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Monday, March 12, 2012

Fidelity (MDU): New Bakken Production Record and Acquires Additional Bakken Acreage

Link here to press release. 

Also, update on Fidelity (MDU) permits issued since 2010.

From linked press release above:
Fidelity reached a new Bakken production record of over 3,500 net barrels of oil per day from its operated wells. Including its non-operated production, the peak rate is now over 5,000 net barrels of oil per day.

The company also recently acquired an additional 27,000 acres of leaseholds in Richland County, Montana. Fidelity now holds approximately 57,000 net leasehold acres in Richland County, all acquired in the past year. This acreage position is a contiguous block immediately adjacent to the prolific Elm Coulee field. The company has spud its first of two appraisal wells. Depending upon results, a continuous drilling program utilizing one to two rigs is being planned. 
Other data points from the press release:
  • new wells represent a 44-percent improvement over ALL previous wells drilled by Fidelity
  • encouraging results in Stark Count, will add a second rig to this prospect
Further:
“We now have the acreage, drilling rigs and services as well as the organizational capability and experience to sustainably grow our Bakken production,” said Kent Wells, president and chief executive officer of Fidelity. “Our systematic approach of appraising and continuously improving our drilling and production operations is starting to pay dividends and we have only just begun.” 
The boom began almost five years ago

With the latest acreage acquisition, Fidelity holds a total of approximately 124,000 net leasehold acres in the Bakken area with plans to invest approximately $160 million in the region this year.

11 comments:

  1. What about Stark County as to Fidelity and others that have drilled in the county since 2010. When are Chesapeake 's wells coming off the Confidential list? I think (CHK) they are sitting on a gold mine with multiple zones of high interest for oil. Tyler,Lodgepole,Bakken,Three forks, and Birdbear. They will be back soon with a lot of rigs running.

    ReplyDelete
    Replies
    1. Fidelity: at the link in the post above, I have updated all Fidelity wells since 2010 (including all of 2010); I've highlighted in bold "Stark County"; most of their Stark County files are permits only or on the confidential list. Their recent press release suggests they are thrilled with their Stark County prospects.

      Chesapeake: no permits issued in 20210; 12 permits issued in 2011 (no IPs released yet by NDIC); 3 permits issued in 2012, so far. In addition, Chesapeake is taking a breather in North Dakota; not happy with their results; re-evaluating; if anything, moving closer to the Whiting sites around Dickinson; most recent news today suggests Chesapeake focused on other deals.

      I agree with you with regard to all the additional payzones, but this won't be the year for such. The activity this year is moving to McKenzie County with slow but steady growth in the southwest part of the state.

      Delete
  2. I appreciate the info very much. Do you know anything about SM Energy wells in Stark County as to production numbers?

    ReplyDelete
    Replies
    1. I just looked at my database regarding SM Energy and St Mary in Stark County.

      My data base might be wrong, but probably not by much, and I find only one SM Energy permit in Stark County issued since 2010, and it's on the confidential list.

      http://milliondollarway.blogspot.com/2012/03/random-update-on-sm-energy-permits.html

      Delete
  3. Could you please post Fidelity's latest presentation you are refering to. I cant find it. Thanks again.

    ReplyDelete
    Replies
    1. It was a press release.

      Click on "link here" at the very beginning of the post and it will take you to the link.

      Or go directly here:

      http://finance.yahoo.com/news/mdu-resources-reaches-bakken-field-121300620.html

      Delete
  4. Bruce, It appears that Chesapeake is going to develop at least one area that is about 10 miles SE of Dickinson in Stark County according to the ND O&G website. This is a wildcat area, no other wells or operators around.

    Wednesday, March 28, 2012 @ 9:00 a.m. Hearings
    N.D. Oil & Gas Division 1016 East Calgary Avenue Bismarck, North Dakota
    Temporary spacing to develop an oil and/or gas pool discovered by the Chesapeake Operating, Inc., #A 1H Zent 30-138-95, NENE Section 30, T.138N., R.95W., Stark County, ND, define the field limits, and enact such special field rules as may be necessary.

    Can you elaborate what "temporary spacing" is all about?

    ReplyDelete
    Replies
    1. This is a wildcat well; it's not in a designated field. Thus there are no spacing rules, etc. I assume that CHK is requesting 1280-acre spacing for this well, and until a field is designated, it will be "temporary spacing."

      Delete
    2. From my FAQ page:

      A temp. spacing app. leads to a hearing which results in a approval or denial of the app. If approved, the temp. spacing order remains in effect until further order of the NDIC. If temporary spacing is involved, after production is established in the "pool" on any of the temp. spaced units, a proper (permanent) spacing hearing is supposed to be scheduled by the NDIC. Right now, the proper spacing hearing is to occur 18 months after that first production. The proposed new rules change it to three years. Only one permanent spacing hearing is held for all the temp. spaced units in the entire field. -- per Teegue, September 30, 2011.

      Question 49: http://milliondollarway.blogspot.com/p/faq.html

      Delete
  5. Bruce,

    Thank you for looking into this. I'm always amazed about all the comments you get about Chesapeake (for a company with no recent documented discovery). I can't wait until they publicly declare they have a well. Your comment page will be buzzing.

    ReplyDelete
    Replies
    1. I'm surprised how most comments come with regard to my non-oil rants and raves. They are obviously coming from folks who accidentally came to my site through a google search for something else and are not interested in the Bakken. Generally I don't post those comments due to vulgarity, and they SELDOM add anything constructive. If they do add something constructive but due to vulgarity I cannot post it, I generally address the issue in another stand-alone post.

      With regard to CHK, I think CHK has its hands full right now with cash flow, and continued transition from natural gas to oil. For investors, this provides quite an opportunity. With risk, comes potential reward.

      Delete

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