Week 32: August 6 -- August 12, 2011

Commentary: Mineral Owners Paying to Transport Natural Gas

Commentary: Disruptive Technology To Increase Oil Production

Update On CLR Eco-Pads

Drilling Could Go On For Fifty Years in the Bakken

Another Man Camp In Williston Approved

Chesapeake To Start Charging Mineral Owners for Gathering, Compressing, and Transporting Natural Gas

What Is An Oil Well Worth in Terms of Jobs?

Another Man Camp North of Williston Approved

Commentary: Why The Bakken Is Different

New Active Drilling Rig Record: 192

Commentary: The Largest Industrial Park in the US

Menards Incentives To Come To Williston

Anschutz Sells Remaining Bakken Acreage

Oasis Forms New Company: Oasis Wells Services

One Millionth Page View for the MillionDollarWay.Blogspot

Chesapeake - Clean Energy: America's Natural Gas Highway

Titan Machinery Sets Up Operations in Dickinson

Crude-By-Rail (CBR): A Paradigm Shift

Update on Crude-By-Rail (CBR)

Bismarck Negotiating With Second Largest Cement Manufacturer in the World; Northern Plains Commerce Centre

Potash in North Dakota Could Be Worth $2.7 Trillion

Crude-By-Rail Expansion at Dore Will Increase Capacity 7X

Commentary: Not All Bakken Wells Need to Be Fracked

CLR Thinks There May Another Pay Zone in the Three Forks Formation

CLR Up to 23 Rigs; 5 Fracking Crews

CLR Nearly Reaches 1,000,000 Net Acres

Commentary: Observations About CLR

EPA Grants Critical Permit for Refinery on Reservation

This week had many links to earnings.

Connecting Widely Dispersed Dots -- Maybe a Bridge Too Far, But Perhaps Not

This was my initial post regarding NuStar, EOG and crude-by-rail in Louisiana. Bottom line: Bakken oil can be shipped by rail, making the Keystone XL redundant, and providing an outlet of sweet, light crude to the rest of the world.

Now read this thread regarding concerns of those receiving royalties from Bakken wells. Some comments may or may not make sense, but it gets folks to start thinking.

Now read this story about how Chesapeake will start charging mineral owners to gather, compress, and transport (GCT) natural gas from the Barnett shale in Texas.

No comments. I'm simply linking two new stories and a discussion thread. I have no thoughts on this one way or the other to express in this posting. I think there could be dots to connect, but I could be wrong, Perhaps it's simply a bridge too far.

Huge, Huge, Huge: Disruptive Technology To Increase Oil Production

Link here.

Then re-acquaint yourself with this story which has been posted "forever" on this blog.

Now, remind yourself that UND has, perhaps, the best library of oil cores in the world (of course, limited to North Dakota and the Williston Basin).

That should be enough to get you started, but if you are an investor, think about this:

• Continental Resources is either the operator or a non-operator partner on every sixth well drilled in North Dakota
• To get to the Bakken, a driller needs to drill through several payzones in the Williston Basin; the Continental Resources geologists have studied the cores of every payzones from every sixth well in the Williston Basin
• Continental Resources has amassed almost 1,000,000 acres of the best oil basin in the world, according to Jason Wrangler
• CLR has initiated a program to target the Red River formation, the deepest formation in the Williston Basin;  CLR geologists will see the core samples of every pay zone in the Williston Basin

Now, go back to the first link and start connecting the dots.

The first link above starts out:

Tom Smith helps oil companies find their next big field using a very advanced technology that has been successfully applied in financial, military, and other industries. Smith, along with partner Sven Treitel, are developing and applying what are called unsupervised neural networks. Smith and others are now convinced that analyzing multiple seismic attributes simultaneously reveals information about the potential location of hydrocarbons that may go unnoticed using conventional interpretation methods.

Smith began the investigation into using unsupervised neural networks for seismic interpretation after learning from Turhan Tanner, an award winning geophysicist who passed away in February 2010. Smith and Tanner became co-researchers in this area prior to his death. Treitel, who was Tanner's colleague, then paired with Smith to continue neural network research.

As Smith explains, neurons learn and adapt to the characteristics of the data with which they are presented. Today, seismic interpretation involves six to 100 attributes of seismic data. Every one of those attributes constitutes a 3-D image.

And then this:

"In 1981, when I was teaching and doing consulting work, I was intrigued by the desktop computers at the time. I was teaching three 5-day seminars -- Seismic Data Acquisition, Seismic Data Processing, and Seismic Interpretation. That third class was a computer workshop. With the experience in data processing I gained at Chevron, I found you can learn a lot by running software, and making a fool out of yourself by making mistakes along the way."

Smith then formed Seismic Micro–Technology (SMT) in 1984, where he developed software for his Seismic Interpretation seminar. Smith started on IBM AT (advanced technology) computers and was one of the earliest renters of computers.

"I taught classes in London, Calgary and Houston," Smith explained. "It was always a challenge to march down each row of PCs with floppies and load in the software. We'd hold our breath that our printer would actually print. It was challenging and fun. We were breaking new ground."

Can A Spacing Unit Be Held By Production Even If the Well Is No Longer Producing?

That was the question that was just asked of me.

I don't own any mineral rights, and I don't follow the issue that closely.

The folks over on the Bakken Shale Discussion Group might be able to help. The site is linked at the sidebar at the right.

Having said that, it appears that until a well is permanently abandoned, the well would hold the lease by production even if it was not producing. I have seen many examples of a well still listed as active even though it last produced oil two or three years earlier. Many of these wells were producing a fair amount of oil when all of a sudden, the pump was turned off, and oil was no longer flowing or being brought to the surface.

It is obvious that when the well was last pumping, there was still oil there, and if necessary, the operator could start the pump up again.

I have seen wells go for months, maybe even a year, without production and then all of a sudden start producing again.

Again, I do not know the "real" answer but my hunch is that until the well is permanently abandoned, the lease is held by production.

By the way,  I think readers understand the underlying reason for the question that was being asked. My answer to that: if it made financial sense to drill a new well into a spacing unit held by production, I believe a top lease would be arranged. Again, I am out of my depth in these areas, but based on discussions I have followed elsewhere, this sounds plausible. 

Australia's Can-Do Energy Policy Vs America's Inability to Even Put In An Oil Pipeline Through Fly-Over Country

Link here.

Look at the picture, read the story, and then reflect on the fact that the US cannot even lay a transcontinental energy pipeline in the 21st century.

I have just completed a 2200-mile round trip, much of it on the Eisenhower Interstate System.

The country was fortunate the interstate system was completed when it was. The country no longer has the political will to accomplish such a project these days, and even if it did, doesn't have the money.

Be that as it may, look at the picture again at the link, re-read the story, and then reflect again on the fact that the country doesn't even have the political will to put in energy infrastructure for future generations in the form of such mundane things as oil pipelines.

Australia, on the other hand, still has vision.

Update on Two CLR Eco-Pads -- Bakken, North Dakota, USA

I recently showcased the CLR Morris/Carson Peak Eco-Pad in Oakdale oil field. Someone sent me a comment reminding me about two other Eco-Pads in the same area (but different oil fields), the Meadowlark/Skachenk Eco-Pad, and the Bonneville/Bridger Eco-Pad.

The Meadowlark/Skachenko Eco-Pad in Jim Creek oil field; apparently this well has been choked back due to weather conditions; this well is in the are of State Highway 22 north of Killdeer that has been site of major road slides; road under major repair

• 19021, 744, CLR, Meadowlark 3-6H, tested 6/11; 10K after 21 days
• 19021, 879, CLR, Skachenko 3-31H, tested 6/11; 13K after 21 days
• 19022, 453, CLR, Meadowlark 2-6H, tested 6/11; 20K after 25 days
• 19023, 726, CLR, Skachenko 2-31H, tested 6/11; 12K after 25 days

The Bonneville/Bridger Eco-Pad in Rattlesnake Point oil field.

• 19009, 651, CLR, Bonnevile 3-23H, tested 12/10; 68K as of 6/11
• 19011, 725, CLR, Bridger 3-14H, tested 12/10; 65K as of 6/11
• 19012, 365, CLR, Bonnevile 2-23H, tested 12/10; 36K as of 6/11
• 19013, 399, CLR, Bridger 2-14H, tested 12/10; 45K as of 6/11

It was also noted that some years ago a vertical well drilled in the Meadowlark/Skachenko Eco-Pad area was quite remarkable:

• 8499, 1,652, Citation Oil and Gas, Skachenko A 1, Jim Creek, Bakken, tested, 1981; 1.5 million barrels as of June, 2011, and still producing from the Duperow, the original target; the Red River was dry; this well sits between the two horizontals running north from the Meadlowlark/Skachenko Eco-Pad.

As exciting as this is now, can you imagine reporting the Citation Skachenko well back in 1981 with an IP of 1,652? I can't even imagine what the local folks must have thought when that well was reported. Even today, 1,652 catches your attention, but back in 1981, it would have been awe-inspiring. 

For (4) New Permits -- Bakken, North Dakota, USA

Daily activity report, August 12, 2011 --

Operators: MRO, CLR, Hess, Zenergy

Fields: Upland, Elm Tree, Ft Buford, and a wildcat

MRO has the wildcat in Williams County.


XTO reported the IP for its Woodrow 34X-21 ( #18894) well in Williams County: 870.

KOG received permits for injections; these wells all remain confidential:

• 19505, KOG, Charging Eagle 15-14-11-3H, Dunn 
• 19506, KOG, Charging Eagle 15-14-24-16H, Dunn 
• 19508, KOG, East Grizzly Federal 3-25-13-3H, McKenzie
• 19509, KOG, East Grizzly Federal 3-25-13-15H, Williams

Drilling Could Go On For 50 Years -- Bakken, North Dakota, USA

Oil and gas analyst's take on the Bakken:

It's one of the most economic and best resources that we have, not only in the U.S., but, really, in the world. There's lots of running room and we're very early into the play with lots of acreage still to be drilled. We could be up there for 50 or more years drilling very, very strong wells and putting lots of oil into U.S. tanks. The Eagle Ford and the Utica in Ohio have interesting and up-and-coming plays, but the Williston really has been shown to be as economic as any other, if not the best. It's always nice to be in an asset that has the best type of results.

Needs repeating:

It's one of the most economic and best resources that we have, not only in the U.S., but, really, in the world. There's lots of running room and we're very early into the play with lots of acreage still to be drilled. We could be up there for 50 or more years drilling very, very strong wells and putting lots of oil into U.S. tanks. The Eagle Ford and the Utica in Ohio have interesting and up-and-coming plays, but the Williston really has been shown to be as economic as any other, if not the best. It's always nice to be in an asset that has the best type of results.

Link here.

Analyst is Jason Wrangler, based in Houston. Interviewed and transcript placed on SeekingAlpha.com.

The article is full of Bakken oil company recommendations. A nice report for the weekend. Enjoy.

By the way, that "drilling could go on for 50 years." The UND oil and gas consultants agree; see "Basic Analysis of the Bakken Boom" linked at the sidebar at the right. The folks there think active drilling will take 30 years and production will continue through 2100.  Legacy wells that were drilled in the 1950's are still active in a few cases.

For newbies, I think analysts should remember all the things going for drillers in the Williston Basin:

• Original-oil-in-place estimates keep rising
• There are "no" DRY holes in the Bakken; only Saudi Arabia has similar success rate
• It's the best kind of oil: sweet, light oil
• Multiple pay zones
• Infrastructure in place
• Takeaway capacity keeping up with production - no longer true as of late 2011
• Business climate is pro-oil. Very pro-oil. 
• North Dakota has relatively small BLM footrprint. It's largest footprint is the reservation, and the reservation is drilling as fast as it can; Montana, Wyoming, Utah hampered by BLM footprint
• Major oil service companies have been in the Williston Basin for decades and know the area well (Schlumberger, Baker Hughes, Halliburton, just to name the ones that are most familiar)
• Bakken: industrial research -- testing new techniques, procedures in the field
• UND with best stratigraphic core library in the world, according to many
• World's largest microseismic array in place
• No terrorists in North Dakota
• Adequate transportation for workers in and out of state (air, Amtrak, 4-lane divided highway -- try driving to Saudi; try driving in Saudi if you are female)
• No need for air conditioning most of the year
• Cool winters keep the riff-raff out; crime low
• English still the language of choice
• North Dakota not known to be as litigious as some states
• No snail darter, desert tortoise, or spotted oil

Two Conference Reminders

The first conference: the Enercom conference is next week. This is one of the better conferences in that it is easy to download the presentations once the companies have presented.

The second conference: the Bakken Infrastructure Finance and Development Conference in Denver later this autumn. At the link, one can register for a slight discount with the promo code.

Information for both conferences will remain linked at the sidebar at the right.

Another Man-Camp Approved -- Williams County -- Bakken, North Dakota, USA

Link here.

Approved: a 224-bed facility on acreage in the Bakken Industrial Park, to be built by Burke Remote Site LLC, based in Las Vegas.

First phase: two 56-bed units. Price / night -- $100/night (rounded).

Fracking Backlog Continues -- Bakken, North Dakota, USA

Posted elsewhere, of the six wells coming off the confidential list today, only two were completed and reported IPs. The other four (67%) of wells coming off the confidential list are not completed, most likely waiting to be fracked:

• 19798, DRL, XTO, Doris 21X-5, Midway, Bakken
  18894, 870, XTO, Woodrow 34X-32, West Capa, Bakken
  18794, DRL, Dakota-3, Dakota-3 Elk 16-21H, Van Hook, Bakken (40K in the first month)
   20136, DRL, Hess, Iverson Trust 1-1H, Glass Bluff, Bakken
  20383, DRL, KOG, Koala 3-2-11-13H, Poe, Bakken
  19892, 922, Denbury Onshore, Lawlar 34-10NWH, North Tobacco Garden, Bakken   

Two-thirds not fracked is worse than the 50% I've noted earlier.

Holy Guacamole, Batman: Federal Appeals Court Says ObamaCare Unconstitutional

Link here.

An appeals court ruled that Obamacare requiring Americans to buy healthcare insurance or face a penalty was unconstitutional ...


.... but also ruled that the rest of the wide-ranging law could remain in effect.

The law itself is constitutional -- what this means -- the law stays in effect, but folks won't be compelled to buy health insurance. This will lower the pool of those paying premiums, making it a very, very expensive bill for someone. All the benefits are there, but the premiums won't be.

The 2-1 ruling marks the first time a judge appointed by a Democrat has voted to strike down the mandate. Judge Frank Hull, who was nominated by former President Bill Clinton, joined Chief Judge Joel Dubina, who was appointed by George H.W. Bush, to strike down the mandate.

Some folks have said the full appeals court is made up of four conservative, four liberal, and one judge who leans right, making it questionable how the full court would vote. I doesn't look questionable to me. One of the four Democrats would be voting with the other five, making it at least a 6-3 outcome.

CNBC Conversation: TransCanada Close to Throwing in the Towel on the Keystone XL

I wasn't home to hear it, but I understand the Keystone XL folks have gone public telling viewers the US is close to losing that pipeline and the oil that comes with it. As noted, I didn't hear the conversation, but I heard that TransCanada is ready to make a decision to ship the oil to the west coast and sell it to China.

I have said the same thing, most recently here.

I have no dog in this fight in the sense that I really don't care one way or the other, although all things being equal, it would be great if the Keystone XL was not completed: my oil transport investments are in crude-by-rail and Enbridge. All things being equal, the US not getting oil from Canada would ultimately result in an increase in the price of WTI oil which would favor the Bakken.

A Google search for "Keystone XL CNBC" resulted in this, but that's about all.

TransCanada's proposed Keystone XL project is designed to carry oil from Canada across Montana, South Dakota, Nebraska, Kansas, Oklahoma and Texas. Calgary-based TransCanada submitted its Keystone XL project for State Department review in late 2008. The State Department has authority over the pipeline because it crosses an international boundary.

The U.S. State Department has said it would decide the project's fate by the end of 2011. Some Congressional Republicans want a Nov. 1 deadline.

I guess the Feds will get to the Keystone XL issue once they figure out how to save the USPS, which says it will be insolvent next month (it can't meet Congressionally-mandated payments due September 31, 2011).

Speaking of which, I was told the other day that a Texan recently saw some local vigilantes taking violent and decisive action against some drug runners crossing into Texas from Mexico.  He notified federal authorities and is frustrated the Feds have not responded. He feels he wasted two first-class stamps.

Global Oil Demand Update -- OMG -- Oil Demand Forecast To Drop the Equivalent of Two Months Bakken Well Production

Link here.

A fair number of talking heads said oil dropped from $100 to $80 this past week or so due to downgrade of US credit rating (AAA to AA+), economic signs pointing to a global slowdown, and risk of a double dip recession in the US.

With that, the US Energy Information Agency forecast a drop in growth -- at least that was the headline.

So, let's look at the very short history of that headline.

• "Last month" the EIA forecast growth of 1.65% in oil demand for next year. WTI about $100.
• "Now," the EIA has moved that forecast to 1.6% growth in oil demand for next year. WTI plunges to $80.
• Global oil demand will grow 1.6% to 88.19 million barrels a day this year, down slightly from a rise of 1.65% projected last month, the U.S. Energy Information Administration said Tuesday. 
• The EIA projected the world real gross domestic product growth will grow by 3.4%, a modest uptick from the July growth forecast of 3.3%
• China, the world's second-biggest oil consumer after the US will post 9.1% demand growth to 10 million barrels a day. That will account for more than 60% of global growth of 1.37 million barrels this year and half of the growth in the developing nations.

Does anyone really believe those numbers (1.65 vs 1.60 and 3.3 vs 3.4) are reproducible and//or statistically significant?

Having said that, was anyone even aware that the EIA actually raised the global growth forecast for next year?

The difference between 1.65% and 1.60% is 0.05%. Multiplying 86.80 million bbls/day by 0.0005 --> 45,000 bbls. An average Bakken well will produce 45,000 bbls in the first six months of production; some Bakken wells produce that much in the first two months. 

I can't say that $100/bbl is the right price for WTI oil, but a swing from $100 to $80 based on the output of a Bakken well for two months seems a bit overdone. Even in a global downturn, there is still an increasing demand for oil. (Have folks forgotten about the nuclear moratorium in Japan and Germany? Yes, I know oil won't replace nukes, but fossil fuels will.)

My math is often weak, and I will gladly correct these figures if I made a mistake. If I made a mistake, it's with the placement of the decimal.

If I didn't know better, I would suggest that DA, at the request of BO, phoned the EIA and told them to put out a press release telling them that the increase in global oil demand would drop from the previous forecast, never mind that the drop was not significant, not reproducible, not verifiable, and not statistically significant.

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

Even OPEC, who says the demand forecast will drop next year, says demand will actually rise 1. 2 million bbls/day next year over this year.

Global oil demand will still rise by 1.2 million barrels a day, and the downgrade represents only a fraction of the 88.14 million barrels a day OPEC expects to be consumed this year worldwide.

There is so much confusion in the numbers; here's another data point:

The group's data also still points to a supply gap of 811,000 barrels a day in the second half of this year, according to a Dow Jones calculation of the difference between current oil output and OPEC's demand forecast for the coming period.

BEXP's Most Recent Presentation: Some Very Nice Wells -- So, What Else Is New? -- Bakken, North Dakota, USA

During earnings season I could not keep up with all the news. One of the biggies was BEXP's new presentation in which the company released results of new wells. One can find BEXP's most recent presentation at their home page.

These are the wells with IPs being reported for the first time. To the best of my knowledge, they are not yet on my blog, and to the best of my knowledge they are still in DRL status or on the confidential list at the NDIC site.

But here they are, includes number of frack stages (30 - 39):

• 20013, 3,771, Statoil/BEXP, Lucy Hanson, Catwalk, Bakken, 36; t8/11; cum 260K 9/16;
• 20655, 2,217, Statoil/BEXP, Raymond 17-20 1H, Ragged Butte, Bakken,  39; t8/11; cum 153K 9/16;
• 20842, 2,743, Statoil/BEXP, Larsen 3-10 2H,Williston, Bakken,  31, t7/11; cum 215K 9/16;
• 20338, 980, Statoil/ BEXP, Pladson 4-9 1H 38 TF, Kittleson Slough, Three Forks,  38; t7/11; cum 176K 9/16;
• 19325, 896, Statoil/BEXP, Stanley Larson 8-5 1H, Squires, Bakken,  37, t7/11; cum 96K 9/16;
• 20345, 2,746, Statoil/BEXP, Gunderson 15-22 1H, Banks, Bakken,  38, t7/11; cum 332K 9/16;
• 19861, 2,693, Statoil/BEXP, SCHA 23-34 1H, Alger,  30, t6/11; cum 250K 9/16;
• 19830, 1,835, Statoil/BEXP, Irwin 15-22 1H, Lake Trenton, Bakken,  32; t6/11; cum 218K 9/16;

Others on that list that have been previously reported elsewhere on this site:

• 19554, 1,933, Statoil/BEXP, Hovde 33-4 1H, Sandrocks, Bakken,  31, t6/11; cum 186K 9/16;
• 19930, 2,670, Statoil/BEXP, Russell 10-3 1H, Painted Woods, Bakken,  38; t6/11; cum 243K 9/16;
• 20146, 1,889, BEXP, DeLoreme 12-1 1H, Painted Woods, Bakken,  37; t6/11; cum 176K 9/16;

With one exception, what do you note about these 11 wells?

Yup, every well is in a different field, except for the two in Painted Woods, northwest of Williston. 

These are great wells. I've tagged them to follow-up six months from now to see what their early production will be. My hunch is that they will all be close to 60,000 bbls the first 6 months, and 100,00 bbls within the first 18 months.

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

Regarding the Lucy Hanson well, check out question #8 on my FAQ page: what is the record IP to date in the Williston Basin?

As I have said many times, the initial production of any well, self-reported by the producer, is becoming less meaningful over time. Having said that, it looks like the record IP for a Bakken well is now 5,200, a Newfield well (July, 2011): 18691, 5,200 BOE (3,713 BO), NFX, Wisness Federal 152-96-4-2H, Westberg, Bakken, t7/11; cum 371K 9/16;

Two earlier wells: a Whiting well which had an IP of 4,761 boepd: file #17612, 4,761 boepd IP (4,345 bo IP), Whiting, Maki 11-27H, Mountrail County, Sanish field, t10/09; cum 800K 9/16.  This is still current as of February 20, 2010. Since then, BEXP claims to have set a record with the Sorenson 29-32 1-H, #18654, with a 24-hour flowback of 5,133 boepd (4,335 bopd), t4/10; cum 456K 9/16; BEXP also reported the Jack Cvancara 19-18 #1H in the Ross project area (18628) with a 24-hour flowback of 5,035 boepd (4,357 bopd), t5/10; cum 425K 9/16;

Oakdale Oil Field Update

Permits in Oakdale Oil Field

2021 (none as of May 27, 2021)

2020

• 37794, drl/NC-->drl/A, CLR, Carson Peak 13-35H, first production, 5/21; t--; cum 85K 7/21; cum 268K 4/22;
  
• 37716, drl/NC-->drl/A, CLR, Carson Peak 12-35H1, first production, 5/21; t--; cum 86K 7/21; cum 252K 4/22;
  
• 37715, drl/NC-->drl/A, CLR, Carson Peak 11-35H2, first production, 5/21; t--; cum 112K 7/21; cum 313K 4/22;
  
• 37714, drl/NC-->drl/A, CLR, Morris 13-26H, first production, 5/21; t--; cum 72K 7/21; cum 248K 4/22;
  
• 37713, drl/NC-->drl/A, CLR, Morris 12-26H1, first production, 5/21; t--; cum 57K 7/21; cum 197K 4/22
  

2019

• None.

2018

• 35273, F/2,405, Carson Peak 4-35H2L, t6/19; cum 562K 3/21; cum 616K 7/21; cum 693K 3/22; offline 4/22;
  
• 35272, 3,376, Carson Peak 4-35HSL, t6/19; cum 677K 3/21; almost 700K in less than two years; cum 720K 7/21; cum 791K 2/22; offline 3/22;
  
• 35109, F/956, Morris 7-26H2, t4/19; cum 304K 1/21; off line 1/21; back on line 5/21; cum 311K 7/21; cum 362K 3/22; off line 4/22;
  
• 35108, 1,824, Carson Peak 6-35H1, t5/19; cum 448K 3/21; off line for much of 2/21 - 3/21; cum 481K 7/21; cum 530K 3/22; offline 4/22;
  
• 35087, drl/A, Morris 11-26H, Oakdale, first production, 5/21; t--; cum 108K 7/21; cum 254K 4/22;
  
• 35086, drl/A, Morris 10-26H2, first production, 5/21; t--; cum 85K 7/21; cum 200K 4/22; cum 209K 4/22;
  
• 35085, drl/A, Morris 9-26H, Oakdale, first production, 5/21; t--; cum 75K 7/21; cum 209K 4/22;
  
• 35084, drl/A, Carson Peak 1-35H1, first production, 5/21; t--; cum 101K 7/21; cum 308K 4/22;
  
• 35083, drl/A, Carson Peak 9-35H, first production, 5/21; t--; cum 81K 7/21; cum 262K 4/22;
  
• 35082, F/1,593, Morris 8-26H1, four sections; t4/19; cum 330K 9/20; off line 10/20; back on line 6/21; cum 341K 7/21; cum 408K 4/22;
  
• 35081, 3,556, Carson Peak 8-35H2, t5/19; cum 633K 1/21; off line 2/21; back on line 5/21; cum 648K 7/21; cum 666K 4/22; offline 4/22;
  
• 35080, 2,076, Carson Peak 7-35H, t6/19; cum 455K 12/20; off line 1/21; remains off line 7/21; back on line 8/21; cum 568K 4/22;
  

2017

• 34354, 2,485, CLR, Hawkinson 16-22HSL1, 4 sections, NENE 22-147-96; 465 FNL 681 FEL, see graphic; t2/19; cum 382K 3/21; cum 406K 7/21; cum 431K 4/22; off line 4/22;
  
• 34353, 2,913, CLR, Morris 4-23HSL, NENE 22-147-96; 466 FNL 636 FEL, see graphic; t3/19; cum 349K 3/21; cum 354K 7/21; cum 377K 4/22; off line 4/22;
• 34352, 2,698, CLR, Morris 523H2, NENE 22-147-96; 466 FNL 500 FEL, see graphic; t4/19; cum 277K 3/21; but essentially off line since 6/19; remains off line 9/19; back on line 10/19; cum 286K 7/21; cum 306K 4/22; off line 4/22;
  
• 34351, 1,969, CLR, Morris 6-23H, NENE 22-147-96; 467 FNL 456 FEL, see graphic; t4/19; cum 337K 3/21; off line most of 2/21 - 3/21; back on line 6/21; cum 348K 7/21; cum 390K 4/22; offline 4/22;
  

2016

• None.

2015 (list is compete)

• 31104, 133, CLR, Hawkinson 15-22H, Oakdale, t4/16; cum 100K 3/21; off line since 11/18; see below; back on line 1/19; cum 107K 4/22;
  

2014

• No new Oakdale permits in 2014.

2013

• No new Oakdale permits in 2013.

2012

• Only the CLR Hawkinson wells noted below

2011

• None

Hawkinson Wells

Hawkinson wells in section 22/27-147-96 in Oakdale oil field (it should be noted that wells #20208 and #20211 are in this spacing unit, but sited in section 34 to the south):

• 18275, single well, 1,020, CLR, Hawkinson 1-22H, t2/10; cased hole, 2 million lbs; cum 733K 3/21; went off line 3/19; still off line 4/19; back on line as of 5/19; unremarkable change in production;

A singleton (see above):

• 31104, 133, CLR, Hawkinson 15-22H, t4/16; cum 95K 1/20; off line as of 11/18; back on line as of 1/19; still a lousy well;

There are two more Hawkinson wells that were drilled from the other end of the spacing unit:

• 20208, 960, CLR, Hawkinson 2-27H, Oakdale, 4-section spacing, Three Forks; 24 stages, 2.4 million lbs; t9/11; cum 472K 1/20; off line as of 5/18; back on line as of 2/19; 
• 20211, A/AB-->A/263, CLR, Hawkinson 3-27H, Oakdale, 4-section spacing, middle Bakken, 24 stages, 2.4 million lbs, t9/11; cum 389K 1/20; was AB, now active again, back on line as of 2/18; not much production since coming back on line; off line 10/19 but then back online 1/10;

Three-well pad:

• 24223, 400, CLR, Hawkinson 4-22H2, Oakdale, Three Forks, 30 stages, 2.8 million lbs; t91/13; cum 382K 1/20; went offline 3/19; see this post;
• 24224, 681, CLR, Hawkinson 5-22H, Oakdale, middle Bakken, 30 stages, 2.8 million lbs, t9/13; cum 495K 1/20; went offline 3/19; see this post;
• 24225, 809, CLR, Hawkinson 6-22H3, Oakdale, Three Forks, 30 stages, 2.8 million lbs, t10/13; cum 236K 1/20; went off line 3/19; see this post; intermittent production until 5/19;

Five-well pad:

• 24282, 175, CLR, Hawkinson 7-22H2, Oakdale, middle Bakken, 29 stages, 2.7 million lbs, t10/13; cum 257K 1/20; off line since 11/18; back online as of 3/19;
• 24283, 504, CLR, Hawkinson 8-22H, Oakdale, middle Bakken, 29 stages, 2.7 million lbs, t11/13; cum 257K 1/20;
• 24284, 203, CLR, Hawkinson 9-22H3, Oakdale, Three Forks, 30 stages, 2.8 million lbs, t10/13; cum 151K 1/20; off line since 11/18; back online as of 1/19 but still a lousy well; 
• 24285, 922, CLR, Hawkinson 10-22H1, Oakdale, Three Forks, 30 stages, 2.8 million lbs, t10/13; cum 193K 1/20; off line since 11/18; online as of 1/19; but still a lousy well;
• 24286, 323, CLR, Hawkinson 11-22H2, Oakdale, Three Forks, 30 stages, 2.7 million lbs, t10/13; cum 261K 1/20; off line since 11/18; back on line as of 1/19; looks like some increase in production;

Three-well pad:

• 24350, 445, CLR, Hawkinson 12-22H3, Oakdale, Three Forks, t9/13; cum 204K 1/20; off line since 12/18; back on line for 6 days, 9/19; small amount of production;
• 24455, 2,323, CLR, Hawkinson 13-22H, Oakdale, middle Bakken, 29 stages, 2.7 million lbs, t10/13; cum 299K 1/20; off line since 10/18; on line for 15 days 3/19 but offline again as of 4/19; back on line as of 6/19;
• 24456, 542, CLR, Hawkinson 14-22H2, Oakdale, Three Forks, t9/13; cum 243K 1/20; off line since 10/18; back on line for 12 days in 3/19 but back off line as of 4/19; mediocre well at best; back on line as of 9/13;

Updates

May 27, 2021: Oakdale wells permitted in 2018, updated this date.

June 6, 2019: #24282 back on line after being offline for about five months; not much change in production; 

February 4, 2019: lots of activity right now in this area. Several great wells off-line since 10/18; in addition, two new wells on DRL status are now on the 18858-18861 pad:

• 35272,
• 35273,
  

June 4, 2014: Oakdale field is very small; only eight (8) sections. It is two sections wide (west/east) by four sections long (north/south). It has four 1280-acre spacing units; and CLR proposes two overlapping 2560-acre units in the June NDIC dockets.

Case (not permit) 22550, CLR, Oakdale-Bakken, 16 wells on each existing 1280-acre unit within Zone I; 32 wells on each 2560-acre unit in Zones III and IV; Dunn

Since 32 wells works out to 16 wells sited in every 1280 acres, that would suggest a maximum of 32 wells in every 1280 acres. I assume they wouldn't drill a well unless they anticipated a EUR of at least 500,000 bbls. 16 x 500,000 = 8,000,000 boe in each section. 8 million boe / 640 acres = 12,500 boe/acre. 

November 6, 2013: Hawkinson Unit density test produces at an initial combined rate of 14,850 boe per day from middle Bakken and Three Forks benches one, two and three. CLR will dedicate four rigs to drill mega-pads. CLR will drill 350 wells on 25 pads over the next four to five years.


October 18, 2012:  Three new CLR permits in Oakdale -- testing the lower benches of the Three Forks?

Original Post

I recently updated the Morris 2-26H well which is in the Oakdale oil field in the Williston Basin.

• 18860, 517, CLR, Morris 2-26H, Oakdale, Bakken; t5/11; cum 285K 10/17;  4-section spacing;

Here's the rest of the story:

• 18858, 715, CLR, Morris 3-26H, Oakdale, Bakken, t5/11; cum 478K 12/18;  (Kind of HUGE), 4-section spacing; off line as of 9/18;
• 18859, 680, CLR, Carson Peak 3-35H, Oakdale, Bakken, t5/11; cum 671K 12/18;  4 (Really HUGE); 4-section spacing; off line as of 10/18;
• 18861, 759, CLR, Carson Peak 2-35H, Oakdale, Bakken; t5/11; cum 718K 12/18;  (Really HUGE); 4-section spacing: off line as of 10/18;

This Eco-Pad is in the Oakdale oil field, a field we don't hear much about. That's because it is a very small field, all of eight (8) sections. In fact, it's hard to get more than a couple of Eco-Pads in a field this small. Smile.

The field is in the core Bakken, in the northwest corner of Dunn County and surrounded by some "name" oil fields, including Little Knife and Jim Creek. The field is "owned" by Continental Resources.

Just east of this Eco-Pad is another Continental Resources Eco-Pad, the Hawkinson-Whitman Eco-Pad, 4-section spacing:

• 20208, IA/960, CRL, Hawkinson 2-27H, Oakdale, Bakken; t9/11; cum 452K 12/18; off line as of 6/18;
• ******20210, 803, CLR, Whitman 2-34H, Oakdale, Bakken, t9/11; cum 1.629573 million bbls/112/18; FracFocus/NDIC: no record of refrack; huge jump 9/18;
  
• 20211, AB/263, CLR, Hawkinson 3-27H, Oakdale, Bakken; t9/11; cum 385K 10/17; 
  
• **** 20212, 482, CLR, Whitman 3-34H, Oakdale, Bakken; t9/11; 308K 12/18; re-fracked 9/17;

Just to the west of the Hawkinson-Whitman Eco-Pad is a superb CLR well:

• 17061, 664, CLR, Whitman 11-34H, Oakdale, Bakken; tested 6/08; 461K 12/18;

To the north is an old legacy well, still considered active, but last produced in 2008:

• 6130, 220/PA, RM Resources, Hawkinson 1-27, Oakdale, Madison; t8/77; cum 341K as of 1/12 but no production since 5/08, abandoned

Another nice horizontal well drilled in this boom in this oil field:

• 18275, 1,020, CLR, Hawkinson 1-22H, Oakdale, Bakken; t2/10; cum 712K 12/18; time to re-frack;
  

Others:

• 17079, 559, CLR, Carson Peak 44-2H, Oakdale, Bakken; t6/08; cum 311K 12/18; off line as of 11/18;
• 17334, 811, CLR, Morris 1-23H, Oakdale, Bakken, t11/08; cum 278K 12/18; off line as of 8/18; 

Everything suggests this will end up being a very good field. Eight sections, two Eco-Pads: one wonders if this field is an early candidate for unitization.

With Debt Ceiling Melodrama Behind Us, On to the Next Political Theater -- The 120,000 Post Office Cut -- Not a Bakken Story

Update

November 29, 2011: the Post Office isn't going to change. 

But with 557,000 employees, the postal service is among the nation's largest employers, behind the federal government and Wal-Mart. The postal service's 32,000 retail branches top Wal-Mart, Starbucks and McDonald's combined. It's also one of the largest employers of minorities and veterans.

Proposals to cut Saturday service and close underused post offices in order to save billions of dollars have met united opposition from Democrats and many of the conservative Republicans who swept into office campaigning on smaller government.

August 12, 2011: when I first posted this, the "number" was 120,000 jobs at risk. Now, one day later, the number has changed. The number is now 220,000. What happened? I don't know.

The USPS has already cut 100,000 jobs over the past few years and is in the process of cutting 7,500 executive positions.

The postal service needs to cut its payroll to 425,000 jobs and take over its retirement and health benefits instead of participating in federal programs, Postmaster General Patrick Donahoe told Reuters.

Wow, the numbers are staggering. Simple addition suggests when this all started there were about 745,000 employees (100,000 + 220,000 + 425,000), and now needs to get down to a fighting strength of 425,000. That represents about a 60 percent of the original labor force. Hmmm.

Does anyone really think Congress will allow that many cuts? My hunch: attrition only.

Original Post

I consider myself fairly well-read, but even I was taken by surprise on this one: the US Postal Service will be insolvent next month.

I knew they were in debt, and in deep debt, but I assumed they had cash on hand to keep operating. I did not realize they will be insolvent next month, but that's what their boss says:

"Financial crisis calls for significant actions, we will be insolvent next month due to significant declines in mail volume and retiree health benefit prefunding costs imposed by Congress."

Postal officials have said they will be unable to make a $5.5 billion payment to cover future employee health care costs due Sept. 30.  

Up until I read that, I assumed it would be business as usual, while they held Congressional hearings, and then find a way to kick the can down the road.

But when I read that the USPS will actually be insolvent next month, I thought it changed everything.

Not so fast:

Postmaster General Patrick Donahoe said, "Our intent is to continue to deliver the mail, pay our employees and pay our suppliers."

Yup, the USPS won't do anything differently: they will deliver the mail, pay their employers and pay their suppliers.

The USPS simply won't pay past due bills, and they won't pay Congressionally-mandated obligations for health care or pension contributions.

For the customer, business as usual while political theater plays itself out in Washington.