As the clock continues to run on these expiring leases, you may see well over 200 rigs in this area by October. Beware, winter will be just around the corner and who knows what else. Object: Get as much done as possible.
I would certainly expect to see well over 200 rigs by October; I am sure that many are in North Dakota now, but not all in place and drilling at any given time.
Winters aren't a problem for drilling in North Dakota until mid-January through all of February. We will finish out 2011 in grand style.
I'm not worried about expiring leases. These guys are reaching total depth in 12 to 20 days; the wells don't have to be completed/fracked to hold leases by production. Just drilling to depth will ensure production. We're not going to see much in the way of expiring leases affecting the bigger players. If there's a problem, there might be some horse trading to get a well spudded, but my hunch is that when they are drilling to depth in 16 days, and there are 200 rigs in North Dakota, they will get to their leases (some exceptions, of course, but it won't be the "good" leases that get lost).
After the earthquake today Obama took a break from golf to rename the fault. Bush's
ReplyDeleteSeriously, laugh out loud.
ReplyDeleteGreat first comment, after a long day of traveling.
Just found a wi-fi connection!
As the clock continues to run on these expiring leases, you may see well over 200 rigs in this area by October. Beware, winter will be just around the corner and who knows what else. Object: Get as much done as possible.
ReplyDeleteI would certainly expect to see well over 200 rigs by October; I am sure that many are in North Dakota now, but not all in place and drilling at any given time.
ReplyDeleteWinters aren't a problem for drilling in North Dakota until mid-January through all of February. We will finish out 2011 in grand style.
I'm not worried about expiring leases. These guys are reaching total depth in 12 to 20 days; the wells don't have to be completed/fracked to hold leases by production. Just drilling to depth will ensure production. We're not going to see much in the way of expiring leases affecting the bigger players. If there's a problem, there might be some horse trading to get a well spudded, but my hunch is that when they are drilling to depth in 16 days, and there are 200 rigs in North Dakota, they will get to their leases (some exceptions, of course, but it won't be the "good" leases that get lost).