Sunday, May 1, 2011

CLR's First Economically Successful Well: The Robert Heuer 1-17R -- Bakken, North Dakota, USA

From page 7 of CLR's 2010 annual report:
Continental completed the first economical horizontal well in the North Dakota Bakken utilizing multi-stage fracture stimulation—the Robert Heuer 1-17R in Divide County in March 2004.
This is quite an interesting story.

The permit for this well is #8201 ("we" are currently in the "20,xxx" file numbers). This well was spudded in 1981 targeting the Madison formation; it was dry.

Harold Hamm re-entered the well on 12/26/03 targeting the Bakken. Its IP was ..... drum roll ... 87.

Yup, 87 bopd was the IP, and to date, after seven years of producing without missing a day, except for one workover, this well has produced a grand total of 78,863 barrels of oil.

And it was Harold Hamm's first economically successful well in the Bakken. I used to think that 100,000 bbls was the critical milestone, but this well has accomplished what it needed to at much less.

Think about that. The price of oil has been nowhere near $100 for most of the past seven years. SemCrude prices only go back to 2001 (and Murphy oil prices back to August, 2009). In April, 2001, WTI oil was going for $24/bbl. Yes, that's right, $24/bbl.  By February,  2009, North Dakota sweet was down to $19.10.

If a well with an IP of 87 and total production under 80,000 bbls can be economically successful at a time when oil was well under $40/bbl, can you imagine what current wells are doing?

Then, look at the production data below. See if you notice the same thing I noticed? The original re-entry had the usual horrible Bakken decline, going from 2,400 bbls/month to 500 bbls/month, but then it leveled off at 500 bbls/month after it had paid for itself.  500 x $100 --> $50,000/month for a well that has paid for itself.

Then, notice that several months ago, November, 2010, the well was taken off-line. One assumes that it was re-fracked (or whatever workover rigs are able to do) and monthly production doubled what it did when it was first re-entered back in 2003, up to 4,000 bbls/month, or 4,000 x $80 --> $320,000/month.

Much more could be said about this, but the facts speak for themselves, and explains why some folks want a reassessment of the Bakken, based on new technology and re-entering old holes, and re-working recent wells.

There is one more "secret" which makes this well even more profitable than the production runs will show but that's for a different posting. Maybe someone will provide that detail in the comment section. I have reasons why I won't. (It's like the 4:30 TV ad teasing you with the 5:00 headline news. Smile.)

By the way, this well is not in what I would call the "core Bakken." It is well north of Tioga, about 12 miles northeast of Wildrose, North Dakota.



Robert Heuer 1-17R
NDIC File No: 8201     API No: 33-023-00186-00-00     CTB No: 108201
Well Type: OG     Well Status: A     Status Date: 3/5/2004     Wellbore type: Horizontal Re-Entry
Location: SESE 17-161-95     Footages: 600 FSL 822 FEL     Latitude: 48.765628     Longitude: -103.030310
Current Operator: CONTINENTAL RESOURCES, INC.
Current Well Name: ROBERT HEUER 1-17R
Elevation(s): 2365 KB   2347 GL     Total Depth: 13249     Field: SADLER
Spud Date(s):  1/11/1981  12/26/2003
Casing String(s): 9.625" 1618'   7" 8873'  
Completion Data
   Pool: BAKKEN     Perfs: 8873-13249OH     Comp: 3/5/2004     Status: F     Date: 3/5/2004     Spacing: SEC
   Pool: MADISON     Comp: 2/13/1981     Status: DRY     Date: 2/13/1981
Cumulative Production Data
   Pool: BAKKEN     Cum Oil: 78863     Cum MCF Gas: 140201     Cum Water: 24260   
Production Test Data
   IP Test Date: 3/31/2004     Pool: BAKKEN     IP Oil: 87     IP MCF: 150     IP Water: 146



Production history:Monthly Production Data
Pool Date Days BBLS Oil Runs BBLS Water MCF Prod MCF Sold Vent/Flare
BAKKEN 2-2011 26 4089 4628 1514 3218 3218 0
BAKKEN 1-2011 29 4778 4207 2739 3514 3514 0
BAKKEN 12-2010 31 1719 1185 2691 1561 1561 0
BAKKEN 11-2010 3 38 196 5 47 47 0
BAKKEN 10-2010 31 520 375 133 527 527 0
BAKKEN 9-2010 30 537 555 145 513 513 0
BAKKEN 8-2010 31 513 560 148 520 520 0
BAKKEN 7-2010 31 477 569 140 510 510 0
BAKKEN 6-2010 30 519 555 207 349 349 0
BAKKEN 5-2010 31 543 563 143 421 421 0
BAKKEN 4-2010 30 512 399 123 433 433 0
BAKKEN 3-2010 29 512 564 105 634 634 0
BAKKEN 2-2010 28 493 376 110 562 562 0
BAKKEN 1-2010 31 565 533 115 633 633 0
BAKKEN 12-2009 31 564 571 122 975 975 0
BAKKEN 11-2009 30 551 604 127 618 618 0
BAKKEN 10-2009 31 575 552 130 611 611 0
BAKKEN 9-2009 30 551 569 155 620 620 0
BAKKEN 8-2009 31 593 612 137 666 666 0
BAKKEN 7-2009 26 562 572 188 601 601 0
BAKKEN 6-2009 30 534 613 151 663 663 0
BAKKEN 5-2009 27 569 682 176 690 690 0
BAKKEN 4-2009 30 586 890 137 868 868 0
BAKKEN 3-2009 31 574 457 134 2196 2196 0
BAKKEN 2-2009 28 542 446 138 1982 1982 0
BAKKEN 1-2009 31 644 679 163 1866 1866 0
BAKKEN 12-2008 31 619 892 133 2427 2427 0
BAKKEN 11-2008 29 586 238 182 1169 1169 0
BAKKEN 10-2008 31 644 454 177 997 997 0
BAKKEN 9-2008 30 616 622 143 910 910 0
BAKKEN 8-2008 31 642 656 165 998 998 0
BAKKEN 7-2008 30 658 669 160 1018 1018 0
BAKKEN 6-2008 30 633 919 114 966 966 0
BAKKEN 5-2008 31 654 442 188 936 936 0
BAKKEN 4-2008 30 663 893 123 915 915 0
BAKKEN 3-2008 31 682 647 160 903 903 0
BAKKEN 2-2008 29 665 463 123 860 860 0
BAKKEN 1-2008 31 727 701 135 941 941 0
BAKKEN 12-2007 31 732 725 159 1380 1380 0
BAKKEN 11-2007 30 694 714 130 1412 1412 0
BAKKEN 10-2007 31 688 698 142 1792 1792 0
BAKKEN 9-2007 30 702 692 135 2128 2128 0
BAKKEN 8-2007 31 699 648 150 2468 2468 0
BAKKEN 7-2007 31 671 686 155 2502 2502 0
BAKKEN 6-2007 30 670 692 143 2401 2401 0
BAKKEN 5-2007 31 715 666 148 2521 2521 0
BAKKEN 4-2007 30 719 881 161 2274 2274 0
BAKKEN 3-2007 31 742 862 150 2460 2460 0
BAKKEN 2-2007 28 713 668 128 2465 2465 0
BAKKEN 1-2007 30 770 662 197 2520 2520 0
BAKKEN 12-2006 30 738 660 157 2232 2232 0
BAKKEN 11-2006 30 749 872 158 2285 2285 0
BAKKEN 10-2006 31 734 444 192 2533 2533 0
BAKKEN 9-2006 30 737 885 153 2715 2715 0
BAKKEN 8-2006 31 758 877 170 2906 2906 0
BAKKEN 7-2006 31 788 661 162 3067 3067 0
BAKKEN 6-2006 30 800 879 163 2580 2580 0
BAKKEN 5-2006 27 813 801 173 1784 1784 0
BAKKEN 4-2006 30 793 791 159 1641 1641 0
BAKKEN 3-2006 30 871 832 204 1723 1723 0
BAKKEN 2-2006 28 830 644 171 2839 2839 0
BAKKEN 1-2006 27 776 877 178 2482 2482 0
BAKKEN 12-2005 31 897 1098 228 2833 2833 0
BAKKEN 11-2005 27 881 661 179 2208 2208 0
BAKKEN 10-2005 30 910 870 392 2499 2499 0
BAKKEN 9-2005 25 829 858 178 2665 2665 0
BAKKEN 8-2005 31 987 1040 237 4305 4305 0
BAKKEN 7-2005 31 1055 1030 268 4699 4699 0
BAKKEN 6-2005 30 1278 1273 314 3542 3542 0
BAKKEN 5-2005 20 727 698 158 2489 2489 0
BAKKEN 4-2005 28 1039 1220 365 1438 1438 0
BAKKEN 3-2005 31 1269 1071 316 187 187 0
BAKKEN 2-2005 23 1051 1073 238 2042 2042 0
BAKKEN 1-2005 27 1125 1080 262 309 309 0
BAKKEN 12-2004 31 1222 1325 294 2053 2053 0
BAKKEN 11-2004 30 1235 1343 285 1273 1273 0
BAKKEN 10-2004 30 1350 1525 314 1573 1573 0
BAKKEN 9-2004 30 1451 1310 390 1837 1837 0
BAKKEN 8-2004 31 1584 1747 425 1837 1837 0
BAKKEN 7-2004 31 1922 1695 520 2489 241 2248
BAKKEN 6-2004 30 1876 1876 600 2735 0 2735
BAKKEN 5-2004 31 2358 2252 875 774 0 774
BAKKEN 4-2004 27 3142 3621 1465 1800 0 1800
BAKKEN 3-2004 7 2324 1675 240 666 0 666





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