Reminder: Mineral Rights Forum Link

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October Hearing Dockets -- NDIC -- 13 Pages on Wednesday; 26 Pages on Thursday -- Bakken, North Dakota, USA

Looking at the October NDIC hearing dockets, here are the takeaways:

• Clearly moving into the manufacturing phase of the Bakken (7 - 8 wells on each drilling unit)
• Center of activity clearly moving to McKenzie County

Wednesday, October 26, 2011

15871, Whiting, temporary spacing, Praus 21-28TFH, Stark County
15872, Whiting, temporary spacing, Johnson 31-4H, McKenzie County
15873, Whiting, amend Elkhorn-Bakken, establish 2 1280-acre units, Billings County
15874, Whiting, amending Ash Coulee-Bakken, establish 1 1280-acre unit, Billings
15875, Petro-Hunt, temporary spacing for Erickson 157-101-13B-24-1H, Williams County
15876, Petro-Hunt, amending Charlson-Bakken, 2 hz wells on a 640-acre unit, McKenzie
15877, Cornerstone, temporary spacing, Tafelmeyer 7-34H, Burke County
15878, Cornerstone, temporary spacing, Jacobson 8-33H, Burke
15880, Cornerstone, establish 2 800-acre units, 1 well, Burke
15881, Cornerstone, establish 6 1280-acre units, 1 well each, Burke
15882, Cornerstone, amend Spiral-Bakken, establish 2 1280-acre unit, 1 well each, Burke
15883, Cornerstone, establish 9 1280-acre units, 1 well each, Burke
15884, Cornerstone, extend and amend Little Butte-Bakken, establish 2 1280-acre units, 1 wells each, Burke
15885, Cornerstone, extend and amend Coteau-Bakken to establish 10 1280-acre units, 1 well each, Burke
15886, Hess, amend Forthun-Bakken, establish 1 1280-acre unit, Burke
15887, Hess, amend, establish 1 640-acre unit, Burke
15888, Hess, amend Beaver Lodge, establish 1 1280-acre unit, 3 wells, Williams
15889, Hess, amend Beaver Lodge, allow 3 wells in 1 1280-acre unit, Williams
15890, Hess, extend, amend Robinson Lake-Bakken, allow 6 wells on 2 1280-acre unit, Mountrail County
15891, Hess, extend, amend Robinson Lake-Bakken, designating a 640-acre unit for 6 wells, Mountrail
15657, cont'd, Hess, amend Whited Earth-Bakken, designate 1 1280-acre unit; 6 wells, Mountrail
15370, cont'd, Hess, amend Alger-Bakken, 1 well per 640 acres
15654, cont'd, Hess, establish 2 1280-acre units, 1 well each, Lodgepole, Williams
15892, Hess, suspend/revoke a BEXP permit, Maston 34-27 1H, McKenzie/Williams
14935, cont'd, Hess, suspend/revoke a CLR permit, Foster 1-28H, McKenzie/Williams
15893, Petro Harvester, extend Kuroki, designate a 160-acre unit, 3 wells on that unit, Kuroki-Madison, Bottineau
15894, Petro Harvester, Columbus-Madison, to establish a 640-acre unit, 1 well, Burke
15896, BR, amend Westberg-Bakken, 2 wells on 2 1280-acre units, McKenzie
15897, BR, establish 3 1280-acre units, 1 well each, McKenzie
15898, BR, establish 4 1280-acre units, 1 well each, McKenzie
15899, BR, extend Bicentennial Field to establish 4 1280-acre units, McKenzie
15900, BR, extend Cinnamon Creek Field, establish 4 1280-acre units, McKenzie
15901, BR, estabish 6 1280-acre units, 1 well each, Billings
15902, SM, amend Poe-Bakken, allow 8 hz wells on 3 1280-acre units, McKenzie
15903, SM, amend Siverston-Bakken, 8 hz wells on 1 1280-acre unit, McKenzie
15904, SM, amend Bear Den-Bakken, 3 wells on 1 640-acre unit, McKenzie
15905, SM, amend Bear Den-Bakken, 7 wells on a 1280-acre unit, McKenzie
15906, SM, extend/amend MonDak-Bakken, 1 1280-acre unit, 1 well, McKenzie
14231, cont'd, SM, suspend/revoke a CLR permit, Koeser 1-11H, McKenzie
15907, Murex, extend Cartwright, establish 1 1280-acre unit, McKenzie
15908, Murex, establish 7 1280-acre units, 1 wells each, McKenzie
15909, OXY USA, amend Willmen-Bakken, 6 wells  on 1 1280-acre unit, Dunn
15648, cont'd, OXY USA, proper spacing for Manning-Bakken, Dunn
15649, cont'd, OXY USA, extend Dimond Field, establish 16 1280-acre units, 6 wells on each, 96 wells in all, Burke
15910, MRO, create 3 1280-acre units, 1 well each, McLean
15911, MRO, extend Deep Water Creek Bay, establish 1 1280-acre unit, 1 well, McLean
14917, cont'd, Oasis, temporary spacing for Twobins 5501-42-20H, Williams
15171, cont'd, Oasis, temporary spacing for Logan 5601 42-35H, Williams
15172, cont'd, Oasis, temporary spacing for Jensen 5501 42-7H, Williams
15912, Oasis, amend MonDak-Bakken, unrestricted flaring, McKenzie
15913, Oasis, amend Painted Woods-Bakken, unrestricted flaring, Williams
15914, Oasis, amend Alkali Creek-Bakken, unrestricted flaring, McKenzie
14451, cont'd, Sequel, establish 6 1280-acre units, 1 well each, McKenzie
15676, cont'd, XTO, revoke CLR permit, Carbon 1-30H, McKenzie
15915, North Plains, proper spacing for the Corinth-Bakken, Williams
15916, North Plains, extend Truax-Bakken, establish 2 1280-acre units, 7 laydown wells, McKenzie
15690, cont'd, CLR, suspend/revoke a BEXP permit, Barney 32-29H, McKenzie
15693, cont'd, QEP, amend Deep Water Creek Bay, create 1 560-acre unit, 2 wells, McLean
15695, cont'd, QEP, amend Heart Butte and/or Van Hook, create 1 2560-acre unit, 10 wells, Dunn/Mountrail,
14541, cont'd, Oil for America, temporary spacing for Zastoupil 22-1, Stark
15917, Buckhorn, saltwater disposal, Williams, Wheelock field
15918, Buckhorn, saltwater disposal, Williams, Ray field
15919, J & M Disposal, saltwater disposal, Divide, Blooming Prairie field
15920, SBG, satlwater disposal, Mountrail, Robinson Lake field
15921, DRD, saltwater disposal, McKenzie, Blue Buttes field
15922, Oasis, allow flaring, Bean 5703 42-34H, Williams
15923, Oasis, allow flaring, Somerset 5602 12-17H, Williams
15924 - 15928, Oasis, allow flaring, various wells
15929, Oasis, saltwater disposal
15930, SM, pooling, Indian Hill-Bakken, McKenzie
15931 - 15933, Murex, pooling
15934 - 15936, Petro-Hunt, pooling
15937 - 15939, MRO, pooling
15940 - 15941, KOG, pooling
15942, Hess, saltwater disposal
15943 - 15944, Hess, pooling
15945, Whiting, commingling
15946, Cornerstone, pooling
15879, Debra K Ganske, appropriate spacing for wells completed in Bakken Pool underlying a 1280-acre spacing unit, Williams County

Thursday, October 27, 2011

15948, CLR, proper spacing for Hanson-Bakken, Williams
15949, CLR, extend Juno, Upland and/or Wildrose-Bakken, create 7 1280-acre units, 1 well each, Divide
14062, cont'd, CLR, temporary spacing for Norway 1-5H, McKenzie
14356, cont'd, CLR, amend Elm Tree-Bakken, create a 2560-acre unit, 4 wells from Eco-Pad, McKenzie
14543, cont'd, CLR, temporary spacing for Haag 1X-21H, Billings
15224, cont'd, CLR, suspend/revoke Hess permit for 2WX 7-1H, McKenzie
15491, cont'd, CLR, temporary spacing for Montpelier 1-14H, McKenzie
15492, cont'd, CLR, temporary spacing for Hayes 1-6H, Williams
15733, cont'd, CLR, temporary spacing for Truman 1-23H, Williams
15950, Samson Resources, amend Baukol Noonan-Bakken, create 2 920-acre units, 2 wells on each unit, Divide
15951, Samson Resources, create 1 800-acre unit, 1 well, Divide
15952, BEXP, extend Last Chance-Bakken, create 1 1280-acre unit, 8 wells on that unit, Williams
15953, Salwson, extend Ellsworth-Bakken, 1 1280-acre unit, 1 well, McKenzie
15954, Slawson, extend MonDak-Bakken, create 1 1280-acre unit, 1 well, McKenzie
15955, XTO, amend/create 2 1280-acre units, 1 well each, McKenzie
15956, Zenergy, suspend/revoke a Petro-Hunt permit, Smith 157-100-3D-1-1, Williams
15957, Triangle, extend Bull Butte-Bakken, create a 640-acre, 1 well, Williams
15958, Dakota-3, extend South Fork, Moccasin Creek and/or Heart Butte-Bakken, create 2 1280-acre units, 7 wells each unit, Dunn
15959, Dakota-3, amend South Fork-Bakken, create 1 1280-acre unit, 7 wells, Dunn
15960, Dakota-3, amend Heart Butte-Bakken, create 1 2560-acre unit, 13 wells, Dunn
15961, EOG, amend Clarks Creek-Bakken, alter stratigraphic limits, McKenzie
15962, EOG, amend Spotted Horn-Bakken, alter stratigraphic limits, Mountrail
15963, EOG, amend Squaw Creek-Bakken, alter stratigraphic limits, McKenzie
15964, EOG, amend Antelope-Sanish, alter stratigraphic limits, McKenzie/Mountrail
15965, EOG, amend Mandaree-Bakken, alter stratigraphic limits, McKenzie/Dunn
15966, GMX Resources, amend, extend Ranch Creek-Bakken, establish 9 1280-acre unit, 1 well each, McKenzie
15967, Legacy Oil, extend North Souris-Spearfish, create 1 160-acre unit, 1 well, Bottieau
15194, cont'd, CCS, treating plan in Ross Field, Mountrail
15749, cont'd, Silver Oak, amend North Westhope-Madison, create 1 640-acre unit, 3 wells, Bottineau
15509, cont'd, Silver Oak, amend, extend Cedar Hills-Red River "B", create 4 640-acre units, 3 wells on each unit, Slope County
15754, cont'd, Newfield, extend Cartwright-Bakken, create 10 1280-acre units, 1 well each, McKenzie
15755, cont'd, Newfield, amend Todd or Williston-Bakken to create 1 1280-acre unit, 7 wells on that unit, Williams
1549, cont'd, OXY USA, extend St Anthony-Bakken, create 1 1280-acre unit, 6 wells, Dunn
15968, BEXP, suspend/revoke a Zenergy permit, Mrachek 27-34H, McKenzie
15969, Ward-Williston, water injection, unitize North Westhope-Madison, Bottinea
15866, cont'd, Ward-Williston, saltwater disposal, Burke
15970, Ross Eriksmoen, saltwater disposal, Mountrail
15971, Dakota-3, 3 wells on 640-acre unit, Van Hook-Bakken, Mountrail
15972, Dakota-3, 2 wells on a 320-acre unit; 4 wells on a 640-acre ;unit, McGregory Buttes-Bakken, Dunn
15973, Dakota-3, 2 wells on 2 640-acre units; 7 wells on 1 1280-acre unit, Mandaree-Bakken, Dunn
15974, Dakota-3, 4 wells on 1 640-acre unit; 7 wells on 1 1280-acre unit, Squaw Creek-Bakken, McKenzie
15975, Dakota-3, 7 wells on 1 1280-acre unit; 5 wells on 1 1280-acre unit, Spotted Horn-Bakken, McKenzie/Mountrail
15976, Dakota-3, 4 wells on 1 640-acre unit, South Fork-Bakken, Dunn
15603, cont'd, Dakota-3, 8 wells on a 128-acre unit, Eagle Nest-Bakken, Dunn
15977 - 15978, Slawson, pooling
15979 - 15987, Baytex, flaring
19988, Denbury Onshore, risk penalty legalese
15989, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Elidah-Bakken, McKenzie
15990, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Garden-Bakken, McKenzie
15991, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Indian Hill, Williams/McKenzie
15993, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Killdeer-Bakken, Dunn
15994, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Lost Bridge-Bakken, Dunn,
15995, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, North Fork-Bakken, McKenzie
15996, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Sand Creek-Bakken, McKenzie
15997, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Squaw Creek-Bakken, McKenzie
15998, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, St Demetrius-Bakken, Billings
15846, cont'd, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Charlson-Bakken, McKenzie/Williams
15847, cont'd, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Murphy Creek-Bakken, Dunn
15848, cont'd, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, North Tobacco Garden-Bakken, McKenzie
15849, cont'd, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Siverston-Bakken, McKenzie
15850, cont'd, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit,Tobacco Garden-Bakken, McKenzie
15851, cont'd, 7 wells on each 1280-acre unit and each 640-acre unit, Antelope-Bakken, McKenzie/Mountrail
15852, cont'd, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Camp-Bakken, McKenzie/Williams
15853, cont'd, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Cedar Coulee-Bakken, Dunn
15854, cont'd, Denbury Onshore, 7 wells on each 1280-acre unit and each 640-acre unit, Corral Creek-Bakken, Dunn
15999, ERF, saltwater disposal
16000, Missouri Basin Well, saltwater disposal
16001, Missouri Basin, saltwater disposal
16002, EOG - 16004, pooling
16005, EOG, flaring
16006 - 16008, GMX Resources, pooling
16009 - 16012 , Triangle, pooling
16013 - 16028, Samson Resources, pooling
16029 -  16032, G3 Operating, pooling
16033, BEXP, 8 wells each on 2 1280-acre units, Poe-Bakken, McKenzie
16034, BEXP, 8 wells each on 5 1280-acre units, Painted Woods-Bakken
16035, BEXP, 8 wells each on 2 1280-acre units, Squires-Bakken
16036 - 16049, BEXP, pooling
16050 - 16056, CLR, pooling
15781, cont'd, CLR, saltwater disposal
16057 - 16059, Surge, pooling
16060 - 16065 , Hunt, pooling
16066, Newfield, 7 wells on each 640-acre unit (2), and 6 wells on 1 1280-acre unit, Sand Creek-Bakken, McKenzie
16067, Newfield, 7 wells on each 640-acre unit (2) and 7 wells on 1 1280-acre unit, Westberg-Bakken, McKenzie
16068 - 16072, Newfield, pooling
15855, cont'd, Newfield, 7 wells on each 1280-acre unit in East Fork-Bakken, Williams
15856, cont'd, Newfield, 7 wells on 1 1280-acre unit in Catwalk-Bakken, Williams
15857, cont'd, Newfield, 7 wells on each 1280-acre unit in Avoca-Bakken, Williams
15858, cont'd, Newfield, 7 wells on 1 1280-acre unit, Last Chance-Bakken, Williams
15859, cont'd, Newfield, 7 wells on 1 1280-acre unit, Williston-Bakken, Williams
15860, cont'd, Newfield, 7 wells on 1 1280-acre unit, Stony Creek-Bakken, Williams
15861, cont'd, Newfield, 7 wells on each 1280-acre unit, Epping-Bakken, Williams
16073 - 16075, Zenergy, pooling
16076, Spotted Hawk, pooling
16066, Fidelity, risk penalty legalese
16078 - 16081, Fidelity, pooling
16082, Fidelity, flaring
16083 - 16084, XTO, pooling
16085, XTO risk penalty legalese
16086, XTO risk penalty legalese
16087, XTO risk penalty legalese
16088, Sinclair, 3 wells on each 640-acre unit (3), Sanish-Bakken, Mountrail
14081, cont'd, Sinclair, temporary spacing for Bighorn 1-6H, Dunn
16089, OXY USA, 6 wells on each 1280-acre unit, Willmen-Bakken, Billings/Dunn
16090 - 16099, OXY USA, pooling
15512, cont'd, OXY USA, 6 wells on each 1280-acre unit (4), Crooked Creek-Bakken, Dunn
15867, cont'd, CCS Midstream, saltwater disposal
15631, cont'd, Epworth Operating, saltwater disposal

Cramer's Favorite Oil and Gas Companies

Link here.

• BP
• Chevron
• Halliburton
• Enbridge: also likes Kinder Morgan, Energy Products Partners, and MarkWest Energy
• El Paso
• ConocoPhillips
• Continental Resources
• Clean Harbor
• Devon
• Carrizo Oil and Gas

It's a great list; interesting to see CLR on the same list as HAL, COP, and CVX.

Nothing To Do With The Bakken -- Just a Rambling, Random Note

Without question one of the finest television stations is TCM -- Turner Classic Movies. I don't know how he does it, but movies are shown without commercial interruption. Last week, Winona Ryder, standing in for Robert Osbourne, introduced the films.

I've pretty much quit watching broadcast channels (ABC, CBS, NBC, FOX) except for NASCAR, and some football.

But TCM seldom disappoints.

This afternoon, Dr Zhivago. I know I saw it when it came out in 1965, and I've seen bits and pieces of it since. It's one movie I cannot watch from start to finish. It is incredibly sad, and then bittersweet, on so many levels.

Today, I happened to stumble across it just before the intermission; I don't know how long I will be able to watch it.

Some of the scenes are what I imagine President Obama's vision for America is. That is painful enough.

But most incredibly painful is the loss of a loved one, or perhaps even worse, "two ships passing in the night." Although the correct interpretation of the latter idiom isn't quite accurate for what I'm feeling, it will have to do for now.

Dr Zhivago puts much into perspective when thinking about the Bakken.

Update on OXY USA OPs in the Bakken -- Why The Interest in the Man-Camp in Dickinson't -- Bakken, North Dakota, USA

Updates at "OXY in the Bakken."

Original Post

I think the dots are starting to connect. Look at the most recent OXY USA presentation, May 25, 2011. Go to slide 28 to look at OXY's prospects in North Dakota and it explains why there is interest in a 600-bed man-camp in Dickinson't.

Three takeaways from this post:

• For investors, OXY looks like a great long-term play
• For "bragging rights: North Dakota may overtake Alaska and California in daily production sometime during the next six months; but that won't be long-lived, if California production gets moving, which it appears to be doing
• For better understanding of what is going on in southwest Dunn County to cause all the commotion about a proposed man-camp

OXY USA (Bakken notes):

• > 200,000 net acres in the Bakken (corporate presentation, May 25, 2011)
• Occidental bought Anschutz Bakken acreage in late 2010 (180,000 net acres)
• Prior to the acquisition, held 20,000 acres (by my reckoning -- I could be wrong)
• 8 rigs in the Bakken (May 25, 2011); plans to increase to 12 by end of 2011
• Original holdings: South Coteau in southeastern Burke County
• Anschutz acquisition: Russian Creek, southwest Dunn county (slide 28 of May 25, 2011 presentation)

According to Teegue's link:

• OXY USA's Bakken leasehold collection point: 10 miles west of Manning
• In Cabernet field: a 20 acre industrial park: oil collection point; salt water disposal
• Will connect to the new Bridger pipeline already there

Geography:

• Manning is 25 miles almost due north of Dickinson't on ND state highway 22
• The center of OXY's play in Dunn County is about 34 miles north of Dickinson't
• Three big oil fields in this area: Murphy Creek, Cabernet, and Fayette;
• Little Knife is just to the west and it looks like OXY has interests there
• Manning field is south of Fayette, and Russian Creek is south of Manning

May 25, 2011, Presentation

• Ops worldwide; Bakken is NOT their focus
• American focus: California, Eagle Ford (60% of OXY's value in Permian Basin; 34% in California)
• Overseas focus: Iraq, Oman, UAE
• Largest acreage holder in California; 1.6 million acres; majority net mineral acres
• Slide 22 is particularly interesting: direct comparison of three unconventional shale plays -- Bakken, California, and Eagle Ford
• Depth: varies but Bakken and Eagle Ford about 10,000 (+/- 3,000); California -- 3,500 to 16,000 feet
• Thickness: whereas thickness in Bakken and Eagle Ford  comparitively thin (20 - 100 feet in the Bakken; 75 to 300 feet in Eagle Ford), some seams are extraordinarily thick in California (500 feet to 3,500 feet). Note the "thinnest" California seam is five times the thickness of the thickest Bakken seam
• OXY has almost 1.6 million net acres in California; compare to CLR's 800,000 acres in the Bakken
• Porosity and permeability in the California shale exceeds that in North Dakota by significant amount
• TOC (total organic content): compares favorably with the Bakken; better than Eagle Ford
• Average EUR: up to 700,000 boe; 10-acre spacing
• Within 10 years, California shale could become OXY's largest business unit

Permitting in California is the problem, but "Governor Brown has been working to speed up the permitting process." OXY expects the governor's efforts to be successful.

For overview of California prospects by another company, this is a start.