Wells Coming Off The Confidential List Thursday; Of 15 Wells Coming Off The List, Nine Are Oasis; OXY With An IP of 23; Oasis With Several Great Wells
Undeserved commentary, I suppose:
Note the OXY USA well that reported today (see below). The IP is just about as low as I've seen for a Bakken well, excluding dry holes. That well was tested in September, 2012. Now, almost 6 full months later, that well has produced less than 8,000 bbls of oil. It is my impression, and I could be wrong, that the average Bakken well tested in the last six months will produce more than 8,000 bbls the first full month of production. That's probably an exaggeration, but probably not far off. This well had two things going against it: a) it's in the Dimond oil field which is anything but a diamond among Bakken fields; and, b) it was drilled by OXY USA who seems to have a knack for reporting these results.
Wells coming off the confidential list, Thursday, April 11, 2013:
Bruce, Like you I share concerns about OXY's abilities on these tight shale wells. As I posted long ago, based upon results it appears the Bakken is where OXY sends all their new hires to learn the business. "This is a drilling rig, this is a pipe...".
Though in their defense, OXY was very late to the game. Most of their acreage is along the fringe of the productive areas. The Diamond Field is essentially the NE edge, and some of their Dunn Co acres appear to be the SE edge (ie... 141-93/94). For their sake I'd love to see them hire away some experienced help from their competitors. Who knows, maybe they'd make wells with 10,000 bbls in a month. ;)
Thank you. I don't know all that is going on with OXY USA. I get conflicting information. Some (many?) of their wells go on to become very good wells. I look forward to their quarterly earnings call.
The point I'm trying to make: there are so many, many variables in the oil patch. Unconventional oil (compared to conventional oil) is still evolving. I think the operators are as surprised as the rest of us how things are turning out locally, regionally, and nationally. I would not want the decision-making that has been delegated to the NDIC to be turned over to the legislature and/or the voters. Chaos would ensue.
I have very strong opinions with regard to national politics, and global warming, but I try very, very hard to remain neutral when it comes to the Bakken (but I am biased and it comes through in my notes). At one time I tried very, very hard not to make even a personal comment about anything regarding the Bakken, and simply repeating the news, but that became pretty boring, and downright impossible for me.
Over time, I have become a bit more animated with regard to the Bakken. I am a strong supporter of the oil companies that are currently working in the Bakken. At the corporate level they seem to be good neighbors and have become part of the North Dakota community. I would assume they work hard hiring the right folks; and then work hard at training, nurturing, rewarding, and retaining their employees.
I would love to write more, but my granddaughters are calling.
Bruce, Like you I share concerns about OXY's abilities on these tight shale wells. As I posted long ago, based upon results it appears the Bakken is where OXY sends all their new hires to learn the business. "This is a drilling rig, this is a pipe...".
ReplyDeleteThough in their defense, OXY was very late to the game. Most of their acreage is along the fringe of the productive areas. The Diamond Field is essentially the NE edge, and some of their Dunn Co acres appear to be the SE edge (ie... 141-93/94). For their sake I'd love to see them hire away some experienced help from their competitors. Who knows, maybe they'd make wells with 10,000 bbls in a month. ;)
Thank you. I don't know all that is going on with OXY USA. I get conflicting information. Some (many?) of their wells go on to become very good wells. I look forward to their quarterly earnings call.
DeleteThe point I'm trying to make: there are so many, many variables in the oil patch. Unconventional oil (compared to conventional oil) is still evolving. I think the operators are as surprised as the rest of us how things are turning out locally, regionally, and nationally. I would not want the decision-making that has been delegated to the NDIC to be turned over to the legislature and/or the voters. Chaos would ensue.
I have very strong opinions with regard to national politics, and global warming, but I try very, very hard to remain neutral when it comes to the Bakken (but I am biased and it comes through in my notes). At one time I tried very, very hard not to make even a personal comment about anything regarding the Bakken, and simply repeating the news, but that became pretty boring, and downright impossible for me.
Over time, I have become a bit more animated with regard to the Bakken. I am a strong supporter of the oil companies that are currently working in the Bakken. At the corporate level they seem to be good neighbors and have become part of the North Dakota community. I would assume they work hard hiring the right folks; and then work hard at training, nurturing, rewarding, and retaining their employees.
I would love to write more, but my granddaughters are calling.