My data base may be a bit different than what the NDIC reports, but I bet it won't be far off.
Maybe later, I will do some sort of analysis of the 1,926 permits.
By county (six biggest counties in terms of number of permits -- data from Bakkenblog):
- Burke: 99
- Divide: 129
- Dunn: 306
- Mountrail: 338
- Williams: 376
- McKenzie: 505
The last ten permits for the year included Slawson permits for a 4-well pad in Alger field; three of the four wells will target the Three Forks formation, rather than the Bakken, which is a huge difference than what one would normally expect, two wells targeting the Bakken, and two wells targeting the Three Forks. For a newbie, that may not sound like a big deal, but for an amateur like me who has tracked the activity in the Bakken boom for the past three years, it is quite remarkable.
When this boom started, I expected one short lateral per section in the Bakken.
Then they went to long laterals.
Then they went to two-well pads in a few cases, but quickly went to four-well pads pioneered by Continental Resources. Slowly, every so slowly, the multiple well pad became the norm in 2011. Well, maybe not the norm, but certainly not rare. There was even one 5-well pad (a BEXP pad) and at least one six-well pad (Hess, I believe).
Along the way, they went from one well per section, to at least two wells per section, and Whiting is putting in as many as seven horizontals in some 1280-acre units. And others are putting in four wells in some 640-acre units (one section is 640 acres).
And so, fittingly, we finish the year with permits for a 4-well pad in Alger field, which I believe was the first oil field I "spotlighted." That was back in February, 2010. Since then I have "spotlighted" more than 75 fields in the Williston Basin, and I don't feel I have even scratched the surface.
I can only imagine what 2012 might bring. Good luck to all.
The change in a short period of time has been breath taking and it has just started. It will continue to change as new technology and efficiencies come on line. Just keep the federal government from ruining it.
ReplyDeleteI find it amusing when I read some of the comments at Carpe Diem saying the Bakken is a joke that won't last. One reason they give is the rapid decline in production of a Bakken well, implying they will soon be sealed and abandoned. Little do they know the wells will be reworked, or refracture multiple times to keep the production up. The wells will be producing longer than most of us have left to live. A little bit of knowledge can lead to some very incorrect conclusions.
Maybe some focus should be put on what a rework involves and what it purpose is.
You are absolutely correct. That was one of the reasons I shut down my comments for awhile: too much garbage.
ReplyDeleteThis new year I plan to spend more time looking at the production cycles of some of the old legacy wells. In addition, now that some Bakken wells are three years old (and older in some cases) we can start looking at changes in monthly production.
It's very tedious to look at well reports (100s of pages) but when monthly production jumps from 100 to 700 bbls in one month, you know the well has been re-worked.
I have a question...We got a new well and normality the new wells say confidential, but this one says LOC, okay dose that mean something different or dose it go to confidential after that? God forbid the EOG would help me with any of my question!!! thanks for your time
ReplyDeleteLOC simply means that the NDIC has issued a permit for this "location."
ReplyDeleteThe operator does not have to, but most likely will, ask to have the permit be made "confidential." Once that is approved, the GIS map will show this as a "confidential" well and it will be placed on the "confidential list."
It will go from "LOC" to "CONF." At the end of six months if it hasn't been completed, it will go on the "DRL" list.
I haven't tracked it, but it seems a LOC generally goes CONF within six months; i.e, spudding commences within six months.
By the way, it appears the NDIC is getting away from using the term "confidential" or "confidential list" and is now referring to all these wells/permits as "tight holes."
Bottom line: "LOC" means that a permit has been issued and spudding is like to commence shortly. (There are exceptions; sometimes a permit is canceled.)
Disclaimer: as with all my comments, I use layman's jargon as I understand it; I could be wrong, but someone will usually correct me.
Back to CRC's comment: that is one of the points that I was trying to make with my top stories for 2011 -- how quickly things have turned around, especially with regard to natural gas.
ReplyDeleteI have said often that it is not just the production in the Bakken that excites, but that the Bakken has turned out to be a research laboratory, figuratively and literally. A lot of "stuff" learned in the Bakken is being used around the world.
And I agree with CRC: unless something else all of a sudden replaces oil, the Bakken is going to be around for a long, long time. The "unexciting" Madison has been around since 1951. And the Madison phenomenon is not over, either.