Of a dozen accomplishments highlighted by Legacy in their 2Q11 operations and financial results, this was the first item mentioned:
At Bottineau County, North Dakota, three of the five wells drilled and completed in late 2010/early 2011 are on production, with an average 60 day initial production rate of 100 Boe per day, per well. These wells have confirmed the presence of an emerging light oil resource play in the Spearfish Formation and proven the productive potential of a large portion of Legacy’s Bottineau County acreage.A big thanks to another "Bruce" alerting me to this. I would not have found it on my own.
Good job Bruces.
ReplyDeleteA bit more:
"All five of the previously drilled Spearfish horizontal wells in Bottineau County, North Dakota have been multi‐stage fracture stimulated. Three of the wells have been on production for 60 days, one well is waiting on a service rig and the final well suffered a mechanical failure of the liner system and will be re‐drilled later this year, as it is located immediately adjacent to the three producing wells. Results are preliminary, but indicate an average 30 day initial production rate of 95 Boe per day, per well. However, production rates have been constrained by artificial lift capability and efforts are ongoing to further optimize production as evidenced by the average 60 day initial production rate of 100 Boe per day, per well. These wells have confirmed the presence of an emerging light oil resource play in the Spearfish and proven the productive potential of a large portion of Legacy’s Bottineau County acreage position of 46,042 net undeveloped acres.
The Company will continue to produce these wells to confirm this positive initial result and is working on permitting a significant development drilling program for the second half of 2011 and into 2012, which will complement the Spearfish development program at Pierson, Manitoba where completion operations commenced in early July, with eight Spearfish horizontal wells completed to‐date. Operations staff continue to work diligently to re‐start a number of shut‐in wells; however, the progress has been slowed by the damage sustained to the transportation infrastructure in southern Manitoba from the flooding experienced for the last number of months."
...
"Success in the Spearfish play in Bottineau County, North Dakota has confirmed the presence of an emerging light oil resource play in the Spearfish and proven the productive potential of a large portion of Legacy’s Bottineau County acreage. As detailed earlier, production rates have improved over time as the producing wells have been optimized as the productive capability of the wells has been stronger than initially anticipated. Legacy has more than 46,000 net undeveloped acres in the area which could lead to potentially more than 570 net unrisked horizontal locations, based on eight wells per section spacing. Competitors in Manitoba, less than two miles away, are developing the Spearfish with 24 wells per section. The Company has no reserves or locations associated with Bottineau County in its current inventory."
At Pierson, Manitoba, the Company has now fractured stimulated eight of the ten wells that have been waiting on completion and has begun restarting a number of shut‐in wells. Production is expected to increase rapidly as these wells are brought on‐stream. Legacy has identified 234 net Spearfish horizontal locations in Pierson, based on eight wells per section spacing. Licensing and permitting new drilling locations is underway in earnest in anticipation of moving in a drilling rig into the play in the next month. The Company is investigating adding a second drilling rig to the area in the fall of 2011 to further accelerate development of the Spearfish play in both Manitoba and North Dakota."
...
"Legacy currently has nine drilling rigs operating and anticipates taking delivery of two new state‐of‐the‐art drilling rigs in late 2011/early 2012 which could provide incremental drilling capabilities to accelerate development in one or more of our key plays. As previously disclosed was Legacy’s deal to secure fracture stimulation services for its primary operating areas, locking in pricing and access to services."
Coming soon: (See the list. Lots of companies. Available online.)
http://www.vcall.com/customevent/conferences/enercom/20110814/webcast.html
and (Also online.)
http://finance.yahoo.com/news/LEGACY-OIL-GAS-INC-TO-PRESENT-cnw-3617991853.html?x=0&.v=1
Nothing from Surge yet.
The new casino in Belcourt will be available soon for those who make money on this play.
Anon 1
Yes, I have the Enercom conference linked at the sidebar on the right under "News and Conferences."
ReplyDeleteI consider the Enercom conference the best of the year.
My wifes grand parents own land in the the Cimbel and Lesje fields. I wonder if they will get that far south and west. Well 19099 was a dud.
ReplyDeleteThose two fields are about as far north and about as far east one can be, and still be in the Williston Basin. If you see these fields as being "south and west," you must be northeast of North Dakota, unless I misunderstood your note, or misread the GIS map server.
ReplyDeleteI think he meant his folks land is south and west of the current legacy activity.
ReplyDeleteLand in cimbal and lesje is the former eog leases now owned by surge.
Surge has a spacing hearing on aug 31 (I think that is correct day)
In regards to the it's spearfish development. land referenced in this presentation.
http://www.surgeenergy.ca/en/documents/presentations/surge_presentation_june_16_2011_final.pdf
The way I read it the play includes cimbal and lesje notwithstanding weak results south of initial eog horrz wells last year but surge is starting in the very north.
Interestingly the surge presentation shows legacy land also. A surge exec is a member of legacy board . Both companies are based in Calgary and I think spearfish is the first us activity so they are new to us leasing, regulatory and local gov practices which while certainly similar, can be different from
You are correct; I missed that. I spent too much time (if that's possible) in North Dakota where we measure distance in 100's of miles. I never assume he/she meant just a few miles when he/she said "that far south and west." That "far south and west" suggested at least 500 miles to me. Smile.
ReplyDeleteAnyway, I hope Legacy, Surge, et al, have some great success in the Bottineau Spearfish.
Surge has new presentation and news release today, but doesn't say much about ND.
ReplyDeleteTheir map is very useful.
The August presentation is a PDF at this URL:
ReplyDeletehttp://www.surgeenergy.ca/index.php?page=events_presentations
Surge is on the ndic 31 aug docket with a spacing hearing related to the surge "north Dakota spearfish development land" referenced in the presentation. Surge in a prior press release indicated that it will start it's drilling program as operator in early calendar 2012. Surge will likely participate (non op) if any other operators (corinthian or legacy) drill locations where surge has minority position. Likely locations would be on the north eastern edge of surge leases.
ReplyDeleteI don't yet have a feeling for the Spearfish like I have for the Bakken.
ReplyDeleteI don't yet have a feeling for Surge and Legacy like I do for BEXP, WLL, CLR. It took me about one year to get a handle on the Bakken. I assume it will take at least that long for me to understand the Bottineau Spearfish.