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Saturday, November 19, 2011

North Dakota Bakken is Clearly in the "Manufacturing Stage"

The December, 2011, NDIC hearing dockets clearly reflect the Bakken is in the manufacturing stage. The oil companies are drilling out the leases they have.  Much of the December docket was devoted to unrestricted flaring (unrestricted production) and pooling, which I generally consider the last administrative step before drilling.

It is clear that the standard is seven wells in each 1280-acre unit; or four wells in each 640-acre unit. That's the standard, there are exceptions.

Some data points and/or exceptions:
  • 16417, EOG, extend Clarks Creek-Bakken, establish a 1920-acre unit, 8 wells, McKenzie
  • 16448, Enerplus, 5 wells on a 640-acre unit, Spotted Horn-Bakken, McKenzie 
  • 16420, BEXP, amend Catwalk-Bakken, establish 2 1280-acre units, 8 wells on each, Williams
  • 16453, BEXP, 8 wells on a 1280-acre unit, East Fork-Bakken, Williams
    16454, BEXP, 8 wells on each 128-acre unit, Kittleson-Slough-Bakken, Mountrail 
  • 16424, Chimney Sweep, create a 320-acre unit, Stark County, Lodgepole Formation 
KOG is starting to get into the manufacturing stage:
  • 16309, KOG, 6 wells on 1280-acre unit, Mandaree-Bakken, Dunn
  • 16310, KOG, establish 6 1280-acre units; 2 wells each, Hay Draw-Bakken, McKenzie
 

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