering and processing in North Dakota; this may be the most important thing Hess could do for the state.

The most important data point for investors (comes from other sources):

• Among natural gas focused companies, Hess is moving faster than any other oil and gas E&P company to convert from natural gas focused to oil focused.

For Those Who Thought This Would Be Over In A Week -- Libya

Updates

September 11, 2012: US ambassador to Libya killed. The administration has changed the story so many times; not linked. This link is fascinating: 

When terrorists attacked the U.S. consulate in Benghazi, Libya, on Sept. 11 of this year and killed the U.S. ambassador and three other Americans, there were no U.S. Marines deployed in Libya to defend U.S. diplomats, diplomatic facilities and classified information and equipment. However, says the State Department, a Marine Security Detachment was deployed on that day to carry out those duties at the U.S. Embassy in Bridgetown, Barbados. 

September 4, 2011: Is it over yet? Kadafi still on the run. 

August 14, 2011: Timeline for those who thought this would be over in a week. 

August 6, 2011: I remember getting a comment when the "Libyan thing" first broke out that "this would be over in a week and Kadafi was toast." The war continues, the rebels fight among themselves, and now today it is reported that Kadafi takes a key town back from the rebels and launches a new offensive. 

July 28, 2011: For those who thought the Libya "war" would be over "in a week," there are now confirmed reports that the rebel leader has been assassinated. There are rumors that there are internal "rifts" among the rebels. 

July 4, 2011: Libyan rebel leader -- ok, ok, ok -- Kadafi can stay in Libya. "As long as he resigns and remains under supervision." Let's see -- this all started in March, 2011 -- haven't heard from those who said this would be over in a week. 

April 16, 2011: The reason the US got involved in Libya, we were told, was to avert a humanitarian crisis. It looks like the results have just been the opposite: Kadafi is now using heavy weapons on civilians. Had the US not intervened when it did, the rebel uprising would have been shut down. One can argue whether there would have been a humanitarian disaster at that point, and at Kadafi's hands, but there is no question that things have turned out much worse than expected. When US air strikes began, "anonymous" wrote to say what many thought: "this would be over in a week and Kadafi was toast."  Kadafi may still be toast, but it certainly is not over in a week, and the humanitarian toll will be much greater than had we just stayed out. And some say the war is costing the US $2 billion/day.

April 7, 2011: NATO now fears a protracted, "never-ending" civil war. 

April 4, 2011: US pulls back its air force; then extends the air war for two days; then pulls it back again. Now Kadafi says he is staying but open for change. "Free" elections to determine if Libyans want him or someone else. Whoever thought this would be over in a week and Kadafi would be toast -- well, it's been since the end of February, and now it's April. And Kadafi looks to be calling the shots. There is talk his son will take over. 

March 17, 2011: Day 31. Kadafi surrounds last rebel outpost: there will be no mercy. UN scheduled to vote later on military action against Kadafi. President Obama preparing to leave to party in Rio.

March 14, 2011: The fourth week? And Libyan forces now have the upper hand. The US government won't take unilateral action. Europe, NATO, and UN still talking. Philosophically they want Kadafi out of there; practically, they want cheaper and accessible sweet oil. The discussion will be interesting to follow. Ya wanna bet which wins out: philosophy or reality? Mubarak was thrown under the bus in less than 72 hours by America; four weeks into the Libya thing, "we're" still looking for a bus.

March 7, 2011: well, the Libyan thing continues. What is this? The third week? So much for the thought that this would be over in a week (a reader, not me). Oil is up another $2 overnight, about $106 now.

March 3, 2011: so much for a quick end to the Libyan issue. Even analysts expect the loss of oil production from Libya to be lengthy. Who knows, it might be over tomorrow, but the situation suggests otherwise.

As a result of the standoff, the analyst predicted that, “An extended period of conflict—with commensurately lengthy disruption to oil supply—is looking even more likely than before.” 

March 2, 2011, morning: price of oil "surges" another buck; over $100/bbl; conflicting reports regarding who is in control of oil fields

March 1, 2011, evening: Gadhafi forces retake towns near Libyan capital.

U.S. Defense Secretary Robert Gates said he ordered two ships into the Mediterranean, including the amphibious assault ship USS Kearsarge, and he is sending 400 Marines to the vessel to replace some troops that left recently for Afghanistan. [Just the other day, SecDef Gates said, “In my opinion, any future defense secretary who advises the president to again send a big American land army into Asia or into the Middle East or Africa should ‘have his  head examined.'"]

March 1, 2011, evening: WTI oil futures continue to rise, now solidly over $100.  

March 1, 2011, morning: Oil price spikes $2.00, retraces; solidly over $99 as Mideast continues to smolder, and in some cases burn.

Oil prices climbed Tuesday as Iran clamped down on anti-government protesters and unrest in the Middle East threatened to keep energy prices high for months to come.

Benchmark West Texas Intermediate for April delivery gained $1.80 at $98.76 per barrel at midday on the New York Mercantile Exchange. In London, Brent crude gained $1.92 at $113.72 per barrel on the ICE Futures exchange.

February 28, 2011: "Oil Rises Toward $98 as Traders Eye Libyan Exports." And so it goes, nine days into the Libyan issue.

Original Post

For those who thought this would be over in a week, and for those who thought Saudi could step up to the plate and diffuse fears, the oil futures suggest otherwise.

To the best of my knowledge, futures start posting at 6:00 p.m. CST.

At 7:00 p.m. in Chicago and 8:00 p.m. in New York City, Sunday night, February 27, 2011, oil futures are up $1.90 to $99.78.

It's been my "feeling" that futures seldom correlate with the opening the following day, and seem to correlate even less as the trading goes on.

But at least on Sunday night, about a week after "the Libyan thing" began, there is still a bit of anxiety in the markets.

For Newbies to the Bakken: Take A Look at A String of Wells -- Bakken, North Dakota, USA

These are some very recent permits issued for the Bakken. The permits have just been issued and there is no activity here yet, but it will give "newbies" an idea why I remain excited about the Bakken.

Go to the NDIC home page, and click on the GIS map server (located on the sidebar at the left on the NDI home page). When you get there click on "Find Field/Unit" and type in "Manitou." When Manitou pops up, click on it and note six wells in section 20. You have to zoom in.

• 20162, Hess, EN-Johnson-155-94-2017H-1, Manitou field; horizontal will go north
• 20163, Hess, EN-Johnson-155-94-2932H-1, Alkali field; horizontal will go south
• 20164, Hess, EN-Johnson-155-94-2017H-2, Manitou; horizontal will go north
• 20165, Hess, EN-Johnson-155-94-2932H-2, Alkali field; horizontal will go south
• 20166, Hess, EN-Johnson-155-94-2017H-3, Manitou; horizontal will go north
• 20167, Hess, EN-Johnson-155-94-2932H-2, Alkali field; horizontal will go south

EN: "East Nesson, a very nice prospect for Hess

One mile to the west is another string of Hess wells, but only three in this case:

• 19850, Hess, EN-Kiesel-155-94-19-18H-1, Manitou, horizontal will no north
• 19851, Hess, EN-Kiesel-155-94-19-18H-2, Manitou, horizontal will no north
• 19852, Hess, EN-Kiesel-155-94-19-18H-3, Manitou, horizontal will no north

The reason why Hess is not doing the same thing in section 19 (only three wells) as in section 20 (six wells) is because the section south of the three wells is controlled by XTO.

• 18501, 993, XTO, Emma 31X-30, 47K in 7 months

Another Example of Multiple Wells in One Section -- Whiting -- Bakken, North Dakota, USA

Here's another example of how "we" are seeing more and more wells in one section / in one spacing unit, and how busy the Bakken is.

Take a look at section 1-T154N-R92W, "owned" by Whiting:

• 18160, 1,658, Strobeck 11-1H, NWNW 1-54-92, 125K in 22 months
• 19195, 2,654, Strobeck 12-1H, SWNW 1-54-92, t12/10; cum 175K 6/12;
• 19745, 2,043, Hoover 14-1XH, SWSW 1-54-92, 46K in 3.5 months
• 19751, 707, Lindseth 12-1TFH, SWNW 1-154-92, t8/11; cum 61K 6/12;
• 20039, 332, Lindseth 11-1TFH, Lot 4 1-154-92; t8/11; cum 48K 6/12;

If 20039 (a TF) is drilled in same direction as 18160 (a middle Bakken); those two horizontals will parallel each other and have minimal separation.
Again, one can easily imagine 10 to 12 horizontals in one 1280-acre spacing unit, stacked, and targeting the middle Bakken formation and the TF formation.

James Memorial Library -- Heart of the Bakken -- Williston, North Dakota

Wow, this brings back wonderful memories.

This week Willistonites are celebrating a building that is 100 years old.

I always knew it as the James Memorial Library.

I was very, very fortunate. Although we lived too far from the library to walk there, and the family had very little money at that time, somehow my mother found time and money to take me to the Williston library, which has been described as a "jewel on the prairie."

And it truly was.

It's interesting. I have trouble remembering a lot of things, and the things I remember tend to have great emotional impact (which, of course, makes sense).

It's hard to imagine a library triggering memories based on emotion but that's exactly what the James Memorial Library does for me.

From the Williston Herald:

The James Memorial Library was built as a memorial to D. Willis James by his wife and son. James is also the namesake of Williston. The James family provided funds to build the library and furnish it.

James was one of the largest stockholders in the Great Northern Railway, according to a March 2, 1911, article in the Williston Weekly State.

The building was completed in 1911 and opened with Bessie Baldwin as librarian with 5,000 new volumes plus 500 volumes from the Book and Thimble Club. Ms Baldwin stayed for 13 years before taking a job with the state library commission in Bismarck, ND. Ms Baldwin was originally from Sparta, Wisconsin.

The building is in the Greek revival style, which is increasingly rare.

As noted, the library opened in 1911. A dedicated children's library room was added in 1959. I was eight years old at the time and I remember that room very, very well. I remember that we were allowed to use that room as much as we wanted but, as children, we were not allowed to go into the adult section. I assumed, wrongly, of course, that the books in the adult section were inappropriate for children. Ha.

Unless they were afraid we were going to misinterpret Shakespeare or Dickens.

Williston has a new library now. The James Memorial building is now the James Memorial Art Center.

Union Center Oil Field -- 16 Wells on One Unit? -- Bakken, North Dakota, USA

Updates

December 14, 2012: permits added so far in 2012 --

• 24537, 2,842, BR, Midnight Horse 11-1MBH-ULW, Union Center, this section now has eight (8) wells sites or permits; I think this is a well on an overlapping 2560-acre spacing unit, so it can run right down the section line; watch to see if it's a 4-section spacing well; the name is interesting: Midnight Horse, a combination of "Midnight Run" and "Iron Horse"; 4-section spacing; t5/13; cum 14K 5/13;
• 24439, conf, Petro-Hunt, Sorenson 152-96-24D-13-6H, Union Center,
• 24438, conf, Petro-Hunt, Sorenson 152-96-24D-13-5H, Union Center,
• 22758, 2,485, BR, Iron Horse 11-2TFH, Union Center,  t11/12; cum 6K 1/13; off-line often;
• 22757, drl, BR, Iron Horse 21-2MBH, Union Center, 
• 22756, 2,204, BR, Iron Horse 21-2TFH, Union Center,  t11/12; cum 4K 11/12; t11/12; cum 4K 1/13; off-line often;
• 22755, 2,605, BR, Iron Horse 31-2MBH, Union Center, t10/12; cum 12K 1/13; off-line often;
• 22754, 2,324, BR, Iron Horse 31-2TFH, Union Center, t11/12; cum 8K 1/13;
• 22753, 1,964, BR, Iron Horse 41-2TFH, Union Center, producing, t11/12; cum 8K 1/13;
• 22675, 2,640, BR, Midnight Run 11-1TFH, Union Center, t10/12; cum 40K 1/13;

March 29, 2012: added another Midnight Run well, #22675, see below.  This will be the 7th well in section of T152N-R96W.

February 10, 2012: from a reader in response to the February, 2012, NDIC hearing dockets:

The BR request for 2560 acre spacing in the Union Center field corresponds with what they are doing with their Midnight Run wells. They already have six Midnight Run wells (4 producing and two on confidential) on 1280 acres, and now they want to double the spacing and drill a total of twelve. That indicates to me that Union Center must be a very productive field for them!

January 14, 2012: some data updated

Original Post

Union Center is another one of those very, very small fields in the Williston Basin. It is all of six sections in T152N-R96W. It is located west of the northwest corner of the reservation. Its northeast corner shares a border with the very nice Charlson field. It is in the bull's eye of the Bakken.

It appears that Burlington Resources "owns" the field.  (Burlington Resources is a wholly owned subsidiary of COP. BR was originally a spin-off of the Burlington Northern railroad.)

*******

From Clear Creek, the oil field directly below Union Center, there are some wells that have horizontals going into Union Center. Note: two wells/permits are permitted for the Union Center oil field, but are actually situated in Clear Creek to the south:

• 19359, 91, Petro-Hunt, Sorenson 152-96-24C-13-2H, 24-152-96; Union Center, Three Forks, s8/10; t9/11; F; cum 28K 10/12; 6 frac stages; 700K lbs of sand; off-line 11/12;
• 20476, 840, Petro-Hunt, Sorenson 152-96-24C-13-3H, 24-152-96, Union Center, t3/12; cum 117K 11/12;

A third Petro-Hunt well in the adjoining section, is permitted for the Clear Creek oil field, and shows up in section 23-152-96 in the Clear Creek field.

• 18308, 1,562, Petro-Hunt, Sorenson 152-96-13B-24-1H, Union Center; F; 27 frac stages, 127K in less than a year! 27 stages; 1.5 million lbs; t1/10; cum 245K 11/12;

A fourth Petro-Hunt well is in section 14-152-96, and will most likely be a long lateral, running south, into Clear Creek.

• 19511, 793, Petro-Hunt, Brenna 152-96-14B-23-3H; Clear Creek, t4/11; F; cum 235K 11/12; D-TF (Three Forks); 27 stages; 2.1 million lbs;

Added since original post:

• 21714, 1,626, Petro-Hunt, Sorenson 152-96-24C-13-4H, Union Center, t4/12; cum 132K 11/12;

*******

Now back to those Burlington Resources wells/permits in Union Center (for update on Midnight Run wells, click here):

• 17421, 544, BR, Midnight Run 41-1H, Union Center, Bakken, s7/08; t11/08; cum 307K 11/12; 9-stage fracture; 1-152-96
• 17631, 670, BR, Iron Horse 31-2H, t4/09, cum 174K 11/12; taken off line for five of early 22 months; 6-stage frack, I believe (I could be wrong; it may have been more but not many more); 2-152-96; produced only four days in 10/12; and 11/12;
• 20323, 3,325, BR, Midnight Run 11-1MBH, Union Center, Bakken, 1-152-96; t12/11; cum 137K 11/12;
• 20324, 1,963, BR, Midnight Run 21-1TFH, Union Center, Bakken, 1-152-96; t12/11; cum 72K 11/12; very erratic production;
• 20325, 2,846, BR, Midnight Run 21-1MBH, Union Center, Bakken, 1-152-96; t12/11; cum 119K 11/12;
• 20326, 2,083, BR, Midnight Run 31-1TFH, Union Center; 1-152-96; t12/11; cum 113K 11/12;
• 20327, 2,443, BR, Midnight Run 41-1TFH, Union Center; 1-152-96; t12/11; cum 89K 11/12; taken off-line often;
• 22675, 2,640, BR, Midnight run 11-1TFH, Union Center; 1-152-96, t10/12; cum 8K 11/12; only 188 bbls over 30 days in November, 2012;
• 24537, conf, BR, Midnight Horse 11-1MBH-ULW, Union Center,
• 22753, 1,964, BR, Iron Horse 41-2TFH, Union Center, t11/12; cum 8K 1/13;
• 22754, 2,324, BR, Iron Horse 31-2TFH, Union Center,
• 22755, 2,605, BR, Iron Horse 31-2MBH, Union Center,
• 22756, 2,204, BR, Iron Horse 21-2TFH, Union Center,
• 22757, drl, BR, Iron Horse 21-2MBH, Union Center,
• 22758, conf, BR, Iron Horse 11-2TFH, Union Center,

Miscellaneous:

• 6168; PNA; 500, Panther Creek Resources, Brenna 13-13; Union Center, Madison; s7/77; t8/77; cum 241K 5/03; 200 bbls/month before it was taken off line in 2000 (kept active through 2003)
• 7335, 210, Panther Creek Resources, Brenna 42-14, Union Center, Madison; s12/79; 3/80; cum 218K 11/12; still producing 300 bbls/month (at $85 --> $25,000/month; almost no expenses; well paid for)
• 7774, 465, McRae & Henry, Ltd., Brenna 22-14; Union Center Madison;  s9/80; t11/80; cum 198K 11/12;
• 8266, 486, Panther Creek Resources, Sorenson 11-13; Union Center, Madison; s2/81; t4/81; cum 253K 11/12;

A few points:

• Look at those total production figures for two of those BR wells; these wells will pay for themselves in a couple of years, and continue to produce at nice rates
• These two high producing wells had nice, but not spectacular IPs
• These two high producing wells were fracked with single-digit number of stages (9, and 6); compared with 30 and 38 stages used by BEXP
• Five wells are in the same section (17421, 20324 - 20327); two of them are middle Bakken, and three will target the Three Forks
• Those five wells are linearly spaced suggesting that three more wells could be placed in that same line; that would be a total of eight wells in one section on one line
• Note that those five wells are a mix of middle Bakken and Three Forks. If it is accurate that the middle Bakken and the Three Forks do not communicate, then one can double the number of horizontals, bringing to a total of ten horizontals in one 1280-acre spacing unit
• If BR were to max out the spacing in this one section with stacked laterals, one could see 16 wells in this one section (part of a 1280-acre unit); this is not far-fetched if one looks at slide 51 of the most recent BEXP presentation
• Other formations in this section are also likely to hold viable pay zones
• Bottom line: 16 horizontals targeting the Bakken and Three Forks, and then other pay zones to consider

Now, it starts to make sense why some acreage in the Bakken went for $10,000/acre.

Puttin' On The Ritz, Taco

Dress up like a million dollar trooper

Trying hard to look like Gary Cooper.

Come let's mix where Rockefellers walk with sticks...

Puttin' on the Ritz.

Have you seen the well-to-do

Up and down Park Avenue?

On that famous thoroughfare,

With their noses in the air;

High hats, and narrow collars

White spats,

And lots of dollars...

How Bad is the Fracking Backlog? -- Bakken, North Dakota, USA

I have mentioned a number of times that the backlog in fracking could really hurt the smaller, under-capitalized drillers in the Bakken.

The Bakken wells are expensive to drill and then to have them sit there waiting to be fracked has to be a huge cash flow problem.

This is what some are saying about the backlog in fracking: in some cases, the fracking can delay completion of the well for several months.

In addition, the backlog was also mentioned by some of the oil companies working in the Bakken in their 4Q10 earnings conference calls.

With the number of rigs expected to increase significantly over the summer, the problem will likely get worse.

What We Can Tell From A Few Wells in Murphy Creek -- Bakken, North Dakota, USA

The Murphy Creek oil field is turning out to be a pretty good field. In addition to Bakken Pool wells, Slawson is now asking for proper spacing for the Lodgepole Pool in Murphy Creek. 

I have said many times that folks are focused on the Bakken in the current boom, but the real story is this: with "dry" holes in the Bakken, the oil companies are holding an immense number of leases by production, allowing them to go back and target the other formations: Lodgepole, Birdbear, Tyler, and the legacy formations. Obviously all formations may not be economical in all areas, but that will be sorted out over time.  It is the "party line" that the Bakken wells will produce for 30 years. I assume one could say, the producers have locked themselves into a 30-year mortgage where the value of their underlying asset will appreciate significantly.

Some selected wells with their initial production numbers and total production to date (where available) in the Murphy Creek oil field.

• 19137, Encore, 2,928, Franchuk 44-19NWH, 26K in less than 2 months
• 19138, Encore, 2,616, Franchuk 44-19SWH, 27K in first two months
• 18638, Encore, 2,184, Franchuk 44-20NWH, 13K in 1.5 months
• 18048, Tracker,1,214, Larsen 13-1H, 100K in 13 months
• 18453, Tracker, 2,121, Murphy 11-1H, 115K in 10 months
• 18523, Tracker, 1,447, Kudrna 10-1H, 95K in 9 months
• 18846, Tracker, 971, Dirkach 24-1H, 54K in 6 months
• 17765, Tracker, 885, Fritz 18-1H, 111K in 24 months
• 18769, CLR, 761, Roadrunner 1-15H, 70K in 7 months 
• 19374, Marathon, 653, Darcy Dirach 14-12H, 36K in 4.3 months
• 18591, Marathon, 463, Joseph Schollmeyer 14-7H, 38K in 8 months
• 18090, Marathon, 384, Kirkach 34-9H, 61K in 18 months
• 16987, Marathon, 373, Willard Kovaloff 21-17H, 90K in 33 months or so
• 16995, Marathon, 253, Koberstine 14-8H, 60K in 34 months (erratic of late)
• 17160, Marathon, 378, Viola Koberstine 34-7H, 87K in 32 months
• 17046, Marathon, 306, Irene Kovaloff 31-18H, 74K in 30 months
• 17140, Marathon, 291, Kudrna 41-16H, Buck 44-21H, 46K in 20 months

The Murphy Creek oil field is a huge field, so it is natural to expect that some areas may be better than others, but it certainly appears obvious that Encore and Tracker have cracked the code. (If this "Tracker" was the Tracker acquired by Hess, Hess acquired some nice wells, and some nice experience.)

Encore and Tracker wells will pay for themselves (at the wellhead) in less than two years.  BEXP prides itself on paying for its wells in 1.3 years, according to a recent corporate presentation. Almost three years out, the Marathon wells are yet to pay for themselves (round numbers, supposition on my part; I don't have any more information than what is shown above).

The IPs were taken from NDIC records; in some cases, the companies reported different IPs in their pressers or their corporate presentations. CLR reported an IP of 1,722 bbls for Roadrunner 1-15H. I assume that was a presser or a corporate presentation; regardless it looks like a good well.

Spacing in the Bakken, North Dakota, USA

Folks are starting to notice an interesting "phenomenon" with regarding to the size of spacing units for oil drilling in North Dakota.

When you go to the NDIC GIS map server, you can go to the drop-down menu on the right and select the "Drilling/Spacing" folder and then click on the "Bakken." From there you can select the size of spacing unit(s) you are interested in.

Right now, one can only select the Bakken on the GIS map server, at least as far as I can tell.

This will now bring us back to an earlier discussion regarding exactly how the "Bakken" is defined.

It is my understanding that the Bakken on the GIS map server refers to the NDIC definition of the "Bakken Pool" which consists of five formations: the upper, middle, and lower Bakken; and, the upper and lower Three Forks/Sanish.

The NDIC hearing dockets always refer to the wells targeting the Bakken formations or the Three Forks formations as part of the Bakken Pool (at least from what I can tell).

In the March, 2011, hearing dockets, Slawson has asked the state to establish spacing for the Lodgepole in the Murphy Creek field in Dunn County.

Hopefully, we will see a drop-down menu on the GIS map server to show spacings for more than just the Bakken in the future.

More Evidence of Global Warming

Or not.

San Jose hit 33 degrees for the first time on this date since 1897. Downtown San Francisco registered 37 degrees, which hadn't happened since 1952, while San Francisco International Airport reported 36 degrees for the first time since 1971.
Help, the Beatles

"Unusual" cold expected for Hollywood Oscar celebration attendees.

I can't make this stuff up. 

For Conservative Investors: 11 Commodity Stocks Paying Nice Dividends

Link here.

SCCO, COP, XOM, MRO, SUG, WMB, IP, CVX, CMC, NUE, and OGE.

Week 8: February 19 -- February 25, 2011

Memo to Jim Cramer: North Dakota is Sioux Country

What the March Hearing Dockets Tell Us About the Bakken

NOG Added to the S&P MidCap 400

BEXP Quadruples Net Income; Quintuples Earnings -- 4Q10

BEXP Announces Smart Pad Concept

BEXP Will Double Operated Rigs In Less Than 18 Months

BEXP Now Pumping Water From the Missouri For Fracking

UPS To Build Natural Gas Corridor From Los Angeles to Las Vegas to Salt Lake City

Truck Traffic To Triple Over Next Three Years on the Reservation

Minor Name Changes in MRO's Prospects in North Dakota

North Dakota Wind Farm to Expand

Update on Clash Over Water Fees for Missouri River Water

Continental Resources (CLR) Up to Seven Wells on One 640-Acre Spacing Unit

Update on Anschutz Activity in Dunn County

Dawson Geophysical: Another Investment Opportunity

Explanation Why EOG Shares Are Soaring

Now A Best Western Motel for Williston

Exactly What Does the US Mean When It Calls for High-Speed Rail? 60 MPH

Updates

March 23, 2011: Another example of high-speed rail in the US. $461 million cut travel time from Charlotte and Raleigh, North Carolina, by 13 minutes.

Original Post

These are the data points for the administration's "Sputnik moment," a high-speed train between the two Wisconsin cities: Madison and Milwaukee.

• Currently there is no passenger service between these two cities
• Bus fare costs $20/ticket
• High speed train fare: $30 (with $70/ticket subsidy paid with state taxes) = $100/ticket
• In 2013, if built, the train would average 57 mph
• By 2020, if built, the train would average 60 mph
• By 2022, if built, the train would average the same, 60 mph
• Cost of project (Madison to Milwaukee): $785 million; with inflation, $800 million
• Studies: 32 percent ridership on new trains (2013) -- not exactly overwhelming support; most prefer to stick with bus; easier access points, and gets them closer to their homes
• Likely operator: Amtrak -- noted for its on-time service 
• Biggest reason promoters advocate the "high-speed" train: if the state doesn't take the federal money, it (the money, not the train) will go to Florida.

Miscellaneous quotes from the article:

• "High-speed rail is slower than flying, is less convenient than driving and five times more expensive than either one." 
• "But if it's not really high-speed, it's just a name they're putting to it."

I can't make this stuff up.

"Let Them Eat Cake" -- Spokesman

No date set for deep water drilling permits for the Gulf of Mexico, according to administration spokesman.

U.S. crude oil futures posted their highest weekly settlement in almost 2-1/2 years on Friday on supply disruptions due to the revolt in Libya.

U.S. Secretary of the Interior Ken Salazar told reporters the situation in Libya was "not changing at all what we do" and the government felt no pressure to hurry its permitting process.

Let them eat cake.

Another Great Source of Bakken Information: the Bakken Oil Blog

I was checking out Google now that it has changed its algorithms, and I am pleasantly surprised.

In the process I ran across the Bakken Oil blog again. It is, in fact, the first "real" hit on Google with the new algorithm when searching for "Bakken oil." That's pretty impressive.

As far as I can tell, that blog is also free of advertisements.

The site directed me to "Spare Capacity Theory" which puts things into perspective.

Whiting Trivia For the Day -- Bakken, North Dakota, USA

For those of you who will be going out tonight and need something to talk about during the cocktail hour, you might note that Whiting controls 580,000 net acres in the Williston Basin (think Bakken and Three Forks, for now). That acreage cost Whiting $141 million.

Sounds like a lot.

Yup. $243/net acre.

This will also work for those going to breakfast at the Williston Econmart this morning, but generally those discussions are limited to sports. 

Whiting's Lewis and Clark Prospect -- Three Forks, North Dakota, USA

On October 31, 2010, I posted a blog about a "flurry of activity" in the Belfield, North Dakota, area.

That flurry of activity started with the first and only set of traffic lights in the city of Belfield. When traffic lights cost a million dollars to install, small towns don't take these installations lightly.

Today, that "flurry of activity" and that first set of traffic lights has a name: the Lewis and Clark prospect. WLL's most recent corporate presentation sheds light on this prospect:

• Its objective is the Three Forks formation
• It consists of 360K gross/235K net acres; 164 1280-acre units
• 12 wells in 2010; 46 in 2011
• $280 million CAPEX in 2011

From the 4Q10, earnings call:

• Based on Whiting’s evaluations, we believe there has been partial pressure depletion from Upper Bakken Shale wells drilled in this area in the 1980s and 1990s. We believe that approximately 2% of our acreage at Lewis & Clark could potentially be affected.
• Whiting completed the Teddy 44-13H with an initial production rate of 381 BOE per day from the Three Forks. We believe that this well frac’d into a water-bearing zone. The company will modify its frac design for future wells drilled in this area.
• Also of note, our Federal 32-4H discovery well produced a total of 66,300 BOE during its first six months of production, which ended May 25, 2010. Although this is a Three Forks well, it would rank the well among the top 15% of all Bakken wells drilled in North Dakota in terms of first six months total production based on information from the North Dakota Industrial Commission.
• Whiting recently broke ground for the construction of a gas processing plant at Lewis & Clark. The Belfield Gas Plant, located near Belfield, North Dakota, will have an initial inlet capacity of 30 MMcf of gas per day and is expected to be completed in November 2011. To reduce the volume of gas being flared in the Lewis & Clark area, we are in the process of installing equipment to compress the natural gas into vessels that can be trucked to the nearest gas plant. Our Belfield plant will have the capability to accept trucked gas. 

For newbies: the Williston Basin extends into South Dakota, but the Bakken Pool only extends as far south as southwestern North Dakota. The Bakken Pool includes the Bakken formation and the Three Forks formation. I don't know who called it first, but someone (either WLL or CLR; I think it was WLL) noted that there was a "pinchout" of the Three Forks in southwestern North Dakota, near Belfield. The "pinchout'" is an area where the Three Forks formation has "pinched out" farther south than the Bakken, and that's where WLL is now concentrating with the Lewis and Clark prospect.

In addition, just across a geologic line, southwest to the Lewis and Clark prospect, is Whiting's "Big Island" prospect. This is a lot smaller in terms of net acres for WLL. Right now, WLL's corporate presentation is vague on the "Big Island." WLL says there are "multiple objectives" for the "Big Island; WLL will drill just one well in this prospect in 2011, with a CAPEX of $4 million. A horizontal well costs $8 million, so a $4 million CAPEX on one well suggests a vertical. Maybe they are targeting the Lodgepole.

That "Over-Supply" Issue at Cushing

For a perspective, here's the numerical data.

And here it is in graphic form.

It doesn't take much loss of production to move the needle down.

An Unedited Saturday Morning Letter (Okay, Minor Edits) -- Bakken, North Dakota, USA

This may be a bit "unprofessional" -- but that's the way blogs are supposed to be -- posting on the run. So maybe I will clean this up later, but for now, this is a "cut and paste" of something I shared with two other folks earlier this morning. But the BEXP conference call has really excited me and I want to be sure everyone gets a chance to look at it.

Quick Note Regarding the 4Q10 BEXP Earnings Conference Call

I don't think one can find anyone more excited about the Bakken than I am, but I have to admit that the BEXP presentation (earnings conference call) is incredible. BEXP has really raised the bar. I think that's the longest, most detailed conference call I have ever seen.

I don't know if I want to do it, but I might wade through it and put data points of everything that was mentioned.

I can't even begin to say what was most interesting.

But, as a start, I will say this: I said some time ago that everyone was focused on the Bakken formation, but that's just a start. It's really the other formations that will be the big story before this is all over in this sense: the producers will have sunk wells everywhere in the Williston Basin, holding leases by production. Then they will go back in (re-frack the older Bakken wells, of course) and then go after the other formations. BEXP said as much.

[By the way, Slawson is already doing this. See NDIC March hearing dockets case 14386: Slawson wants to go back into Ambush 1-31-30H and open a portion of the vertical section of the well to the Lodgepole Formation in Williams County.]

They mentioned one that the stenographer did not catch (Miscu [ph] Dubro [ph] -- That's the "Nisku-Duperow."  As you mentioned some time ago to me, the Nisku is the Birdbear. The Birdbear-Duperow sit just beneath the Bakken/Three Forks.  [The Birdbear is NOT new. I posted about the Birdbear in February, 2010, linking articles back to 2009.]

Then they mentioned the Tyler/Heath which got a lot of press back in October, 2010.  And, of course the Lodgepole, which MRO is now asking for proper spacing for in Murphy Creek, Dunn County, case 14304, NDIC March hearing dockets.

So this drilling is going to go on and on and on.

Some of these formations are shale that will require horizontal/fracturing, but in the old days they had vertical wells going into reservoirs, so I don't know if we are going to see more conventional wells or not. 

These other formations are important because it brings up the issue of EOR. Some formations are more amenable to EOR than others.

One other note. BEXP addressed the issue of whether too many wells (four or five) on a spacing unit might start to impact production from neighboring wells (overlap).  BEXP says that's fine. They are considering putting in just enough wells to start to see that impact -- if not, they would be leaving oil in the ground.

More later, but I was really, really impressed with that presentation.

Memo to Jim: This is Sioux Country

Someone sent me a memo to send to Jim Cramer at CNBC's Mad Money. I'll see that he gets it.

Today, Friday, February 25, 2011, Jim Cramer had two long segments on the Bakken, one before a commercial break, and then a second segment after the commercial break.

The first segment was on the Bakken itself and the producers he liked: Hess, EOG, CLR, WLL, BEXP, and Oasis.

The second segment was on other ways to play the Bakken:

• NOG: unique business model
• HAL: fracking
• CRR: fracking ceramics

At the end of the show he gave a shout-out to the "North Dakota State Bison" which was wonderful, but it is the University of North Dakota that has a closer connection to the oil industry in North Dakota (at least as far as I know).

All core samples are sent to UND. This is a great story. I won't paraphrase it. I will let you enjoy the story; it's another great story due to North Dakota visionaries many, many years ago.

It's from UND's Discovery On-Line edition, May 4, 2010.

From the article:

Considering how much the supply and price of crude oil impacts the global economy, one of the world’s most valuable rock collections might be located at the University of North Dakota in the Wilson M. Laird Core and Sample Library.

The shelves of the library’s voluminous, climate-controlled warehouse are stacked nearly to the ceiling with long boxes containing cylindrical rock cores and smaller boxes of pulverized rock cuttings taken from virtually every oil well drilled in North Dakota’s Williston Basin, making it a one-of-a-kind resource.

“We’re probably the most complete state collection in the U.S.,” said library director Julie LeFever.  “Most states have some form of repository similar to this, but they’re not as complete.”

Operated by the North Dakota Geological Survey, the library is the state repository for information on what lies beneath the state’s surface.  About 90 percent of the material stored here deals with oil exploration, but there are also core samples related to U.S. Air Force missile silos, Red River Valley geology, landfills and coal bed methane, among others.

Trivia Hour -- NDIC Hearing Dockets -- March, 2011: How Much Can One Find in the March Dockets? -- Bakken, North Dakota, USA

NDIC has posted the March, 2011, hearing dockets, and I have posted a brief summary of same.

See the trivia one can derive from the hearings:

1. It's not just about the Bakken any more! Look at this:  "proper spacing for the Lodgepole."

• 14304: MRO, proper spacing for Murphy Creek-Lodgepole, Dunn County
• See comments below [this item was added to original post. Thank you to those who missed my oversight on this one.]

2. We are starting to see as many as four wells on 640-acre spacing units

• 14428: Enerplus, complete not more than 2 wells on a 320-acre unit, and not more than 4 wells on a 640-acre unit in Mandaree-Bakken, Dunn, McKenzie (one of several examples)

3. Slawson is going to try something we don't see often: going into a producing horizontal well, but opening the vertical portion to another formation

• Case 14386: Slawson wants to go back into Ambush 1-31-30H and open a portion of the vertical section of the well to the Lodgepole Formation in Williams County

4. Williams County is going to get really, really busy

• 14418: EOG, complete not more than 2 wells in each 1280-acre unit; 15 units, 30 wells, Painted Woods-Bakken, Williams
• 14419: EOG, complete not more than 2 wells in a 1280-acre unit, Rosebud, Williams
• 14421: EOG, complete not more than 2 wells on each 1280-acre unit; 3 units, 6 wells total, Round Prairie-Bakken, Williams

5. Larger units

• 14085, cont'd: Zenergy, extend Van Hook-Bakken, 1 3840-acre unit, 9 wells, eliminate the 1220 setback rule
• 14321: Hess, to establish a 2560-acre unit in Manitou or Alkali Creek-Bakken, Mountrail 

6.  For all those naysayers who said EOG was leaving Bottineau and the Spearfish -- not so fast

• 13429, cont'd: temporary spacing for Boundary 4-27H, Bottineau (Spearfish)

7. Wildcats farther east, all the way into Ward County

• 14371: Behm, complete a vertical well, Halden 11-8, Ward, 8-156-87; this is a vertical well; what formation is Behm targeting?

8. Many great fields getting bigger; just a couple examples

• 14363: Enerplus, to establish 7 1280-acre units in Heart Butte-Bakken, 4 wells each, Dunn
• 14354: Enerplus, to establish 4 1280-acre units in South Fork-Bakken, 4 wells each, Dunn

9. New fields? One of many examples:

• 14309: Cornerstone, establish 14 640-acre units in Burke County

10.  WLL is "putting the pedal to the metal in the Sanish":

• 14327: WLL, to establish 2 additional wells to be drilled on 10 spacing units in the Sanish-Bakken pool, Mountrail County, 20 wells in all

11.  It looks like ALL the drillers are getting tired of production restrictions due to flaring and lack of infrastructure. They've thrown in the towel and are asking for relief in the most prolific (and "oldest" Bakken field in North Dakota, the Parshall. After the 4Q10 earnings reports, one understands why these companies want restrictions lifted; the flaring restrictions and North Dakota winter depressed production significantly

• 14434: EOG, Slawson, Hunt, BEXP, Sinclair, to allow flaring of gas unrestricted in Parshall-Bakken, Mountrail  

11. Everyone is getting into  the act. In the old days, it was only WLL that put 6 - 8 wells on a 1280-acre unit; now everyone is doing it; one of many examples:

• 14075, cont'd: Newfield, create 1 1280-acre unit, Williams, 5 wells including the existing well

I'm curious if anyone else can see any trends, innovations, or peculiarities in the NDIC March hearing dockets? Or something I missed or misinterpreted?

NDIC Hearing Dockets -- March, 2011

Abbreviate summary for personal use only.
Full case at NDIC home page.
For summary of trends, innovations, peculiarities derived from the docket, click here. 

Wednesday, March 23, 2011 (9 pages)

14304: MRO, proper spacing for Murphy Creek-Lodgepole, Dunn County.
14305: MRO, temporary spacing for Watson USA 14-32H, McKenzie
14306: MRO, request to produce at max efficient rate for Van Hook-Bakken pool
14274, cont'd: MRO, pooling in Antelope-Bakken, McKenzie
13986, cont'd: MRO, temporary spacing for Spotted Bear USA 21011H, McLean
14307: Ursa, temporary spacing for Borseth 15-22, McKenzie
14308: Cornerstone, temporary spacing for Paradox 11-16H, Burke
14309: Cornerstone, establish 14 640-acre units in Burke County
14310: BR, appropriate spacing for BR 11-1H, Red Wing Creek-Madison, McKenzie
14311: BR, add a 1280-acre unit to Roughrider -Bakken, McKenzie
14312: BR, pooling in Sand Creek-Bakken, McKenzie
14313: Sequel, to extend Kittleson Slough Field to include 6 more sections; 1280-acre spacing, Mountrail
14314: Sequel, to include 2 more sections in Cottonwood-Bakken, Mountrail
14315: Sequel, to establish 3 1280-acre units in McKenzie; one well each unit
14316: Sequel, to establish a 1280-acre unit in McKenzie; one well
14317: Sequel, to extend Cinnamon Creek-Bakken, 4 1280-acre unit; 1 well each, McKenzie
14318: Sequel, to extend Flat Top Butte-Bakken, 7 1280-acre units, 1 wel each, McKenzie
14319: SM, to establish 8 1280-acre unit, McKenzie, 1 well each
14231, cont'd: SM, to suspend a CLR permit for Koeser 1-11H, McKenzie
14320: Hess, to allow flaring from EN-Trout-157-93 3130H-1, Big Butte Field, Mountrail
14321: Hess, to establish a 2560-acre unit in Manitou or Alkali Creek-Bakken, Mountrail
14322: Hess, to designate two sections as a 1280-acre unit, Mountrail
14323: Hess, pooling for a spacing unit in Elm Tree-Bakken, McKenzie
14324: Hess, pooling in Blue Buttes-Bakken, McKenzie
14245, cont'd: Hess Bakken Investments II Corp, to suspend a Sinclair Robert Peterson 11-3H well, McKenzie
14325: Hess Bakken Investments II Corp, to extend Truax-Bakken, 2 1280-acre units; Williams and McKenzie
14326: KOG, to extend Banks-Bakken, 2 1280-acre units, 2 wells each
14327: WLL, to establish 2 additional wells to be drilled on 10 spacing units in the Sanish-Bakken pool, Mountrail County, 20 wells in all
14328: WLL, to establish 7 1280-acre units in Golden Valley County; 1 well each
14329: WLL, to include another 1280-acre unit in Rossevelt-Bakken pool, Billings County
14330: WLL, pooling in Big Stick-Bakken, Billings
14331: WLL, pooling in Big Stick-Bakken, Billings
14332: WLL, conversion of Mann 33-18SWD to saltwater disposal, Stark County
13997, cont'd: WLL, temporary spacing for Teddy 44-13TFH, Billings
13998, cont'd: WLL, temporary spacing for Teddy 44-30TFH, Billings
13564, cont'd: WLL, to include another 1280-acre unit in Elkhorn Ranch-Bakken, Billings
13565, cont'd: WLL, pooling in Elkhorn Ranch-Bakken, Billings
14333: Petro-Hunt, to include 12 1280-acre units in Little Knife-Bakken; 6 wells in each; 72 wells, Billings
14334: Luff, to allow a second well on a 480-acre unit in Haley-Red River Pool (240-acre spacing), Dunn, McKenzie, and Billings
14335: Oasis, pooling in Bull Butte-Bakken, Williams
14336: Oasis, pooling in Bull Butte-Bakken, Williams
14337: Oasis, pooling in Bull Butte-Bakken, Williams
14338: Oasis, pooling in Bull Butte-Bakken, Williams
14339: Oasis, to allow flaring from Sandaker 5602 11-13H, Williams
14340: Oasis, to allow flaring from Njos Federal 5602 11-13H, Williams
14341: Oasis, to allow flaring from Hynek 5693-42-35H, Mountrail
14342: Oasis, to allow flaring from Rebne 11-7H, Burke
14343: Oasis, pooling in Squires-Bakken, Williams
14344: pooling in Squires-Bakken, Williams
14345: Oasis, pooling in Squires-Bakken, Williams
14346: Oasis, to authorize saltwater disposal, Arnson SWD 5603 24-8, Bull Butte, Williams
14347: Murex, to authorize saltwater disposal, Murex SWD 1, Ragged Butte, McKenzie
14003, cont'd: Prairie Disposal, to authorize conversion of Mendenhall Unit 1 into a saltwater disposal well, Hofflund field, Williams
14348: North Plains, to maximize production and allow flaring from Sorenson Federal 15-5H, Sand Creek-Bakken, McKenzie
14349: North Plains, pooling for Sorenson Federal 15-5H, Sand Creek, McKenzie
14350: North Plains, pooling for Scanlan 3-5H, Truax field, Williams

Thursday, March 24, 2011 (14 pages)

14351, Anschutz, proper spacing for Cabernet-Bakken, Dunn
14352: Anschutz, to extend Little Knife-Bakken, 1 1280-acre unit; 1 well, Dunn
14353: Anschutz, to establish 2 1280-acre units in Willmen-Bakken, in Billings Country, 1 well each
14354: Anschtuz, to establish a 640-acre unit, one vertical well, Dunn County
14059, cont'd: Anschutz, temporary spacing for Andrew Schmidt 13-10H-143-97, Dunn
14355: CLR, proper spacing for Northwest McGregor-Bakken, Williams
14356: CLR, to create a 2560-acre unit in Elm Tree-Bakken, McKenzie; 4 wells
14357: CRL, create a 1280-acre unit in Billings County, one well
14062, cont'd: CLR, temporary spacing for Norway 1-5H, McKenzie
13814, cont'd: CLR, to define field limits of Edge-Bakken pool, McKenzie
13447, cont'd: CLR, to create 2 320-acre units in Stoneview-Bakken; 1 well each, Burke
13815, cont'd: CLR, proper spacing to develop Lindahl-Bakken, Williams
14358: Flatirons Resources, proper spacing for South Pleasant-Madison, Renville
14359: BEXP, temporary spacing for Knoshaug 14-11, Williams
14360: BEXP, temporary spacing for Gibbins 1-12, Williams
14361: Enerplus, temporary spacing for Ethan Hall 6B-7-1H, Dunn
14362: Enerplus, plugging back Roberts Trust 13C-2HTF; inadvertently drilled, Dunn
14363: Enerplus, to establish 7 1280-acre units in Heart Butte-Bakken, 4 wells each, Dunn
14354: Enerplus, to establish 4 1280-acre units in South Fork-Bakken, 4 wells each, Dunn
14365: Enerplus, to establish 3 1280-acre units in Mandaree-Bakken, 4 wells each, Dunn
14366: Enerplus, to establish 3 1280-acre units in Eagle Nest-Bakken, 4 wells each, McKenzie
14367: Enerplus, to establish 1 1280-acre unit in Spotted Horn-Bakken, 4 wells each, McKenzie
13813, cont'd: Enerplus, temporary spacing for Henry Bad Gun 17A-20-1H, Dunn
14368: Fidelity, temporary spacing for Oukrop 34-34H, Stark
14061, cont'd: Fidelity, temporary spacing for Kostelecky 31-6H, Stark
14369: Hunt, temporary spacing for Halliday 1-11-2H, Dunn
14370: Encore, temporary spacing for Schutz 1, McKenzie
14371: Behm, complete a vertical well, Halden 11-8, Ward, 8-156-87
14372: Crescent Point, extend West Ambrose, 1 1600-acre unit, Divide, 1 well
14373: Denbury, extend Camp-Bakken, 1 1280-acre unit, 1 well, McKenzie
14374: Denbury, extend South Tobacco Garden-Bakken, 3 1280-acre units, 1 wells each, McKenzie
14375: EOG, extend Kittleson Slough-Bakken, 1 1280-acre unit, Mountrail, 3 wells each
14376: EOG, extend Painted Woods-Bakken, 3 1280-acre units, 2 wells each
14377: EOG, to create field rules for Sixmile and/or Eightmile-Bakken pools to establish 4 1280-acre units, 2 wells each, Williams
14378: EOG, extend Painted Woods-Bakken, 2 1280-acre units, 1 well each, Williams
13429, cont'd: EOG, temporary spacing for Boundary 4-27H, Bottineau (Spearfish)
13622, cont'd: EOG, temporary spacing for Model 1-05H, Mountrail
13808, cont'd: EOG, temporary spacing for Round Prairie 2-20H, Williams
14379: Pride, to create 1 1280-acre unit, Golden Valley
14380: Samson Resources, extend Fotthills-Bakken, 1 1280-acre unit, 1 well, Burke
14381: Samson Resources, establish 1 1280-acre unit in Ross-Bakken, 1 well, Mountrail
14382: Spotted Hawk Development, extend Heart Butte-Bakken, 5 640-acre units, 1 wells each, Dunn and McLean
14383: Spotted Hawk Development, extend Heart Butte, 1 3840-acre unit, 1 well, McLean, Dunn
14384: Spotted Hawk Development, extend Van Hook-Bakken, 1 3200-acre unit, 1 well, McLean, Dunn
14385: Spotted Hawk Development, extend Deep Water Creek Bay-Bakken, 1 1920-acre unit, 1 well, McLean and Dunn
14386: Slawson, complete Ambush 1-31-30H, Williams, with a portion of the vertical section of the well to open to the Lodgepole Formation
14015, cont'd: Slawson, temporary spacing for Cyclone 1-21-16H, McKenzie
13594, cont'd:  Peak, proper spacing for the South Fork-Bakken, Dunn
14081, cont'd: Sinclair, temporary spacing for Bighorn 1-6H, Dunn
14087, cont'd: Sinclair, pooling in Mary-Bakken, Dunn
14085, cont'd: Zenergy, extend Van Hook-Bakken, 1 3840-acre unit, 9 wells, eliminate the 1220 setback rule
14387: Newfield, temporary spacing for Sandhill, Williams
14388: Newfield, extend Epping-Bakken, 1 1280-acre unit, 1 well, Williams
14389: Newfield, create 1 1280-acre unit in Williams, 4 wells
14390: Newfield, create 1 1280-acre unit, 1 well, Williams
14075, cont'd: Newfield, create 1 1280-acre unit, Williams, 5 wells including the existing well
14391: Newfield, revoking XTO permit for Berg Federal 21X-30, McKenzie
14392: Newfield, revoking Zavanna permit to drill SS 20-17 1H, Williams
14393: CLR, risk penalty legalese, Orf 1-17H, Ranch Creek-Bakken, McKenzie
14394: CLR, pooling a spacing unit for four wells in Stoneview-Bakken, Burke
14395: CLR, pooling in North Tioga-Bakken, Burke
14396: CLR, pooling in Mary-Bakken, McKenzie
14397: Newfield, pooling in Sand Creek-Bakken, McKenzie
14398: Newfield, pooling in Tobacco Garden-Bakken, McKenzie
14399: Newfield, pooling in Tobacco Garden-Bakkeen, McKenzie
14400: Newfield, pooling in South Tobacco Garden, McKenzie
14401: Denbury, pooling in South Tobacco Garden, McKenzie
14402: Denbury, pooling in South Tobacco Garden, McKenzie
14403: Denbury, pooling in South Tobacco Garden, McKenzie
14404: Denbury, pooling in Siverston, McKenzie
14405: Denbury, pooling in Siverston, McKenzie
14406: Denbury, pooling in Siverston, McKenzie
14407: Denbury, pooling in Siverston, McKenzie
14408: Denbury, pooling in Siverston, McKenzie
14409: Denbury, pooling in Siverston, McKenzie
14410: Denbury, pooling in Siverston, McKenzie
14411: Denbury, pooling in Siverston, McKenzie
14412: Hunt, pooling in Wolf Bay, Dunn
14413: Hunt, pooling in Wolf Bay, Dunn
14414: Fidelity, pooling in Heart River, Stark
14415: Fidelity, pooling in Heart River, Stark
14416: Anschutz, pooling in Little Knife, Dunn
14417: BEXP, saltwater disposal well, Trenton SWD 1, Rosebud, Williams
14418: EOG, complete not more than 2 wells in each 1280-acre unit; 15 units, 30 wells, Painted Woods-Bakken, Williams
14419: EOG, complete not more than 2 wells in a 1280-acre unit, Rosebud, Williams
14420: EOG, complete not more than 4 wells on a 1280-acre unit, Clarks Creek, McKenzie
14421: EOG, complete not more than 2 wells on each 1280-acre unit; 3 units, 6 wells total, Round Prairie-Bakken, Williams
14422: XTO, risk penalty legalese in McGregor-Bakken, Williams
14423: XTO, complete not more than 3 wells on 1 1280-acre unit, West Capa-Bakken, Williams
14424: XTO, complete not more than 3 wells on a 1280-acre unit, Capa-Bakken, Williams
14425: XTO, complete not more than 3 wells on a 1280-acre unit, Haystack Butte-Bakken, Dunn
14426: XTO, complete not more than 3 wells on an overlapping 1280-acre unit, McGregor-Bakken, Williams
14427:  Baytex, risk penalty legalese in Ambrose-Bakken, Divide
14428: Enerplus, complete not more than 2 wells on a 320-acre unit, and not more than 4 wells on a 640-acre unit in Mandaree-Bakken, Dunn, McKenzie
14429: Enerplus, complete not more than 4 wells on each 640-acre unit, 4 units, 16 wells total, McGregory Buttes-Bakken, Dunn
14430: RM Resources, convert to saltwater disposal well, Hawkinson 1-27, Dunn
14431: RM Resources, convert to saltwater disposal well, Bank of North Dakota 1-22, Dunn
14432: Sinclair, to complete not more than 2 wells on a 640-acre unit, Sanish-Bakken, Mountrail
14433: Denbury, XTO, to allow flaring of  gas, Charlson-Bakken, Williams, McKenzie
14434: EOG, Slawson, Hunt, BEXP, Sinclair, to allow flaring of gas unrestricted in Parshall-Bakken, Mountrail 


Finis -- unless the state publishes a supplement

Investors: NOG Added to S&P MidCap 400 -- February 25, 2011

Jim Cramer, CNBC's "Mad Money" host noted that NOG had a huge move today but he admitted he did not know why.

It was reported a few days ago that NOG was added to the S&P MidCap 400 today.

Check it out for yourself at the S&P MidCap 400 website. The site links two announcements. One of the announcements is NOG added to the index today. It looks like the site does not keep these announcements around long so if you are reading this months after initial posting, it might not be there any more.

New York, NY, February 23, 2011 – S&P MidCap 400 constituent Navigant Consulting Inc. (NYSE:NCI) will replace Genoptix Inc. (NASD:GXDX) in the S&P SmallCap 600 index, and Northern Oil and Gas Inc. (NYSE Amex:NOG) will replace Navigant Consulting in the S&P MidCap 400 after the close of trading on Friday, February 25, 2011. Genoptix is being acquired by S&P Global 1200 constituent Novartis AG in a deal expected to be completed soon, pending final conditions. Navigant Consulting’s market capitalization is below $490 million, making it more representative of the small cap space.

Standard & Poor’s will monitor this transaction, and post any relevant updates on its website: www.standardandpoors.com.

Navigant Consulting is a specialty consulting firm. Headquartered in Chicago, IL, the company will be added to the S&P Small Cap 600 GICS (Global Industry Classification Standard) Research & Consulting Services Sub-Industry index.

Northern Oil and Gas acquires, explores and develops oil and natural gas properties. Headquartered in Wayzata, MN, the company will be added to the S&P Midcap 400 GICS Oil & Gas Exploration & Production Sub-Industry index.

Mutual funds with emphasis on midcap stocks can now add NOG to their portfolios.

Wow, Wow, Wow -- Nine (9) More Permits in North Dakota -- USA

While Jim Cramer was raving, and "raving" is not too strong a word, about the Bakken, the NDIC was publishing their daily activity report. Today the report shows nine (9) more permits in the Bakken.

(By the way, the NDIC daily activity report today accidentally reported permit #20521 twice.

Producers: XTO (2), North Plains (2), Whiting (2), SM, Cornerstone, and BR.

Fields: Lost Bridge, Sand Creek, Golden Valley, Ambrose, Park, and a wildcat.

The two (2) XTO wells will be one pad in Lost Bridge oil field.

The two (2) North Plains wells will be on one pad in Sand Creek. Also, the BR permit is in Sand Creek.

Sand Creek is just forty sections; sharing a border with Charlson to the east (and Charlson is a very good field; southeast, across the river from Stockyard Creek). It's a very hot field right now.

Lost Bridge oil field is between the reservation on the east and Haystack Butte on the west.

The Cornerstone wildcat is very far north (not far from Canadian border) and quite a ways east (near Bowbells, North Dakota).

Comment: the most interesting thing about today's report -- two more companies putting multiple wells on one pad.

Many of the wells coming off confidential status are still in DRL status (no initial production reported). The companies are backlogged in getting their wells completed due to fracking backlog.

James Cramer -- Full Segment on the Bakken -- Friday, February 24

Typed as he talked; some of the numbers will be incorrect; I assume CNBC will have link later. [This is the link, but unfortunately not much there, and certainly not a transcriopt.]

Cramer's comments

CLR: 24 billion barrels
Bakken: big field ever discovered in the US
5x USGS 2008 survey;
Disparity: American technology
Today: 400,000 bopd
165 rigs operating
1 million bbls opd in a few years
Montana and North Dakota
The Bakken is a "rocket"
How to make "Mad Money" off it
What are the plays
The company that discovered oil in North Dakota in 1953 (sic): Amerada Hess

• 700,000 acres -- bought AEZ and TRZ LLC
• The Bakken not big enough to move their needle

EOG -- large cap like Hess

• Absolutely loved the EOG earnings report with regard to Bakken
• Hess, bigger, safer; EOG too much natural gas

The best ones

• CLR: 850,000 net acres in the Bakken; represents 47% of their bottom line
• WLL: 588,000 net acres in the Bakken
• BEXP: Cramer is getting calls "left and right" about BEXP; 375,000 acres in the Bakken; 270% yoy increase in production
• Oasis: 100% Bakken; 300,000 acres; no one cared about it last year

Bakken could more than double US domestic production

******

Now a second segment after the commercial break: indirect way to play the Bakken

NOG: Cramer doesn't know why it moved so much today (I do: it's been placed on S&P MidCap 400)

• Unique business model
• Some of the best acreage
• Acreage value keeps increasing

Halliburton -- doing fracking in the Bakken

• HAL can't meet demand
• Crews are tied up through 2012
• Working 24/7
• Barriers to entry huge
• The right sand
• Enormous experience

Nabors -- world's largest on-shore driller

• 33 rigs
• Pressure pumping trucks; exposure to fracking

Carbo-Ceramics (CCR) -- ceramic player

• World's largest supplier
• Best in show

The Bakken is a "rocket"

NDSU -- go Bison!

Later in show:  Repeats EOG.

COMMENT:
Jim Cramer failed to mention the pipelines. ENB. I would pick ENB or EEP over HAL.

Jim Cramer also failed to mention companies that make the rigs in the first place. FlexRigs. H&P.

UPDATE:

Tying up some loose ends regarding the recent Bakken segment on Jim Cramer's "Mad Money":

First, the ticker symbols for two companies mentioned in that post:

• Carbo Ceramics: CRR
• Helmerich and Payne: HP.

HP makes the FlexRig. This is quite an incredible story, August, 2007:

• A decade ago, Helmerich & Payne Inc. took a chance on a ground-up rig design based on a simple premise -- that an efficient and safe drilling rig would create value for its customers.
• H&P began designing what the company calls a FlexRig, a computerized drilling unit that allows the operator to punch a hole in the ground and move quickly between drilling locations.
• "We were highly criticized," Juan Pablo Tardio, a company spokesman, said of the early FlexRigs. "But no one had seen the efficiency we were able to achieve."
• The Tulsa-based contract drilling company built the first 50 FlexRigs on speculation and a belief that the industry needed a rig that could reach shallow targets between depths of 8,000 and 18,000 feet.

Saudi: Talk Vs Action

Lead story on CNBC at the top of the hour: 7:00 a.m. CST.

"Is Saudi all talk or can they really replace the oil loss due to events in Libya?"

The $147 question.

So far Saudi is only talking about increasing supplies.

Questions:

1. Does Saudi have the reserves? Short term Saudi has been decreasing production due to slowdown in global economy, so they have ability to quickly bring production back up to historical highs. However, long term, there are discussions on whether Saudi's reserves are as robust as they say they are.

2. Does Saudi have the right kind of oil? Libya's oil is sweet oil, like the Bakken oil. Refiners in Italy taking Libya's oil were "geared" for sweet oil. It is not as simple as flipping a switch to take Saudi oil, which is sour. Saudi is apparently talking about options: a) diverting sour crude to Asia and allowing other sources to divert sweet oil from Asia to Europe; b) see if European refiners can handle more Saudi sour.  Some can argue that by the time they sort this out, the Libyan crisis will have reached some sort of equilibrium (as price of gasoline goes up, demand goes down).

3. Does Saudi want to increase oil production? Long term Saudi has talked about need to "save" their resources for future generations. Short term, they enjoy the high price of oil, but realize that high prices can affect the global economy. Saudi is as invested in the world economy as the US, China, and Europe. Most interesting is this: it is no secret that Saudi is unhappy how Washington (as in DC) treated Mubarek (as in "throwing him under the bus" after 30 years of friendship). Some are suggesting that the Saudis are not eager to help the US. At the end of the day, these folks are capitalists and they will do what's best for themselves and their country.

4. Has Saudi seen this movie before? Yes, Saudi has seen the prequel and many sequels, and they know there will be more sequels.They will think about this carefully before rushing into anything.

For another perspective, click here.