Operators: Petro-Hunt (2), Zenergy (2), G3 Operating (2), Liberty Resources, Hess, XTO, and Zavanna
Fields: East Fork, Murphy Creek, Blue Buttes, McGregory Buttes, Foreman Butte, Painted Woods, and Rosebud
G3 has two wildcats in Williams County.
Eight wells came off the confidential list; five were fracked.
Sixteen (16) wells were reported as plugged or producing, probably one of the longest lists in quite some time.
In addition, ten (10) more wells on DRL status reported IPs. All in all, an incredible report, including:
- 20160, 2,173, BEXP, Field 18-19 3H, Williams County
- 20845, 2,151, BEXP, Art 6-7 1H, Williams County
But this was truly an incredible report, and typical of those going forward, I think. To recap:
- 10 new permits
- 8 wells came off the confidential list
- 16 wells reported as plugged or producing
- 10 wells on DRL status now completed and reporting IPs
Oh, by the way, "we" are back to 204 active rigs in North Dakota, tying the all-time high record.
I know you are swamped and hate to bother you with a trivial question like this so don't feel as though you need to answer. I met you outside Home of Economy. I build pads for G3. The Thome permit issued today is a duel pad that is surrounded by other sites that are operating.We've been building in that same area for 18+ months. Why is this a wildcat when does it become a field.46 degree's 9:11 p.m. C.T. pushing dirt
ReplyDeleteCT,
DeleteI remember you well, and I remember the day we met. Thank you for taking time to comment. The question is not trivial and it's the kind of question I prefer to questions about mineral rights.
I don't know the answer to your question but I have a hunch "why," and I bet I'm not to far off the mark. I followed the events northeast of Parshall before the Cottonwood was designated a field, and I saw that process.
The NDIC designates fields, and when they do, the field comes with rules (spacing rules, offsets from section lines, etc).
The NDIC will not designate a field until they know what the field is capable of doing --- so they can get the spacing right, as well as other reasons. Once they designate the field, the rules hold for the entire field, so they want to get it right. The operator wants the largest spacing units possible; the mineral owners perhaps not. There may be environmental issues these days.
The NDIC does not initiate a field. A producer needs to come to the NDIC and present a case, requesting that a section or sections be designated a field. They need to present evidence that the field will do "such and such."
They need enough producing wells to get the data they need to determine spacing rules, etc, before designating a field.
Since this section is right next the CLIMAX oil field, I assume some operator in CLIMAX will petition NDIC to expand the field eastward to include this field, or the STRANDAHL to the immediate southwest. Or as you suggest, a whole new field will be designated.
If you notice, there are many confidential wells in the immediate area, but very, very few producing wells. There are rigs there, but again, only a couple of producing wells and they are a few sections away.
I don't think there is enough production yet for the NDIC to determine the spacing rules for new sections (and whatever other rules they have to put in place). It looks like there is a case before the NDIC currently (Case 14497 to make it 1280-acre spacing). Both the CLIMAX and the STRANDAHL fields have been designated 1280-acre spacing.
So, that's my hunch: a) an operator has to petition NDIC to designate a field; b) the operator won't petition until he has enough data to make a case; and, c) NDIC won't designate a field until they enough production data.
It sounds a bit ridiculous when "we" all have a pretty good idea what the Bakken is doing in that area, but there are other formations to consider, offsets from the section lines, etc.
So, I don't have the official explanation from the NDIC but that's my hunch. If anyone has a better explanation or the official word from the NDIC, I would be happy to hear it.
Anyway, I loved the question and I did not think it a bit trivial.
Can you believe how mild this winter has been? I hope things continue to go well for you. I have only the most respect for all those folks pushing dirt, driving trucks, pushing and pulling pipe, etc., etc.
http://www.nypost.com/p/news/opinion/opedcolumnists/killing_drilling_with_farcical_science_qxVUkyMRYQAwT8ovAYKAgJ#ixzz1kOYt89KO
ReplyDeleteanon 1
The successful movement to kill the Keystone XL was started by a 51-year-old activist from Vermont. He was featured prominently in the Boston Globe last week.
DeleteI'm glad to see New Yorkers are being told the truth.
Something tells me the oil and gas industry is getting the message they need to take these "nuts" seriously before the movement becomes unstoppalbe.