Those Old Westerns -- Absolutely Nothing To Do With The Bakken

I normally don't do this -- in fact, I can't remember having ever done it, but this is simply too good to let pass.

Those Old Westerns

Enjoy.

It will be linked at the sidebar at the right, but probably hard to find. It's hard to organize a blog.

Don't worry; I won't be doing this on a regular basis.

In Response to My OXY USA Update Earlier Today -- A Comment --

This comment sent in.

I was really quite blown away by this:

OXY owns (not rents) three facilities in the entire world.  Those facilities are in Los Angeles, Houston, and Dickinson, ND (currently under construction). The rest are rented facilities. They plan on being in Dickinson for the next fifty years. They will be discussed and analyzed for a long time. 

Very, very interesting.  I wish I were back in the Bakken; I would take a ride around Williston to see what OXY USA was doing around Williston (as far as facilities go) and might even drive down to Dickinson to see their new facility.

This comment might be the best comment of the day.

About All That Natural Gas North Dakota Is Flaring ---

Link here.

This article has a different slant regarding natural gas than I recently blogged about -- be that as it may.

I think folks who have an emotional attachment to the Bakken like I do will enjoy the linked article.

Here are two paragraphs from that article:

The "bear" case for natural gas prices in 2012 is based on the belief that the liquids-rich wells currently being drilled will produce substantially more associated natural gas than assumed, and in some cases more than typical dry gas wells. The proponents of this view point to an estimate from the EIA that in the North Dakota Bakken oil shale basin due to a lack of pipeline capacity to take away the associated gas production, as much as 30% of it is being flared.  It is clear that there is a substantial amount of associated natural gas being produced as demonstrated by the chart in Exhibit 13. Unfortunately, the chart, prepared by the North Dakota Department of Mineral Resources, ends in early 2010. The chart, however, shows the dramatic growth in the state's natural gas production since the Bakken formation oil shale play commenced in 2006 and that production continues to grow. For the last 12 months, the state's natural gas production has grown by 50%.

If we examine the latest monthly gas production data published on the state's web site, in October there was 15.73 billion cubic feet (Bcf) of gas produced, but only 9.67 Bcf sold. That represents a spread of 40%. If we assume that all this difference was flared, then producers burned 6.06 Bcf of gas in the month. Those figures are for October, a 30-day month, which suggests that the volume of natural gas burned was about 200 million cubic feet per day (MMcf/d). To put that volume into perspective, North Dakota's total daily production was about 525 MMcf/d. Total U.S. Lower 48 States gas production in September was 66.23 Bcf/d, as reported on Form 914. Since North Dakota gas production amounts to just less than 1% of this total, even if 40% of it is being flared, we doubt that this volume of potential future supply is putting significant downward pressure on the gas market and gas prices. 

North Dakota's natural gas production amounts to less than 1 percent of that produced by the US Lower 48. And every day, more and more is being captured and processed.

I've always maintained that the flaring issue was a red herring. Now we have some numbers.

Permian Basin Rig Count Hits 400 -- Data Points Reflect Implications for the Bakken

Link here.

Drilling activity in the Permian Basin has rebounded not only from the declines seen in the economic downturn of 2009-2010 but is approaching, if not surpassing, levels not seen since the boom of the early 1980s.

Energy Economist Karr Ingham of Amarillo reported the average monthly rig count for the three Railroad Commission districts that cover West Texas - Districts 7C, 8 and 8A - averaged 403 rigs in November, up 45 percent from 278 the previous November and averaged 350 in the first 11 months of 2011, up 50.9 percent from 232 in the same period of 2010.

"That's an extraordinary milestone," Ingham commented, noting that the rig count average had topped out at 241 in August 2008. He said that as best he could determine from research, the highest average was 320 rigs in December 1984. "In other words, these are clearly historic times for the region in terms of oil and gas exploration and production activity, made entirely possible by the advancement of technology and price, which makes it affordable and economic to employ that technology."

Data points:

• one reason the rig count has risen is that operators cut their drilling budgets that targeted natural gas, allowing for rigs to be moved into oil-rich basins like the Permian Basin or the Bakken. If natural gas prices recover, he predicted the industry will see another tight market
• "If oil remains at $90 or above, the oil markets will stay very active," he said. "It will put only more of a strain on the existing rig fleet if natural gas kicks in."

For Investors Only -- Williams Completes Its Split --

Update

Eric Fox, Investopedia, highlights WPX

Stocks with high upside potential -- SeekingAlpha.com. Twelve (12) companies listed, include AAPL and WMB.

Three paragraph review of the split -- SeekingAlpha.com.

Original Post

Link here.

Williams has completed the process of separating the company’s businesses into two stand-alone, publicly traded corporations. The company’s former exploration and production business, WPX Energy, Inc., will begin trading on the New York Stock Exchange today under the ticker symbol “WPX.”

The separation process was completed with the Dec. 31 distribution of one share of WPX Energy common stock for every three shares of Williams common stock held by Williams shareholders.

Williams, including its assets held through Williams Partners L.P., is now an energy infrastructure company focused on connecting North America’s significant hydrocarbon resource plays to growing markets for natural gas, natural gas liquids (NGLs) and olefins. Williams’ operations span from the deepwater Gulf of Mexico to the Canadian oil sands. 

Details to follow.

Remember, the pipeline company acquired minerals in seven (7) percent of the highly prolific Fort Berthold Indian Reservation in the Williston Basin.

So, now, WPX Energy, I assume will control that acreage.

And WMB will continue in the pipeline business.

So, if an investor had 100 shares of WMB yesterday, I assume they have today:

• 100 shares of WMB today @ $27 = $2,700
• 33 shares of WPX today @ $18 = $594
Total: $3,300

Yesterday

• 100 shares of WMB @ $33 = $3,300

Random Comments on Some Great Wells Being Reported at the Beginning of 2012 -- The Bakken, North Dakota, USA

Snapshot of some new wells reporting:

• 20588, 1,492, BEXP, Mrachek Trust 22-15 1-H, Elk, Bakken,
• 20059, 1,357, Whiting, Waldock 14-4XH, Sanish, Bakken,
• 20036, 2,331, XTO, FBIR Smith 11X-10, Heart Butte, Bakken,
• 19876, 2,879, BEXP, Enderud 9-4 1H, Banks, Bakken,  

Some comments:

• Some of these wells have been reported earlier, so some comments may have been posted earlier
• That Enderud well is in Banks oil field; this is right in the bull's eye of the Bakken; where the action will be in 2012
• Heart Butte is a great field, inside the reservation, and has been highlighted before
• I think a lot of folks thought BEXP was show-boating -- maximize their IPs, so that they could set themselves up for a great buyout -- but even after the buyout (by Statoil) has been announced, BEXP continues to report great wells; I am quite impressed -- yeah, maybe they were in the "pipeline" before the Statoil announcement but something tells me BEXP is going to continue with great wells

Fifteen (15) New Permits -- The Bakken, North Dakota, USA

The record of new permits in one day (during the time of this blog) is 18 permits.

Daily activity report, January 4, 2011 --

Operators: Samson Resources (2), Helis (2), North Plains (2), CLR (2),  Hess (2), BR (2), OXY USA, Petro Harvester, Newfield

Fields: Clear Creek, North Tioga, Crooked Creek, Robinson Lake, Stoneview, Truax, Fillmore, Croff, Grail, South Coteau

XTO reported two wells plugged or producing; Zenergy, Baytex, Whiting, and GMX Resources each reported one well plugged or producing (and in the Bakken, they are all producing)

Two wells on DRL status were completed and reported IPs; nothing of significance.

One well was released from "tight hole" status (BR) but was not completed.

Really Cool -- GE -- State-of-the-Art Modular Saltwater Disposal and Deep Injection -- Coming to the Bakken -- The Bakken, North Dakota, USA

Link here.

GE, Stamford, Conn., (NYSE: GE) has been selected to build key components for ProWater's Centerline SWD™ modular saltwater disposal (SWD) and deep injection well (DIW) systems, which separate oil, water and other byproducts produced in oil and gas operations. ProWater, a wholly owned subsidiary of Sustainable Environmental Technology Corp. (SET Corp) (OTCQB: SETS), based in Southern California, develops technology for disposing saltwater produced from oil and gas wells. Demand for removing produced water is increasing, mirroring the oil and gas production boom in North Dakota's Bakken Shale formation where the majority of the Centerline SWD™ systems will be used in deep injection wells.

A huge "thank you" for "anonymous" for sending me this. 

Data points:

• ProWAter, president:  "GE's horizontal injection surface pumping systems (SPS), variable speed drives and logic control devices are well-suited for the construction of our advanced Centerline SWD™ saltwater disposal systems. We are working closely with GE to quickly ramp up production of our improved, modular SWD/DIW design, to improve efficiency and meet demands from Bakken Shale oil and gas producers."

• ProWater expects to deliver the first Centerline SWD™ system in North Dakota by the end of January 2012, with projected  completion by March 2012. The next three wells will be completed in June, September and November 2012, respectively. In 2013, three additional wells will be completed, totaling seven in the North Dakota Bakken Shale.

This is huge, and everyone should read the entire story at the link.

There are so many things that could be said, including:

• one of the themes of this blog: the Bakken is as important as a "research lab" as the production; this is more evidence of "beta testing," as far as I'm concerned
• GE getting involved is just one more entity that will lobby against EPA shutting down the Bakken
• many, many folks have searched this site for SWD information; I've been lacking info on SWD and this will be a huge help

Again, huge thanks to the reader who sent this in.

Watford City To Get 500 New Homes -- Double In Size "Overnight" -- The Bakken, North Dakota, USA

Link here.

It was about November, 2011, maybe earlier, that I started seeing signs that the activity in the Bakken would move to McKenzie County in 2012, and started blogging that.

For newbies, Watford City, with a population of 1,744 (2010 census), will now be adding 500 homes west of the city.

The mayor says Watford City is planning for 400 to 500 new residences west of town between single-family homes, twin-family homes and patio-homes. It also plans for motels on the east and south sides in addition to an office park.

Watford City also received $12 million from the last legislative session to run water and sewer to these extensions. The mayor is curious to see how much of the construction is actually completed next summer.

Pretty exciting. Watford City certainly has a pro-growth attitude, or so it appears. 

With regard to 1,744; divide that by 4 and you might get 440 homes in Watford City in 2010. It looks like Watford City is truly looking to double in size "overnight."

Boeing Leaving Wichita; Headed To San Antonio -- Air Force One -- Kelly AFB -- Nothing To Do With the Bakken

Link here.

Boeing said it will move all remaining work from its Wichita facility to other sites, officials told employees this morning.

The move will affect 2,100 workers in Wichita, and provide a huge economic blow to the city, surrounding communities and the state. Boeing has been part of the community for more than 80 years.

Boeing primarily does maintenance and modification of military and government work in Wichita, including work on presidential airlift programs, commonly known as Air Force One.

According to wiki, both Texas and Kansas are right-to-work states, so this should not be another NLRB / Seattle / South Carolina story, but something tells me the Boeing directors will be very careful how they talk about the move.

Boeing had long promised that Wichita would become a finishing center for a next-generation aerial refueling tanker should the company win a U.S. Air Force contract, worth $35 billion, to replace the current fleet of tankers. Boeing said winning the contract would mean 7,500 jobs for Kansas, including several hundred at Boeing Wichita. Boeing won the tanker bid last year.

In November, though, company officials said they were studying the future of the site. Closing the facility was one of the options, they said at the time.

U.S. Rep. Mike Pompeo said last month that a Boeing official told him the tanker work would be going to the Seattle area and not to Wichita, and that work on Air Force One would move to San Antonio. 

The Kansas congressional delegation is not happy with this and will demand that Boeing live up to its promises, so we will see how this plays out.

Something tells me Boeing may have had some discussions with Leon Panetta's plans for cutting defense costs. At one time there were 24,000 Boeing employees in the Wichita area, and the decline in those numbers over the  years pretty much foretold the story.

One of the interesting things to come out of the air base closures some years ago was the "closure" of Kelly AFB. Yes, the base did "close" but it became a huge aerospace industrial park and, although it got off to a slow start, it was quite a major operation by the time I left the Air Force back in 2007.

I don't know if that is where Boeing is moving its Air Force One mission but my hunch it is. 

Which reminds me: someone sent me a comment in response to my post on Minot AFB which I did not post. The comment was so factually incorrect, it wasn't worth posting. My point was that the military bases that did not close will continue to grow, and it appears this is exactly what is happening, vis a vis Wichita vs San Antonio. And it's certainly happening at Minot.

Drilling/Completion Costs of a Typical Bakken Well -- The Bakken, North Dakota, USA

When I posted information on an incredible Dakota-3 well, I forgot to include the cost of the well.

The data for this well is found here.

• 18922, 472, Dakota-3 (WMB), Dakota-3 Skunk Creek 1-12H, (South Fork field), 19,354 bbls in first 14 days; s9/10; t6/11; F; cum 132k 11/11 

The cost for this well:
Cost of well, according to the "well completion summary":

• AFE budgeted: $6,487,650.00
• Actual: drilling, $3,610,264.00; completion (fracking), $3,685,033.65. Total: $7,295,297,65.

This is not an old well; this is not old data. This well was completed about six months ago. Note the cost of this long lateral.

Some data points:

• short laterals used to cost upwards of $5 million; this is a long lateral at $7 million
• the hand-wringing of Newfield in the 3Q11 conference call, saying "we" had seen the last of $10 million wells (meaning, wells would cost more than $10 million going forward)
• as a rule of thumb, some folks say that completing (fracking) a well represents about half the total cost of a Bakken well; look how true that is in this case
• cost per fracking stage is said to be about $100,000; this was $3.7 million/17 stages --> $220,000/stage; going forward I will use $200,000 per stage
• Schlumberger has said that fracking costs will go down; actually they said that there will be pricing pressure on fracking that will affect their bottom line in 2012
• if folks keep number of fracking stages at 20 or below, they might be able to keep total costs below that Newfield $10 million figure, and the just is still out whether one has to go to 20 stages at this point, or whether one can re-frac later on, with more stages (I don't know if that's even possible)

Update On Two Incredible Whiting Wells in the Sanish -- The Bakken, North Dakota, USA

This post is for newbies, just to remind folks how really spectacular the Bakken is.

As a reminder, everyone agrees that Bakken wells, on average, will produce at least 400,000 bbls of oil over their 35-year history.

This is what I wrote about a new well in the Sanish on February 22, 2010:

It seems every time a well comes off the confidential list these days, there is something intriguing. Today it's Whiting's Tollefson well in the Sanish.

Specifically, #18109, Tollefson 44-10H, 10-152-91. This well is a long lateral (two sections) but the GIS map server does not yet say which two sections it is in. Common sense tells me it is in section 10 and 3 (152-91). But there is already another Whiting well in section 3 (still confidential), in the opposite corner: it is #17912, the Sorenson 11-3H.

If the Tollefson does not go into section 3 (actually it can't go anywhere but section 3), there are no surrounding sections without an existing well. The wells in this area are all Whiting and EOG wells. Almost all of them have IPs of between 1,000 and 1,500. It will be interesting to see if these new wells come in with similar IPs.

These two wells, 18109-Tollefson and 17912-Sorenson,  have turned out to be outstanding wells.

The Tollefson was completed in September, 2010.

The Sorenson was completed in February, 2010.

Cumulative to date for the Tollefson: 361K

Cumulative to date for the Sorenson: 435K

Both are still flowing WITHOUT a pump. Quite incredible.

At $75/bbl --> about $30 million for each well; $60 million for the two at the wellhead. And neither is two years old; and they will produce for 35 years. And they've already reached the "average EUR" that folks talk about for Bakken wells.

Update of OXY USA Since They Entered The Bakken Having Acquired Anschutz -- The Bakken, North Dakota, USA

Summary of Issue

In January, 2012, I posted a stand-alone noting the low IPs being reported by OXY USA. These were so far outside the mainstream, folks started suggesting these IPs were calculated before the wells were fracked, and on March 14, 2012, a reader noted that the low amount of oil being returned the first month, suggested that indeed, that was the case: the IPs were being calculated/released before the wells were fracked. Below is some original data, that I update periodically.

I would recommend that folks ignore the commentary and pay attention only to the factual data (IPs; cumulative production; frack data; etc). In many cases, the commentary is out of date, and well information is being added and updated on a regular basis.

From my perspective, the low IPs mean nothing, if the one year-, two year-, and three-year production levels are similar to others. So focus on yearly cumulatives.

Update

Note: this page may or may not be updated in the future. All updates will be shown at "OXY in the Bakken."

July 9, 2012

• 21642, 298, OXY USA, Georgia Fisher/Coyote Creek 1-20-17H-142-97, Willmen, t4/12; cum 6K 5/12;
  

July 5,  2012: a better well (based on IP)

• 21293, 217, OXY USA, Maurice Hecker 1-19-18H-142-97, Willmen; t1/12; cum 10K 5/12;

July 3, 2012

• 21829,  840, OXY USA, Elroy Kadrmas 2-10-3H-143-96, Fayette, t6/12; cum

June 11, 2012: Again, OXY does not disappoint.

• 19642, 42, OXY USA, Darlene Dvorak 1-27-34H-143-95, Murphy Creek, t2/11; cum 24K 5/12;

June 6, 2012 (one very good well for OXY; the other so-so)

• 21334, 755, OXY USA, Kenneth Stroh 2-12-1H-143-97, Cabernet; my data base shows an IP but it is on confidential July 12, 2012
• 21505, 349, OXY USA, State Watkins 1-26-35H-143-95; Murphy Creek; my data base shows an IP but it is on confidential July 12, 2012Murphy Creek
• 22262, 352, OXY USA, Little Butte 1-21-28H-160-90, Dimond; my data base shows an IP but it is on confidential July 12, 2012
• 22369, 499, OXY USA, State Jablonsky B 1-36-25H-142-95, Murphy Creek; my data base shows an IP but it is on confidential July 12, 2012

June 4, 2012: One cannot say that OXY is not consistent.

• 21448, 82, OXY USA, Mogren 159-90-5-P-1H,Vanville, t2/11; cum 20K 5/12;

June 1, 2012

• 20749, 101, OXY USA/Anschutz, Marlene Steffan 1-5-8H-141-97, St Anthony, t12/11; cum 13K 5/12;
  

May 30, 2012

• 20300, 488, OXY USA/Anschutz, Lillian Sadowsky 1-15-22H-142-96, Manning, t1/11; cum 34K 5/12;
  

May 22, 2012

• 20659, 74, OXY USA/Anschutz, Kudrna 1-17 (No "H" designation), St Anthony, t2/11; cum 4K 5/12; a Red River well
  

May 21, 2012

• 21686, 286, OXY USA, Kubik Trust 2-18-19H-143-95, Murphy Creek; my data base shows an IP but it is on confidential July 12, 2012
• 20580, 540, OXY USA, Terry Dvorak 1-15-22H-142-95, Murphy Creek; my data base shows an IP but it is on confidential July 12, 2012

May 14, 2012: OXY USA surprises everyone with a great well based on IP:

20278, 936, OXY, David Kovash 1-12-13H-142-96; Manning field; t11/11; cum 50K 4/12; Manning field is in southeast McKenzie County; Fayette is on the north border; Murphy Creek is on the east; both of those fields are good fields;

May 8, 2012: OXY USA manages to report another lousy well, based on IP:

• 21089, 75 (no typo), OXY, Staael 160-90-33-D-1H, Dimond; t11/11; cum 13K 5/12;

April 23, 2012: add another less-than-spectacular OXY USA well

• 20092, 155 (no typo), OXY USA, Gordon Pavlicek 1-17-20H-141-95, Three Forks, Simon Butte, Dunn County; s7/11; t10/11; F; cum 11K 3/12; 39 stages; 1 million pounds sand; 

March 13, 2012: add a 10th OXY well reporting a lousy IP

• 20194, 63, OXY USA, Wannemacher 1-4-9H-142-95, Murphy Creek, Bakken, s3/11; t9/11; F; cum 24K 3/12; 18 stages; <500K sand; 
  

January 18, 2012: add a 9th OXY well reporting a lousy IP, this time in Murphy Creek, a great oil field for others:

• 19642, 42, OXY USA, Darlene Dvorak 1-27-34H-143-95, Murphy Creek, Bakken; still on confidential 1/12; cum 11K 3/12;

January 17, 2012: add an 8th OXY well reporting a lousy IP:

• 20364, 20 (no typo), OXY USA, Jacobson 160-90-6-P-1H, Dimond, Bakken, 21 stages, 1.11 million lbs; s7/11; t11/11; F; cum 11K 3/12;

January 5, 2012: see original post below -- six of six OXY USA wells since entering the Bakken had IPs less than 80 bbls; add a seventh one. Baytex with wells in Divide County continues to drill despite IPs also less than 80.

January 4, 2012: see comments -- OXY USA owns (not rents) facilities in three cities: Los Angeles, Houston, and Dickinson, ND.

Original Post 

In the comment section elsewhere on this blog there has been some discussion of OXY USA.

This is a quick look at OXY USA since it entered the Bakken in 2011.

OXY USA announced in December, 2010, that it was acquiring Anschutz, a private company. Folks might remember that Anschutz, a private company, had struck an incredible sweet spot in two fields: Cabernet and Fayette oil fields.

NOTE: comments -- OXY acquired Dimond oil field assets from Cirque. 

In 2012:

Anschutz:

• 19642, 42, OXY USA, Darlene Dvorak 1-27-34H-143-95, Murphy Creek, Bakken, still on confidential list, 1/12
  

In 2011:

Anschutz: 26 permits in 2011; last one in April; of those 26 permits, 9 were canceled, including 5 in Murphy Creek

OXY USA: 54 permits in 2011; 5 canceled;  IPs reported on 77, 75, 10, 55, 48, 65; permits in many fields, but almost all (all?) IPs were in Dimond field; large number of OXY USA wells on DRL status; unable to get their wells fracked;

• 20317, 77, (Dimond), 18 stages; 2.5 million lbs sand, t8/11; F; cum 23K 3/12
• 20364, 20, Dimond, 21 stages; 1.1 million lbs sand; t11/11; cum 11K 3/12
• 20389, 75, (Dimond), 21 stages; 2.8 million lbs sand, t9/11; F; 928 bbls (not a typo; 3/12)
• 20657, 10, (Dimond), 20 stages; 2.8 million lbs sand, t8/11; F; cum 25K 3/12
• 20722, 215, OXY USA, Ankenbauer 160-90-34-P-1H, Dimond, Bakken, 21 stages, 2.8 million lbs total; sand frac; no details; s8/11; t11/11; F; cum 28K 3/12;
• 20743, 55, (Dimond), 20 stages; 2.8 million lbs sand; s5/11; t8/11; F; cum 19K 3/12
• 20779, 75, Dimond, s7/11; t9/11; F; cum 14K 312; no production in 2/12 and 3/12

No Anschutz 2011 permits drilled/reported; of 26 Anschutz 2011 permits, OXY canceled 9 of them (five of them in Murphy Creek)

Compare this to Anschutz activity in 2010, prior to being bought out by OXY USA

In 2010: 

Anschutz: 40 permits in 2010

• 18272, 199, OXY USA, Jaeger 1-10-15H-141-96, St Anthony, Bakken, s9/11; t11/11; F; cum 10K; 1/12
• 18427, 876, OXY USA, Matthew Schmidt 1-35-2H-143-97, Cabernet, Bakken, s2/10; t5/10; F; 112K 1/12
• 18599, 1,003, (Cabernet) 22 stages; 0.8 million lbs sand; s6/10; t1/11; F; cum 57K 1/12
• 18644, 1,148, (Cabernet) NOT STIMULATED; t4/10; F; cum 254K 1/12; this well is still producing 8,000 bbls/month; s1/10; t4/10;
• 18847, 353, (Murphy Creek) Back on confidential list; production down to 2K/month 1/12;
• 18985, 1,556, (Little Knife) 19 stages; 1.1 million lbs, s7/10; t1/11; F; cum 68K 1/12;
• 20083, 25, OXY USA, Richard Dvorak 1-33-28H-143-95, Murphy Creek, Bakken, s5/11; t9/11; F; cum 24k 1/12; 20 stages; 1.1 million lbs sand frackk on confidential list
• 20194, 63, OXY USA, Wannemacher 1-4-9H-142-95, Murphy Creek, Bakken, s3/11; t9/11; F; cum 18K 1/12; 18 stages; <500K sand; 
• 19088, 629, (Simon Butte) 30 stages; 2.8 million lbs sand; s7/10; t10/10; F; cum 70K 1/12
• 19159, 912, OXY USA, Reuben Schneider 1-27-34H-143-96, Fayette, Bakken, s4/11; t5/11; F; cum 48K 1/12;
• 19180, 1,272, OXY USA, Lamey 1-30-31H-143-96, Fayette, Bakken; s4/11; t7/11; F; cum 77K 1/12;

In 2009:

Anschutz: 24 permits in 2009

• 17961, 339, OXY USA, s11/09; t2/10; cum 66K 1/12;
• 17984, 308, OXY USA, s6/09; t8/09; cum 39K 1/12;
• 18056, 615, OXY USA, s5/10; t8/10; cum 40K 1/12;
• 18079, PNC, Anschutz, Wolberg 11-18H,
• 18093, 1,465, OXY USA, s3/10; t8/10; F; cum 139K 1/12;
• 18193, 1,666, OXY USA, s8/09; t10/09; 229K 1/12;
• 18234, 283, OXY USA, s9/09; t1/10; F; cum 43K 1/12;
• 18237, PNC, Anschutz, State 34-36H,
• 18240, PNC, Anschutz, Kary 24-24H,
• 18272, 199, OXY USA, s9/11; t11/11; F; cum 10K 1/12;
• 18296, EXP, Anschutz, Kubik 21-13H;
• 18300, 1,562, OXY USA, s12/09; t2/10; cum 145K 1/12;
• 18343, 48, OXY USA, s5/10; t12/10; F; cum 87K 1/12;
• 18353, 2,374, OXY USA, s2/10; t4/10; cum 216K 1/12;
• 18359, 1,138, OXY USA, s11/09; t4/10; cum 115K 1/12;
• 18360, DRY, Anschutz, State 1-25-36H-144-97; wildcat, s1/10;
• 18395, 2,207, s2/10; t6/10; cum 157K 1/12;
• 18406, 2,079, s3/10; t8/10; cum 165K 1/12;
• 18423, 2,405, s3/10; t11/10; cum 117K 1/12;
• 18424, 2,409, s3/10; t9/10; cum 250 1/12;
• 18427, 876, s2/10; t5/10; cum 112 1/12;

Comments:

OXY has a huge number of wells on the DRL status; I predicted that OXY would have a devil of a time getting their wells fracked in 2011, and that turned out exactly right; they can't get their wells fracked*

OXY's reported IPs in 2011 were all in their Dimond oil field; previously "owned" by Cirque; Dimond oil field is in Burke County, north of Mountrail

Anschutz's cash cow was clearly in the Fayette and the Cabernet fields; since OXY USA entered the Bakken, there has been relatively little news out of these two fields

Either OXY has a problem with completing their wells, or Dimond oil field is a dud (look at those IPs -- all below 80) -- and look at cumulative -- 365 bbls in one case after two months, and it was fracked with 21 stages; 2.8 million pounds

Obviously with so many wells on DRL status, the jury is still out whether OXY will sort this out

A  lot of Anschutz permits were canceled by OXY; that is not unusual in general; a lot of locations will be re-permitted with new parameters; but it certainly looks like to this amateur that when OXY acquired Anschutz, the former cleaned house, canceling a lot of permits, and emphasized Dimond oil field (acquired from Cirque)

Of the six (6) OXY USA wells with IPs all below 80, two of them are back on the confidential list. Being re-worked?

Finally, again, look at: 

18644, 1,148, OXY USA/Anschutz, State 1-25-36H-144-97X; Cabernet;  NOT STIMULATED; t4/10; F; cum 247K 11/11; this well is still producing 8,000 bbls/month; pretty impressive, huh? -- An Anschutz well


*This is what I posted December 12, 2010:

I will be curious to see what kind of wells OXY can deliver in the Bakken. My hunch is it will be several months before we see an OXY permit, and we won't know until next summer how OXY does in the Bakken. They will be competing for frac crews as the neighborhood newcome, but they will be able to pay top dollar for frac crews. A company that size may have its own dedicated frac crews. Look for OXY to set up "regional Bakken headquarters" somewhere in North Dakota.

Note: since posting this, I have been told that OXY has two dedicated frack spreads

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Disclaimer: this was done pretty quickly; mistakes and typos may be present; if something doesn't look right, check it out.

The Petrobras Off-Shore Oil Prospect Not a Slam Dunk -- Implications for Price of Oil, Bakken

Link here.

When oil leaking from a faulty well bubbled to the surface of the Atlantic Ocean off the coast of Brazil recently, it caused a stir throughout the country.

There were obvious environmental concerns. And Chevron, the U.S. company operating the well, faced accusations of misleading the government even after immediately accepting responsibility for the spill.

But perhaps the biggest reason for the flurry of activity was that for Brazil, the largest country in Latin America, smoothly functioning wells are essential to its plans for deep-water oil extraction in the coming years. The country is counting on vastly expanding its oil production to boost the momentum it has enjoyed while other nations have struggled through the worldwide economic crisis.

Bakken 2011 Review -- Motley Fool -- Part 2 -- The Bakken, North Dakota, USA

Link here.

Is it any wonder that the Norwegian oil major entered the Bakken reserves through its acquisition of Brigham Exploration? Brigham's wells are located on the sweetest spots of the Bakken. The Sorenson 29-32 #2H and the Cvancara 20-17 #1H in Mountrail County have a 30-day average of 1,815 and 1,577 BOE/d, respectively. The Lloyd 34-3 #1H in McKenzie County clocked a corresponding 1,456 BOE/d. While the average flow rates are unavailable, the initial production (IP) rates have been the highest for Brigham's wells. Average IP rates stood at 2,906 BOE/d while average 30-day production rates stood at a fantastic 1,174 BOE/d.

Part 2 was devoted almost exclusively to CLR.

Interestingly enough, Motley Fool was very impressed with NOG.

Part I of this series.