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.