Update From a Reader: Newfield Conference Call

I received the following note from a reader. It has a ton of information, so I am including it in its entirety without editing. Once I have it posted, I may come back and summarize the data points. A huge "thank you" to the read for sending me this.

A few days ago, one of your bloggers noted that Newfield did not mention the Bakken  during their recent conference call.   I listened to the entire call and they did make several mentions of the Bakken and their operations.

Most noteable was the addition of one new "walker rig" and the release of an older standard rig. They will operate three rigs for the remainder of 2012 and plan to add a fourth rig in early 2013.

They currently have three pilot programs running to test the best spacing for Bakken and

Three Forks wells.   Their drilling engineer said they will be releasing more info on these

efforts.  He went on to say "these tests may be pretty revealing." Newfield has two middle Bakken wells (Charlotte 1 & 2, 17-150-99) producing from the Middle Bakken with a separation averaging about only 750 feet.   In May, these two wells produced over 16,000 barrels each! Naturally, it will take several months to get a better indication of well interference.

About 3 miles to the northwest of the Charlotte wells, Newfield has four wells in the west half of section 11-150-99.   Three of these are Middle Bakken and one is Three Forks.  All appear to be good producers but time is needed to determine long term effects.   These Middle Bakken wells have horizontal sections 1000 to 1,060 feet apart.   Anyway, they are challenging the 1,320 foot (ore more) separation theories. 

Newfield operates a micro-seismic array covering about 40 sections in the Watford area.

These monitor all fracking to determine length of frack development, etc.  This is most

certainly tied into their current drilling pilot projects.

If separation of 1,000 feet gives more greater ultimate recovery, it's imperative to know this before drilling wider spacing without leaving any economic way to add smaller spacing infills.

Hess is also doing "science" drilling in the Hawkeye Field north of Keene in McKenzie County. Vertical monitor wells are being drilled between horizontal Bakken and Three Forks wells. Hess also has a similar project in western Mountrail County.   This type of information is invaluable before massive infill drilling programs get too far along.

Finally, directly north of Watford City, SM Energy is drilling the first eight-well, 1,280 acre unit, in the Bakken play. (sections 1/12-150-99)  One unit well has produced 150,000 barrels of oil in it's first year; three wells are currently drilling; and, two drilling pads have been completed for wells 5, 6, 7 and 8 (four Bakken and four Three Forks).   This unit is located between the closely spaced Newfield wells mentioned above. 

Several companies have mentioned 8 well units but to the best of my knowledge this is the first one to be implemented.  Several have multiple wells on one drilling pad but they are drilled into two or three different spacing/drilling units.   

Burlington Resources is drilling out two 7-well units in the Hawkeye, north Keene area.  These units are just west of the recently completed Burlington Llano well, 6,800 barrel-IP.

There was a lot of fascinating information in that note.

First, Newfield was concerned about the cost of Bakken wells in an earlier conference call, and there was some question to their plans in the Bakken. This clears things up immensely. It should be noted that in the past six months or so, Continental Resources (CLR) has acquired some Newfield Bakken assets. I try to note that in the daily activity report when a CLR/Newfield well is reported.

It is interesting to note that Newfield plans to add another rig in 2013.

I've blogged for quite some time that based on the NDIC GIS map server and corporate presentations, that the effective radius of fracking seems to be about 500 feet. Regardless of how it pans out, I am thrilled that my earlier blogging about the effective radius of fracking was not that far off target.

Anyway, lots of information in that note. Enjoy. The NDIC site seems to be up "now," but it will be "down" tomorrow, Saturday.