Tuesday, January 31, 2012

Net Acreage in the Bakken by Producer -- Subject to Typographical Errors and Incorrect Data

Net acreage in the Bakken (generally only North Dakota, but some include Montana and ERF includes Montana, Canada and North Dakota). SM is most likely to be way off.

Done in haste; will correct as I go along. 

CLR 923,270
Hess 900,000
Whiting 680,137
EOG 580,000
COP 460,000
XOM 410,000
MRO 391,000
BEXP 375,800
CHK 320,000
Oasis 307,430
Denbury 266,000
ERF 215,000
SM 204,000
OXY USA 200,000
NOG 160,000
KOG 155,000
Newfield 140,000
Baytex 126,400
Ursa 110,000
MDU 95,000
QEP 89,000
Williams 85,800
Triangle 83,500
Magnum 78,000
Sequel 65,000
GEOI 46,000
GMXR 35,524
Resolute 33,415
VOG 32,000
USEG 25,200
Renegade 23,673
Abraxas 20,853
Unit 12,750
LINN 11,193
Mountainview 11,000
Open Range 7,700
CREDO 6,000
Surge 6,000
Samson 3,033

Perhaps the Best Non-Bakken Post of the Year! Decade? --

From "anon 1."   It is without a doubt, one of the "best" posts I've seen on the internet. I was ready to call it a night ... until I saw this.

Here's the link.

Here's the actual bulletin from McGrath, Alaska:
Good Morning, we have received a few phone calls regarding the school's cold weather policy. As a reminder, please see below.
Cold Weather School Schedule
Posted by McGrath School on 1/1/2012, 12:05 pm
Here is the policy that we will be following during the cold weather based upon the temperature broadcast on KSKO at 7am each morning.
The bus will run on all days that school is open. Please be sure that your children dress warmly with winter coats, snow pants, boots, hats, and gloves. Thank you.
Up to -49: Normal School Schedule

-50 to -54 LATE START. Students will be picked up 2 hours later than the usual time

-55 and colder: School will be closed.
On the late start days, students will be dismissed as follows:
Kindergarten: 3pm
1st-2nd Grade: 4:00pm
3rd-5th Grade: 4:30 pm
6th-12th Grade: 4:55pm
All after school activities will be cancelled on late start days.
Be sure to listen to KSKO at 7am to hear whether or not school is open, delayed, or cancelled.
Stay Warm!
I hope that clears things up, thank you for thinking of your children's safety.
When we were growing up in North Dakota, we used to say, seriously, that once it got to 40 below zero, one could not tell the difference.

I assume the difference between 49 below and 55 below has to do with engine block heaters failing. There is no way a human being could tell the difference between 49 and 55 below. Note: there is no reference to wind chill. Just saying.

Look how late they get out on "late start" days; obviously they get a full day of school despite a late start.

And I thought North Dakota roughnecks had it tough.

And on "snow days," high school students are expected to put the time to good use and clear the snow.

Google Maps was unable to calculate the distance between McGrath and Anchorage, or between McGrath and Fairbanks, but it appears McGrath is about 500 miles, equidistance from both Anchorage and Fairbanks, as if all three urban areas were points of an isosceles triangle with Fairbanks to the northeast, McGrath to the southwest of Fairbanks,  and Anchorage to the southeast of McGrath. The winters must be tough, but the summers must be absolutely gorgeous.

Three (3) New Permits -- The Williston Basin, North Dakota, USA

Daily activity record, January 31, 2012 --

Operators: CLR (2), KOG

Fields: Dollar Joe, Truax

Released from "tight hole" status, four (4) wells, only one fracked/completed (that fracking backlog continues -- the one completed well was a Petro-Hunt with an IP of 704 reported elsewhere. Of the four, one was a salt water disposal, so that doesn't count (when 'complaining' about the fracking backlog).

Two (2) wells on DRL status reported IPs, including this barn burner:
  • 20717, 3,295, BEXP, Hilly 22-15 1H, McKenzie, Bakken

Flaring -- Another Solution -- The Williston Basin, North Dakota, USA


July 27, 2013: update on Blaise Energy, in The Dickinson Press

The technology is one example of methods being developed by Bismarck-based Blaise Energy that seek to reduce the amount of natural gas flared in North Dakota.
“Nobody likes to see the flaring, especially the industry and the regulatory people,” said Mark Wald, owner of Blaise Energy. “New technology, new ideas are what’s going to solve the flaring issue.”
At a Statoil well site on the edge of Williston, Blaise has three generators and a “grid shack” set up that convert natural gas into enough electricity to power about 40 homes.
The natural gas flare at that site ebbs and flows, but it would be about twice as large if some of the gas wasn’t being captured. The company plans to add additional equipment to capture more of the gas.
Original Post

Thread on flaring and studies of flaring in North Dakota.

Blaise Energy: converting natural gas at the wellhead to electricity which goes back into the grid.

For more on flaring in general, see the label "Flaring Central" and "flaring" as labels at the bottom of the blog.

Upcoming Conferences

Along with many other pages at this blog, it is not always current. Sorry. Just to much to keep up with.

Bakken Flaring Alternatives, December 9 - 10, Denver, CO.

Bakken & Niobrara Crude Takeaway & Markets Congress, January 28 - 29, 2015, Denver, CO. Register by Friday, November 21, 2014, to save $400 on registration fees.

Ceramic Proppant for Sale --

I was sent the following information in an e-mail. I asked the sender if I could post it directly on the blog, and he said I could.

This is not an endorsement or a recommendation. I did not solicit the information.  It is simply being placed on the blog after it was sent to me. If I remember, I will link this post with "Top Ten Fracking Companies" in the sidebar at the right so it's easy to find if anyone is interested.


I have ceramic proppant in 3 sizes: 20/40, 30/60 and 40/70.  

All three are available in low (7500 psi), intermediate (10,000 psi), and high (12,500 psi) strength grades.  

We currently have the capacity to supply nearly 15,000 tons per month of each.

Contact information below with link to website. 

Jared S. Head
Sr. Business Development Manager
Landy Energy Services
3077 Outlet Center Drive
Sealy, Texas 77474

work mobile: 713.392.5800
personal mobile: 832.867.1475
fax: 281.492.9873

A Monster Well -- CLR -- Whitman 2-34H -- 160,000 Bbls in 4 Months -- The Williston Basin, North Dakota, USA

20210, 803, CLR, Whitman 2-34H, Oakdale field, Bakken, s1/11; t9/11; F; cum 159,474K 12/11 (5 days short of four full months; 4-section spacing; runs south;
Production: 29K (25 days in Sept); 42K (Oct); 39K (Nov); and, 50K (Dec)

This is one of our wells on a CLR Eco-Pad. The others:
  • 20208, 960, CLR, Hawkinson 2-27H, Oakdale field, Bakken, s1/11; t9/11; F; cum 67,340K 12/11; runs south; 4-section spacing, runs north,
  • 20211, 263, CLR, Hawkinson 3-27H, Oakdale field, Bakken, s1/11; t9/11; F; cum 70,381K 12/11; 4-section spacing, runs north,
  • 20212, 482, CLR, Whitman 3-34H, Oakdale field, Bakken, s1/11; t9/11; F; cum 39,271K 12/11; 4-section spacing, runs south,

KOG Production Misses Estimates -- The Williston Basin, North Dakota, USA

Link here.
  • Estimates: 7,500 to 8,000 bopd.
  • Actual: 7,195 bopd (mechanical problems at six wells during 4Q11 that led to production delays)
  • One year ago: 1,783 bopd
Other data points:
  • KOG tripled its reserves to an estimated 40 million bbls (some numbers rounded, as is customary at this blog)
  • 2012: estimates: 22,000 to 24,000 bopd

Green Electricity Finds Few Customers in Massachusetts -- The Boston Globe

Link to Boston Globe here. Full story requires signing in.

The lede:
Five years after NStar became the first Massachusetts utility to allow customers to buy electricity supplied by a wind farm, its Green program has failed to catch on. Fewer than 1 percent of the company’s nearly 900,000 customers have enrolled. The dismal response resembles lackluster participation in similar renewable energy programs offered by other utilities, worrying state officials as they push toward a goal of generating 20 percent of electricity from renewable energy by 2020.
Data points:
  • To sign up for wind energy electricity, you will be told that your utility bill will increase between 15% and 30%.

Dickinson: Building Permits Break Record -- Second Year in a Row

Dickinson Press link here (not always available for some reason).  Here's the lede:
Housing is getting more expensive to construct in Dickinson. For the second year in a row the record for building permit values has been broken with the city issuing more than $144.3 million, officials said Monday.
Building are bigger:
While the city issued permits for roughly the same number of buildings, buildings have gotten more expensive, Courton said. For example, the city issued 41 commercial structures in the last two years, but the value this year was just shy of $71 million, more than three times the amount in 2010 — which was more than $22.6 million.

“The projects are bigger than what they were in the past,” Courton said. “Instead of your standard, smaller industrial and commercial projects now they are a lot larger. Now they are significantly bigger, so the cost is representative of that.

Cramer Knocks Several Bakken Producers and Price of Oil Up $2.50; XOM Reports Earnings

Link to CNBC.

Oil has pulled back since earlier posting.

XOM beats/misses expectations, depending upon whom you listen to. Print media said average estimate was $2.01 for XOM. CNBC says XOM beat expectationshttp://www.cnbc.com/id/46191153?__source=yahoo|headline|quote|text|&par=yahoo ($1.97 vs $1.96).

XOM's natural gas position is interesting in light of current events; about two years ago XOM said it was focused on natural gas. One has to wonder about XOM's strategy.

Huge Kalil Well -- The Williston Basin, North Dakota, USA

8:32AM U.S. Energy provides operational update; announces initial production rate of 1,869 BOE/D from the Kalil 25-36 #2H well (USEG) 3.37 : The Kalil 25-36 #2H (infill) well was completed with 36 fracture stimulation stages and had an early 24-hour flow back rate of 1,869 BOE/D, which consisted of ~1,654 barrels of oil and 1,287 MCF of natural gas. The co has an ~ 27% working interest and a 21% net revenue interest in this well. The Lloyd 34-3 #2H (infill) well has been fracture stimulated with 38 stages and the operator is currently drilling out the plugs, which is the final step in turning the well over to production. Initial flow back rates are expected this week. The co has an ~14% WI and an 11% NRI in this well. This well is an offset to the co's best well to date in the Rough Rider program. The Lloyd 34-3 #1H well had an early 24 hour flow back rate of 4,030 BOE/D.

This was reported nationally at Yahoo!Financial In-Play on January 31, 2012.

Now we can slow down development in the Bakken until we resolve the food shortage problem in Williston.

Huge well. Just one of several. It's an infill well meaning it's surrounded by others.

As I've posted often: those who have their wells want things to slow down. Those who do not yet have their wells want things to hurry up.

How Environmentally Safe Is The Bakken Boom? The Oil Industry Deserves A Lot Of Credit

Before and after pictures of the 2006 brine spill referenced: you be the judge.

One has to go back to 2006, before the current boom even began to find one significant spill ... and it wasn't oil, but brine. Still a problem but brine doesn't give TFE the emotion-generating photos that are critical to their cause.

Even the Bismarck Tribune realized the (lack of) timeliness in this story ... they buried the story near the end of the article.

I'm all for strong environmental safety, but let's give credit where credit is due: 2,000 wells/year and thousands of miles of new pipeline in addition to the tens of thousands of miles of old pipeline, and there's been one story in half a decade to use as an example for additional rules and regulations.

I can only conclude the oil industry in North Dakota deserves a lot of praise for all they do in an inherently dangerous and dirty endeavor. The occupiers in Oakland and DC have created greater health hazards than the oil industry in North Dakota.

And while the oil companies proudly fly Old Glory, the occupiers are now burning it. And, it should be noted, the president has aligned himself with the occupiers. But that was before they started burning the flag. Something tells me there will be no comment from the press secretary on whether the president still stands with the flag-burning group.

Blogging will be minimal today. Sorry.

Futures: Pretty Volatile Today


The early morning jump in the price of oil has come back down significantly on news that the Obama presidency has another trillion-dollar deficit and downbeat overall economic report for the US going forward.

Original Post

Futures mean squat, but all things being equal, I prefer seeing green more than I prefer seeing red. I just see the crawler, not the reason.

One story has it that progress in the Greek deficit/debt talks is driving the price, and yet there is no news from Greece. I think it has to do with Iran, Iraq, and Egypt. It looks like the administration accidentally pushed Egypt under the bus.

Iraq is next. Iran is a non-story today, but with Egypt and Iraq in turmoil, Iran will eventually get back in the game.