Operators: KOG (4), Hess (3), Whiting (2), BEXP (2), EOG, Newfield, EOG, North Plains Production, GE (GeoResource)
Fields: Pembroke, Climax, Pleasant Hill Ray, Sanish, Elk, Patent Gate, South Tobacco Garden, Wildrose, Parshall, and a wildcat.
KOG's four permits are on same section in Pembroke oil field (McKenzie), an Eco-Pad-like setup?
BEXP has the wildcat, in McKenzie County.
Two of the Hess wells will be on same permit in Ray field, Williams County.
Whiting has one permit in Pleasant Hill and one in their cash cow, Sanish oil field.
Two of three wells coming off confidential list had not data (DRL status, most likely); the third was Hess' EN-Lalim A-156-94-27H-1, in Mountrail County, with an IP of 250.
Crescent Point Energy canceled permit #10827, CPEC Ridgeway 25-36-163N-101W, Divide County. (That NDIC entry, by the way, was filled with typographical errors.)
I believe that this is only the tip of the iceberg in regards to operators beginning "panic" mode as the clock continues to run on leases about to expire. A vast number of leases in Eastern Montana which are currently temp spaced is slowly reaching expiration dates. Factors such as extreme weather conditions and lack of frack crews are beginning to reflect on the current status of leases. Top leasing and lease renewals will be costly to the operators but good for the mineral owners.
ReplyDeleteI try to stay away from the word "panic" with regard to oil issues. The oil industry is used to "boom and bust" and expiring leases are pretty much part of the story. My hunch is that if expiring leases start to become an issue, mineral owners will do well, as you say with regard to getting leases.
ReplyDeleteBut it has been awhile since I've seen sixteen permits issued in one day, so there may be a sense of urgency. It will take awhile to see what the trend will be.
Companies will dispense of their less attractive acreage first if expiring leases become an issue, and they will get top dollar for those acres, nonetheless. It should be a win-win for all.
I do believe investors might see some nice activity in the latter half of 2011 and in 2012.