I posted an article earlier today about Samson Oil and Gas partnering with Halliburton to open the Niobrara in Wyoming.
It was a small posting but a huge story.
I was reminded by a reader (who must have the memory of an elephant), after posting that story, that history seems to be repeating itself. The Bakken can be traced back to the Elm Coulee field in Montana. Then, it was a small company called Lyco that partnered with Halliburton to go back into an old field, called Elm Coulee. And the rest is history.
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Wednesday, January 26, 2011
Week 3: January 15 -- January 21, 2011
GMXR: Another Company Entering the Bakken
24 billion barrels: collaborating evidence
GasFrac Energy Services: another investing opportunity
Harold Hamm: the Bakken, fully developed, 24 billion barrels
JayHawk enters the Bakken
TransCanada Keystone XL will ship 65,000 bopd of Bakken oil
ONEOK: $300 million investment for natural gas gathering and processing facility in Williams County
TransCanada's Bison Pipeline complete; connects natural gas pipeline in Wyoming to Northern Border Pipeline in North Dakota
MHR acquires NuLoch Resources -- includes assets in the Bakken
Forbes/Sosnoff predicts $100 oil
Update on ENB infrastructure projects
New ENB projects -- increase of 145,000 bopd for the Bakken takeaway
SeekingAlpha appraisal of the Bakken
Holiday Inn coming to Williston
Texas Hold 'Em
24 billion barrels: collaborating evidence
GasFrac Energy Services: another investing opportunity
Harold Hamm: the Bakken, fully developed, 24 billion barrels
JayHawk enters the Bakken
TransCanada Keystone XL will ship 65,000 bopd of Bakken oil
ONEOK: $300 million investment for natural gas gathering and processing facility in Williams County
TransCanada's Bison Pipeline complete; connects natural gas pipeline in Wyoming to Northern Border Pipeline in North Dakota
MHR acquires NuLoch Resources -- includes assets in the Bakken
Forbes/Sosnoff predicts $100 oil
Update on ENB infrastructure projects
New ENB projects -- increase of 145,000 bopd for the Bakken takeaway
SeekingAlpha appraisal of the Bakken
Holiday Inn coming to Williston
Texas Hold 'Em
Week 2: January 8 -- January 14, 2011
Bloomberg: North Dakota Could Surpass Alaskan Oil Production
Tioga, ND, Investment: $2.3 million crude oil waste processing plan
Hess will increase its number of rigs from ten to fifteen in 2011
61-mile electrical transmission line now operational between Williston and Tioga
COP: Re-Allocating Gulf of Mexico CAPEX to Best Shale Plays
BEXP Well "Passes the Test" for Increased Drilling
GeoResources, Inc., Increases Size of Public Offering
CLR Eco-Pad Results: Bonneville/Bridger
Enbridge Announces It Will Ship Only Sweet Oil, Not Heavy Sands Oil
New natural gas formation found under all of North Dakota
Bakken pipelines update
KOG update: will add a third rig; partners with XOM; 4-well pad to be connected to recently completed Arrow Pipeline
Hess eager to develop newly acquired property in the Bakken
Tioga, ND, Investment: $2.3 million crude oil waste processing plan
Hess will increase its number of rigs from ten to fifteen in 2011
61-mile electrical transmission line now operational between Williston and Tioga
COP: Re-Allocating Gulf of Mexico CAPEX to Best Shale Plays
BEXP Well "Passes the Test" for Increased Drilling
GeoResources, Inc., Increases Size of Public Offering
CLR Eco-Pad Results: Bonneville/Bridger
Enbridge Announces It Will Ship Only Sweet Oil, Not Heavy Sands Oil
New natural gas formation found under all of North Dakota
Bakken pipelines update
KOG update: will add a third rig; partners with XOM; 4-well pad to be connected to recently completed Arrow Pipeline
Hess eager to develop newly acquired property in the Bakken
Social Security Now Running a Deficit -- Not a Bakken Story
Social Security is now paying out more than it takes in. This was not supposed to happen until 2017 (when I last read about it) but due to the recession, etc., is is now happening. On its own, Social Security fund will be depleted around 2037. By the way, that date has been used for years, along with the 2017 date, suggesting that the "2037" is also bogus, and that the fund, without infusions, will run out sooner.
It is generally agreed that folks currently on social security will not be affected by any changes in social security to help "save" it.
The question is who will be affected by social security changes if Congress changes the benefits (obviously if Congress does not change benefits, everyone will be affected because taxes will be used to shore up social security payouts).
If Congress has the courage to act, it will do the easy things first: annual cost-of-living increases will be scaled back; if nothing else, Congress will figure out a different way to calculate inflation and cost-of-living increases.
Congress will not change benefits to those currently drawing social security (that would be political suicide) but "how close" do they get. Within one year of drawing social security? Within five years? Within ten years? The argument will come down to this: any changes must allow folks to prepare for those changes, and at least five years would be needed for folks to decide whether to add more to their own retirement account, continue working, or go back to school to get back into work force. So, I think within five years of drawing social security at 62. Those currently 57 years old or so should be "safe."
Next on the table will be "means testing." Just like "income tax breaks for the wealthy" which had a threshold of $250,000 annual income, means testing will affect those at a similar threshold prior to retirement or assets commensurate with someone at that income level.
The age at which folks can start drawing social security will probably be moved up just a bit; from 62 to 63 is probably politically manageable. And even to 65 might be okay. And if they can't raise the "62 year" threshold, they can make it more punitive when taking social security early. Perhaps the easiest thing to do in this area would be to require means testing for early withdrawal (at age 62).
I'm guessing that the current Congress won't touch the issue. The Republicans are looking at retaking the Senate and the presidency in 2012 and aren't going to risk it. It goes without argument that the Democrats won't touch it this time around.
Double dipping? One can argue that anyone drawing a federal government pension worth more than a certain amount should not be eligible for social security.
So, the soonest they act on this is 2012. They will rationalize the delay by saying that the reason for the current "social security deficit" is the current recession and once the US gets going again, and the unemployment rate is back down to historical levels, social security will again take in a bit more than it will pay out.
The good news for those "close" to drawing social security is that the politicians have telegraphed they won't change benefits for those already drawing social security. Those who are 62 years or older and holding off on drawing social security until they are 67 or 69 years old might consider drawing it one day before a new law goes into effect. (Sort of like playing "The Price is Right" when the winning bidder often bid one dollar more than the competitors.)
The irony is that it would be better for the government to encourage folks to wait.
It is generally agreed that folks currently on social security will not be affected by any changes in social security to help "save" it.
The question is who will be affected by social security changes if Congress changes the benefits (obviously if Congress does not change benefits, everyone will be affected because taxes will be used to shore up social security payouts).
If Congress has the courage to act, it will do the easy things first: annual cost-of-living increases will be scaled back; if nothing else, Congress will figure out a different way to calculate inflation and cost-of-living increases.
Congress will not change benefits to those currently drawing social security (that would be political suicide) but "how close" do they get. Within one year of drawing social security? Within five years? Within ten years? The argument will come down to this: any changes must allow folks to prepare for those changes, and at least five years would be needed for folks to decide whether to add more to their own retirement account, continue working, or go back to school to get back into work force. So, I think within five years of drawing social security at 62. Those currently 57 years old or so should be "safe."
Next on the table will be "means testing." Just like "income tax breaks for the wealthy" which had a threshold of $250,000 annual income, means testing will affect those at a similar threshold prior to retirement or assets commensurate with someone at that income level.
The age at which folks can start drawing social security will probably be moved up just a bit; from 62 to 63 is probably politically manageable. And even to 65 might be okay. And if they can't raise the "62 year" threshold, they can make it more punitive when taking social security early. Perhaps the easiest thing to do in this area would be to require means testing for early withdrawal (at age 62).
I'm guessing that the current Congress won't touch the issue. The Republicans are looking at retaking the Senate and the presidency in 2012 and aren't going to risk it. It goes without argument that the Democrats won't touch it this time around.
Double dipping? One can argue that anyone drawing a federal government pension worth more than a certain amount should not be eligible for social security.
So, the soonest they act on this is 2012. They will rationalize the delay by saying that the reason for the current "social security deficit" is the current recession and once the US gets going again, and the unemployment rate is back down to historical levels, social security will again take in a bit more than it will pay out.
The good news for those "close" to drawing social security is that the politicians have telegraphed they won't change benefits for those already drawing social security. Those who are 62 years or older and holding off on drawing social security until they are 67 or 69 years old might consider drawing it one day before a new law goes into effect. (Sort of like playing "The Price is Right" when the winning bidder often bid one dollar more than the competitors.)
The irony is that it would be better for the government to encourage folks to wait.
Hess in the Bakken -- Earnings Transcipt -- North Dakota, USA
Some data points:
- Hess with 900,000 acres in the ND Bakken
- Production: 20,000 bopd at end of 2010
- Production: 40,000 bopd average for 2011
- Dual-lateral wells cost $11 - $11.5 million
- Single-lateral wells cost $7 - $7.5 million
- EURs: ~ 500,000 bbls per lateral (thus a dual-lateral well with a EUR of 1 million barrels)
- IPs: 30-day average, 18-stage wells -- 400 - 500 bbls per lateral
- Recently revised their completion design state to 22 stages; IPs will go up
- 18 rigs in the Bakken (due to acqusitions; limited discussion)
- Four dedicated frack crews; will add another frack crew in last half of the year
- Both the American (AEZ) and the Tracker (TRZ) acreage were prospective for Three Forks
- Hess added 274 million bbls of reserves: 160 million in Norway, 70 million in ND -- those were the "two big hitters; also another 30 million bbls in Russia
- A shift from dual-laterals to single-laterals in an effort to "hold-by-production" acreage; will occur over the next two years; planning to meet their target by 2012
- Guidance: 40,000 bbls/day in 2011 in the Bakken, but unable to say what exit rate will be -- still digesting acquisitions
Eight (8) New Permits -- Zavanna Renews Four (4) Permits -- North Dakota, USA
Producers: OXY (2), Hess (2), CLR (2), Petro-Hunt, and Newfield.
Fields: Dimond, Dollar Joe, Siverston, Charlson, Fertile Valley, Little Knife, and one wildcat.
The wildcat is a Hess permit in its Goliath prospect (GO-Vinger-156-98-2116H-1), the area that they acquired when they about American Oil and Gas (AEZ). There is a string/cluster of eight wells in this area, just a few miles west of Ray, North Dakota. It is a very, very active area. It certainly looks like AEZ controlled some good acreage before they sold out to Hess.
Most interesting about the daily activity report today was the number of permit renewals: 13. Zavanna renewed four permits; EOG, 4; and then a number of companies with one or two permit renewals.
The Zavanna wells are ones that I had on my first watch list, and always wondered what was going on with them:
For more on Zavanna and these wells, click here: Zavanna update, November, 2010
Fields: Dimond, Dollar Joe, Siverston, Charlson, Fertile Valley, Little Knife, and one wildcat.
The wildcat is a Hess permit in its Goliath prospect (GO-Vinger-156-98-2116H-1), the area that they acquired when they about American Oil and Gas (AEZ). There is a string/cluster of eight wells in this area, just a few miles west of Ray, North Dakota. It is a very, very active area. It certainly looks like AEZ controlled some good acreage before they sold out to Hess.
Most interesting about the daily activity report today was the number of permit renewals: 13. Zavanna renewed four permits; EOG, 4; and then a number of companies with one or two permit renewals.
The Zavanna wells are ones that I had on my first watch list, and always wondered what was going on with them:
- 18063, Ocelot 1-15H
- 18067, Lion 1-14H
- 18071, Cheetah 1-10H
- 18075, Jaguar 1-22H
For more on Zavanna and these wells, click here: Zavanna update, November, 2010
Super-Long Laterals in the Bakken -- see the BHI Transcript, 4Q10
From the Q&A in the BHI 4Q10 earnings transcript:
Towards the end of the year, we may see some capacity come in and some softness, but we continuously shift towards these oily weather plays, and we're seeing, I mean, very little back off in terms of longer horizontals, longer extension, clients are even pushing out 8,000, 10,000 feet now. That's just involving more fracs, and when you start thinking about it, we're finally starting to see technology hit the U.S. which we've seen overseas for years and years. I mean we've been drilling 35,000 foot-extended rich wells overseas. And just recently, completed a six and eight, 36,000 feet in Saudi, so why won't we continue to see that in the shale plays in the U.S.The bold is mine. I may have taken something out of context and may have misunderstood the conversation at that point, but it is what it is.
Hess Reports IP For First of Three Abrahamson Wells (On Single Pad) -- Bakken, North Dakota, USA
18838, 424, Hess, EN-Abrahamson-155-93-3019H-1, Alger, Bakken.
This is a long lateral, 31,000 bbls cumulative in first two months. It has been producing since July, 2010, but has had some months with minimal production. Runs recorded:
This is a long lateral, 31,000 bbls cumulative in first two months. It has been producing since July, 2010, but has had some months with minimal production. Runs recorded:
- July: 5 days
- August: 31 days
- September: 21 days
- October: 3 days
- November: 9 days
- December: 21 days
Analysts: Basin Should Reach 1.2 Million Bbls/Day in 2015 -- Bakken, North Dakota, USA
Link here.
Data points:
Data points:
- Financial adviser providing the commentary: Raymond James
- Williston Basin to reach 1.2 million bbls/day in 2015
- Recoverable oil estimate: 11 billion bbls
- Their analysts predict the Bakken will provide ~15 percent of total domestic oil supply by 2015
- Analysts predict just under 1.2 million bbls oil per day (they estimate 5 percent in 2010)
- Production will be driven by a) rig count; b) improvements in drilling time and completion techniques
- Bakken will have implications in domestic oil supply in light of the "permitorium"
Here We Go: A New Multi-Rail Terminal in Western North Dakota -- Bakken, USA
Savage Companies announced plans to build a multi-rail terminal near Trenton, ND. Trenton is just a few miles southwest of Williston, where there has been a lot of activity recently, and sits right on the major BNSF rail line. It is located near the Montana border, specifically looking at Elm Coulee, in addition to what is going on in North Dakota.
The terminal will include ability to load and ship oil.
This appears to be a huge deal. For the folks in Trenton, it certainly has to be a big, big deal.
This is a great location, by the way. I'm sure the Williston folks would have liked this to have been built in Williston but it would have overwhelmed the infrastructure of the city, particularly all the truck traffic that will entail, moving cargo in and out, including oil, to the terminal.
I could be wrong, but this seems to be a big, big deal.
It will employ 150 people while it is being constructed and steady-state employment will be 40 - 60 people, which should make it the biggest employer in the Trenton area.
The terminal will include ability to load and ship oil.
The terminal will be designed to bring large-scale rail service to the Bakken with oil-field related materials such as tubular, frac sand and other strategic materials, including the capability to load and ship unit trains of crude oil.It is expected to be completed by the end of 2011.
This appears to be a huge deal. For the folks in Trenton, it certainly has to be a big, big deal.
This is a great location, by the way. I'm sure the Williston folks would have liked this to have been built in Williston but it would have overwhelmed the infrastructure of the city, particularly all the truck traffic that will entail, moving cargo in and out, including oil, to the terminal.
I could be wrong, but this seems to be a big, big deal.
It will employ 150 people while it is being constructed and steady-state employment will be 40 - 60 people, which should make it the biggest employer in the Trenton area.
Petrobras Jumps to Number 3 -- Not a Bakken Story
Among energy companies, Petrobas has just moved into third place.
XOM remains number one, followed by Chinese NOC PetroChina.
Shell and Chevron each move down one space.
Petrobras has moved from 27th place in 1999 to 3rd place.
XOM remains number one, followed by Chinese NOC PetroChina.
Shell and Chevron each move down one space.
Petrobras has moved from 27th place in 1999 to 3rd place.
Samson Oil and Gas Announces Partnership To Begin Development in Wyoming Niobrara
Link here. And big story on SeekingAlpha about the importance of this deal.
Samson Oil and Gas (SSN) has announced a three-party agreement with Halliburton and a private partner to Halliburton to develop Samson's acreage in the Niobrara Formation and other conventional targets in the northern Denver-Julesburg Basin for part of Samson’s Hawk Springs Project in Goshen County, Wyoming.
Back on January 13, 2010, I noted a significant movement in the share price of SSN; perhaps this is the reason? I have to be cautious. Every time I think I have spotted something, someone seems to tell me I'm wrong. And generally I am. But this looks a bit more solid.
Assuming I haven't mixed up Samson Resources with Samson Oil and Gas (SSN).
I don't have the link, and I personally would not know, but I am being told by a reader that it was Halliburton who was instrumental in opening up / developing the Bakken in the Elm Coulee in Montana. [Here's the link.]
Samson Oil and Gas (SSN) has announced a three-party agreement with Halliburton and a private partner to Halliburton to develop Samson's acreage in the Niobrara Formation and other conventional targets in the northern Denver-Julesburg Basin for part of Samson’s Hawk Springs Project in Goshen County, Wyoming.
Back on January 13, 2010, I noted a significant movement in the share price of SSN; perhaps this is the reason? I have to be cautious. Every time I think I have spotted something, someone seems to tell me I'm wrong. And generally I am. But this looks a bit more solid.
Assuming I haven't mixed up Samson Resources with Samson Oil and Gas (SSN).
I don't have the link, and I personally would not know, but I am being told by a reader that it was Halliburton who was instrumental in opening up / developing the Bakken in the Elm Coulee in Montana. [Here's the link.]
Follow-Up on California Budget and Cutting University of California Support -- Not a Bakken Support
About a week ago (January 13, 2011), I had a posting about the cuts California is trying to make to deal with their overwhelming deficit. In that posting I noted that the University of California system was crying foul over a threatened cut of $500 million.
As a reminder:
A UCLA alumnus has just announced a gift of $100 million to UCLA, the second largest gift ever given to the school. The donor is Meyer Luskin who made his fortune in animal feed.
So, one-fifth of the gap due to proposed state cuts closed in one swoop for this year. Yes, I know the donation is going for a specific purpose and not to the general fund, but money is fungible.
As a reminder:
The $500 million reduction is relatively small compared with the University of California’s overall budget, a spokesman said.
The system’s spending plan for the 2010-2011 academic year is $21.8 billion, including revenue from hospitals and federal contracts, which are restricted and can’t be shifted to make up for state cutbacks, according to budget documents. The core educational budget is $6.28 billion.I opined that
Oh, by the way, William Gates, who is probably the biggest benefactor of Silicon Valley, with net worth of $54 billion could close the University of California's $500 million gap for 108 years, assuming no inherent growth in his current portfolio.Well, at least one individual has stepped up to the plate.
A UCLA alumnus has just announced a gift of $100 million to UCLA, the second largest gift ever given to the school. The donor is Meyer Luskin who made his fortune in animal feed.
So, one-fifth of the gap due to proposed state cuts closed in one swoop for this year. Yes, I know the donation is going for a specific purpose and not to the general fund, but money is fungible.