Five (5) New Permits -- Bakken, North Dakota, USA

Operators: CLR (3), Denbury, and Hess.

Fields: Upland, Cedar Hills, Siverston, and Big Butte.

Two of CLR's permits are in the same section in Cedar Hills: 23-131N-107W.

There was absolutely nothing else on today's activity report. I assume that all the wells that came off the confidential list over the weekend and today will be seen on the activity report tomorrow.

The Cedar Hills field is very, very interesting.

Back in 2007, CLR had this to say about Cedar Hills:

The Cedar Hills North unit (CHNU) is located in Bowman and Slope Counties, North Dakota. We drilled the initial horizontal well in the CHNU, the Ponderosa 1-15, in April 1995. As of December 31, 2006, we had drilled 154 horizontal wells within this 49,700-acre unit, with 90 producing wellbores and the remainder serving as injection wellbores. We operate and own a 98% working interest in the CHNU.

These were CLR's Red River formation wells. Last year CLR was issued six permits in Cedar Hills, and these two permits today were the first to be issued for Cedar Hills this year. Two of the Cedar Hills wells from last year are off the confidential list and both were Red River or North Red River "B" wells, so I assume these new wells will also be Red River wells.

The Siverston field is pretty much owned by Newfield and Denbury. Denbury picked up these wells when they bought Encore.

I have not provided an update of Upland, but at 28 sections it is about the size of 36-section township. It is about 6 miles north-northeast of Wildrose, a bit north of the core Bakken. There are about a dozen wells there now (most confidential; about six producers; and one rig-on-site). The wells seem to be mediocre with IPs of about 650 - 750 and it appears the wells will take about three years to get to 100,000 bbls. But over time, these wells will do very nicely for CLR, especially if oil stays in the current price range (and trends higher). Today's Upland permit was the third one in Upland for CLR so far this year.