A reader just alerted me to this SeekingAlpha article. I assume everyone else has seen it; I am probably the last one to have seen it. Smile.
This is a huge story. I read it quickly and have to read it again, but if I understand what I'm reading, all I can say is I have hinted at this, if not stating it outright, for quite some time.
I won't write any more on it now; I have to make sure I'm reading the article correctly. Also, I want folks to read it without my comments.
Huge article. Could be another game-changer for some. I think CLR knew all about it long ago.
I had not seen it. Thank you for the link, there is useful information in the transcript.
ReplyDeleteI would bet that one out of ten stories that I link is a really good story. I would say this is one of the better stories I have linked. It's definitely one folks might want to bookmark.
DeleteThank you for taking time to comment.
Bruce, The March 5, 2013 Seeking Alpha article by contributor R Zeits entitled, “The Birth Of 'Array Fracking' in the Bakken” Below are a couple of short excerpts from this very long and informative post that indicate why IMHO this is a must read for any Bakken investor.
ReplyDeleteBakken: The Downspacing Bounty And Birth Of 'ARRAY Fracking' - Mar 5 2013, 14:41 | 14 comments | includes: CLR, COP, EOG, ERF, HES, KOG, MRO, NFX, NOG, OAS, QEP, STO, TPLM, WLL, WPX, XOM
What is the motivation behind the effort to downspace? According to Whiting Petroleum's CEO Jim Volker:
And so the idea here is to drill a series of pilots - and we're going to be doing that in both Hidden Bench, Pronghorn, Sanish, possibly Missouri Breaks as well - to go in and drill on higher densities, essentially doubling the density in the better reservoirs in there, TO DEMONSTRATE OUR ABILITY TO INCREASE THAT RECOVERY EFFICIENCY, get it up from 10% or 11% UP TO SOMEWHERE AROUND 20%.
And what that means is breaking up more rock. And we don't believe that with the current spacing that we are on, that we are getting all of the oil that's out there. So that's really what this is all about
The majors, Exxon Mobil (XOM) and Statoil (STO), and super-independents, ConocoPhillips (COP), Marathon Oil (MRO) and Hess Corporation (HES), as well as privately held operators - the companies that account for a large portion of drilling activity in the Bakken - rarely share sufficient details of their operation in the play. However there are multiple indications that the downspacing evaluation and deeper Three Forks testing by this group of companies is also ongoing.
See http://seekingalpha.com/article/1248431-bakken-the-downspacing-bounty-and-birth-of-array-fracking for the full article.
That is incredible, isn't it? Thank you. Incredible, in terms of detail and helping us understand the Bakken.
DeleteIt looks like I might have a long weekend of work, catching up, posting.
Thank you. To make it easier for readers, I will post this as a stand-alone.
Again, thank you.