Friday, April 6, 2012

Update on the OXY USA Wells in the Cabernet -- The Bakken, North Dakota, USA

Updates

Later: see first comment. There are two Slawson and two Continental Resources wells in the Cabernet; three are active; one is confidential:
  • 20147, 378, Slawson, Dagger 1-10H, t10/11; F; cum 9K 9/12;
  • 22246, 458, Slawson, Dagger 2-10H, t3/12; cum 24K 9/12; 
  • 20537, 630, CLR, Carl 1-11H, s6/11; t10/11; F; cum 60K 9/12;
  • 20797, 1,208, CLR, Entzel 1-26H, s8/11; t12/11; F; cum 120K 9/12;
Original Post

A reader asked about OXY USA and the Cabernet field.  The comment was "attached" to a post that no longer so I've gone with a stand-alone post. The comment:
Can you find anything on OXY USA in the Cabernet field? We have not heard about OXY or the Cabernet field which supposedly is the "field of sweet oil."  OXY seems to be having problems on their wells, so if you find anything can you post it? Thank you.
I started noticing a difference in the IPs between Anschutz and OXY some time ago and have posted data regarding the same on two separate occasions:

March 13, 2012: OXY USA/Anschutz updated.

January 4, 2012: review of OXY USA since it entered the Bakken in 2011 

I think those two posts will provide a significant amount of background (at least superficially) and some of my thoughts.

Unfortunately, asking to look at the Cabernet field with regard to OXY USA may not be all that valuable. Since OXY USA bought Anschutz' assets, there hasn't been much activity in the Cabernet.

Here is a short  summary of activity in the Cabernet (these are now ALL the OXY USA wells/permits in the Cabernet). Note anything completed before 2011 was Anschutz.
  • 18359, 1,138, Kary 1-24-13H-144-97, t4/10; cum 135K 9/12;
  • 18644, 1,148, State 1-25-36H-144-97X, t4/10; cum 278K 9/12;
  •  18427, 876, Matthew Schmidt 1-35-2H-143-97, t5/10; cum 124K 9/12;
  • 17899, 1,191, Stroh 11-1H, t9/09; cum 157K 9/12; -- off-line since 5/12;
  • 18193, 1,666, Martin 34-31H, t10/09; cum 261K 9/12;
  • 18424, 2,409, Kenneth Stroh 1-12-1H-143-97, t9/10; cum 313K 9/12;
  • 18343, 48; Jaeger State 1-34-27H-144-97, t12/10; cum 180K 1/13;
  • 18892, 340, Evelyn Kary 1-15-22H-144-97; t3/11; cum 43K 9/12;
  • 21334, 755, Kenneth Stroh 2-12-1H-143-97, t5/12; cum 61K 9/12;
  • 22278, 593, Martin 2-30-31H-144-96; s2/12; t6/12; cum 104K 1/13;
  • 22543, DRL, State 2-25-36H-144-97; (interesting -- note #18644 above); first well on a dual pad with #22544
  • 22544, DRL, Kary 2-24-13H-144-97; 
Because there has been so little activity in the Cabernet since OXY USA acquired Anschutz assets there, it's hard to say how this will all play out. But we have four wells to watch (and, of course, #18644, also).

That, alone, must be disappointing to mineral owners in the Cabernet. My hunch is that a lot of folks would have expected Anschutz to have a fairly aggressive drilling program in the Cabernet based on their earlier work in the Bakken. 

Again, IPs are only one data point. I find more value in the 6-month, 12-month, and 2-year production numbers. We are so new in the Bakken that even the oldest OXY USA Cabernet well (previous Anschutz) is not even 2 years old yet.

Evelyn Kary, based on cumulative, seems to be disappointing. Jaeger State so-so.

Sorry I can't be more helpful answering this question about OXY USA and the Cabernet, but that's all I have. I've tagged this for follow-up in July, 2012.

You may want to click on the "Stroh" tag at the bottom of the bottom of the blog to see how Anschutz wells did in the general area of this field.
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