Osama Bin Laden Killed -- Headline News

Being reported on television now.

Huge kudos to CIA, military intelligence, drone operators, military translators, special ops, US military in general.

Wow! Stock market futures just went through the roof.

End of Original Post

Added Monday, May 2, 2011

Administration spokesmen say this will have huge impact on the "war on terror."

Flashback

March 25, 2009: Current administration wants to jettison the phrase "war on terror."

The Obama administration appears to be backing away from the phrase "global war on terror," a signature rhetorical legacy of its predecessor.

In a memo e-mailed this week to Pentagon staff members, the Defense Department's office of security review noted that "this administration prefers to avoid using the term 'Long War' or 'Global War on Terror' [GWOT.] Please use 'Overseas Contingency Operation.' "

Comments

This helps explain the timing of the announcement of Robert Gates as SecDef, who no doubt was looking for the right time to announce his retirement, something he had said he would do from the beginning of his tenure as SecDef. He can leave on a very, very high note. Also, huge kudos to Leon Panetta, the director of the CIA on the night/day when this mission went down. No doubt he was the one to give the final "go" for the mission after getting approval from his boss to go ahead when the time was right. From what little has been said so far, it appears every strategic decision was the right one, particularly: a) no prisoners; shoot to kill; and, b) squelch any possibility of a shrine; burial at sea.

The rules of engagement (shoot to kill) most likely contributed to high probability of success. The SEALS did not have to decipher or second-guess "commander's intent."

American Stock Market Reaction: At the End fo the Day -- Muted

Many (including me) expected an emotional run-up in the stock market today. That did not happen; the market closed flat to slightly negative. One can argue that had Osama bin Laden been killed eight years ago, the stock market might have reacted differently, but for all intents and purposes, OBL's potential impact on world events had pretty much been neutralized by 2011. But as the president said, "Justice is done."

Spain's Unemployment: 21% -- Absolutely Incredible -- Nothing To Do With The Bakken

Absolutely nothing to do with the Bakken, but I would hate to see the unemployment numbers if the EPA puts onshore drilling out of business. Unless I'm missing something, the EPA could essentially shut down all drilling in this country. But I'm putting nothing past this administration. With GDP growth at a miserably low 1.8 percent this past quarter, shutting down the domestic oil industry would have to result in negative GDP growth, and higher oil prices almost overnight. But again, perhaps I'm overreacting.

Spain's unemployment rate rose nearly a point to 21.29%, with 4.9 million jobless for the first quarter of 2011, the government reported Friday, as the prolonged economic crisis continues to squeeze the nation.

Link here.

CLR's First Economically Successful Well: The Robert Heuer 1-17R -- Bakken, North Dakota, USA

From page 7 of CLR's 2010 annual report:

Continental completed the first economical horizontal well in the North Dakota Bakken utilizing multi-stage fracture stimulation—the Robert Heuer 1-17R in Divide County in March 2004.

This is quite an interesting story.

The permit for this well is #8201 ("we" are currently in the "20,xxx" file numbers). This well was spudded in 1981 targeting the Madison formation; it was dry.

Harold Hamm re-entered the well on 12/26/03 targeting the Bakken. Its IP was ..... drum roll ... 87.

Yup, 87 bopd was the IP, and to date, after seven years of producing without missing a day, except for one workover, this well has produced a grand total of 78,863 barrels of oil.

And it was Harold Hamm's first economically successful well in the Bakken. I used to think that 100,000 bbls was the critical milestone, but this well has accomplished what it needed to at much less.

Think about that. The price of oil has been nowhere near $100 for most of the past seven years. SemCrude prices only go back to 2001 (and Murphy oil prices back to August, 2009). In April, 2001, WTI oil was going for $24/bbl. Yes, that's right, $24/bbl.  By February,  2009, North Dakota sweet was down to $19.10.

If a well with an IP of 87 and total production under 80,000 bbls can be economically successful at a time when oil was well under $40/bbl, can you imagine what current wells are doing?

Then, look at the production data below. See if you notice the same thing I noticed? The original re-entry had the usual horrible Bakken decline, going from 2,400 bbls/month to 500 bbls/month, but then it leveled off at 500 bbls/month after it had paid for itself.  500 x $100 --> $50,000/month for a well that has paid for itself.

Then, notice that several months ago, November, 2010, the well was taken off-line. One assumes that it was re-fracked (or whatever workover rigs are able to do) and monthly production doubled what it did when it was first re-entered back in 2003, up to 4,000 bbls/month, or 4,000 x $80 --> $320,000/month.

Much more could be said about this, but the facts speak for themselves, and explains why some folks want a reassessment of the Bakken, based on new technology and re-entering old holes, and re-working recent wells.

There is one more "secret" which makes this well even more profitable than the production runs will show but that's for a different posting. Maybe someone will provide that detail in the comment section. I have reasons why I won't. (It's like the 4:30 TV ad teasing you with the 5:00 headline news. Smile.)

By the way, this well is not in what I would call the "core Bakken." It is well north of Tioga, about 12 miles northeast of Wildrose, North Dakota.



Robert Heuer 1-17R
NDIC File No: 8201     API No: 33-023-00186-00-00     CTB No: 108201
Well Type: OG     Well Status: A     Status Date: 3/5/2004     Wellbore type: Horizontal Re-Entry
Location: SESE 17-161-95     Footages: 600 FSL 822 FEL     Latitude: 48.765628     Longitude: -103.030310
Current Operator: CONTINENTAL RESOURCES, INC.
Current Well Name: ROBERT HEUER 1-17R
Elevation(s): 2365 KB   2347 GL     Total Depth: 13249     Field: SADLER
Spud Date(s):  1/11/1981  12/26/2003
Casing String(s): 9.625" 1618'   7" 8873'  
Completion Data
   Pool: BAKKEN     Perfs: 8873-13249OH     Comp: 3/5/2004     Status: F     Date: 3/5/2004     Spacing: SEC
   Pool: MADISON     Comp: 2/13/1981     Status: DRY     Date: 2/13/1981
Cumulative Production Data
   Pool: BAKKEN     Cum Oil: 78863     Cum MCF Gas: 140201     Cum Water: 24260   
Production Test Data
   IP Test Date: 3/31/2004     Pool: BAKKEN     IP Oil: 87     IP MCF: 150     IP Water: 146



Production history:Monthly Production Data

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	2-2011	26	4089	4628	1514	3218	3218	0
BAKKEN	1-2011	29	4778	4207	2739	3514	3514	0
BAKKEN	12-2010	31	1719	1185	2691	1561	1561	0
BAKKEN	11-2010	3	38	196	5	47	47	0
BAKKEN	10-2010	31	520	375	133	527	527	0
BAKKEN	9-2010	30	537	555	145	513	513	0
BAKKEN	8-2010	31	513	560	148	520	520	0
BAKKEN	7-2010	31	477	569	140	510	510	0
BAKKEN	6-2010	30	519	555	207	349	349	0
BAKKEN	5-2010	31	543	563	143	421	421	0
BAKKEN	4-2010	30	512	399	123	433	433	0
BAKKEN	3-2010	29	512	564	105	634	634	0
BAKKEN	2-2010	28	493	376	110	562	562	0
BAKKEN	1-2010	31	565	533	115	633	633	0
BAKKEN	12-2009	31	564	571	122	975	975	0
BAKKEN	11-2009	30	551	604	127	618	618	0
BAKKEN	10-2009	31	575	552	130	611	611	0
BAKKEN	9-2009	30	551	569	155	620	620	0
BAKKEN	8-2009	31	593	612	137	666	666	0
BAKKEN	7-2009	26	562	572	188	601	601	0
BAKKEN	6-2009	30	534	613	151	663	663	0
BAKKEN	5-2009	27	569	682	176	690	690	0
BAKKEN	4-2009	30	586	890	137	868	868	0
BAKKEN	3-2009	31	574	457	134	2196	2196	0
BAKKEN	2-2009	28	542	446	138	1982	1982	0
BAKKEN	1-2009	31	644	679	163	1866	1866	0
BAKKEN	12-2008	31	619	892	133	2427	2427	0
BAKKEN	11-2008	29	586	238	182	1169	1169	0
BAKKEN	10-2008	31	644	454	177	997	997	0
BAKKEN	9-2008	30	616	622	143	910	910	0
BAKKEN	8-2008	31	642	656	165	998	998	0
BAKKEN	7-2008	30	658	669	160	1018	1018	0
BAKKEN	6-2008	30	633	919	114	966	966	0
BAKKEN	5-2008	31	654	442	188	936	936	0
BAKKEN	4-2008	30	663	893	123	915	915	0
BAKKEN	3-2008	31	682	647	160	903	903	0
BAKKEN	2-2008	29	665	463	123	860	860	0
BAKKEN	1-2008	31	727	701	135	941	941	0
BAKKEN	12-2007	31	732	725	159	1380	1380	0
BAKKEN	11-2007	30	694	714	130	1412	1412	0
BAKKEN	10-2007	31	688	698	142	1792	1792	0
BAKKEN	9-2007	30	702	692	135	2128	2128	0
BAKKEN	8-2007	31	699	648	150	2468	2468	0
BAKKEN	7-2007	31	671	686	155	2502	2502	0
BAKKEN	6-2007	30	670	692	143	2401	2401	0
BAKKEN	5-2007	31	715	666	148	2521	2521	0
BAKKEN	4-2007	30	719	881	161	2274	2274	0
BAKKEN	3-2007	31	742	862	150	2460	2460	0
BAKKEN	2-2007	28	713	668	128	2465	2465	0
BAKKEN	1-2007	30	770	662	197	2520	2520	0
BAKKEN	12-2006	30	738	660	157	2232	2232	0
BAKKEN	11-2006	30	749	872	158	2285	2285	0
BAKKEN	10-2006	31	734	444	192	2533	2533	0
BAKKEN	9-2006	30	737	885	153	2715	2715	0
BAKKEN	8-2006	31	758	877	170	2906	2906	0
BAKKEN	7-2006	31	788	661	162	3067	3067	0
BAKKEN	6-2006	30	800	879	163	2580	2580	0
BAKKEN	5-2006	27	813	801	173	1784	1784	0
BAKKEN	4-2006	30	793	791	159	1641	1641	0
BAKKEN	3-2006	30	871	832	204	1723	1723	0
BAKKEN	2-2006	28	830	644	171	2839	2839	0
BAKKEN	1-2006	27	776	877	178	2482	2482	0
BAKKEN	12-2005	31	897	1098	228	2833	2833	0
BAKKEN	11-2005	27	881	661	179	2208	2208	0
BAKKEN	10-2005	30	910	870	392	2499	2499	0
BAKKEN	9-2005	25	829	858	178	2665	2665	0
BAKKEN	8-2005	31	987	1040	237	4305	4305	0
BAKKEN	7-2005	31	1055	1030	268	4699	4699	0
BAKKEN	6-2005	30	1278	1273	314	3542	3542	0
BAKKEN	5-2005	20	727	698	158	2489	2489	0
BAKKEN	4-2005	28	1039	1220	365	1438	1438	0
BAKKEN	3-2005	31	1269	1071	316	187	187	0
BAKKEN	2-2005	23	1051	1073	238	2042	2042	0
BAKKEN	1-2005	27	1125	1080	262	309	309	0
BAKKEN	12-2004	31	1222	1325	294	2053	2053	0
BAKKEN	11-2004	30	1235	1343	285	1273	1273	0
BAKKEN	10-2004	30	1350	1525	314	1573	1573	0
BAKKEN	9-2004	30	1451	1310	390	1837	1837	0
BAKKEN	8-2004	31	1584	1747	425	1837	1837	0
BAKKEN	7-2004	31	1922	1695	520	2489	241	2248
BAKKEN	6-2004	30	1876	1876	600	2735	0	2735
BAKKEN	5-2004	31	2358	2252	875	774	0	774
BAKKEN	4-2004	27	3142	3621	1465	1800	0	1800
BAKKEN	3-2004	7	2324	1675	240	666	0	666

This Is How The Government Wastes Your Money -- Recent MDU Mandated Filing

For investors only. I hope you all clicked on MDU's most recent Form 8-K filing so you didn't miss any important investing information. 

This report is being filed in accordance with section 1503 of the "Dodd-Frank Wall Street Reform and Consumer Protection Act." On April 26, 2011, Hawaiian Cement, an indirect subsidiary of MDU Resources Group, Inc., received an imminent danger order issued by the Mine Safety and Health Administration under section 107(a) of the Federal Mine Safety and Health Act of 1977 at the Waikapu Quarry in Wailuku, Hawaii. The order was issued when a customer was observed standing on top of a loaded truck but was not wearing fall protection. The customer proceeded to climb off of the truck and the order was terminated. 

I can't make this stuff up.

How much time was wasted reporting this to the government that a man in a gravel truck did not have his hard hat on? This kind of garbage now buries important filings.

By the way, this is a common ploy in any bureaucracy, especially the military: Inundate one's superiors with stuff like this to hide the one meaningful, but embarrassing, report.

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Music video: a cover of "Little Red Riding Hood." There's something captivating about this video. With over 500,000 views, there are others who agree with me. (YouTube no longer allows embedding of their videos. Pity.) She reminds me of Mazzy Star -- Fade Into You.

Rigzone: Harold Hamm (CLR) and the Bakken

A big thank you to "Mike" for alerting me to this story on Harold Hamm, founder and CEO of Continental Resources.

I have seen so many stories on Harold Hamm, I put off reading this article initially but finally got around to it.

It may be the best article yet on Harold Hamm. It includes a wealth of information on the Bakken as well as how Harold Hamm struck it very, very rich in the Bakken.

CLR's Net Bakken Acreage Decreases Slightly -- Bakken, North Dakota, USA

For the record, I'm updating total Bakken acreage held by Continental Resources at the FAQ tab.

According to CLR's 2010 annual report, the company controls 855,936 net acres in the Bakken (ND and MT).

This is down slightly from previously reported 864,559 net acres.

In previous reports, CLR also makes reference to about 8,000 BLM acres. "BLM" is not mentioned in the 2010 annual report.

CLR acquired 8,266 BLM acres in ND/MT in the December 9, 2010, auction.

**************

Update: This is a note I was sent verbatim regarding the BLM purchase and why CLR is not reporting it (having said that, I am curious why CLR did not put this in their annual report -- at least I didn't see it in the annual report):

If you look at BLM lease operations for Nov/Dec (2010) they got held up under green house gas emissions. So it is my understanding that even though you won /bought the land lease, until the paper work is done about the green house gas emissions, a lease title is not issued to the lessee.

So this is why clr is not counting the 8,000 BLM acres.

http://billingsgazette.com/news/state-and-regional/montana/article_366f8e74-3347-11e0-aaa7-001cc4c03286.html