Tuesday, March 1, 2011

Disappointing, Pathetic, Frustrating, Reality, It Is What It Is -- Bakken, North Dakota, USA

One  year ago when wells came off the confidential list, initial production numbers were provided in almost every case.

Look at the results of the last dozen wells that came off the confidential list in the past few days:
Of the baker's dozen wells that have come off the confidential list in the last few days, only four had an initial production number.

It is my understanding that Bakken wells coming off the confidential list but have no IP are waiting to be fracked.

4 comments:

  1. We have interest in the SSN wells in the Stockyard field. The Rodney and Earl wells were drilled last fall and they planned to frack them in Dec. They have now said that they have a firm date for late March. They must really have a hard time getting a frack crew lined up.

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  2. I'm beginning to think that the fracking backlog is a) much worse than we think; and, b) most folks are unaware of the fracking backlog.

    I think the marginal, undercapitalized producers are going to have significant challenges with the backlog. This results in a severe cash flow problem, sitting on a well that cost $7 million to drill, and waiting for it to be fracked.

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  3. There is a certain amount of time that an oil company has to produce a well if the lease is getting close to the end. Many wells are drilled just in time to hold the lease and have to be produced in a short amount of time so they don't lose the lease the well is drilled on. SSN has both of these wells plugged back waiting to frack but I have been told some companies like BTA, let the well produce whatever it will while waiting for a frack. That way they can hold the lease. I would think that others would be doing the same to protect their leases.

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