Friday, April 13, 2012

Friday Night After The Weekly News Cycle Ends -- Obama Signs Executive Order on Fracking

Slow-rolling the oil and gas industry
Anything to kill the domestic fossil fuel industry
Comes days after Interior Secretary visits the Bakken

Link here.

Obama signs the executive order and EPA set to announce new rules next week.

A big "thank you" to a reader for alerting me to this. I probably would not have seen this until later this weekend.

Rigzone: US industry happy with executive order. Okay.
Friday's announcement won praise from various segments of the oil and natural gas industry, with prominent trade groups like the American Gas Association and the Independent Petroleum Association of America saying it showed the president is committed to promoting natural-gas development in the U.S.

Less than a decade ago, the U.S. was expected to begin importing greater amounts of natural gas. But a recent boom in production, made available by advances in drilling technology, have flooded the U.S. market and supplied domestic businesses and consumers with cheap natural gas.

Thirteen (13) New Permits On The 13th -- Newfield Reports a Nice Well -- The Williston Basin, North Dakota, USA

Daily activity report, April 13, 2012 --

Operators: Burlington Resources (6), Zavanna (2), OXY USA, CLR, Whiting, Oasis, Fidelity

Fields: Camel Hump (Golden Valley), Bull Butte (Williams), Stanley (Mountrail), Union Center (McKenzie), Foreman Butte (McKenzie), Little Knife (Billings), Crazy Man Creek (Williams)

It looks like BR will have a 6-well pad in Union Center.

Three wells were released from "tight hole" status; two of the three were completed/fracked, including:
  • 19232, 1,423, CLR, Quale 1-1H, McKenzie,
Five producing wells were completed, including:
  • 20132, 1,029, XTO, Badlands Federal 21X-13, McKenzie
  • 20319, 113, KOG, Koala 2-25-36-15H, McKenzie
  • 20347, 2,327, Newfield, Obenour 150-99-21-16-1H, McKenzie
  • 20734, 1,093, XTO, Bennie Peer 14X34, McKenzie
Just the other day, a reader and I both questioned what was going with Newfield; we hadn't heard anything from Newfield in a long time. Well, it turns out it appears they got a good well. 

In addition, another eight (8) were said to be plugged or producing. 

Working To Keep Those Oil Prices High -- Slow Rolling the Oil and Gas Industry

Now who wants to see new air quality standards for off-shore Alaska?
a) House Dems
b) House GOP
c) White House
d) Tea Party
e) Senate leadership
Answer here.

Not For Investors Only: Z-Man on Triangle Petroleum in the Bakken, North Dakota, USA


September 24, 2016: Houston-based private equity firm White Deer has acquired RockPile; RockPile expands - acquired American Well Service out of Kenmare, ND, one week earlier

June 22, 2014: Motley Fool has a short post on Triangle Petroleum.

May 19, 2014: four-part series on TPLM. This is a link to one part in a series on TPLM. This particular essay looks at the wholly owned subsidiaries of Triangle Petroleum: TUSA (E&P); RockPile (services, fracking); and Caliber Midstream (gathering, transporting, and processing).

May 15, 2014: acquires 46,100 acres for $120 million, about $2,600/acre

April 17, 2014: annual press release; market cap -- $765 million. 

April 15, 2014: Filloon on TPLM; share price could rise 43% this year.

February 16, 2014: Triangle Petroleum is one of five Bakken operators Filloon is bullish on.  

January 17, 2014: SeekingAlpha stories on TPLM -
December 11, 2013: random data points from TPLM's December corporate presentation --
  • focused on Williston Basin
  • 94,000 net acres; 7,400+ boepd; proved reserves of 32.5 million boe
  • 45,000 net acres in core areas of McKenzie / Williams counties (66% operated)
  • 3 full-time operated rigs
  • has its own frack services -- Rock Pile; provides services of 3rd parties
  • its own pipeline -- Caliber Midstream; in JV with First Reserve Energy Infrastructure Fudn
  • production/reserves have increased 390%/293% y-o-y
  • 59% increased production 2Q14 to 3Q14
  • $275 million reserve-based lending facility with $230 million in liquidity
  • Plug and perf completions (McKenzie County, 100% ceramic; Williams County, 25% ceramic)
  • spud to total depth: 23 days avg 3Q14; 28 days avg 3Q13
  • targeting $9.5 million AFE (let's call it $10 million)
  • Caliber reduces pad equipment on site
  • 3Q14: first full quarter operating two 24-hour spreads
  • backlog of 21 wells, including 11 for third party operatiosn
  • increasing scale by adding workover units and additional cased wireline units to basket of product offerings
  • Caliber Midstream: NG processing facility to be operational in early 2014; located at four corners (150-101:150-100:149-100:149:101)
September 18, 2013: update on TPLM's most recent quarter -- Mike Filloon.

September 10, 2013: earnings beat; huge story; shares up 4%.

June 13, 2013: Mike Filloon's exuberant take on TPLM's most recent quarter

June 12, 2013: the downspacing revolution in the Bakken; Triangle Petroleum notes that 160-acre spacing does not reveal any "communication." Huge.

March 8, 2013: Triangle Petroleum should have a great 2013 -- SeekingAlpha.

October 1, 2012: Triangle Petroleum forms pipeline venture with First Reserve; pipeline will ensure Triangle Petroleum oil profitable at $45/bbl;

June 12, 2012: Motley Fool has a positive impression of Triangle Petroleum. Additional comments provided.

June 11, 2012: Triangle provides operational update, and 1Q13 results.

Triangle Wells by Oil Field

Ellsworth: near the bull's eye of the Bakken
  • 26911, drl, Hagen 149-100-9-4-8H, Ellsworth, 
  • 26910, drl, Hagen 149-100-9-4-7H, Ellsworth, 
  • 26909, 328, Hagen 149-100-9-4-6H, Ellsworth, t6/14; cum 9K 5/14;
  • 26908, loc, Hagen 149-100-9-4-5H, Ellsworth,   
  • 21632, 1,686, 3,230 max; 2,265 - 7-day; Triangle, Larson 149-100-9-4-1H, Ellsworth oil field; 31 frac stages; 100% ceramic; t5/12; cum 115K 5/15;
  • 22096, 935, Triangle, Larson 149-100-9-4-2TFH, Ellsworth, t10/12; cum 52K 11/13;
  • 22097, 472, Triangle, Larson 149-100-9-4-3H, Ellsworth, t10/12; cum 75K 11/13;
  • 22098, dry, Triangle, Larson 149-100-9-4-4H, Ellsworth; file does not provide any explanation;
Spring Creek
  • 26725, drl, Triangle, Hovde 150-100-6-7-1H, Spring Creek, cum 49K as of 5/14;
  • 19738, 378, Triangle, Frederick James 149-101-3-10-1H, Antelope Creek, t7/12; cum 91k 11/13;
  • 22296, 463, Triangle, Larsen 157-101-28-3-1H, Otter, t4/12; cum 79K 11/13;
  • 22297, 207, Triangle, Larsen 157-101-21-16-1H, Otter, t113; cum 48K 11/13;
Pronghorn: McKenzie County, north central
  • 25153, 297, Triangle, Dwyer 150-101-21-16-2H, Pronghorn, t8/13; cum 71K 5/14;
  • 25154, 395, Triangle, Dwyer 150-101-21-16-3H, Pronghorn, t8/13; cum 81K 5/14;
  • 25155, loc, Triangle, Dwyer 150-101-21-16-4H, Pronghorn
  • 21452, 1,045; 3,023 max; 1,429 - 7-day; Dwyer 150-101-21-16-1H, Pronghorn oil field; 31 frac stages; 25% ceramic; t5/12; cum 94K 5/14;
Rawson: McKenzie County, north central
  • 27230, 898, Triangle, Rowe 150-101-1-12-6H, Rawson, t6/14; cum 3K 5/14;
  • 27229, 734, Triangle, Rowe 150-101-1-12-5H, Rawson, t6/14; cum 5K 5/14;
  • 26231, drl, Triangle, Dwyer 150-101-35-26-3H, Rawson, cum 36K as of 5/14;
  • 26230, 348, Triangle, Dwyer 150-101-35-26-2H, Rawson, t2/14; cum 50K 5/14;
  • 25718, 633, Triangle, McCabe 150-101-24-13-2H, Rawson, t11/13; cum 82K 5/14;
  • 25717, 622, Triangle, McCabe 150-101-24-13-1H, Rawson, t11/13; cum 88K 5/14;
  • 23617, 634, Triangle, Rowe 150-101-1-12-1H, Rawson, t6/13; cum 93K 5/14;
  • 23618, drl, Triangle, Rowe 150-101-1-12-2H, Rawson,
  • 23619, 355, Triangle, Rowe 150-101-1-12-3H, Rawon, t6/13; cum 113K 5/14;
  • 23620, drl, Triangle, Rowe 150-101-1-12-4H, Rawson,
  • 23426, loc, Triangle, Sanders 150-101-3-10-1H, Rawson,
  • 24276, loc, Triangle, Triangle 150-101-36-25-8H, Rawson,
  • 24277, drl, Triangle, Triangle 150-101-36-25-7H, Rawson,
  • 24278, 436, Triangle, Triangle 150-101-36-25-6H, Rawson, t8/13; cum 93K 5/14;
  • 24279, 478, Triangle, Triangle 15-101-36-25-5H, Rawson, t8/13; cum 79K 5/14;
  • 24546, 485 Triangle, Dwyer 150-101-35-26-1H, Rawson, t5/13; cum 75K 5/14;
  • 21825, 984, Triangle, Gullickson Trust 150-101-36-25-1H, t6/12; cum 61K 2/13;
  • 21826, loc, Triangle, Gullickson Trust 150-101-36-25-2H,
  • 21827, 1,173, Triangle, Gullickson Trust 150-101-36-25-3H, t6/12; cum 63K 2/13;
  • 21828, loc, Triangle, Gullickson Trust 150-101-36-25-4H,
Antelope Creek: McKenzie County, north central
  • 25612, 329, Triangle, Frederick James 149-101-3-10-4TFH, t1/14; cum 33K 5/14;
  • 25611, 345, Triangle, Frederick James 149-101-3-10-3H, t1/14; cum 62K 5/14;
  • 25610, 189, Triangle, Frederick James 149-101-3-10-2TFH, t12/13; cum 22K 5/14;
  • 23464, 428, Triangle, Dwyer 149-101-2-11-1H, Antelope Creek; t5/13; cum 72K 5/14;
  • 24026, loc, Triangle, Dwyer 149-101-2-11-4H, Antelope Creek,
  • 24027, 242, Triangle, Dwyer 149-101-2-11-3H, Antelope Creek, t4/13; cum 70K 5/14;
  • 24028, loc, Triangle,  Dwyer 149-101-2-11-2H, Antelope Creek,
  • 24664, 503, Triangle, Dwyer 149-101-2-11-5H, Antelope Creek, t7/13; cum 46K 11/13;
  • 24665, 454, Triangle, Dwyer 149-101-2-11-6H, Antelope Creek, t7/13; cum 41K 11/13;
  • 23432, 178, Triangle, Steen 149-101-13-24-1H, Antelope Creek, t1/13; cum 66K 5/14;
  • 23812, 519, Triangle, Steen 149-101-13-24-3H, Antelope Creek, t1/13; cum 98K 5/14;
  • 23813, 510, Triangle, Steen 149-101-13-24-2H, Antelope Creek, t1/14; cum 39K 5/14;
  • 23814, 373, Triangle, Steen 149-101-13-24-4H, Antelope Creek, t2/14; cum 36K 5/14;
  • 22625, 638, Triangle, Triangle 149-101-1-12-1H, t1/13; cum 92K 5/14;
  • 22626, conf, Triangle, Triangle 149-101-1-12-2H, Antelope Creek;
  • 22627, 551, Triangle, Triangle 149-101-1-12-3h, Antelope Creek;
  • 22628, conf, Triangle, Triangle 149-101-1-12-4H, Antelope Creek;
Rosebud: Williams County, southeast corner
  • 26494, drl, Triangle, State 154-102-25-36-5TFH, Rosebud, cum 22K as of 5/14;
  • 23159, conf, Triangle, State 154-102-25-36-2H, Rosebud,
  • 23160, 545, Triangle, State 154-102-25-36-3H, Rosebud,
  • 23161, conf, Triangle, State 154-102-25-36-4H, Rosebud,
  • 22558, 334, Triangle State 154-102-25-36-1H, Rosebud, t9/12; cum 56K 2/13;
Buffalo Wallow: McKenzie County
  • 26695, 550, Triangle, Gustafson 148-100-5-8-3H, Buffalo Wallow,  t5/14; cum 16K 5/14;
  • 26694, 552, Triangle, Gustafson 148-100-5-8-2H, Buffalo Wallow, t5/14; cum 16K 5/14;
  • 25889, 385, Triangle, Anderson 148-100-7-6-1H, Buffalo Wallow, t10/13; cum 23K 11/13; 
  • 23114, 626, Triangle, Gustafson 148-100-5-8-1H, Buffalo Wallow, t11/12; cum 66K 11/13;
  • 25047, PNC, Triangle, Anderson 148-100-6-7-1H, Buffalo Wallow,
Ragged Butte:
  • 23774, conf, Triangle, Skedsvold Trust 151-101-32-29-4H, Ragged Butte,
  • 23775, 602, Triangle, Skedsvold Trust 151-101-32-29-3H, Ragged Butte, t3/13; cum 92K 5/14;
  • 23776, conf, Triangle, Skedsvold Trust 151-101-32-29-2H, Ragged Butte,
  • 23777, 509, Triangle, Skedsvold Trust 151-101-32-29-1H, Ragged Butte, t4/13; cum 92K 5/14;
  • 24877, loc, Triangle, Larsen 157-101-28-33-2H, Otter,
  • 24878, loc, Triangle, Larsen 157-101-28-33-3H, Otter,
  • 24879, loc, Triangle, Larsen 157-101-28-33-4H, Otter,
  • 24880, loc, Triangle, Larsen 157-101-21-16-2H, Otter,
  • 24881, loc, Triangle, Larsen 157-101-21-16-3H, Otter,
  • 24882, loc, Triangle, Larsen 157-101-21-16-4H, Otter,
  • 27379, drl, Triangle, Monson 152-102-35-26-2H, Elk, 
  • 27378, 852, Triangle, Monson 152-102-35-26-3H, Elk, t6/14; cum --
  • 27377, 487, Triangle, Monson 152-102-35-26-4H, Elk, t6/14; cum --
  • 26723, drl, Triangle, State 152-102-36-25-5H, Elk, cum 29K as of 5/14;
  • 26722, drl --> conf (I remember Teegue telling me they do not do this), Triangle, State 152-102-36-25-6H, Elk, huge production;   
  • 25269, 497, Triangle, State 152-102-36-25-2H, Elk, t10/13; cum 76K 5/14;
  • 23975, loc, Triangle, Monson 152-102-35-26-1H, Elk,
  • 25036, 428, Triangle, State 152-102-36-25-1H, Elk, t10/13; cum 79K 5/14;
  • 25269, 497, Triangle,  State 152-102-36-25-2H, Elk, t10/13; cum 76K 5/14;
  • 24885, loc, Triangle, Kittleson 157-103-32-29-1H, Strandahl
  • 24886, loc, Triangle, Kittleson 157-103-32-29-2H, Strandahl, 
Bull Butte
  • 22913, PNC, Triangle, Sveet 156-104-3-2-1H, Bull Butte,  
  • 26321, 580, Triangle, Sanders 150-100-9-10-2H, t5/14; cum 58K 5/14;
  • 26075, 476, Triangle, Sanders 150-100-9-10-1H, t5/14; cu 55K 5/14;
Timber Creek
  • 26735, drl, Triangle, Wisness 150-100-23-14-5H, cum 30K as of 5/14;
  • 25733, PNC, Triangle, Arnegard 150-100-14-23-4H,
  • 25522, 587, Triangle, Arnegard 150-100-23-14-2H, t10/13; cum 52K 11/13;
  • 25521, 611, Triangle, Arnegard 150-100-23-14-1H, t10/13; cum 53K 11/13;
  • 25459, 784, Triangle, Little Muddy 13H, t10/13; cum 49K 11/13;
  • 25458, 631, Triangle, Little Muddy 11H, t10/13; cum 44K 11/13;
Original Post

A reader sent me this link; nice update.
Rockpile, its in-house frac spread, is training (many former SLB guys) with new equipment that was delivered in March. Expect TPLM to transition to using Rockpile for completions in 2H12 and to bid for other Basin business to stay busy in between company jobs. We should see nice EBITDA margins on non company wells, either on away business or on TPLM non-operated wells. Right now the completion side of a well is probably $5 mm of the well cost in the Williston Basin on average so this will represent a meaningful add to the TPLM story that I can't see as being reflected in stock valuation. Rockpile should be up and running in July, and can do up to four wells a month once running smoothly, so a big revenue and EBITDA generator and a nice savings for them when it comes to the operated program.
Huge story for those accumulating Triangle.

But this is not just for investors. Understanding Triangle helps one understand how the Bakken is being developed. 

With this posting, dated April 13, 2012, this is where updates for Triangle Petroleum will be posted.

  • July 27, 2014: market cap -- $992 million; EV: $1.31 billion
  • April 13, 2012: market cap -- $268.83 million. 

Essay: Natural Gas or Electric Vehicles -- Rigzone

Link here to

Drawbacks to CNG vehicles include the availability of fueling stations. The natural gas filling stations that are available in the U.S. tend to be concentrated in areas where commercial fleets of CNG vehicles exist; buses and trucks are the biggest market for CNG today.

Additionally, CNG cars also have less power than gasoline-fueled cars, said Rinek, who road tested a 2012 Honda Civic CNG vehicle earlier this year and was underwhelmed by its performance. After-market enhancements to boost power on CNG cars are costly, and a fact with which most drivers will have to learn to live.
However, the limited driving range of electric powered cars – with drivers lucky to get 100 miles between stops at charging stations -- has been a deterrent to their widespread adoption in the U.S. market. As a result, EVs ended up being relegated to a second or third urban vehicle used for short trips, Rinek commented.

The limited range of electric vehicles and the lengthy time required to recharge an electric car's batteries are two big Achilles heels for EV vehicles, said Michael Gorton, an engineer, physicist, lawyer and power systems engineer who writes and speaks on topics related to energy, alternative vehicles and solar power finance.

My hunch, in the United States in  2030: we will see three markets. The vast majority of miles driven in the US will be on CNG. Commercial trucking will make up the bulk of CNG miles driven cross country along CNG corridors. Yuppies, millennials, and post-millennials packing the urban centers will routinely drive CNG mid-size and compacts, with rare special trips (vacations?) in conventional or hybrids. This doesn't mean the vast majority of private automobiles will be CNG, but 75% of miles logged in this country will be on CNG.

Electric vehicles, hybrids, and conventional (gasoline/diesel) will share the rest of the market space, perhaps 30 percent. The conventional will predominate in fly-over country, whereas EVs and hybrids will outpace the conventional on the east and west coasts.

Rambling -- A Note For the Granddaughters -- Nothing About the Bakken

Some days ago I posted the following to add a bit of color to a note regarding oil activity in eastern Montana:

Makoshika State Park, Glendive, Montana

I was intrigued by the beautiful music, and subsequently found this:

The Shores of Avalon, The Seekers
...and of course that led me to hours of searching, listening, and enjoying The Seekers once again. I've placed a few of their videos throughout the blog.

I never read the King Arthur legends when most others first read the stories (middle school, high school) and by college it was "too late."

Some weeks ago, on a whim, I picked up a 1975 hardcover with torn jacket, The Celts by Gerhard Herm, and was more than pleasantly surprised. I suppose if I could take only two books of this genre to a desert island, it would be The Celts and How The Scots Invented the Modern World.

Chapter 16 of The Celts is devoted to King Arthur and the knights of the round table. 
The Celts, who entered the European landscape as head-hunters, now leave it as Christian knights, though without -- as the legend of Arthur shows -- ever being untrue to themselves. At its centre is a classical Celtic couple, the lord of a retinue and his Druid, stylized into a magician. Merlin lived in the forest like the priests of Gaul or Irish hermits; he had brought up his prince, advised and tutored him ....
Earlier in the chapter:
... he withdrew the sword effortlessly and thus succeeded the now dead Uther. At the same time he also had the weapon destined for him, Excalibur.

The island now enters on a great chivalric epoch. Arthur selects Camelot -- a place no one has identified -- as his residence and marries Guinerva (in Cymric, Guanhumara, or 'the White One'), daughter of the dwarf-king Leodegrance. The king takes one hundred and fifty knights to follow him because he receives, as part of her dowry, a huge round table that can accommodate that number of guests (it must have been at least forty metres in diameter). 
And, so Arianna and Olivia, just one more reason why I love to blog. Who would have guessed? From the Bakken to Makoshika State Park, Glendive, Montana, to the Seekers, and to Avalon and King Arthur.

Makoshika is a variant spelling of a Lakota phrase meaning "bad land" or "bad spirits."

Finally: A Pipeline For The Rest of Us! -- Not About The Bakken

Finally, someone is taking my advice and metaphorically rotating TransCanada's XL 1.0/2.0 ninety degrees, proposing to take Canadian heavy oil to Asia via the west coast.

The story is in the Wall Street Journal, this date (print media; no link).

Data points:
  • Kinder Morgan Energy Partners LP
  • $5 billion expansion of its TransMountain pipeline
  • to be completed in 2017
  • will nearly triple the capacity of the crude oil it can ship to Canada's west coast
  • currently, almost ALL Canadian oil crude exports are to the US -- "almost all"
  • currently the pipeline ships a small amount (from Alberta to Vancouver)
  • the "small amount" currently: 300,000 bopd
  • expansion: up to 850,000 bopd
  • will compete with Enbridge's proposed Northern Gateway oil pipeline from Albert to a small, northern port in British Columbia; $5.5 billion; also to be completed in 2017; faces strong resistance from Native Americans
  • Kinder Morgan proposed expansion may have an easier time; the current pipeline has been there for 60 years
Wow: "small amount" is defined as 300,000 bopd. The Alaskan pipeline is flirting with 600,000 bopd; the current total North Dakota production is about 550,000 bopd.


Several people in the past have written to tell me that I am wrong to say that the president killed the Keystone XL 1.0. From the article:

That effort [to add more capacity going west to Asia] accelerated after the White House earlier this year rejected a big pipeline-expansion project, TransCanada Corp.s' Keystone XL, which would have sent more Alberta crude south of the border.
Following the Clinton presidency I have learned to parse statements well. The sentence says the "White House" not the President, so it's possible someone else in the White House (one wife, two daughters, staff) killed the project.

TransCanada has not yet submitted a new application for the "White House" to review.

For Investors Only: EPD Increases Distribution -- Not In The Bakken

8:04AM Enterprise Products declared increase in quarterly cash distribution rate paid to partners to $0.6275 per common unit, prior $0.5975 per unit.

Takeaway Capacity in the Bakken: An Update and Overview

Link here to RBN Energy  (registration may be required).