Oasis: 21 Wells In One 640-Acre Drilling Unit

Updates

August 7, 2019: production data update; otherwise no changes; there appears to be no change in the map at the NDIC. 

July 25, 2016: these wells were updated this date; note that SI/NC wells have now become TATD. Screenshot as of this date:

November 26, 2015: in addition to the four wells (two 2-well pads) noted in the original post, there are now eight more wells, all short laterals in this section:

• 25319, 1,969, Oasis, Christa 5393 12-9B, ICO, t7/13; cum 138K 6/19; down to 800 bopm;
• 25320, 2,009, Oasis, Kray 5393 12-9T, ICO, t7/13; cum 231K 6/19; nice well; 2,000 bopm;

• 29342, SI/NC-->TATD, Oasis, Helix 5393 41-4 3B, 2/15; 12/16;
• 29343, SI/NC, Oasis, Helix 5393 41-4 4T2, 2/15; 12/16;
• 29344, TATD, Oasis, Helix 5393 41-4 5T, 7/16; 12/16;
• 29345, SI/NC-->TATD, Oasis, Helix 5393 41-4 6T3, 1/15; 12/16;
• 29346, SI/NC-->TATD, Oasis, Helix 5393 41-4 7B, 1/15; 12/16;
• 29347, SI/NC-->TATD, Oasis, Helix 5393 41-4 8T2, 1/15; 12/16; 

Original Post

 

Folks may want to re-read the "Bentek 2.2 million" study while reading the post below. The truth is out there.

Disclaimer: this post has not been edited or thought about much. It is not ready for "prime time" but regular readers know the routine. I assume there are errors that will need corrections, and, of course, most of it is opinion.

This should get some folks talking, from the February NDIC hearing docket:

• 21849, Oasis, Sanish-Bakken, 21 horizontal wells on a 640-acre unit, 4-153-93, Mountrail,

[For newbies: when the drilling started in the Bakken back in 2007, the "word on the street" was one well per section. Folks got excited when they heard talk of four wells in a 1280-acre spacing unit. Now: 21 wells in one section, one 640-acre spacing. Who wudda thought -- just in the past three or four years. I think it's incredible. And that's why the Bakken never ceases to amaze me.]

This section (4-153-93) and the section directly south (9-153-93) are the only two sections still spaced as 640-acre drilling units in this immediate area: "everything else" in the immediate area is 1280-acre unit spacing.

Currently in section 4-153-93 (two two-well pads)

• 24760, 1,654, Oasis, Knox 5393 44-4T, t7/13; cum 141K 6/19; down to 600 bopm;
• 24761, 1,957, Oasis, Gloria 5393 44-4B, t7/13; cum 163K 6/19; down to 800 bopm;
• 21767, 1,246, Oasis, Helix 5393 43-4H, t2/12; cum 200K 6/19; down to around 500 bopm;
• 25025, 1,164, Oasis, Folda 5393 43-4T, t7/13; cum 153K 6/19; down to less than 1,000 bopm;

640 acres / 21 wells = 30-acre spacing. 

Some random comments follow:

• Four Bakken formations: middle Bakken, TF1, TF2, TF3 = 6 wells in MB; 5 wells in each of the other three.
• Except that it sounds incredible (21 wells in 640-acre spacing), the density is the same as being tested by CLR and KOG on 1280-acre spacing units.
• Regardless of how many wells one drills in a specific area (aka "well density), the fact is, operators are not going to drill wells if they are not economical. My hunch is that operators in the Bakken won't drill a well if they don't expect a EUR of at least 450,000 bbls. 
• EOR is about the only "thing" left to do when one gets to 30-acre spacing (20 wells/640 acres). 
• 21 wells x 450,000 bbls x $50 / 640 acres = $740,000 / acre; and that's just primary production. That does not include EOR. 
• The jury is still out, but there are operators suggesting that fracking a new well near an existing well improves the production from the existing well. I said that from the beginning. So, we'll see. 
• By the time they get to these 17 new wells, the operator will have had several years of experience; by the time they get to these 17 new wells, the operator will have had the opportunity to study "best completion methods" available. 
• Think of the cost savings. 
• One rig, 17 wells; about 17 months. Full-time employment for a lot of folks for almost two years, and if it works, then do the same thing in the 640-acre drilling unit to the immediate south.
• 17 wells x $8 million = $140 million. 
• This section is two miles west of the incredible Whiting Sanish.