Pages

Sunday, September 18, 2011

Explanation for Why Wells At the End of the Confidential Period Can Report "No Production Data Available" -- Bakken, North Dakota, USA

Elsewhere, this question: what does it mean that a well coming off the confidential list reports "no production data available"?

In the current boom this is what it means: the well has not been completed, which, in general, means the well has not been fracked.

At the end of the six-month confidential period, the well comes off the confidential list. If it has not been completed/fracked, the company can request that the well be placed on DRL status awaiting completion. While on DRL status, the company does not have to file production reports.

I just checked several wells on DRL status: none of them showed production data. It seems I have recalled some wells on DRL status that reported production data but I can't remember for sure. Until I'm corrected, or I can find an example, the bottom line is that a well on DRL status is most likely producing oil, but because it is not completed/fracked it does not have to report production. I have noticed that wells on DRL status that have sold oil, do report that data to the NDIC. (Wells will produce oil even if they have not been fracked.)

I am on the "edge of the envelope" with my understanding of this, so I expect some folks will tweak my understanding but in general, the above is true for all intents and purposes.

Bottom line answer to the question: the well was not yet completed/fracked at the time it came off the confidential list. Everything else is trivial.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.