Random Update Of Some CLR/Oakdale Wells -- July 29, 2014

Updates

December 30, 2017: a reader made this comment at another post regarding the Whitman wells -

Speaking of CLR, remember the Whitman wells in Oakdale field?

2-34H has produced 1.59 million barrels of oil since Sept 2011.

Drilling on 3-34H was stopped due to unsafe pressures and drilling conditions. It has finally been drilled to depth and completed. 61 stages, 14.5 million lbs proppant, 234 thousand barrels fluid. Production to date not impressive. At least not yet. 12,150 BBLS Oil in 21 days. 

Original Post

 

A reader happened to mention that he was not impressed with the Whitman wells and wondered why I didn't post the results of "all" the Whitman wells. I have posted the results of "all" the Whitman wells that have come off confidential list, but that's another story.

What piqued my interest was to hear that the Whitman wells did not impress him/her. So I went back and updated the wells in the general area of the Whitman wells when they were first making news. Here is the result of the update:

• 17061, 664, CLR/BR, Whitman 11-34H, 34-147-96, Oakdale, AL, t6/10; cum 436K 11/17;
• 17079, 559, CLR/BR, Carson Peak 44-2H, 2-146-96, Oakdale, AL, t6/08; cum 288K 11/17;
• 17334, 811, CLR, Morris 1-23H, 23-147-96, Oakdale, AL, t11/08; cum 270K 11/17;
• 18275, 1,020, CLR, Hawkinson 1-22H, 22-147-96, Oakdale, t2/10; cum 701K 11/17;
• 18858, 715, CLR, Morris 3-26H, 26-147-96, Oakdale, AL, t5/11; cum 458K 11/17;
• 18859, 680, CLR, Carson Peak 3-35H, 26-147-96, Oakdale, AL, t5/11; cum 636K 11/17;
• 18860, 517, CLR, Morris 2-26H, 26-147-96, Oakdale, AL, t5/11; cum 285K 11/17;
• 18861, 759, CLR, Carson Peak 2-35H, 26-147-96, Oakdale, AL, t5/11; cum 682K 11/17;
• 20208, 960, CLR, Hawkinson 2-27H, 34-147-96, Oakdale, t9/11; cum 443K 11/17;
• 20210, 803, CLR, Whitman 2-34H, 34-147-96, Oakdale, 4 sections, t9/11; cum 1.1595 million bbls 11/7
• 20211, 263, CLR, Hawkinson 3-27H, 34-147-96, Oakdale, 4 sections, t9/11; cum 385K 11/17;
• 20212, 482, CLR, Whitman 3-34H, 34-147-96, Oakdale, F, t9/11; cum 135K 11/17;(see comment above)

The original post is here: http://themilliondollarway.blogspot.com/2012/09/this-was-sent-to-me-as-comment.html

I generally don't update data in two different locations, so I will probably use the 09/2012 post as the post that will be updated.

To find the other Whitman /Hawkinson / Morris / etc wells, simply use the blog search app to find them. If they have come off the confidential list and reported by NDIC on a daily activity report, the results are posted on the blog. Guaranteed.

For newbies, in case you missed it, one of the Whitman wells has now produced more than 1,000,000 (one million) bbls. Another is up to 600,000 bbls after just four years. In contrast, it took 30 to 40 years for wells from other formations in the Williston Basin to reach these numbers. In addition, there are a lot of DRY wells when targeting other formations in the Williston Basin. There are "no" dry wells in the Bakken (regular readers know why I put the "no" in quotations).

I didn't notice this until now; some of the highly prolific Hawkinson/Whitman wells are still flowing without a pump (AL = artificial lift/pump). Teegue pointed out long ago that some wells listed as still flowing (F) may, in fact, be on a pump; sometimes the paperwork is slow in getting to the NDIC.

It's in the eyes of the beholder whether these are good wells or not.

I hope to repeat another posting regarding this subject -- something I've blogged about before -- if the spirit moves me and I find a slow day in the Bakken. I thought today was going to be a slow day and then everything hit right at the end of the day.

Oh, I had not even noticed that. Look at the IPs when you look at the total production of these wells.

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Back-of-the-Envelope 

My use only; not for general public

What does a 500K well mean for a mineral owner?

Let's say the mineral owner has 25 acres and the spacing unit is 2560 acres, which many of these are.

Let's say the mineral owner gets 20% royalties on all produced oil (I believe royalties generally run between 1/8th and 3/8ths).

Let's say the average price of oil was $75/bbl. My readers tell me that the better operators are averaging much better than $75/bbl.

So, for 500,000 bbls:

(25/2560) * 20% * $75 * 500,000 = $73,000.

Twenty-five acres is an extremely small holding; it would not be unusual for an original landowner to have one section (640 acres):

(640/2560) * 20% * $75 * 500,000 = $1,875,000.

And this well will keep producing for 30 more years (at a significantly lesser rate).

In addition, the mineral owner would have gotten the "bonus" for leasing the mineral acres in the first place, perhaps $2,000/acre, so before they even drilled a well, the 25-acre mineral owner would get $50,000 for the lease. The one-section owner would get $1,280,000.

Disclaimer: I often make simple arithmetic errors. I used a calculator but did not triple check all results.