Stockyard Creek Updated

I just did an extensive update of Stockyard Creek.

Again, this is the reason I originally became interested in the Stockyard Creek field:

But this is what got me excited about the Stockyard Creek, and again, I have to thank a reader for sending me this information: at the link noted above, the writer noted that Gene 1-22H, #18009,  a Zavanna well in this field, section 22, has been completed  and is flowing at 2,936 boepd. A second well on the confidential list, #18015, is also a Zavanna well, Grasser 1-26H, sited on the same pad as the Gene well but will be drilling NW to SE.  These two wells are on a pad exactly one mile south of the highway about midway through the field.

That was posted almost exactly one year ago.

This is a small field, only 33 sections, located east of Williston, North Dakota. For being so small, it certainly has a lot of activity and a lot of interest.

I have updated the field for a couple of reasons.

• Now that we have three years of production in the North Dakota Bakken in this boom, we can start comparing IPs and long-term production among companies and fields
• We can look at a reason why the folks are willing to pay so much for "Bakken" acreage

When you go to the link (Stockyard Creek), compare the IPs of the various wells and then compare those IPs with this well:

• 19406, 3,761, BEXP, Knoshaug 14-11 1H, Wildcat, Bakken, produced 12K in first five days of production

This BEXP well appears to be another monster well for BEXP based on IP. It is located less than two miles directly west of Stockyard Creek. BEXP has asked the NDIC for temporary spacing for this well in the March 24, 2011, hearing dockets, case 14259. Compare the BEXP Knoshaug with any of the great wells in the Stockyard and they still don't compare (based on IPs) and yet the BEXP well is less than two miles directly west of the Stockyard Creek.

The second reason this update was interesting is this. Take a look at another well in the Stockyard Creek:

• 17446, 49, short lateral, Zavanna, Leonard 1-23H; spudded 9/08; tested Bakken, 12/08; 76K as of 11; this originally was a Madison well (now EXP)

The Leonard 1-23H tested both the Madison and the Bakken, if I understand the NDIC report correctly.  Its IP was only 49 and yet, it looks like this well will eventually pay for itself. There was no production from the Madison. All the production has come from the Bakken. I can't tell from the report but it appears to be a single stage frac. The frac took less than 3 hours to complete. Perhaps more on this later.

Although there was no production from the Madison (this time), I believe this is another reason folks are willing to pay so much for "Bakken" acreage. There are "no" dry Bakken wells, and once they have production from the Bakken, they hold the acreage as long as there is production 25 - 30 years, and can go back to other formations at any time. The Madison is generally a pretty reliable formation. I'm not sure if there might be more to the story.