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