Legacy: Incredible Story -- Or Am I Missing Something?

DISREGARD THIS POST: The reported IP of 3,000 was a gross error. I will leave this for archival purposes for the time being. UPDATE

May 26, 2011: Based on press release and comments, these are my thoughts regarding this well (numbers rounded)(feel free to comment) --

3,000 feet vertical (thus, the Spearfish).

3,000 feet horizontal (longer than EOG Spearfish horizontal wells).

Mud with little oil show in the Spearfish (this well).

Company's press release: the company remains optimistic about Spearfish prospects in Bottineau County and will report results of this well later.

My hunch: this well is either dry or disappointing.

May 24, 2011: This report was removed from an updated version of the May 23, 2011, daily activity report. For now, I do not know what was going on. See new posting here.


ORIGINAL POST

First, read this earlier post --> Legacy: To Extend Play into North Dakota

The future of the Spearfish formation in Bottineau Country remains a real mystery.

Early on, NDIC/Director, Lynn Helms, or others, said "we" could see 2,000 to 7,000 wells in a relatively small area along the North Dakota-Canadian border a bit east of the Bakken activity. There were articles that EOG would bring its Saskatchewan experience and success across the border into North Dakota.

But then, after a few wells were drilled, completed, and reported, EOG's activitiy ended. This was about the same time that EOG was shellacked by shareholders after reporting 3Q10 results. Shortly after that I posted a short essay questioning whether EOG had thrown in the towel on the Spearfish in North Dakota. 

In today's NDIC daily activity report, Legacy reports a huge well:

• 19462, 3,000, Legacy, Legacy Etal Energy Norm 4-19H, Bottineau

According to the NDIC report it's a Bakken well, but when you go to the well file, it is reported as a SPEARFISH well. Because it was just released, the file report is not yet available.

For more on Legacy, use the search app at your browser to search "Legacy" at this site, or go to the "tags" at the bottom of this site, and click on "Legacy."

If this is not a typo, and it's truly a 3,000 bopd IP in the Spearfish, this will be very, very interesting. Remember, it seemed that EOG was not having the success in the Spearfish that the Canadians were having in southwest Manitoba.

The next thing to watch for: the cost of these wells. A typical Bakken well costs $7 million. The Canadian Spearfish well: $1.5 million.

For more on the Spearfish, click here, or on the link at the sidebar on the right.