More Than Enough Water for Fracking

Link here.

The U.S. Army Corps of Engineers says Lake Sakakawea ended April at one of the highest spring levels on record.
Data points:

• Elevation at end of April: 1,847 feet
• 7.5 feet higher than same time last year
• US Army Corps of Engineers will begin releasing water at twice the rate it had been
• Missouri River running through Bismarck will rise 5 feet and stay that high throughout the summer

Yeah, that's more than enough for fracking. Can the Army still charge uses of the Missouri River a "storage fee" when water is so high it's being released? Just a rhetorical question.

Blizzard Paralyzes Western North Dakota -- Bakken Shut Down

Link here.

One can assume all wells are shut in, but that's the least of their problems. Note that all electricity is lost in Williston except for police department, fire department, hospital and home for the aged.

I do not recall ever a storm this bad in North Dakota. Ever.

Update on Dedicated Fracking Teams -- Bakken, North Dakota, USA

WLL says it has two dedicated frack teams in North Dakota. Whiting estimates that each team can frac 100 wells/year.

See link here for update on drillers with dedicated frac teams. In addition, one can always find the update by clicking on the label "DedicatedFracking" at the bottom of the blog.

Investopedia's Take on Whiting -- Bakken, North Dakota, USA

Link here.

Costs were also higher this time around. Whiting engages in some relatively sophisticated operations with service providers like Baker Hughes (NYSE:BHI) and those technologies don't come for free. Per-barrel cash costs rose about 13%, though depreciation and depletion allowance (DDA) costs were relatively flat on the same basis.

Still in the Right Places

First quarter performance may disappoint the Street, but Whiting is still a leading player in the Bakken Three Forks area. What's more, the company still has meaningful potential from its Lewis & Clark acreage (in the Bakken) and the Delaware Basin in West Texas. 

That comment regarding DDA was very interesting in light of the Obama administration suggesting an end to these "subsidies." 

Eleven (11) New Permits -- Bakken, North Dakota, USA

This is the most new permits in one day that I have seen in over a year.

Drillers: Continental Resources -- Harold Hamm (7), Hess (2), Samson Resources (2).

Fields: Six of the permits will be a 2-well pad in Elm Tree and a 4-well Eco-Pad in Jim Creek.

Hess permits will be a 2-well pad in Big Butte.

And Samson Resources will be a 2-well pad in Ambrose field.

The last permit, a CLR permit, will be in Haystack Butte.

In addition, Newfield reports another nice well in Friday's daily activity report :

• 19202, 1,010, Newfield, 1-H Manolo 21-16, Williams County

QEP reports:

• 19467, 617, QEP, MHA 2-04-03H-149-90, McLean

Mexico Could Be Net Oil Importer Within 10 Years

From the Oil and Gas Journal:

Without sufficient investments in oil field development and the use of new, advanced technologies, Mexico faces becoming a net oil importer in 10 years.

Mexico’s oil production peaked at about 3.9 million b/d in 2004. Since 2005, output has fallen by more than 25% to 2.98 million b/d in 2010.

South Dakota Utility to Request Rate Increase To Pay for Transmission Line It May Not Need

There are several assumptions in the headline, but it's not rocket science.

Basin Electric wants to build a "huge" $43 million transmission line across South Dakota to ensure there is enough electricity to power the pumping stations along the proposed TransCanada Keystone XL pipeline.

The Keystone XL is not yet approved; indications are the earliest the federal government will issue a "thumbs up/thumbs down" is by the end of the year, 2011. Meanwhile, opposition to the Keystone XL grows among private landowners (particularly in Texas) and environmental groups. (Click on "Keystone" label at bottom of blog.)

If the pipeline goes in, TransCanada will "help" pay for it; until the pipeline goes in, utility customers will pay for it; and if the pipeline doesn't go in, and the transmission line goes in, well, someone still has to pay for it.

Most likely the utility is only getting the permission to build it now, but won't build it until the pipeline is approved and funding from TransCanada arranged. Unless, of course, there are other reasons that are not being said (like wind) to build the line.

Utility Requests 19 Percent Rate Increase in Colorado

Link here.

Black Hills Energy is asking Colorado regulators for a rate increase that would boost a typical residential bill by nearly $19 a month and a typical small-business bill by about $67 a month.

The company said Friday the increase would generate about $40 million more a year, an increase of nearly 19 percent in the annual revenue of its Colorado subsidiary.

FLASHBACK: 

April 6, 2011: Colorado: the state must have missed the memo -- renewable energy is going to push utility rates through the roof; Colorado mandates that utilities supplying electricity to Colorado must get 30% of their energy through renewable energy (euphemism for "wind")

Meanwhile, expect the same in South Dakota -- a rate increase for a transmission line that may not be needed (if the administration goes "thumbs down" on TransCanada's Keystone XL).  My bet: the Keystone XL permit will not be approved by this administration this year.

Shovel-Ready Jobs -- Oil and Gas Industry -- Pennsylvania

Oil and gas industry ready to provide thousands of new jobs.

US: Natural Gas Supplies Hit Record, More Oil Rigs Than Gas Rigs; EPA To Issue Fracking Guidelines

Natural gas production in the US has set new records. Another link here.

Over past year there has been a gradual switch to drilling for oil rather than natural gas. There are now more rigs drilling for oil than natural gas in the US.

That may accelerate when EPA comes out with fracking guidelines for natural gas.

All things being equal, price of natural gas should go up (Moodys at SeekingAlpha.com). This past week, some price increase.

Happy Anniversary To the Bakken -- North Dakota, USA,

NDIC File No: 16164     Well Type: Oil and Gas     Well Status: Active   
Wellbore type: HORIZONTAL
Location: SESE 36-153-90   
Current Operator: EOG RESOURCES, INC.
Original Operator: EOG RESOURCES, INC.
Well Name: PARSHALL 1-36H
Total Depth: 11,325     Field: PARSHALL
Short lateral
Spud Date(s):  4/11/2006
IP: 463
Cumulative: 158,014
Current production: 900 bbls/month

EPD To Buy Rest of Duncan Energy Partners

Link here.

Some data points:

• Duncan had been formed by EPD in September, 2006
• Will add about 9,400 miles of gas pipelines to EPD's 50,200 miles of current gas pipeline infrastructure
• Co-founder of Duncan Energy (DEP) dies about one year ago
• Expected to close by 3Q11

Minor Updates on the Bailey Oil Field -- Bakken, North Dakota, USA

It looks like it takes about 3 years for wells in the Bailey Bakken to get to 100,000 bbls.  A lot of folks would like to see faster return on Bakken wells, but if these wells produce for 30 years, this is still quite incredible.

Link here -- just minor updates.

Total (French Energy) Takes Controlling Interest in Sun Power -- SeekingAlpha

Link here.

This reminds me of Enbridge doing the same with buying solar farms in Canada.

Margins on solar panels, along with subsidies, tax breaks, grants, "cap and trade" opportunities, all make solar a great fit for oil companies. According to the article, Sun Power's margins are 20 percent. According to Yahoo!Financial, XOM's profit margin is 9%.

In addition, the great "PR" that fossil fuel companies will get by buying solar is incredible. BP was transforming itself into a "green" company before the oil spill.

Enbridge Family of Companies With Lots of News Today

EEP and EEQ: 2-1 split completed today.

Earnings and distribution.

EEP to expand Haynesville infrastructure.

ENB splits 2-1.

CVX: Profit Rises 36%

Link here.

Five Canadian Oil Companies Paying More Than 4 Percent -- SeekingAlpha

Our neighbor to the north seems to have a better understanding of the importance of their natural resources.

Link here.

The article features Baytex, Enerplus, Pengrowth, Provident, and Penn West. At least two of them (Baytex and Enerplus) are operating in the Bakken. 

XOM: Paid $1 Million / Hour in Taxes -- SeekingAlpha

This is not the first time this has been posted. For me, it cannot be retold often enough.

Link here.

The administration's attack on XOM reminds me of The Goose That Laid the Golden Eggs.

GE paid no federal taxes in 2010. The GE/CEO is the president's economic adviser.

Samson Updates On Earl -- Bakken, North Dakota, USA

Link here.

Samson O&G advised that operations on the Earl #1-13H to drill out the 19 frac plugs is underway. This operation, which commenced last week, has been hampered by difficult weather conditions, by the stand down of the rig crew for Easter and by equipment breakdowns. The operation is now back on track, however and the first of the nineteen plugs had been drilled as of 0700 hours CST this morning.

Prior to the first plug being drilled, the oil rate from the well for the previous 24 hours was 292 BOPD. After the first plug was drilled, the rate was measured at 960 BOPD over a two hour period, prior to commencing the drill out of the second plug. Neither of these rates is considered to be a conclusive indicator of the well's initial production performance, as this can only be determined once all of the plugs have been removed. Samson is, however, encouraged by the marked increase in the oil rate from just one of the nineteen plugs being removed.

Huge Well -- Hecker 21-18TFH -- Whiting South -- Bakken, North Dakota, USA

From Whiting's 1Q11 earnings announcement:

The Hecker 21-18TFH, during a 24-hour test of the Three Forks formation at a vertical depth of approximately 10,500 feet on March 4, 2011, flowed at a daily rate of 3,106 barrels of oil and 3,038 Mcf of gas, or 3,612 BOE per day.

This is the highest initial production rate for a Three Forks well in the Williston Basin, according to Harts Unconventional Oil & Gas website.

The initial 24-hour production rate was gauged on a 48/64-inch choke with a flowing casing pressure of 990 pounds per square inch (psi). The well was fracture stimulated in a total of 22 stages, all using sliding sleeve technology. An additional eight stages are scheduled to be fraced with the “plug and perf” method.

Whiting, the operator of the well, holds a 77% working interest and a 62% net revenue interest in the new producer.

This is huge.

I've been waiting for information on the Hecker 21-18TFH.

The Hecker is right in the middle of the flurry of Whiting activity north of Belfield in the Bell and Zenith oil fields I have been posting about for the last several days. For more, click here and here.

The Hecker 21-18TFH is still on the confidential list, so this is the first information that has been released about this well, as far as I know.

A huge "thank you" to Don for alerting me to it.

Eight (8) New Permits -- Bakken, North Dakota, USA -- Update on Three Corinthian/Surge/Spearfish Wells

Drillers: CLR (2), Whiting (2), Petro-Hunt, Samson Resources, Ursa, Newfield.

Fields: Dollar Joe, Baukol Noonan, Bell, Zenith, Cabernet, Fertile Valley, and a wildcat.

Whiting has two more exciting permits: one in Bell, and one in Zenith, two neighboring fields which are very, very exciting. See yesterday's posting on Whiting's new permits in Zenith and North Creek.

CLR has the permit in Cabernet, another exciting field.

Finally, Ursa's wildcat is in McKenzie County, southwest of Watford City.

Hess reported a nice well in today's daily activity report:

• 19146, 988, Hess, Little Chase Creek 21-1H, Little Knife, Bakken, 18K in first month

Not good news in today's daily activity report:

• 19386, 0 bopd, Ritchie Exploration, Bernstein 1, Bottineau County; was also released from confidential status today but no data provided the date of the original post. However, on the daily activity report of April 28, 2011, "0 bopd" was reported and is now reported as "Shut In"

Two earlier Corinthian/Ritchie Bernstein wells had IPs of 5 each. 

US Government: Lease Sales Off Mid-Atlantic, South-Atlantic Won't Occur Before 2017

From the 2011 Energy Information Agency (EIA-US) update, 2009 - 2035:

Rising world oil prices, growing shale oil resources, and increased production using enhanced oil recovery techniques contribute to increased US oil production to 2035 in the AEO2011 reference case. From 2009 to 2035, US crude oil production is forecast to increase by about 600,000 b/d. [Blog comment: Bakken could account for much of this.]

Bakken shale oil contributes to oil production growth in the Rocky Mountain region, and growth in the Gulf Coast region is spurred by resources in the Eagle Ford and Austin Chalk formations, while some of the decline in oil production in the southwestern US is offset by production from the Avalon shale formation, according to the outlook.

Lower 48 offshore production increases by 13% between 2009 and 2035 in the reference case. According to the recent Bureau of Ocean Energy Management, Regulation, and Enforcement leasing plan, lease sales in the Mid-Atlantic and South-Atlantic Outer Continental Shelf will not occur before 2017. Oil shale liquid production, which comes on line in the Rocky Mountain region in 2029 in the reference case, accounts for about 2% of total US oil production in 2035.

Linn Energy Misses by 3 Cents; Acquires More Bakken Acreage -- North Dakota, USA

Link here.

Misses by 3 cents.

In same press releases, announces continued aggressive acquisition spree in the Bakken:

Independent explorer and producer Linn Energy said it agreed to purchase assets in North Dakota's Bakken shale for $163 million, continuing a buying spree of oil- and natural gas-liquids rich properties, but its quarterly profit fell below estimates.

From Houston Business Journal.com

• $163 million: an additional two sets of assets in the Bakken shale play in North Dakota
• Bringing its total acquisitions in the play this year to $238 million

Noble Energy Beats by 21 Cents

Link here.

Noble Energy reported today first quarter 2011 net income of $14 million, or $0.08 per share diluted, on revenues of $899 million. The Company's first quarter 2010 net income was $237 million, or $1.34 per share diluted, on revenues of $733 million. First quarter 2011 net income includes items that are not typically considered by analysts in published estimates. Excluding the impact of these items, which were primarily unrealized commodity derivative losses and a rig standby charge in the deepwater Gulf of Mexico, first quarter 2011 adjusted net income(1) was $240 million, or $1.35 per share diluted. Adjusted net income(1) for the first quarter of 2010 was $138 million, or $0.78 per share diluted. 

This quarter, net income: $14 million
One year ago, 1Q10, net income: $237 million

Difference due to "unrealized commodity derivative losses" and a rig standby charge in the deepwater Gulf of Mexico.

OXY Earnings Grow 46 Percent

Link here.

Earnings Central located here.

Fracking Backlog / Delays in the Bakken, North Dakota, USA

Generally speaking one can assume that a Bakken horizontal can reach total depth (TD) in less than 30 days. Within a couple of days of reaching TD, the company should be able to frack the well, and once that is complete, bring the equipment to the pad to determine the 24-hour flowback or start calculating the IP.

As a rule of thumb, in my mind, any delta greater than 60 days between spud date and test date in a Bakken horizontal represents a delay due to fracking backlog. There might be one exception: on Eco-Pads, or Smart Pads, where there are four or more wells per pad, drillers may wait to report the IP or the 24-hour flowback until all wells are completed and tested. In that case, the first well could be spud up to three or four months before the last well reached TD. Of course there are other mitigating factors: a) company policy; and, b) weather. With regard to the first, some companies don't frack during the winter, and. of course, we all know how the horrendous weather this past winter affected Bakken operations. It should also be noted that an occasional well is not fracked; and, for various reasons, a company may purposely delay fracking.

One can also assume that the "smaller" (in terms of number of rigs) drillers will have a greater delay  on average in getting their wells fracked than the larger drillers. The larger drillers now have dedicated frack crews.

Today, first example:

• 19146, 988, Hess, Little Chase Creek 21-1H, Little Knife, Bakken; spudded 10/28/10; tested 2/8/10 -- a delta of 3.5 months. It should be noted that January/February, 2011, was notable for horrendous weather in North Dakota, and it's amazing that anything got done. I wouldn't read much into this delta.

The Price of Oil (WTI, NYMEX) Is Up Another $1.00

11:29 a.m. EST, April 28, 2011: up $1.05 to $113.81.

"No quick fixes."

Skip the Article! Read the Comments! -- Not a Bakken Story

GE sees best profit outlook in a decade.

Skip the article; read the comments.

Double-Dip Recession?

The pundits all say the momentum of the US economy is such that the possibility of a double-dip recession is out of the question. In fact, even the talk of a DDR has pretty much disappeared from mainstream media.

At some point enough time will have elapsed from the most recent recession to the next recession that it won't qualify as a DDR, simply the business cycle.

I wonder if the unemployed and Wal-Mart shoppers agree. Perhaps technically it won't be a recession but it certainly might feel like a recession that never ended (and as Ronald Reagan would say, a depression for some). The two articles that caught my interest today:

• The increase in first-time jobless claims surprise analysts
• Wal-Mart is noticing that its customers are "running out of money more quickly"

The fact that jobless claims increased does not bother me one way or the other. I don't think much about first-claims unemployment until the numbers come out so I have no idea where the numbers will fall. What concerns me is that analysts (including the Fed chairman, I suppose) expected jobless claims to fall. When they see the actual numbers that showed an increase when they expected a decrease, I assume they have to re-set their forecasts across the board.

Meanwhile, the Fed admits inflation is coming, and the numbers out today confirm it. Core inflation this month is 1.5% compared to 0.4% last month. Gold just a hit a new record (April 28, 2011) and silver is flirting with an all-time record, nearing $50.  

Another Rare Buying Opportunity: Another Energy-Related Company Down In Trading Today: HP -- Helmerich and Payne -- FlexRigs

From Yahoo!InPlay, Helmerich and Payne misses forecasts, beats on revenues:

Helmerich & Payne misses by $0.04, beats on revs (HP) 69.98 : Reports Q2 (Mar) earnings of $0.93 per share, excluding non-recurring items, $0.04 worse than the Thomson Reuters consensus of $0.97; revenues rose 38.3% year/year to $604 mln vs the $592.4 mln consensus. Co also announced today that it signed contracts to build and operate eight additional FlexRigs, bringing to 14 the number of additional FlexRig commitments announced since the Company's January 27, 2011, earnings release. These rigs will be built and operated in the U.S. under multi-year term contracts that provide attractive dayrates and economic returns. Since March 2010, the co has announced contracts for the construction of 45 new build FlexRigs, of which 26 have been completed. The remaining 19 rigs are expected to be delivered during calendar 2011.

Whew! No "Record" In the Headline for XOM's Earnings 1Q11

XOM's record earnings were in 3Q08.

Rigzone.com: XOM's earnings soar 69%.

Actions Have Consequences -- Absolutely Nothing To Do With the Bakken

From South Carolina:

Amazon all but told South Carolina goodbye Wednesday after the online retailer lost a legislative showdown on a sales tax collection exemption it wants to open a distribution center that would bring 1,249 jobs to the Midlands.

Company officials immediately halted plans to equip and staff the one million-square-foot building under construction. 

Amazon immediately canceled $52 million in procurement contracts after South Carolina legislature voted to reject a tax break for Amazon in exchange for locating in South Carolina.

From Los Angeles:

Los Angeles Mayor Antonio Villaraigosa on Wednesday ordered his managers to impose 42 furlough days on city employees in four union groups after those workers rejected his proposal for cutting the budget shortfall. [8.5 weeks or 2 months or 17 percent of the work year]

Employee groups representing more than 6,300 full-time workers voted against the labor agreement that the mayor negotiated last month with leaders of the Coalition of L.A. City Unions. Balloting finished Tuesday.

From Massachusetts:

House lawmakers voted overwhelmingly last night [April 26, 2011] to strip police officers, teachers, and other municipal employees of most of their rights to bargain over health care, saying the change would save millions of dollars for financially strapped cities and towns.

From Pennsylvania:

Federal regulators stomp on Amish selling raw milk.

Something tells me the Amish don't vote, and the consumers of raw milk did not vote for Ronald Reagan, who hated government interference with the free market.

SeekingAlpha: Update on Seven Bakken Companies With Market Cap $1B to $6B

Link here.

The contributor is long BEXP, NOG.

The companies covered in this group:

• SM
• ERF
• OAS
• KOG
• NOG
• BEXP
• MDU

Whiting (WLL) Misses By 5 Cents

Link here. Minimal information at the link.

Conference call later.

Many thoughts, but will wait for the conference call. 

NOG "Hires" Deloitte and Touche LLP

Link here.

XOM Beats Forecasts -- 1Q11

CNBC reporting: analysts forecast $2.07; actual $2.14.

Link here. 

Rigzone.com: XOM earnings soar 69%.

Earnings represents highest quarter since 3Q08.  $14 billion in 3Q08 and $11 billion this quarter (1Q11).

The numbers are said to have "surprised" analysts.

Peak Oil? What Peak Oil -- A Story That Includes The Bakken

According to the federal government, despite headwinds, "domestic oil production reversed decades-long decline in 2009 and 2010."

The report highlights activity in two areas: the permitorium in the Gulf and the boom in the Bakken.

While much of the increase in 2009 was associated with deepwater developments in the Federal Gulf of Mexico, the increase in 2010 was led by escalating horizontal drilling programs in US shale plays, notably the North Dakota section of the Bakken formation. 

Gasoline Prices to Peak, Then Gradually Fall Back -- US Government

From Energy Information Agency (EIA): gasoline prices will peak over next few weeks, then gradually fall back.  Real prices should peak in June, 2011, and then fall back slightly by December, 2012.

Graph here.

When you get to this link, scroll down to April 27, 2011.

Carbo Ceramics Announces Stellar Earnings

Beats by 28 cents.

Forecast for $1.02; reports $1.30.

Unfracked Well Producing at 10,000 Barrels of Oil Per Month -- Bakken, North Dakota, USA

Updates

July 13, 2016: #18644 with an update. This well was placed on a pump in August, 2012. There is still no frack report on file (thought it was scheduled to be fracked 3/10) and FracFocus has no report on file that it was fracked.

• 18644, 1,148, Lime Rock Resources/Anschutz, State 1-25-36H-144-97X, Cabernet, t4/10; cum 370K 5/17;

April 11, 2016: there are two new permits on the same pad of these two unfracked wells:

• 30467, loc, Lime Rock Resources, State 4-25-36H-144-97, API: 33-025-02818, Cabernet,
• 30468, loc, Lime Rock Resources, Kary 6-24-13H-144-97, API: 33-025-02819, Cabernet,

April 11, 2016: It appears the sister well on the same pad as the well in the original post, running in the opposite direction has also not been fracked (disclaimer: it's possible these wells have been fracked; that the documentation is simply not there; I don't know):

• 18359, 1,138, Lime Rock Resources, Kary 1-24-13H-144-97, API: 33-025-00984, Cabernet, t4/10; cum 205K 5/17; (as of 5/18/2016 FracFocus had no documentation of any fracking)

April 11, 2016: according to FracFocus, this well (#18644, Lime Rock Resources/Anschutz, State 1-25-36H-144-97X, API: 33-025-01035, and the sundry form says this well was NOT stimulated. First year of production:

BAKKEN	1-2011	27	9721	10527	4	1827	1827	0
BAKKEN	12-2010	31	11949	11356	7	3941	3941	0
BAKKEN	11-2010	30	13031	13299	7	4539	4539	0
BAKKEN	10-2010	31	13440	13299	0	4919	4919	0
BAKKEN	9-2010	30	14480	14442	342	5033	5033	0
BAKKEN	8-2010	31	15854	16452	0	5317	5317	0
BAKKEN	7-2010	31	19578	18897	0	1515	1515	0
BAKKEN	6-2010	30	21083	21500	0	6947	6947	0
BAKKEN	5-2010	31	25940	26032	50	7750	7750	0
BAKKEN	4-2010	16	12868	11704	3244	3244	2712	532
BAKKEN	3-2010	0	0	0	0	0	0	0
BAKKEN	2-2010	1	711	711	0	0	0	0

Most recent 12 months:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	2-2016	29	1095	1163	30	1638	1083	44
BAKKEN	1-2016	31	1216	1156	40	1222	862	49
BAKKEN	12-2015	31	1263	1141	28	1093	755	50
BAKKEN	11-2015	30	1226	1372	33	1448	870	98
BAKKEN	10-2015	31	1266	1127	23	1309	1010	51
BAKKEN	9-2015	30	1231	1331	35	421	8	173
BAKKEN	8-2015	31	1268	1330	28	434	59	127
BAKKEN	7-2015	31	1255	1131	20	430	85	97
BAKKEN	6-2015	30	1266	1310	110	413	154	20
BAKKEN	5-2015	31	1349	1334	37	462	31	182
BAKKEN	4-2015	30	1353	1328	28	465	12	212
BAKKEN	3-2015	31	1466	1534	123	495	0	24

 

Original Post

 

One doesn't see this often in the current Bakken boom (at least to the best of my knowledge):

• 18644, Lime Rock Resources/Anschutz, State 1-25-36H-144-97X, API: 33-025-01035, Cabernet, 24-144-97, 1,148, 370K 5/17;, un-fracked

This well continues to produce at about 10,000 barrels/ month, flowing, not on a pump.

Note, I checked to make sure the link was still good. It is. When I first linked it, the only information was the file report. Since then, the link has a number of very interesting comments from a Bakken expert, comments which I saw for the first time tonight. I highly recommend all folks interested in the nitty-gritty of the Bakken to check out the link. I enjoyed it.

Stripper Wells and Tax Breaks -- Williston Oil Basin, North Dakota

This is very, very interesting.

This is the crux of the story:

Stripper wells are broadly defined in North Dakota as those that produce fewer than 30 barrels of crude daily. The state has a pair of oil taxes that are applied to wells: A 6.5 percent extraction tax and a 5 percent production tax.

In 1980, voters approved an initiated measure to exempt stripper wells from the extraction tax. A year later, the Legislature tweaked the exemption to include the leased area - or spacing - on which the well was located. The spacings can be as high as 1 square mile, enough room for several wells that could meet the tax-exempt designation. Once a well or spacing meets the stripper criteria, it holds the designation indefinitely.

I wouldn't lose a lot of sleep over this. The article says the state is losing $30 million/year over this exemption. I'm sure the number is debatable but even if it's accurate, I understand the oil industry accounts for about $1 billion/year (I could be way off on this; I haven't checked recently) in taxes to the state. This does not include all the taxes paid by individuals employed in the industry, nor all the taxes paid by businesses supporting the drillers.

But, and this is a big, big "but," --- on second thought, I will hold this thought for now.

It is my understanding that the designation of "stripper" well is not automatic, just because the well is producing less than 30 bbls of oil per day. It is my understanding that a driller must apply for stripper well status for a well. The NDIC will make the determination. My hunch is that the NDIC is taking this very issue very seriously. That may be one of the reasons why the legislature is not eager to change the law.

[The bigger question I have: exactly what is the difference between "extraction" and "production"? That's a rhetorical question. I don't expect any answers.]

Just a Gentle Reminder: For Every Gallon of Gasoline, 50 Cents in Taxes; XOM Earns 2 Cents Per Gallon

Link here.

I knew it was lopsided, but I did not know it was this bad.

I continue to recommend Carpe Diem as perhaps the best other blog on the internet.

*************

Flashback

March 28, 2011: After posting the comment about GE not paying taxes this year (as reported by CNBC), someone wrote me saying that XOM had not paid US federal taxes in years. Of course, that was incorrect, and was discussed in the comment section below.  Interestingly enough, CNBC touched on this subject again today, and put up two slides. The first slide listed four Forturne 500 companies that paid less than the statutory corporate tax rate (35%). That slide did not include any oil companies. The second slide had three companies, and the top two were XOM and COP. XOM had an effective 42% US federal tax rate for 2010, and COP had an effective 41% US federal tax rate for 2010, double the average tax rate paid by Fortune 500 companies. The average effective tax rate paid by Fortune 500 companies is 20%.

Here are the notes from the comment section regarding XOM taxes:

That would not surprise me, except that the statement that XOM has not paid federal income tax in years is not accurate.

MotherJones.com confirms that XOM did pay federal taxes in 2009. MotherJones' assertion that XOM did not federal income tax was picked up by many; MotherJones ended up retracting that.

From SeekingAlpha.com:

"Exxon's tax payment in 2007 of $30 billion (that's $30,000,000,000) is a record, exceeding the $28 billion it paid last year. $5 billion of that was US Federal income tax.

By the way, Exxon pays taxes at a rate of 41% on its taxable income." -- Seeking Alpha.com

So that takes care of 2009, 2007, and 2006.

But here's the best source (http://www.stock-analysis-on.net/NYSE/Company/Exxon-Mobil-Corp/Analysis/Income-Taxes):

XOM paid the following taxes below:

US Federal income tax (numbers rounded):

2010: $1.2 billion
2009: ($0.84 billion)
2008: $3 billion
2007: $4.7 billion
2006: $2.9 billion

Total taxes paid by XOM (again, remember, GE paid no taxes in 2010):

2010: $21 billion
2009: $15 billion
2008: $27 billion
2007: $30 billion
2006: $28 billion

In the big scheme of things, XOM's US earnings are small compared to its worldwide activities.

From yet another source:

In 2010, Exxon's total taxes and duties to the U.S. government topped $9.8 billion, making the company one of the largest taxpayers in America, he writes. In the past 5 years, Exxon has paid nearly $59 billion in U.S. taxes.

"Critics often try to ignore these facts by saying the oil and gas industry receives 'subsidies'," Cohen writes. "But what they really mean is that they want to increase our taxes by taking away long-standing deductions for our industry while leaving these same deductions in place for other sectors of the economy."

From yet another source, Carpe Diem.

Also, from same link, speaking of windfall profits tax:

The 6.1% average profit margin for Exxon's industry "Major Integrated Oil and Gas" ranks #112 among all industries for the most recent quarter (data here), so if Obama wants to target "excessive" corporate profits, there are many other industries much more profitable than the oil and gas industry.  For example, the surge in commodity prices has resulted in "windfall profit" margins of 31% for the silver industry, 23% for the copper industry and 19.8% for the gold industry.  Internet providers are capturing 23% in profit margins, cigarette companies more than 21% and periodical publishers are earning a whopping 51.6% profit margin, so perhaps those would be ripe targets for Obama's new lust to confiscate "windfall profits."

The Permitorium Net Widens -- Not Only Offshore, but On-Shore Also

The Bush administration opened up 2 million acres of western Federal land for energy research and development (i.e., horizontal drilling, oil and gas exploration and production) back in 2008.

The current administration put that initiative on hold to restudy the issue.

Again, this was a shovel-ready opportunity to increase oil and gas supplies for the nation -- three years ago.

It's anybody's guess where "we" would be now, three years later, had the projects been allowed to progress. No wonder the President says, when gasoline is $4.00/gallon and oil is $113/barrel, that there are no quick fixes. Of course, there are no quick fixes when solutions keep getting shut down.

This follows in the wake of the EPA shutting down Shell in the Arctic due to an ice-breaking vessel.

Yup, no quick fixes.

(Oil is up almost another dollar tonight -- futures -- closing in on $114. Remember, Bank of America forecasts $120 oil with spikes to $140 possible. The summer driving season has not yet begun; the Mideast situation seems to be escalating; and, the Fed admits inflation is about to pick up. Yup, no quick fixes. One almost wonders if the president sees himself as a deus ex machina: don't let a crisis go to waste.)

CLARIFICATION

Based on an "anonymous" comment sent in earlier, at least one person was apparently confused by this post and another post in which ten new permits were issued today by the state of North Dakota. It took a few minutes to figure out what "anonymous" was saying, but "anonymous" felt that ten new permits issued today was evidence that no "permitorium" exists.

The "permitorium" on this blog refers to the Federal government's delaying action on new permits. The new permits updated daily on this blog have to do with state permits, and nothing to do with Federal permits. The state of North Dakota is doing a fantastic job fulfilling its responsibilities.

Ten (10) New Permits -- Bakken, North Dakota, USA

Operators: Enerplus (5), Oasis (2), Whiting (2), BEXP.

Fields: McGregory Buttes, Bull Butte, North Creek, Zenith, Alger.

Four of the ERF wells will be on the same pad in McGregory Buttes.

The two Oasis wells will be on the same pad in Bull Butte.

Whiting's two permits are in Stark Creek and one is in Zenith field, which was recently highlighted on this blog after a tract was acquired for $9,000/acre. The other permit is in North Creek which is a tiny field (eight sections) right next to Bell field where Whiting is already very, very active. Remember this well in Bell field:

• 9706, 571, New Millennium Resources, Decker 1-32, tested in 1982, still producing at about 2,000 bbls/month; total produced to date (after almost 30 years of producing): 704,519 bbls of oil, very little gas and very little water. Formation? Tyler formation.

Both of the Whiting permits issued today are within 8 miles as the bald eagle flies from the Decker well 

In addition, there were a number of great well that reported out today on the daily activity report.

• 18435, 2,376, Denbury Onshore, Nelson 41-5H, Sanish
• 19318, 2,042, American Oil and Gas, Hodenfield 15-23H, Bakken
• 19745, 2,043, Whiting, Hoover 14-1XH, Bakken

Notice the "X" designation for the Whiting Hoover well.

Apple/iPad/ATT Fan: Nothing To Do With The Bakken

I noticed that Verizon's 4G LTE network is down and out for some unknown reason.

That's not a big deal; these things come and go. What surprised me was what I learned reading some of the comments from Verizon's Thunderbolt users -- the smart phone that uses Verizon's 4G LTE.

It turns out that the battery life of the smart phone is as little as 2.5 hours of "normal" usage.

Batteries are the bane of the early 21st century. Once someone cracks the code on battery technology, an entire new world of mobility will dawn -- including electric vehicles.

Apple Corp. and Steve Jobs got a lot of grief when the original iPad was released because of what it couldn't do or didn't have: a) could not multi-task; b) did not have Flash (YouTube in many cases); c) no still camera; and, d) no video camera. There were a number of reasons for these but a common denominator for all was the strain on battery life each of these "add-on's" impossed.

I have been waiting to see the real-world results for battery life for new smart phones and new tablets competing with Apple products.

I don't know about the iPad 2 yet (Apple says it has the same battery life as the original iPad), but I know that no one, absolutely no one, complains about the battery life of the original iPad. Apple says it will last ten hours under continuous usage and 30 days on standby. It's been my experience that when traveling I can go as much as five days in between charges just using it for essential e-mail.

On another note, now that I am in Boston for awhile, I visit the Apple Store on Boylston Street when I get a chance. On the last two occasions I visited I asked about the availability of the iPad 2. It is the same answer one sees elsewhere: the folks at the Boylson Street Apple Store generally get a shipment of iPads every other day or so, maybe every day for a stretch. They never know ahead of time what they will be getting and it's always a mix of the various models. Customers arrive each day at 9:00 a.m. to find out what has arrived; folks are given numbered tickets and are served in order. The last two times I visited the Apple Store on Boylston Street, about 2:00 p.m. each time, they still had at least one Verizon 3G 64GB model available, but no ATT models.

FYI.

Reiterating Thougts on Price of Oil -- WTI (NYMEX) Oil

I maintain that a "fair  price" for Bakken oil is in the $60 - $80 range.

Prices between $80 and $100 reflect world events (e.g., Mideast tension, global economy, supply and demand, etc.).

Prices between $100 and $120 reflect strength of the dollar.

I have posted that almost verbatim three times in past week or so.

This copied exactly as it shows up from Yahoo!InPlay supports the thesis:

11:47AM Dollar Index slipping back off day session high, seeing some limited recovery in Energy/Commodity -- XLE, OIH, KOL, USO, XLB, MOO, SLV, GLD (UUP) :
11:44AM Precious metals are putting in their own rally along with crude; gold is back above $1510, now at $1510.50 +7.10, while silver is now at $45.35 +0.30 after climbing ~0.8% in the last 15 min (COMDX) :
11:41AM Crude oil is rallying and just broke through the $113/barrel level; now at $113.05 +0.85 (COMDX) 

Remember that earlier this morning (before 11:41 a.m.) oil was pulling back, below $112 and heading toward $110 when oil inventory in US was shown to have increased (although that was balanced by inventory of gasoline falling).

Now, after 11:47, with strength of dollar slipping again, oil is back up to $113.

Update, further supporting my my theory:

1:59PM Crude oil just rallied to new session highs at $113.40/barrel without a notable move in the dollar index. However, the dollar is still weaker against the euro; crude is now at $113.25 +1.04 (COMDX) :  1:57PM Dollar Index slide to new day session low, hovering just above its overnight/multi-low at 73.49 (UUP) : Seeing relative strength in Silver SLV, Gold Miners GDX, Gold GLD, Materials XLB, Energy XLE, Oil Service OIH, Copper JJC, Ag/Chem MOO, Commodity Index in recent trade.

1:55PM Precious metals extend gains and make new session highs; gold is now +$6.30 at $1523.30/oz, while silver is +$1.07 at $47.02/oz. (COMDX)

SeekingAlpha: Oil on Track to Hit $200 By End of 2012

Link here.

The author has a long discussion supporting his $200/bbl thesis.

One of his points: policies by governments around the world suggest the trend will continue, and provides three examples:

• UK recently increased its punitive tax on oil producers to 32% from 20%. This is in addition to the "normal income tax," thereby making it punitive
• New oil production from Canada and North Dakota is bottled up by refusal of the US government to permit a trans-national pipeline improving oil supply to rest of the US
• The permitorium in the Gulf continues 

The author failed to add another:

• The EPA has shut down drilling in Alaska

Oil Companies' Profit on Gasoline: 4%. Government Profit on Gasoline: 15%

I was sent the following.

When oil profits are reported this week, it should be noted that oil companies make a profit of four (4) percent on each gallon of gasoline. Four percent.

The government makes a profit of fifteen (15) percent on the same gallon of gas.

I'm sure everyone has different numbers, but the point is well taken.

The whole thing reminds me of The Little Red Hen, an old folk tale, most likely of Russian origin. Irony of ironies.

UPDATES

April 28, 2011, 11:34 a.m.: Right now on CNBC: XOM profit per barrel rose only 14 percent. CNBC reports it, but I doubt most "get it."

April 27, 2011: This is from Carpe Diem. First, a map of the US showing the taxes on a gallon of gasoline by state: it pretty much averages 50 cents/gallon.

So, how much money does XOM make per gallon of gasoline?

According to this post on Exxon Mobil's Perspective Blog, "For ever gallon of gasoline, diesel or finished products we manufactured and sold in the United States in the last three months of 2010, we earned a little more than 2 cents per gallon. That's not a typo. Two cents."

Hess Net Income Up 73 Percent, 1Q11 -- Bakken, North Dakota, USA

Link here and also at earnings central.

Confidential List: Some Folks Still Have Questions -- Bakken, North Dakota, USA

I see on other boards some folks still have questions have about the confidential list on the NDIC board.

Someone noted that not all wells have dates associated with them for coming off the confidential list. These wells may be "tight holes" at this point, have not yet spudded, and the clock has not started ticking yet. If they are on the confidential list, and don't yet have a date of release, I assume they are "tight holes" and have not yet spudded. 

For other posts regarding the confidential list, note that "ConfidentialList" is a label at the bottom of the blog.

An update, from the FAQ section of this blog:

14. What information is available for a well on the confidential list, what is the definition of a completed well, and how long can a well remain on the confidential list?

The following was taken from the Bakken Shale Discussion Group thread. From the NDIC: "All information furnished to the director on new permits, except the operator name, well name, location, spacing or drilling unit description, spud date, rig contractor, and any production runs, shall be kept confidential for not more than six months if requested by the operator in writing. The six-month period shall commence on the date the well is completed or the date the written request is received, whichever is earlier. If the written request accompanies the application for permit to drill or is filed after permitting but prior to spudding, the six-month period shall commence on the date the well is spudded."

The obvious question is "when is a well considered to be completed?" For wells that will be fracked, the well is considered "completed," when the well has been fracked. This has been the opined explanation for many EOG wells coming off the confidential list in January and February, 2010. EOG typically doesn't put a well on the confidential list until it has been completed.

If a well has not been fracked at the time the well comes off the six-month confidential period, the status remains listed as "DRL." It will remain on "DRL" status until 30 days after it is fracked. Once the well is fracked, the producer has 30 days to test the well and file the report with NDIC. 

The Federal Reserve Bank of Minneapolis: The Bakken -- Bigger and Better

Link here.

This story published back in March. Nice update of the Fed's feeling about the Bakken.

With additional formations below the Bakken that will produce oil, the Fed sees "at least an additional ten to twenty years of intense drilling and development, followed by several more decades of continued petroleum production.”

Remember: the "Basic Analysis of the Bakken" foresees intensive drilling through 2030 and then continued production through 2100. The "Basic Analysis" is linked at the sidebar on the right. 

Talk of Oil Industry Returning to Ohio: Just Talk?

This is not the type of article I expect to find at Rigzone. This is very, very interesting.

Most of northwest Ohio's oil is in a geological area known as the Lima-Indiana Field, characterized by Trenton limestone. The first major field discovered in North America, it runs from almost Toledo to Indianapolis.

Few people today may realize Ohio was America's leading oil-producing state from 1895 to 1903.

John D. Rockefeller, the wealthiest man in the world in 1895, got his start in the Cleveland area with Standard Oil Co. in 1870. Ohio moved past its neighbor Pennsylvania, where Col. Edwin L. Drake drilled the world's first commercially successful oil well, at Titusville, on Aug. 27, 1859.

Meridian, a subsidiary of Burlington Resources, was successful in bringing up more oil from that formation using horizontal hydraulic fracking in 1994, but not enough to make it economical. Meridian is a familiar name to those who follow the Bakken in North Dakota.

Updates

September 20, 2017: the linked Rigzone article above is no longer available, but the story is also here.  

Baker Hughes Beats Expectations -- 1Q11

Beats expectations, 87 cents vs 78 cents.

Earnings Central here. 

Petro Harvester LLC Enters The Bakken -- North Dakota, USA -- CEO, Founder/Former CEO of Denbury

Petro Harvester was listed in today's NDIC daily activity report assuming Sagebrush wells in Renville County, North Dakota. It is my impression that the wells are all Madison wells.

Petro Harvester LLC was launched in October, 2010.

HOUSTON - October 13, 2010 - TPG Capital ("TPG"), a leading global private investment firm, said today it has formed a new venture, Petro Harvester Oil & Gas, LLC, to invest in oil and gas producing properties in North America. TPG expects the company will acquire substantial exploration and production ("E&P") assets over the next several years. Petro Harvester Oil & Gas ("Harvester") will initially focus on conventional E&P assets where it believes there are opportunities to drive increased production through operational focus.

In February, 2011, Petro Harvester LLC acquired Sagebrush assets in Renville County, North Dakota. Renville County is west of Bottineau County (think Spearfish formation) and north of Williams and Mountrail Counties; it borders the Canadian border.

HOUSTON - February 14, 2011 - Petro Harvester Oil & Gas, LLC, an exploration and production company formed by TPG Capital to acquire mature oil and gas producing assets, today announced that it has acquired long-life oil properties located in the Williston Basin of North Dakota from a private seller. The acquisition includes 170 wells in 24 producing fields and approximately 35,000 gross acres. Petro Harvester also announced it will open an office in Denver, Colorado.

Here are a few data points about Petro Harvester LLC:

• The CEO: Gareth Roberts, the former co-chairman and CEO of Denbury Resources, the firm he founded in 1990. Mr. Roberts has more than 30 years of experience in the exploration and development of oil and natural gas properties with Texaco, Inc., Murphy Oil Corporation and Coho Resources, Inc.
• COO: Jim Sinclair. Mr Sinclair served as Vice President of Exploration and Geosciences at Denbury Resources.
• Their operations are located in two regions: along the Gulf Coast (where they have most of their experience) and Williston Basin.

This is from their website regarding their operations in Williston Basin:

In January 2011, Petro Harvester acquired a package of producing properties in the Williston Basin. The assets include production and acreage in over 20 fields with most of the current value in four concentrated areas where we have high working interests and operational controls. The acquisition includes interest in 145 wells that produce from depths of 3,000 feet to 6,000 feet. Current production is approximately 2,000 barrels of oil equivalent per day. Identified opportunities include infill drilling, new water flood and enhancement of existing floods, and multilateral drilling. Additional upside potential includes deeper tests, enhanced fracturing techniques, and field extension through 3-D seismic.

The Sagebrush acquisition appears to be all Madison wells in Renville County.

Credo Petroleum Ups Its Working Interest in Bakken Wells -- North Dakota, USA

From its press release:

The Company has recently added five new horizontal Bakken wells to its growing list of Bakken producers on the Fort Berthold Reservation, bringing the total to eight wells.

• While Credo's working interests in the new wells are small, ranging from 1% to 3%, its share of initial production from the four wells is about 140 BOEPD (barrels of oil equivalent per day). 
• Three of the five wells have been completed and had excellent initial production rates of over 1,500 boepd. 
• The fourth new producer, the Enerplus Ethan Hall, reported an initial production rate of 3,732 boepd.
• This marks the highest initial rate of any Credo Bakken well drilled to date and ranks among the highest rates among all Bakken wells. In addition to the four new producers, one new well is in its final stages of completion for production.

Working interest will increase

Credo's 2011 North Dakota Bakken drilling schedule includes six wells where its interest will range from 12% to 20%.

These wells will be drilled in the same area as the Company's small working interest Bakken producers and are expected to achieve similar results. They will be operated by large independents and a major oil company.

[The major oil company in this part of the Bakken is XOM -- when it acquired XTO. KOG also calls XOM it's partner. Maybe the Bakken oil companies need a Facebook account to keep track of all their "friends." Smile.]

Investors Only: WMB Announces Significant Dividend Increase; CVX, XOM Raise Dividend

Williams Cos raises quarterly dividend 60% to $0.20 per share: This 60 percent increase in the quarterly dividend is consistent with the plan the company described on February 16, 2011, to increase shareholder value.

Williams is targeting an additional 10 percent to 15 percent increase for the quarterly dividends it will pay beginning in June 2012.

Along this same line, because of an "embarrassment" of riches when the major oil companies report their quarterly earnings starting tomorrow, there has been talk that the majors will want to return to shareholders as quickly as possible some of those profits in terms of increased dividends and/or stock re-purchases. We'll see.

FYI.

UPDATES

Update: 4:26 p.m., April 27, 2011:  3:36PM Chevron announces 8.3% increase in quarterly dividend to $0.78/share (CVX)

Update, 2:32 p.m., April 27, 2011: 1:43PM Exxon Mobil increased its qtrly dividend to $0.47/share from $0.44/share (XOM)

$150 Million State Project To Provide Water for Municipalities, Fracking Approved -- Williston Oil Basin, North Dakota, USA

This was a fairly "hot" issue pitting developers of a $150 million "state" project against independent water suppliers.

As far as I can tell, there were two issues for legislators to consider:

• The cost and how to pay for it, if passed
• Water management: whether it was needed (whether there was a problem that needed fixing)

The bill was overwhelmingly supported by the legislature and will be signed by the governor.

Data points:

• $150 million project
• Financed by a "patchwork" of state government loans (3 loans, including one from Bank of North Dakota)
• Project to be overseen by a 11-member state board
• If the project fails/defaults, the project will be taken over by the state Water Commission and will be responsible for paying back the loan

Water will be piped from the Missouri River near Williston, North Dakota

The project will expand the Williston water treatment plan to handle 21 million gallons per day, up from the current capacity of 10 million gallons. The pipeline will extend to Grenora to the northwest, Ray to the northeast and Alexander and Watford City to the south.

Smaller lines will bring water to individual properties that don't currently have access to river water, said, David Johnson, the project's chief engineer. Those pipes should be carrying water by the end of 2012, he said.

FYI.

Grail Oil Field -- A Three Forks Well: 129,000 Bbls In Less Than 6 Months

News

December 14, 2018: thoughts on the "Helis Grail."

December 14, 2018: the "Helis Grail" -- a case study.


November 7, 2018: announced -- QEP will exit the Bakken; Vantage Energy Acquisition Corporation.

July 30, 2018: comment -- my 2 cents worth -- I know the bankers, financial advisors, etc. -- those making money off fees/transactions -- disagree with me, but the biggest mistake the mineral owners in Grail oil field made several years ago was failing to vote in favor of unitizing the field. It was common sense but advisors had personal interests in recommending not unitizing the field; and mineral owners who voted against the proposal were simply either ignorant, or did not trust QEP. Opinion only and I'm probably in the minority. 

July 30, 2018: evidence that QEP is beginning major re-frack program in the Bakken; many wells fracked in Grail (and Deep Water Creek Bay) in late 2017 and early 2018; production updated below for early Grail wells; and re-fracks noted; many wells coming off-line suggesting re-fracks coming; 

November 30, 2014: some huge Grail wells are being reported.

October 23, 2014: the Grail wells have been updated.

March 24, 2014: since my last update, I noted QEP canceled seven permits in the Grail oil field. Graphic at link.

March 3, 2014: QEP withdraws proposal to unitize the Grail oil field. Scroll to bottom of this post to see level of activity in the Grail oil field at time the proposal was withdrawn.

March 1, 2014: Fargo attorney representing a mineral owner out of Bismarck trying to thwart QEP's plans to unitize the Grail; on the dockets next week. 

October 12, 2013: QEP to request unitization of the Grail-Bakken oil field. 

Permits

Issued in 2016
32554, PNC, QEP, Moberg 2-18T2HD, Grail,
32553, PNC, QEP, Moberg 1-18T3HD, Grail,
32552, PNC, QEP, Moberg 5-18BHD, Grail,
32551, PNC, QEP, Moberg 1-18T2HD, Grail,

Issued in 2015 (list is complete)
32345, 618, QEP, KDM 3-7-6T3HD, Grail, t10/16; cum 171K 5/20;
32344, 2,251, QEP, KDM 3-7-3T2HD, Grail, t10/16; cum 206K 5/20;
32191, PNC, QEP,
32190, PNC, QEP,
32189, PNC, QEP,
32188, PNC, QEP,
32108, PNC, QEP,
32107, 1,541, QEP, KDM 1-7-6T2HD, Grail, t10/16; cum 237K 5/20;
32106, PNC, QEP,
32105, 1,763, QEP, KDM 5-7-6BHD, Grail, t10/16; cum 233K 5/20;
32104, PNC, QEP,
32103, PNC, QEP,
32102, PNC, QEP,
32101, PNC, QEP,
32087, 2,133, QEP, KDM 6-7-2BHD, Grail, t9/16; cum 200K 5/20;
32086, 2,153, QEP, KDM 4-7-6T2HD, Grail, t9/16; cum 214K 5/20;
32085, 1,459, QEP, KDM 7-7-6BHD, Grail, t9/16; cum 232K 5/20;
32084, PNC, QEP,
32083, 772, QEP, KDM 2-7-6T3HD, Grail, t9/16; cum 182K 5/20;
32082, PNC, QEP,
32081, PNC, QEP,
32080, 1,213, QEP, KDM 5-7-6TDH, Grail, t916; cum 168K 5/20;
32057, loc, QEP,
32056, loc, QEP,
32055, PNC, QEP,
32054, loc, QEP,
31918, loc, QEP,
31917, loc, QEP,
31916, loc, QEP,
31915, loc, QEP,
31914, loc, QEP,
31913, loc, QEP,
31912, loc, QEP,
31829, 1,470, QEP, TAT4-33-28T2HDR, Grail, 12/16; cum 130K 5/20;
31696, drl-->conf-->1,042, QEP,Ernie3-10-2-11BHD, Grail, t4/16; cum 237K 5/20;
31695, drl-->conf, QEP,
31694, drl-->conf, QEP,
31693, drl-->conf, QEP,
31692, drl-->conf, QEP,
31691, drl-->conf, QEP,
31577, 1,800, QEP, TAT 7-33-28BHD, Grail, t12/16; cum 282K 5/2;
31576, loc, QEP,
31575, loc, QEP,
31574, loc, QEP,
31008, 2,725, QEP, Henderson 1-12-2-11T2H, Grail, t11/15; cum 199K 5/20;
31007, conf, QEP, producing as of 11/15;
31006, conf, QEP, producing as of 11/15;
31005, conf, QEP, producing as of 11/15;
30608, conf, QEP, Boggs 2-29-32T2HD, producing as of 10/15;
30607, conf, QEP, Boggs 8-29-32BHD, producing as of 10/15;
30606, 1,090, QEP, Boggs 6-29-32THD, Grail, t10/15; cum 320K 5/20;
30605, PNC, QEP, Boggs 5-29-32THD, 

Issued in 2014 (the list is complete)

• 29831, 1,824, QEP, Thompson 1-29-32T2HD, t4/14; cum 300K 5/20;
• 29830, 807, QEP, Thompson 5-29-32BHD, t4/15; cum 101K 12/15;
• 29829, 1,358, QEP, Thompson 6-29-32BHD, t4/15; cum 130K 12/15;
• 29828, 1,657, QEP, Thompson 4-29-32THD, t4/15; cum 125K 12/15;
• 29827, c2,191, QEP, Thompson 7-29-32BHD, t4/15; cum 153K 9/15;
• 29786, 1,599, QEP, P. Levang 2-14-23TH, t8/15; cum 58K 9/15;
• 29749, 2,159, QEP, P. Levang 1-14TH, t5/15; cum 89K 9/15;
• 29520, 2,406, QEP, P. Levang 3-14-23BH, t8/15; cum 60K 9/15;
• 29519, 2,396, QEP, P. Levang 4-14-23BH, t8/15; cum 46K 9/15;
• 29394, 2,199, QEP, TAT 5-35-26TH, t7/15; cum 43K 9/15;
• 29393, 2,240, QEP, TAT 5-35-26BH, t7/15; cum 61K 9/15;
• 29360, 2,520, QEP, Jones 1-15-22BH, t8/15; cum 28K 9/15;
• 29359, 2,080, QEP, Jones 2-15-22BH, t8/15; cum 20K 9/15;
• 29358, 722, QEP, Jones 1-15-23TH, t9/15; cum 7K 9/15;
• 29357, 1,013, QEP, Jones 2-15-23TH, t9/15; cum 11K 9/15;
• 29329, 2,291, QEP, Jones 15-22-16-21LL, Grail, t9/15; cum 541K 5/20;
• 29328, drl, QEP, Jones 4-15-22BH, producing since 9/15
• 29327, drl, QEP, Jones 6-15-22TH, producing since 9/15
• 29326, drl, QEP, Jones 3-15-22BH, producing since 9/15
• 29325, drl, QEP, Jones 5-15-22TH, producing since 9/15
• 29324, drl, QEP, Jones 3-15-23TH, producing since 9/15
• 28689, 2,712, QEP, State 3-16-21TH, t3/15; cum 169K 9/15;
• 28688, 2,602, QEP, State 4-16-21BH, t3/15; cum 169K 9/15;
• 28667, 2,106, QEP, Johnson 8-5-9-4LL, t2/15 cum 169K 9/15;
• 28666, 2,341, QEP, Johnson 4-9-4BH, t2/15; cum 237K 9/15;
• 28665, 1,974, QEP, Johnson 3-9-4TH, t2/15; cum 177K 9/15;
• 28622, 2,545, QEP, Moberg 18-13LL, t8/14; cum 88K 12/14;
• 28490, 2,022, QEP, Severin 2-16-17BH, t9/14; cum 187K 9/15;
• 28489, 2,343, QEP, Severin 1-16-17BH, t9/14; cum 206K 9/15;
• 28488, 2,222, QEP, Severin 9-8-16-17LL, t9/14; cum 197K 9/15;
• 28265, 2,290, QEP, Kirkland 14-23-13-24LL, t10/14; cum 124K 9/15;
• 28261, 2,103, QEP, Linseth 16-21-15-22LL, t12/14; cum 141K 9/15;
• 28260, 2,424, QEP, Linseth 4-22-15BH, t12/14; cum 177K 9/15;
• 28259, 2,009, QEP, Linseth 3-22-15TFH, t12/14; cum 175K 9/15;
• 28258, 2,319, QEP, Linseth 3-22-15BH, t12/14; cum 163K 9/15;
• 28168, IA/649, QEP, State 3-16-21BH, Grail, t12/14; cum 7K 7/15;
• 28167, 2,761, QEP, State 2-16-21TH, Grail, t10/14; cum 270K 9/15;
• 28166, 2,204, QEP, State 2-16-21BH, Grail, t10/14; cum 204K 9/15;
• 28165, 1,444, QEP, State 1-16-21BH, Grail, t10/14; cum 96K 9/15;
• 28133, 2,341, QEP, Moberg 4-18BH, Grail, t8/14; cum 192K 12/15;
• 28132, 2,362, QEP, Moberg 3-18TH, Grail, t8/14; cum 161K 12/15;
• 28131, 1,546, QEP, Moberg 2-18BH, Grail, t8/14; cum 167K 12/15;
• 28130, 2,318, QEP, Moberg 1-18BH, Grail, t8/14; cum 233K 12/15;
• 28022, 2,566, QEP, Moberg 2-20-21TH, Grail, t11/14; cum 188K 9/15;
• 28021, 2,529, QEP, Moberg 3-20-21BH, Grail, t11/14; cum 198K 9/15;
• 28020, 2,325, QEP, Moberg 3-20-21TH, Grail, t11/14; cum 176K 9/15;
• 28019, 2,590, QEP, Moberg 4-20-21BH, Grail, t11/14; cum 225K 9/15;
• 28006, 2,188, QEP, Moberg 17-16-20-21LL, Grail, t7/14; cum 243K 12/15;
• 27993, 2,620, QEP, Moberg 1-20-21BH, Grail, t8/14; cum 267K 12/15;
• 27992, 2,320, QEP, Moberg 2-20-21BH, Grail, t8/14; cum 200K 12/15;
• 27816, 1,952, QEP, TAT 33-28-34-27LL, Grail, t8/14; cum 155K 12/15;
• 27792, 1,664, QEP, TAT 2-33-28-BH, Grail, t8/14; cum 191K 12/15;
• 27791, 2,096, QEP, TAT 1-33-28BH, Grail, t8/14; cum 188K 12/15;
• 27782, 2,045, QEP, TAT 1-35-26BH, Grail, t7/15; cum 57K 9/15;
• 27781, 2,055, QEP, TAT 1-35-26TH, Grail, t7/15; cum 45K 9/15;
• 27780, 2,244, QEP, TAT 2-35-26BH, Grail, t7/15; cum 51K 9/15;
• 27766, 1,205, QEP, Veeder 27-3426-35LL, Grail, t6/14; cum 98K 12/15;
• 27705, 2,163, QEP, Kirkland 22-15-23-14LL, Grail, t9/14; cum 147K 12/15;
• 27702, 1,562, QEP, Otis 28-29-33LL, Grail, t7/14; cum 233K 12/15;
• 27657, 2,539, QEP, Johnson 3-9-4BH, Grail, t2/15; cum 197K 9/15;
• 27649, 2,262, QEP, Moberg 2-17-16TH, Grail, t7/14; cum 237K 12/15;
• 27648, 2,543, QEP, Moberg 3-17-16BH, Grail, t7/14; cum 173K 12/15;
• 27647, 1,581, QEP, Moberg 4-17-16BH, Grail, t7/14; cum 457K 5/20;

Issued in 2013 (list is complete)

• 27146, 2,172, QEP, Kirkland 3-23-14BH, Grail, t9/14; cum 275K 5/20;
• 27145, 2,213, QEP, Kirkland 4-23-14BH, Grail, t9/14; cum 75K 12/14;
• 27144, 2,256, QEP, Kirkland 2-23-14TH, Grail, t9/14; cum 69K 12/14;
• 27143, 1,417, QEP, Moberg 1-22-15BH, Grail, t7/14; cum 84K 12/14;
• 27142, 723, QEP, Moberg 2-22-15BH, Grail, t7/14; cum 86K 12/14;
• 27141, 1,137, QEP, Moberg 2-22-15TH, Grail, t7/14; cum 93K 12/14;
• 26957, 1,599, QEP, Veeder 1-27-34BH, Grail, t6/14; cum 90K 12/14;
• 26850, 1,861, QEP, Otis 4-28-33BHR, Grail, t7/14 cum 164K 12/14;
• 26849, dry, QEP, Otis 4-28-33BH, Grail, casing failure;
• 26848, 1,530, QEP, Otis 3-28-33TH, Grail, t7/14; cum 136K 12/14;
• 26847, 1,855, QEP, Otis 3-28-33BH, Grail, t7/14; cum 153K 12/14;
• 26524, 2,561, QEP, TAT 2-33-28TH, t5/14; cum 72K 8/14;
• 26523, 2,767, QEP, TAT 3-33-28BH, t5/14; cum 73K 8/14;
• 26522, 2,709, QEP, TAT 3-33-28TH, t5/14; cum 66K 8/14;
• 26521, 2,661, QEP, TAT 4-33-28BH, t5/14; cum 79K 8/14;
• 26329, 3,180, QEP, Poncho 5-3-10BH, t4/14; cum 71K 8/14;
• 26319, 2,183, QEP, Pogo 28-33-27-34LL, t3/14; cum 91K 8/14;
• 26304, 2,599, QEP, Veeder 4-27-34BH, t5/14; cum 55K 8/14;
• 26303, 2,170, QEP, Veeder 3-27-34TH, t6/14; cum 44K 8/14;
• 26302, 1,146, QEP, Veeder 3-27-34BH, t6/14; cum 55K 8/14;
• 26301, 1,411, QEP, Veeder 2-27-34TH, t6/14; cum 47K 8/14;
• 26300, 1,441, QEP, Veeder 2-27-34BH, t6/14; cum 46K 8/14;
• 26235, 2,270, QEP, Moberg 3-18BH, t11/13; cum 129K 8/14;
• 26234, 2,524, QEP, Moberg 3-18TH, t11/13; cum 111K 8/14;
• 26227, 2,383, QEP, Kirkland 2-23-14BH, t10/14; cum 135K 9/15;
• 26226, 2,364, QEP, Kirkland 1-23-14BH, t10/14; cum 101K 9/15;
• 26140, 2,496, QEP, TAT 4-35-26BH, t4/14; cum 58K 8/14;
• 26139, 2,232, QEP, TAT 3-35-26BH, t4/14; cum 58K 8/14;
• 26138, 2,080, QEP, TAT 2-35-26TH, t4/14; cum 52K 8/14;
• 26060, 2,323, QEP, Zorro 27-34-26-35LL, ICO, t1/14; cum 113K 9/15;
• 25947, 2,482, QEP, Poncho 2-3-10TH, t4/14; cum 97K 9/15;
• 25946, 297 (no typo), QEP, Poncho 2-3-10BH, t4/14; cum 138K 9/15;
• 25945, 2,656, QEP, Poncho 1-3-19TH, t4/14; cum 101K 9/15;
• 25944, 2,346, QEP, Poncho 1-3-10BH, t4/14; cum 153K 9/15;
• 25871, 2,322, QEP, Pogo 1-28-33BH, t3/14; cum 185K 9/15;
• 25870, 2,369, QEP, Pogo 2-28-33BH, t3/14; cum 170K 9/15;
• 25869, 2,938, QEP, Pogo 2-28-33TH, t3/14; cum 200K 9/15;
• 25868, PNC, QEP, Pogo 2-28-33TH,
• 25861, 2,655, QEP, Zorro 3-35-26BH, t1/14; cum 157K 9/15;
• 25860, 2,716, QEP, Zorro 4-35-26BH, t1/14; cum 160K 9/15;
• 25756, PNC, QEP, Otis 29-32-28-33LL, Grail,
• 25755, PNC, QEP, Otis 4-33-28BH, Grail,
• 25754, PNC, QEP, Otis 3-33-28TH, Grail,
• 25618, PNC, QEP, Johnson 3-4-9BH, Grail,
• 25617, PNC, QEP, Johnson 3-4-9TH, Grail,
• 25616, PNC, QEP, Johnson 4-4-9BH, Grail,
• 25615, PNC, QEP, Johnson 5-8-9LL, Grail,
• 25569, 2,642, QEP, Johnson 2-6-7TH, Grail, t11/13; cum 188K 9/15;
• 25568, 2,130, QEP, Dodge 3-6-7BH, Grail, t11/13; cum 189K 9/15;
• 25567, 2,307, QEP, Dodge 4-6-7BH, Grail, t11/13; cum 202K 9/15;
• 25493, 1,310, QEP, Johnson 4-9-3-10LL, Grail, t6/14; cum 176K 9/15;
• 25492, 1,106, QEP, Johnson 1-4-9BH, Grail, t6/14; cum 203K 9/15;
• 25491, 1,615, QEP, Johnson 2-4-9BH, Grail, t6/14; cum 246K 9/15;
• 25490, 2,262, QEP, Johnson 2-4-9TH, Grail, t6/14; cum 204K 9/15;
• 25442, 1,581, QEP, Kummer 2-6-7BH, Grail, t10/13; cum 202K 9/15;
• 25441, 2,988, QEP, Kummer 1-6-7BH, Grail, t11/13; cum228K 9/15;
• 25440, 2,661, QEP, Kummer 6-7-5-8LL, Grail, t11/13; cum 172K 9/15;
• 25306, 2,460, QEP, Paul 1-26-35BH, Grail, t12/13; cum 179K 9/15;
• 25305, 2,243, QEP, Paul 2-26-35BH, Grail, t12/13; cum 168K 9/15;
• 25304, 2,257, QEP, Paul 2-26-35TH, Grail, t12/13; cum 147K 9/15;
• 25192, 3,075, QEP, Poncho 4-3-10BH, Grail, t7/13; cum 163K 9/15;
• 25191, 1,863, QEP, Poncho 3-3-10BH, Grail, t7/13; cum 562K 5/20; huge jump in production;
• 25188, 2,132, QEP, Bert 2-2-11TH, Grail, t10/13; cum 148K 9/15;
• 25187, 2,175, QEP, Bert 2-2-11BH, Grail, t10/13; cum 179K 9/15;
• 25186, 2,170, QEP, Bert1-2-11BH, Grail, t10/13; cum 202K 9/15;
• 25041, 3,128, QEP, Lawlar 4-5-8BH, Grail, t4/14; cum 188K 9/15;
• 25040, 2,981, QEP, Lawlar 3-5-8TH, Grail, t4/14; cum 147K 9/15;
• 25039, 2,778, QEP, Lawlar 3-5-8BH, Grail, t4/14; cum 155K 9/15;
• 25038, 2,401, QEP, Lawlar 2-5-8TH, Grail, t3/14; cum 214K 5/20;
• 24949, 2,274, QEP, Patsy 2-29-32BH, Grail, t9/13; cum 419K 5/20; off-lien 5/18;
  
• 24948, 2,638, QEP, Patsy 1-29-32BH, Grail, t9/13; cum 311K 5/20; off-line 5/18;
• 24947, 2,586, QEP, Lawlar 2-5-8BH, Grail, t9/13; cum 658K 5/20; production drops way off 5/18; getting ready for re-frack?
• 24946, 1,823, QEP, Lawlar 1-5-8BH, Grail, t9/13; cum 643K 5/20; a great well with no evidence of a re-frack;
• 24827, 1,807, QEP, Hemi 2-27-34BH, t6/13; cum 286K 5/20;
• 24826, 1,936, QEP, Hemi 1-27-34BH, t6/13; cum 354K 5/20;

Helis Wells in the Grail (through December 31, 2012)

• 24687, 2,740, QEP, G. Levang 4-32-29BH, Grail, t8/13; cum 343K 5/20;
• 24686, 2,207, QEP, G. Levang 13-32/29H, Grail, t8/13; cum 284K 5/20;
• 24685, IA/2,994, QEP, G. Levang 3-32-29BH, Grail, t8/13; cum 387K 8/19;
• 24684, 2,805, QEP, G. Levang 2-32-29TH, Grail, t8/13; cum 430K 5/20;
• 24616, 2,389, QEP, Hemi 2-34-27TH, Grail, t5/13; cum 410K 5/20; off-line as of 4/18;
• 24615, 3,167, QEP, Hemi 3-34-27BH, Grail, t5/13; cum 513K 5/20; off-line as of 4/18;
• 24614, 2,729, QEP, Hemi 3-24-27TH, Grail, t5/13; cum 385K 5/20; off-line as of 4/18;
• 19894, PA/794, QEP/Helis, Gabbert 4-2/11H, Grail, t2/12; cum 7K 2/13; 6 stages; 560K lbs;
• 22879, 1,873, QEP/Helis, Gabbert 4-2/11HR, t9/12; cum 306K 5/20; a candidate for a re-frack?
• 22880, IA/1,834, QEP/Helis, Bert 2-2/11H, Grail, t7/12; cum 373K 9/19; 30 stages; 3.6 million pounds; all ceramic?
• 19898, 2,421, QEP/Helis, Gabbert 3-3/10H, Grail, t10/11; cum 486K 5/20; re-fracked late January, 2018;
• 19680, 2,246, QEP/Helis, Johnson 1-4/9H; Grail, t9/11; cum 449K 5/20;
• 17267, PNC, Helis,
• 16689, PA/142 QEP/Helis, Linseth 4-8H, Grail, t6/08; cum 78K 8/12;
• 21437, 2,256, QEP/Helis, Lawlar 16-8/5H, Grail, t4/12; cum 433K 5/20;
• 16856, PA, last produced 12/11; 185, Peterson 15-15H, Grail, t6/08; cum 83K 7/13;
• 18448, 2,429, QEP/Helis, Andrecovich 5-17/16H, Grail, t9/10; cum 552K 3/20;
• 22194, 1,248, Helis, Moberg 13-17/16H, Grail, s4/12; t2/13; cum 499K 5/20;
• 20226, 1,598, QEP/Helis, Moberg 4-20/21H, Grail, t12/11; cum 533K 5/20;
• 21052, PA/1,684, QEP/Helis, Moberg 15-22/15H, Grail, t12/11; cum 304K 5/18; just came off-line 4/18;
• 19379, 1,379, QEP/Helis, Kirkland 13-23/14H, Grail, t8/11; cum 383K 5/20;
• 22363, 2,108, QEP/Helis, Kirkland 15E-23/14H, Grail, t10/14; cum 261K 5/20;
• 21054, 1,601, QEP/Helis, Veeder 1-27/34H, Grail, t2/12; cum 389K 5/20;
• 21465, 1,907, QEP/Helis, TAT 15-33/28H, Grail, t5/12; cum 550K 5/20;
• 21456, 2,014, QEP/Helis, TAT 13-35/26H, Grail, t7/12; cum 485K 5/20;
• 17722, 2,068, QEP/Helis, Henderson Federal 4-26/35H, Grail, t1/11; cum 383K 5/20;
• 23278, 2,143, QEP/Helis, Paul 1-26/35H, Grail, t1/14; cum 314K 4/20; huge jump; re-fracked February, 2018;
• 16929, SWD/517, QEP/Helis, Levang 4-28H, Grail, t8/08; cum 55K 9/15; pre-perf line; 600,000 lbs; short lateral, was TA, now a SWD;
• 20780, 2,190, QEP/Helis, Henderson 1-28/33H, Grail, t6/12; cum 574K 5/20;; no evidence of a re-frack;
  
• 17894, PNC, 
• 19323, 2,521, QEP/Helis, Thompson 1-29/32H, Grail, t8/11; cum 582K 5/20; no evidence of a re-frack; appears to be a candidate for re-frack;
• 22378, PNC, Helis,
• 23626, PNC, Helis,
• 19104, 1,203, QEP/Helis, Henderson 16-34/27H, Grail, t5/11; cum 435K 2/20; no evidence of a re-frack;
• 22371, 3,668, QEP, Hazel 13-34/27H, Grail, t5/13; cum 684K 5/20; came off-line in 4/18; 

Original Post

Grail oil field is an irregularly-shaped 30-section oil field just west of the reservation; the field currently has two rigs on site. It is just south of the bull's eye of the Bakken, and shares its eastern border with the reservation. It looks like Helis is targeting the TFS.

June 25, 2012:

• 20780, 2,190, QEP/Helis, Henderson 1-28/33H, Grail, Bakken, t6/12; cum 510K 5/18; Three Forks, gas shows as high as 5,000 units; frack data not yet posted as far as I could see; no evidence of a re-frack;

Back on March 3, 2011, this was reported:

• 17722, 2,068, Helis Oil and Gas, LLC, Henderson Federal 4-26/35H, Grail, Bakken; TFS, 35K in 41 days; ~ 24-stage frac; t1/11; cum 345K 5/18;

But this is the "biggie" in Grail, section 17-149-95:

• 18448, 2,429, Helis Oil and Gas, LLC, Andrecovich 5-17/16H, 24-stage frac; TFS, tested, 9/10; 129K in 4.5 months; 20K/month; t9/10; cum 520K 5/18;no evidence of a re-frack;

Helis was awarded another permit in Grail oil field today (April 26, 2011); and, two more permits on May 3, 2012. This is going to be an interesting field/interesting company to follow.

********************************************

Grail Oil Field Activity February 6, 2015

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Grail Oil Field Activity November 28, 2014

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Grail Oil Field Activity October 23, 2014

 

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Grail Oil Field Activity September 4, 2014

Three (3) Rigs

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Grail Oil Field Activity The Day QEP Withdrew Request to Unitize The Field, March, 2014

Seven (7) Rigs