Saturday, June 21, 2014

Slawson Case 22272; Order 24606; Authorization For Almost 500 Wells In Big Bend Oil Field, The Bakken, North Dakota

A reader was generous enough to send me a copy of NDIC order regarding a Slawson case from a couple of months ago, case 22272. At that time I suggested maybe a thousand more Slawson wells in Big Bend in the headline. In the body of the post I estimated 686 wells -- you know, that's not bad based on limited information and just a wild-ass guess (see total below at 452).  I'm not sure the following list is entirely complete because the order (Order 24606) is much more extensive and the 33 zones were redefined which will result in more wells being allowed. For what it's worth:

1. A 320-acre stand-up unit, 5 wells; Zone II redefined; 5
2. Two 640-acre spacing units, 4 wells each; Zone VI redefined; 8
3. SE/4 SE/4....very complicated with all the lots but it sounds like three 640-acre spacing units; 7 wells each; redefine Zone VIII; 21
4. 22-152-91, one 640-acre unit, 10 wells; redefine Zone IX; 10
5. 13-152-92, and 7-152-91, also very complicated but it sounds like two 960-acre spacing units, 7 wells each; and redefine Zone X; 14
6. Four 1280-acre laydown spacing units, 2 wells each and redefine Zone XII; 8
7. Two 1280-acre standup spacing units; 3 wells each and redefine Zone XIII; 6
8. Three 1280-acre standup spacing units; 6 wells each and redefine Zone XIV; 18
9. Three 1280-acre standup spacing units; 7 wells each and redefine Zone XV; 21
10. A 1280-acre laydown unit; 7 wells and redefine Zone XVI; 7
11. Three 1280-acre standup units; 8 wells each and redefine Zone XVII; 24
12. One 1280-acre laydown unit, 8 wells and redefine Zone XVIII; 8
13. Six (if I counted correctly) 1280-acre standup units; 9 wells each and redefine Zone XIX; 54
14. Ten (IICC) 1280-acre standup units; 10 wells each and redefing Zone XX; 100
15. Five 1280-acre laydown units; 10 wells each and redefine Zone XXI; 50
16. A 1600-acre laydown unit; 8 wells and redefine Zone XXV; 8
17. A 1600-acre laydown unit; 10 wells and redefine Zone XXVI; 10
18. A 1920-acre standup unit; 2 wells and redefine Zone XXVIII; 2
19. Twenty-seven (IICC) 2560-acre units; 2 wells each; Zone XXX is created; 54
20. Three 2560-acre units; 2 wells each; Zone XXXI is created; 6
21. Two 3200-acre (IICC) laydown units; 2 wells each; Zone XXXII is created; 4
Total of wells in this list: 452 wells (IICC)

A Zone XXXIII (11/3200H) was also created.

Stratigraphic limits: "in the interval from 50 feet above the top of the Bakken Formation to above the top of the Birdbear Formation."

The order provides a definition of the 33 zones in this field.

The order specifies the number of wells allowed in many (most? all?) of the Zones in this field.

Some miscellaneous notes from the order:
  • Zone VIII: 7 hz wells/640-acre unit
  • Zone IX: 7 hz wells/960-acre unit
  • Zone XV: 7 hz wells/1280-acre unit
  • Zone XVII: 8 hz wells/1280-acre unit
  • Zone XIX: 9 hz wells/1280-acre unit
  • Zone XX: 10 hz wells/1280-acre unit
  • Zone XXII: 12 hz wells/1280-acre unit
  • Zone XXIII: 14 hz wells/1280-acre unit
  • Zone XXIV: 15 hz wells/1280-acre unit
  • Zone XXXIII: 11 hz wells/3200-acre unit
By the way: I have a much, much better understanding of "zones" having seen this order. 

Memo to self: PDF saved.

I can't say it enough times: thank you to this particular reader for sending me this, and thank you to all readers for sending me stories. When it comes to blogging on the Bakken, I have no hidden agenda: I'm simply trying to understand it, keep up with it, and share what I have if anyone wants to read it. The non-Bakken stuff is to keep me from getting bored. I post the non-Bakken stuff for the same reason Business Insider writes a story on an open mic story that has nothing to do with business. Twenty years from now it will be interesting to see what was going on when the Bakken stories were being posted; sort of like a "time capsule."

4 comments:

  1. The first time you applied a cost of $8 million per well. At $8 million per well and 452 wells that is $3.6 billion dollar investment. If ND has 45,000 more wells to drill, this field is 1% of future drilling. 3.6 billion times 100 = 360 billion to drill the bakken? This assumes about 55-60k wells. kent

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    1. After awhile I lose track of all the zeros. But the numbers really are staggering. I doubt I will live long enough to see the "end" of the Bakken.

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  2. Will be keeping track of this with great interest as I do have some working interest involved. And yes, the potential get's to be overwhelming.

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    1. I don't think is anything out of the ordinary with regard to well density in the Bakken: we will see similar well density throughout the better Bakken, and even more in the best Bakken. The "headline" is the number of potential wells in a single case. This occurs rarely. EOG did something similar some years ago.

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