Thursday, March 6, 2014

Active rigs:

	3/6/2014	03/06/2013	03/06/2012	03/06/2011	03/06/2010
Active Rigs	192	186	206	172	99

RBN Energy: could the Alberta sands be the largest oil reservoir in the world?

The US Energy Information Administration ranks Alberta’s bitumen oil sands reserves second or third to those of Saudi Arabia and Venezuela. However, evidence from the field and new research indicate that Western Canada’s oil reserves are possibly far larger and could rival or exceed those of the Saudis or the Venezuelans. Today contributor Mike Priaro begins a two part series describing Western Canada’s vast bitumen resources.

The Wall Street Journal

Ukraine: looks like Putin, the ultimate community organizer, will take the Crimean by democratic referendum.  

ObamaCare delayed two years.

SAT dumbed down; was losing market share to ACT.

Obama-controlled Senate rejects Obama judicial nominee.

Texas Tea Party with upset win:

In the primary race for lieutenant governor, a powerful position that helps set the state's legislative agenda, Dan Patrick, a Houston state senator and conservative radio personality, topped three-term incumbent David Dewhurst by 13 percentage points. Mr. Patrick has attracted tea-party support in part for his advocacy of stepped up enforcement against illegal immigration. Because neither claimed a majority of the vote, the two men will square off in a May runoff.

This is a good story: Ukraine issues pressed Obama on natural gas exports. So, it's Dow Chemical vs the Ukraine.

Government investigates Government Motors: why the latter took 10 years to recall a safety issue.

GE gives CEO Immelt a pay raise, 2nd in 12 years.

The Los Angeles Times

Largest European predatory dinosaur named after author of Dinotopia.  

Eleven (11) New Permits -- The Williston Basin, North Dakota, USA

IN PROGRESS

Active rigs:

	3/5/2014	03/05/2013	03/05/2012	03/05/2011	03/05/2010
Active Rigs	192	186	206	172	99

Eleven (11) new permits -- 

• Operators: Statoil (6), BR (3), Hess, CLR
• Fields: Banks (McKenzie), Corral Creek (Dunn), Temple (Williams), Hawkeye (McKenzie)
• Comments: While visiting the Bakken, I was told that the field to watch was the Banks oil field.

Wells coming off the confidential list were posted earlier; see sidebar at the right.

Two (2) producing wells were completed:

• 26020, 656, Slawson, Tooheys 4-15-14HBK, Stockyard Creek, t1/14; cum 7K 1/14;
• 26370, 354, OXY USA, Leroy Petry 1-20-17H-143-97, Crooked Creek, t1/14; cum 2K 1/14;

Dry hole:

• 16444, dry, Genesis, Helseth 32-10SWNE 100-158N-85W, Lake Darling, a Madison well, 

One well coming off confidential Thurday:

• 26052, drl, CLR, Winston 4-12H, Long Creek, no production data,

Tuesday -- Twelve (12) New Permits -- The Williston Basin, North Dakota, USA

Disclaimer: this was typed up more quickly than usual; there may be significant errors or typos. Go to source (NDIC website) if you desire accuracy.

Twelve (12) new permits, yesterday, Tuesday, March 4, 2014:

• Operators: Hess (7), Whiting (2), Oasis (2), American Eagle
• Fields: Antelope (McKenzie), Hawkeye (McKenzie), Sanish (Mountrail), Missouri Ridge (Williams)
• Comments: American Eagle has a permit for a well in Divide County. 

Three (3) producing wells completed:

• 24413, 2,513, Statoil, Broderson 30-31 4TFH, Banks, t2/14, no production data,
• 24841, 954, Dolezal 4-51H1, Chimney Butte, t2/14;  cum --
• 25784, 1,924, BR, CCU Williams 14-20TFH, Corral Creek, t2/14; cum -- 

GMX Resources transferred about 22 wells to Thunderbird Resources, LP.

Hess continues to transfer its Bakken wells to  Hess Bakken Investments II, LLC.

HRC transferred about 9 Bottineau County wells to EnergyQuest II, LLC.

Williston Hunter ND, LLC transferred about 3 pages worth of wells to Enduro Operating, LLC -- the vast majority in Burke County; others in Renville, Bottineau, McHenry counties, others.

Help Requested -- Double HH Crude Pipeline --

Updates

March 21, 2014: in this story, the very last paragraph, there is a suggestion that this pipeline has not yet been started; generally a pipeline is not begun until there are firm orders. Of course, in this case, the Double H could be filled by CLR, and perhaps this is just about opportunities for other operators.  See this post.

March 6, 2014: Northwest Pipe Co. landed order for 400 miles of 12 3/4-inch welded pipe for the Double H. -- news item published November 4, 2013.
 

Original Post

A reader asked me if I knew; I did not. The reader would like to know if anyone knows who the contractor is for the Double HH 12-inch crude pipeline that's being laid. The reader says he has the experience; interested in contacting the contractor if he could the details. [The reader correctly wrote "Double H" -- I suppose it's repetitive to say "Double HH."

Hey, this is a piece of good news. The McDonald's in Chadron, Nebraska, televises the Fox network. Everywhere else it seems to be CNN. I'm starting to like northwest Nebraska despite the Keystone debacle, but, of course, that was all "outside" agitation.

CBR Surging In North Dakota -- Genscape

A reader sent me this. Google key phrases to find the source.

Reuters is reporting:

Oil-by-rail shipments via a dozen major loading terminals in the Bakken region in North Dakota rose again on Monday after running at unusually low rates last week following new U.S. testing and shipping regulations, Genscape data showed on Tuesday.

A total of 688,425 barrels of crude was loaded at 11 terminals on Monday, up from 665,000 on Sunday and more than double the average rate of the four days proceeding Sunday, according to an assessment by industry intelligence group Genscape, which uses cameras to count the number of tank cars loaded at major terminals.

In the two weeks prior to Tuesday's emergency order imposing new oil testing rules, shipments had been running at about 550,000 barrels per day (bpd), on average. But in the four days following the order, shipments dropped to some 312,000 bpd. On Friday and Saturday, an average of 280,000 barrels was loaded.

"Over last week, Bakken rail loadings averaged 470,692 bpd, their lowest average level since the week ending Sept. 13 last year. This constitutes a 103,093 bpd week-on-week decline, a fall of just below 18 percent," Genscape analysts said in their weekly PetroRail Report.

They said factors apart from regulation had also affected loading rates, including severe cold weather that has slowed traffic and caused congestion in the Midwest.

Oil traders were on high alert for any sign that tougher rules on shipping Bakken's light crude by rail could slow supplies out of the booming region, where existing pipelines are unable to keep pace with rising production.

One Fact, One Rumor

Fact: Judge rules in favor of Harold in Hamm divorce.

Rumor: three MRO landmen seen in the Slope County courthouse two days ago. I'm not sure if I'm supposed to post that. If not, send me a note, and I will take it down. But I might not get to it right away; I'm traveling and don't get to the internet until I stop for gasoline. [Later: Pacer Energy may be working for MRO.]

American Eagle Announces Estimated Proved Reserves For 2013

I'm traveling; limited time to post, just just the facts, ma'am:

American Eagle Energy Corporation today -- March 4, 2014 -- announced December 31, 2013 estimated proved reserves, reaffirmed first quarter 2014 production guidance and issued an operational update.

Highlights:

• American Eagle's year-end proved reserves engineered by Ryder Scott Company, L.P. of 13.6 million barrels of oil equivalent (88% oil) with an associated pre-tax PV-10 of $308 million. Long laterals in the Three Forks formation, for which the company is targeting a majority of its drilling capital for 2014, had estimated ultimate recoveries (EURs) of 449 MBoe, with a pre-tax PV-10 of $7.9 million based on completed well costs of $6.4 million.
• Increased 4Q13 average daily production 38% quarter-over-quarter to approximately 1,879 barrels of oil equivalent per day.
• Completed and placed on production four gross wells during 4Q13 with an additional five gross wells waiting on completion at year-end.
• Estimated drilling seven gross wells and completing nine gross wells in 1Q14.
• Reaffirmed 1Q14 production guidance of 1,850 to 1,950 boepd. 
• Reduced average well costs by approximately $0.5 million or 8% from previous guidance during 2H13.

Random Update On The Whiting Revenue Statement Over At The JIBLink Website

This was over on the discussion group. Knowing that some folks may not visit the discussion group, here's the note:

If any of you are waiting to see your 2/28/14 Whiting Revenue statement on the JIBLink website, there was a problem with the upload last night and they are still working on a fix. 

Good News, your direct deposit should be OK.

I really appreciate folks taking time to write, let folks know what is happening. 

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Timeless:

Crazy, Patsy Cline