Tuesday, June 3, 2014

Oasis Corporate Presentation -- June, 2014

Oasis presentations are found here.

28 slides in the June, 2014, presentation.

Slide 3:
  • 506,960 acres
  • proved reserves: 219 million boe  [219,000,000/506,960 = 430 bbls/acre x 1280 long lateral = 550K EUR]
  • 3,590 gross operated locations
  • ~ 17 years of inventory
Slide 7: 2014 focus
  • inventory acceleration with 16 rigs [16 x 10 = 160 wells/year]
  • optimizing downspacing
  • further TFS delineation
  • full DSU development (MB, TFS 1, 2, and 3)
  • MB: 46% of drilling
  • TFS 1: 40%
  • TFS 2: 11%
  • TFS 3: 4%
  • net: 155.5 wells x 4% = 6 wells
Slide 8: 2014 rig allocation
  • MT: 2
  • ND, north of Williston: 4
  • ND, Williston area: 4
  • ND, Burke: 2
  • ND, Mountrail: 4
Slide 9: 2014 completion techniques
  • completing ~ 60% of wells in 2H14 with alternative completion techniques
  • slickwater
  • proppant mix / amount
  • coil tubing completions
  • White unit: 2MB, 2 TFS1, 2 TFS2, 2 TFS 3
  • effective 4 - 5 well per formation spacing
Slide 10: Indian Hills results
  • without slickwater: 70,000 bbls in 90 days
  • with slickwater: 80,000 bbls in 90 days
  • Indian Hills 750,000 boe EUR type curve
Slide 11: well costs and EURs
  • 2012: $9.7 million
  • 4Q13: $7.9 million
  • 1Q14: $7.6 million
  • across the Bakken: 450,000 to 750,000 boe EURs
  • IRR@ $90/bbl WTI: 56% to 62% (60%)
Slide 13: lower TFS -- very encouraging
  • range: 400K to 600K EURs
  • 150 days: 60 - 80K
Slide 15: Oasis Well Services
  • 2nd frack spread to ramp to 100% utilization by 2H14
  • 2 spreads will complete 50 - 60% of Oasis operated well
  • can complete four wells simultaneously
Slide 16: crude oil gathering infrastructure
  • slide shows significant 3Q14 acquisition; first time I noticed this
  • 3Q14 acquisition, areas of: Foreman Butte, Indian Hills, Painted Woods, and North Cottonwood
Slide 17: balance sheet
  • strong balance sheet and liquidity
  • no near-term debt maturities
  • divested non-operated properties for ~$322 million

CLR Applies For Crude Oil Export Permit -- June 4, 2014

Active rigs:

Active Rigs190189214171121

RBN Energy: imagine there is no oil export bill -- impact on refining. These are important stories to watch to see how the tea leaves are floating. I don't expect to see any meaningful change in US oil export laws in my investing lifetime.

The Wall Street Journal

Fed officials growing wary of market risk.

ECB anxious over US fines on banks. If I get a chance, I will get back to this story. It says a lot. In another story, ECB seen ready to tackle Europe's low inflation. Really?

Five states that launched health exchanges under ObamaCare are in for a shock: the cost of fixing their sites. And the five states are ... drum roll ... Maryland, Massachusetts, Minnesota, Nevada, and Oregon. There is an interesting story line there -- except for Nevada, they were the front-runners in the race to push a US national health system. Minnesota keeps showing up on the wrong lists.

EPA's 30-30 plan pinches states unevenly. Blame Podesta. I was curious who wrote the rules -- I posted that observation just a day or so ago. Behind EPA's cost estimate.

US auto sales surged in May.

ATT sells $2 billion in bonds; 30-year bonds to yield 1.40 percentage points more than comparable US Treasurys, for a yield of around 4.8%. Or you buy the company directly and get 5.2%.

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here.

The Los Angeles Times

Republicans are leading key legislative races, early returns show.

DUI driver, pulled from deadly crash with beer in pocket, gets 6 years of free medical care, three meals a day, and a personal man-cave. What's not to like.

Two people killed when Ambrak train hits car in Oxnard. That's more people killed by a quasi-government railroad than by all the crude oil derailments in the US. Will Amtrak need to slow down? LOL. Any slower, and the rules of classical physics suggests Amtrak will have to travel backwards.

Long Beach polling place runs out of ballots during evening voting. They weren't prepared for the union buses coming in from East L.A.
Original Post

Every weekday morning I have a standard North-Dakota-active-rig post, an RBN-Energy link, and a quick look at the day's Wall Street Journal, Los Angeles Times, and other headline stories. In the past two days I have not posted notes from the WSJ or the LAT; I have just been too busy.

As before, this post will be a place holder for tomorrow morning's post, assuming the sun comes up, my wife's sets the alarm correctly, and I have a wi-fi connection.

First note of note. Reuters is reporting that Harold Hamm has applied for an oil export license:
Continental Resources has asked the U.S. government for a permit to export crude oil it produces in North Dakota and hopes approvals will be granted for the industry as a whole, a company executive said on Tuesday.
You have to love this bit of trivia:
Stephen Bradley, the vice president of oil marketing for Continental, the leading producer in North Dakota's Bakken field, said the Department of Commerce has been weighing the company's request for several months, Argus Media reported.
I'm not holding my breath on this one.


Second note of note, the June, 2014, Oasis corporate presention, a PDF file. This deserves a stand-alone post; if I remember, I will do that. There's a bit of trivia that I bet no one has picked up on, but it's an important piece of trivia if accurate.


A reader sent me this story. Because it mentioned Magnum Hunter and the Bakken, I've included it here. bizjournals.com is reporting that Magnum Hunter is more focused on the Marcellus/Utica right now than the Bakken due to better infrastructure in the northeast. 
Houston-based Magnum Hunter Resources Corp. (NYSE: MHR) thinks it could soon take the throne as owner of the most productive well in the Utica shale play. Magnum Hunter's well is only the second in the Utica shale in West Virginia. (Chevron Corp.  drilled the first in Marshall County earlier this year).
It’s located on the Steward-Winland pad in Tyler County, just east of Marietta.
“We think this well is on the equivalent of (Rice Energy Inc.'s Bigfoot 9H) well,” Gary Evans, Magnum Hunter’s CEO, told CNBC host Jim Cramer June 2. “We’ll be fracking that well over the next 30 to 45 days.”
It's a bit hard to tell from the story what Magnum really thinks about the Bakken. I track all Bakken operators at the "Snapshot" tab at the top of the blog.  According to Magnum Hunter's June, 2014, corporate presentation, the company is still bullish on the Bakken, having about 97,000 net acres, some developed, some undeveloped.


Natural gas killing nuclear energy -- New York Times -- this make the newspaper a candidate for the 2014 Geico Rock Award.
But natural gas is starting to replace nuclear power, which can be seen as wiping out about 10 percent of the savings, because a reactor has a carbon footprint of nearly zero. Last year the owners of five reactors announced they would retire them. Some had mechanical problems or political opposition; some did not. But all were challenged by the drop in prices on the wholesale market, driven down by natural gas. And several other reactors are losing money and could close this year.

Japan found out the hard way what a nuclear disaster could do. Germany didn't wait to find out. Germany eschewed natural gas, also -- went back to coal.  This article conveniently forgets to mention that inconvenient truth -- Germany returning to coal.

Speaking of which, speaking of coal, I'm reading the new book published this year by The New Yorker, The 40s which should show up at this link, although the link might be dynamic and might change: http://www.newyorker.com/the40s.

There's a New Yorker article on the "Berlin airlift" re-printed in that book. It is the essay that everyone should read if interested in the airlift. Really well written. Slightly less than 2/3rds of everything airlifted was coal; slightly more than 1/3 was food. The one or two percent that made up the difference included meat, cheese, and chocolate, the top three most coveted items after coal. The Germans love coal. It probably was not difficult for them to give up on nuclear energy.


Remember the Range Resources story in Texas. Texas Railroad Commission says fracking not the culprit

Alaska Just Went "Red" -- Reuters (I Can't Make This Up) -- EPA On Highest Alert

I just updated the earlier post regarding the EPA's latest rules in the war-on-coal noting that Washington would have to cut emissions by over 400% if Mount St Helens erupts between now and 2030.

This is too good to be true. Timing is everything.

Reuters is reporting that an EPA "yellow" state, Alaska, just went "red." Reuters is reporting:
An Alaska volcano that has been spewing ash and lava for years began erupting with new intensity this week, pushing a plume of smoke and ash as high as 24,000 feet (7,315 meters) and prompting scientists to issue their highest volcanic alert in five years, authorities said on Tuesday.
But the intense action at the Pavlof Volcano, located in an uninhabited region nearly 600 miles (966 km) southwest of Anchorage, has so far not disrupted any regional air traffic, thanks to favorable weather that has made it easier for flights to navigate around the affected area. 
Still, the eruption was intense enough for Alaska Volcano Observatory scientists to issue their first red alert warning since 2009, when the state's Mount Redoubt had a series of eruptions that spewed ash 50,000 feet (15,240 meters). 
"This means it can erupt for weeks or even months," observatory research geologist Michelle Coombs said of the warning. "I don't think we will be at red for that long, but we are expecting it to go for a while based on its past."
Unconfirmed reports: EPA is sending two aircraft filled with bureaucrats, with hand-held calculators, yellow legal pads, and clipboards, preparing to issue new "30-30" guidelines for Alaska, literally as we speak.
An EPA spokesperson, commenting anonymously saying she did not have authority to speak on the subject officially, said, "This is serious. Alaska was pale yellow under the initial 30-30 but this is already putting Alaska into a bright yellow/orange category. I could see it going red. Puce is possible. We never thought we would have to go to puce, so that was never in the original 30-30 plan."
The EPA flight plans took the two aircraft directly over Sarah Palin's home, where the pilots noted "we could see Russia from there." The co-pilot, commenting anonymously saying she did not have authority to speak on the subject officially, said, "Sarah was sincere. She really could see Russia from her porch. Look there's a polar bear. Two. Struggling. The ice is thinning. I wish now I would have voted for Sarah. Who was her running mate, again?"

Some of the EPA observers wondered if the Bering Strait didn't seem a bit higher than usual, something that has been long predicted due to global warming.
"You know, I was last up here five years ago and I don't remember the Bering Strait being that high. It could be the moon and the tides, but the sun is still up so I don't think it could be the moon pulling the tide toward the beach. I think it's global warming."
Any chance of hurricanes? Probably not yet. Although the risk of "land hurricanes" is always there.

The Greenpeace ship that interfered with Statoil earlier this week is rushing to the strait to verify the height of the ocean. Scientists on that ship had not prepared for this possibility and have requested the US Navy provide them some rulers, preferably with "millimeter markings."

Again, this is all unconfirmed. I doubt that any of it is true, but a reader sent it to me, so it must be true. If I find it on the internet, I know it will be true.


Searching, Searching, Del Shannon

Is This Not A "Pretty Picture"? -- Northwest Dunn County, Corral Creek

Those wells on confidential status, up to the north in the graphic below, are all on 3-well and 4-well pads.

I track the Corral Creek oil field here. Obviously I have to update the linked page.

Spring Road Restrictions Coming To An End? Rigs Increasing In Number; Nine (9) New Permits -- North Dakota; Fourteen (14) Producing Wells Completed; Bakken Wells Really Getting Better; Hess On A Roll; EOG Reports Two Huge Wells; 5/11 Wells To DRL Status

Wells coming off confidential list Wednesday:
  • 20258, 2,399, KOG, Skunk Creek 3-24-25-13H, Mandaree, t4/14; cum 16K 4/14;
  • 24758, drl, Statoil, Melissa 31-30 6H, East Fork, no production data,
  • 25075, 523, OXY USA, Charles Rand 1-6-7H-143-97, Crooked Creek, t12/13; cum 29K 4/14;
  • 25691, drl, Hess, BW-Johnson 149-99-1003H-3, Cherry Creek, no production data,
  • 25757, 989, EOG, Wayzetta 35-1920H, Parshall, t1/14; cum 113K 4/14;
  • 25785, 1,682, EOG, Wayzetta 36-1920H, Parshall, t1/14; cum 126K 4/14;
  • 26271, 1,346, Emerald, Pirate 6-2-11H, Foreman Butte, t12/13; cum 42K 4/14;
  • 26472, 1,667, Newfield, Rolfsrud State 152-96-21-16-12H, Westberg, t2/14; cum 30K 4/14;
  • 26629, drl, CLR, Mack 12-2H2, Antelope, a Sanish pool well, no production data,
  • 26872, drl, XTO, Cindy Blikre 41X-2G, Lindahl, no production data,
  • 26880, drl, CLR, Lawrence 6-24H1, North Tioga, no production data,
25757, see above, EOG, Wayzetta 35-1920H, Parshall, 112K in less than 5 months:

DateOil RunsMCF Sold

25785, see above, EOG, Wayzetta 36-1920H, Parshall, 124K in less than 5 months:

DateOil RunsMCF Sold

Active rigs:

Active Rigs190189215171121

Nine (9) new permits --
  • Operators: EOG (3), CLR (2), Petrogulf (2), North Plains (2)
  • Fields: Parshall (Mountrail), Willow Creek (Williams), Antelope (Mountrail), Smoky Butte (Divide)
  • Comments:
Wells coming off confidential list were posted earlier; see sidebar at the right.

Fourteen (14) producing wells were completed:
  • 22687, 1,107, Hess, EN-Jeffrey-155-94-2215H-1, Alkali Creek, 4 sections, t4/14; cum 15K 4/14;
  • 25334, 2,212, XTO, Martin Federal 21X-33F, Cedar Coulee, t4/14; cum 19K 4/14;
  • 25787, 758, Hess, EN-Cvancara A-155-93-3231H-5, Robinson Lake, 4 sections, t4/14; cum 14K 4/14;
  • 25987, 1,350, Hess, EN-Frandson-154-93-2116H-6, Robinson Lake, 2 sections, t4/14; cum 26K 4/14;
  • 26012, 1,320, Hess, HA-Chapin 152-95-3229H-4, Hawkeye, t5/14; cum 17K 4/14;
  • 26013, 997, Hess, HA-Chapin 152-95-3239H-3, Hawkeye, t4/14; cum 20K 4/14; 20K in the first 15 days;
  • 26072, 928, Hess, BL-Iverson 155-95-1819H-4, Beaver Lodge, t4/14; cum 20K 4/14; 20K first 18 days;
  • 26073, 948, Hess, BL-Iverson 155-95-1819H-3, Beaver Lodge, t4/14; cum 13K 4/14; 13K first 11 days;
  • 26113, 598, Hess, EN-Chamley 156-93-0508H-3, Baskin, t4/14; cum 12K 4/14; 12K first 17 days;
  • 26401, 185, Mountain Divide, Reistad 23-14-1H, Fortuna, t3/14; no production data,
  • 26572, 881, Hess, BW-Sharon-150-100-2536H-4, Timber Creek, t4/14; cum 13K 4/14; 13K first 11 days;
  • 26672, 907, Hess, BW-Sharon-2560-150-100-2536-3031H-1, South Tobacco Garden, 4 sections, t4/14; cum 18K 4/14; 18K first 19 days;
  • 26675, 1,684, Petro-Hunt, Burian 144-98-14A-23-1H, Little Knife, t5/14; cum --
  • 27071, 304, Mountain Divide,Rreistad 26-35S-1H, Fortuna, t3/14; cum --

End-Of-Day Market, Comments, Observations -- June 3, 2014

CLR closed the day up 1% and trading near its 52-week high. Folks who understand the financial picture better are aware that CLR redeemed some high-yielding bonds today. I assume they "swapped" the high-yielding bonds for some lower-yielding bonds. But, I don't follow the financial picture very closely.

Ya gotta love that mainstream media. We've gone more than 3,000 days without a major hurricane and this hurricane season is also predicted to be relatively calm. That doesn't fit the global warming climate change extreme weather picture that "Cosmos," Algore, Reuters, and President Obama are trying to feed us. What is one to do? Not a problem. Fortunately "we" have a term for these severe weather storms: derechos or  "land hurricanes." This will confuse my granddaughters. LOL. CBS Chicago's Megan Glaros tweeted:
"It's called a 'land hurricane,' and one could develop tonight across the Plains."
Just in time. Fortunately the EPA is on top of this with their new rules in the war on coal: 30-30.


Speaking of the "30-30" rule and the war-on-coal, y'all have to look at the map on page A4 of today's WSJ. It's a hoot. The WSJ graphically depicts how much each state will have to cut back on emissions. Relative to everyone else, North Dakota is getting by pretty cheaply. Apparently, all that flared natural gas and all that cattle-emitted methane isn't quite as bad as all the UPS trucks in Chicago. LOL. Look at the map. I normally wouldn't do this but there is a risk this graph will be lost to the archives, so I will include a screen shot:

Washington State, home of some of the lowest electricity rates in the country because of all their hydroelectric power, is screwed. Washington State must cut emissions by a whopping 72%. Quickest way to do that: send Boeing and Microsoft packing. Send Microsoft to Fargo, ND, and Boeing to Alabama, both "white" states. ["White" means "clean" according to the EPA.]

[If Mount St Helens erupts again spewing all that CO2 between now and 2030, Washington State will have to cut its manmade emissions by 453% -- not sure about that, still working on the calculations.]

Seriously, as soon as I saw that headline (about Washington State having to cut emissions by 72%) I knew the proposed rules were DOA. I assumed they were in need of ICU resuscitation when Steven sent me the bad news with regard to Illinois. That state will say sayonara to its nukes. Illinois "only" has to cut 33% but it will mean the final nails in the coffin for their nuclear reactors.

North Dakota: all those flaring Bakken wells; all those flatulent cows; all those leaking wells -- that state only has to cut a "measly" 11 percent. Easy. Shut down Fargo one Saturday each month. Or shut down the Bakken for one full month during spring road restrictions.

And how's this for poetic justice: four of leading coal producers in this country (Wyoming, North Dakota, West Virginia, and Kentucky) are all "white" states. Montana and Utah are almost "white."

Minnesota? Screwed. And that state has tried so hard.

Montana Completions -- June 3, 2014

From the Fairfield SunTimes.

Richland County is directly west of North Dakota's McKenzie County (Watford (City).
Roosevelt County is directly west of North Dakota's Williams County (Williston).

Richland County, "seven" CLR Bakken formation completions:
  • CLR, English Federal 1-5H, 18,541 feet, 469 bopd
  • CLR, Lucille-Reimann HSU, five laterals (14,244; 17,280; 16,143; 15,575; and 20,684 feet), 454 bopd
  • CLR, Ardelle-Staci HSU, 19,948; 266 bopd
Roosevelt County
  • CLR, Scottsman 1-30H, 19,361; 511 bopd
  • Oasis, Susie 4 2758 42-10B, 20,700; 1,212 bopd

KOG To Drill Madison Wells In Stockyard Creek and Epping Oil Fields; East/Northeast Of Williston

Cases from the June, 2014, NDIC hearings
  • 22475, KOG, Epping-Madison, an order to establish a zone of stand-up 320-acre units, sections 21,22, 27, 28, 29, 30, 31, 32, 33, and 34 / 155-99; Williams
  • 22476, KOG, Stockyard Creek-Madison, an order to establish a zone of stand-up 320-acre units, section 1, 2, 3, 4, 5, 6, 7 , 8, 9, 10, 11, and 12 / 154-99; Williams

Just as I was posting this information, a reader sent in these questions:
I find KOG's request to permit Madison wells in the Epping and Stockyard Creek fields to be interesting. I know there are a bunch of old Madison wells running east to west in that area. It's my understanding that Madison wells now utilize horizontal drilling. Do they need to frac Madison wells, like the Bakken and/or Three Forks wells? How much does it cost to drill a typical Madison well?
I don't know the answers but I'm hoping someone will take the time to tell us or offer an opinion. Postings can be done anonymously. 

Newbies may be interested in scrolling through some of the big Madison wells at my "Monster Well" page. When you get to the link scroll down to the Madison; note some million-bbl wells.

A quick look at these two fields reveal a handful of old Madison wells, some still active, but none were over 400,000 bbls total; most were under 100,000 bbls total, I believe (don't quote me on that; I went through them pretty quickly).

Although it's impossible for me to keep all pages up to date, I do have a link to the Madison on the sidebar at the right.

Please note that the older the original post, the more likely it is to be wrong. I was (and am) learning as I go along. I made a lot of errors in the beginning (and probably still do) but I don't, as a rule, delete earlier posts without really, really good reasons. I correct errors in "original posts" with updates at the same page.

Full Listing Of June 25 - 26, 2014, NDIC Hearing Dockets For The Williston Basin In North Dakota

Remember: last month EOG requested permission to drill 32 wells on a single 640-acre section.

Source: NDIC

Webpage: NDIC dockets.

Highlights from this month's docket.

Wednesday, June 25, 2014

OXY USA has eight (8) cases requesting "an exception to NDA 43-02-03-21 and any other applicable regulations to allow the use of inflatable packers in the casing string in connection with cementing operations for the isolation of oil, gas or water-bearing formations.

21799, cont'd
21800, cont'd
22090, cont'd
22093, cont'd
22449, appropriate spacing for the Columbus Madison well 22/23-163-93, Burke County
22450, Slawson, Arnegard-Bakken, appropriate spacing to develop this field; McKenzie,
22451, Whiting, Ragged Butte, Lonesome, and/or Sioux-Bakken, establish two overlapping 2560-acre units; 1 well each, McKenzie
22452, Whiting, Rawson and/or Pronghorn-Bakken, establish three overlapping 2560-acre units; 1 well each; McKenzie
22453, Whiting, Timber Creek and/or Arnegard-Bakken; establish two overlapping 2560-acre units 1 wells each; McKenzie;
22454, Hess, Timber Creek-Bakken, proper spacing, McKenzie
22455, Hess, Short Creek-Bakken, proper spacing, Burke
22456, Hess, Beaver Lodge-Devonian and Capa-Bakken, establish an overlapping 1280-acre unit; 1 well, Williams
22457, Hess, Beaver Lodge-Bakken, amend boundary limits, Williams
22458, Hess, Long Creek-Bakken, 11 wells on a 1280-acre unit; Williams
22459, Hess, Banks-Bakken, 11 wells on a 1280-acre unit, McKenzie
14935, cont'd
22460, Hess, Rainbow-Bakken, flaring, Williams
22461, Cornerstone, Northeast Foothills-Bakken, proper spacing, Burke
22462, EOG, Vanville-Bakken, proper spacing, Burke
22463 - 22471, OXY USA, Cabernet-Bakken, and many other fields, inflatable packers
22471, OXY USA, Fayette-Bakken, 14 hz wells on each of two 1280-acre units; 2 wells on one overlapping 2560-acre unit, Dunn
22472, OXY USA, Cabernet-Bakken, 14 hz wells on each of two 1280-acre units; 2 wells on one overlapping 2560-acre unit, Dunn
22473, OXY USA, Little Knife-Bakken, flaring 
22474, OXY USA, Dimond-Bakken, flaring
22475, KOG, Epping-Madison, an order to establish a zone of stand-up 320-acre units, sections 21,22, 27, 28, 29, 30, 31, 32, 33, and 34 / 155-99; Williams
22476, KOG, Stockyard Creek-Madison, an order to establish a zone of stand-up 320-acre units, section 1, 2, 3, 4, 5, 6, 7 , 8, 9, 10, 11, and 12 / 154-99; Williams
19339, cont'd
22477, Oasis, Robinson Lake, flaring, Mountrail
22478, BR, Cabernet and/or Fayette-Bakken; 12 wells in a new 2560-acre unit, Dunn
22479, QEP, Spotted Horn-Bakken, setback relief, McKenzie
22480, MRO, Antelope-Sanish, 14 wells in a 1280-acre unit; 16 wells on each of two 1280-acre units; 2 wells on a 2560-acre unit; McKenzie
22481, MRO, Reunion Bay-Bakken, 16 wells on a 1600-acre unit; 16 wells on a 1280-acre unit; 2 wells on a new overlapping 1920-acre unit; 2 wells on a new 3200-acre unit, Mountrail, McKenzie
22482, MRO, Reunion Bay-Bakken, well location, Mountrail
22483, MRO, Bailey-Bakken, 9 wells on a 1280-acre unit, Dunn
22484, MRO, Bailey-Bakken, to dissolve a 1600-acre unit and establish a new 1280-acre unit; Dunn
22485, MRO, Wolf Bay-Bakken, flaring, Dunn
22373, cont'd
22374, cont'd
22375, cont'd
22376, cont'd
22377, cont'd
22378, cont'd
22379, cont'd
22380, cont'd
22381, cont'd
22382, cont'd
22383, cont'd
22384, cont'd
22385, cont'd
22386, cont'd
22387, cont'd
22388, cont'd
22389, cont'd
22390, cont'd
22391, cont'd
22486, American Eagle, Skjermo-Bakken, pooling
22487, American Eagle, Skjermo-Bakken, pooling
22488, American Eagle, Flat Lake East-Bakken, pooling
22489, KOG, Truax-Bakken, 11 wells on a 1280-acre unit; 7 wells on a 2560-acre unit; Williams
22490, Hess, Alger-Bakken, 11 wells on a 1280-acre unit; Mountrail
22491, Hess, Robinson Lake-Bakken, 11 wells on a 1280-acre unit, Mountrail
22492, Hess, Truax-Bakken, 10 wells on each of two 1280-acre units; 11 wells on one 1280-acre unit; 2 wells on each of two overlapping 2560-acre unit; Williams
22493, Hess, Glass Bluff-Bakken, 6 wells on each of three 1280-acre units, McKenzie
22494, Hess, Sandrocks-Bakken, 10 wells on a 1280-acre unit, McKenzie
22495, Hess, Juniper-Bakken, 6 wells on a 1280-acre unit, McKenzie
22496, Hess, Big Gulch-Bakken, 12 wells on each of two 1280-acre units; Dunn
22497, Hess, commingling
22498, Hess, commingling
22499, SM Energy, Charlson-Bakken, 12 wells on a 1280-acre unit; McKenzie
22500, MRO, Reunion Bay-Bakken, pooling
22501, MRO, Reunion Bay-Bakken, pooling
22502, MRO, Reunion Bay-Bakken, pooling
22503, MRO, Reunion Bay-Bakken, pooling
22504, QEP, Van Hook-Bakken, 16 wells on a 3200-acre unit, Mountrail, Dunn
22505, QEP, Heart Butte-Bakken, pooling
22506, Whiting, Lonesome-Bakken, pooling
22507, Whiting, Arnegard-Bakken, pooling
22508, Whiting, Ellsworth-Bakken, pooling
22509, Whitng, Ellsworth-Bakken, pooling
22510, Whiting, Ellsworth-Bakken, pooling
22511, Whiting, Pleasant Hill-Bakken, pooling
22512, Whiting, Pleasant Hill-Bakken, pooling
22513, Whiting, Pleasant Hill-Bakken, pooling
22514, Whiting, Pleasant Hill-Bakken, pooling
22515, Whiting, Pleasant Hill-Bakken, pooling
22516, Whiting, Juniper-Bakken, pooling
22517, BR, Haystack Butte-Bakken, 8 wells on a 1280-acre unit, McKenzie 

Thursday, June 26, 2014

22518, EOG, Niobe-Bakken, proper spacing, Burke
22519, EOG, Spotted Horn or Squaw Creek-Bakken, extend, establish a 1280-acre unit; multiple wells; McKenzie
22520, EOG, Squaw Creek-Bakken, multiple wells on an existing 640-acre unit; McKenzie
22521, EOG, Parshall-Bakken, flaring
22522, Samson Resources, Candak-Bakken, proper spacing, Divide
22523, Scott Environmental Services International
22524, HRC, Tyrone-Bakken, establish an overlapping 2560-acre unit; 3 wells, Williams
22525, Peregrine Petroleum Partners, Hay Draw and/or Pierre Creek-Bakken, extend, establish a 1280-acre unit; 2 wells, McKenzie
20658, cont'd
22526, Newfield, Sand Creek-Bakken, establish an overlapping 1280-acre unit, 1 well, McKenzie
22527, Newfield, Lost Bridge-Bakken, establish two overlapping 2560-acre units; 1 one well each, Dunn
22528, Newfield, Sand Creek-Bakken, flaring
22529, Newfield, Keene-Bakken/Three Forks Westberg, and/or Clear Creek-Bakken, establish two overlapping 1280-acre units; establish four overlapping 2560-acre units; 1 well each; McKenzie
22530, Corinthian, Red Rock-Spearfish, terminate a 320-acre unit and created two 160-acre units; 1 well on each, Bottineau
22531, Enerplus, Antelope-Sanish, establish an overlapping 1280-acre unit 2 wells, McKenzie
22532, Triangle, Eightmile-Bakken, 14 wells on an overlapping 3840-acre unit, Williams, McKenzie
22533, Statoil, Alger-Bakken, flaring
22534, Statoil, East Fork, Cow Creek, and/or Stony Creek-Bakken, establish 5 overlapping 2560-acre units; 1 well each; Williams
22535, Hunt, Zahl-Bakken, establish two 1280-acre units; 1 well each, Williams
22359, cont'd
22360, cont'd
22536, XTO, Grinnell-Bakken, flaring
22537, XTO, Haystack Butte-Bakken, flaring,
22538, XTO, Coulee-Bakken, flaring,
22539, XTO, Tobacco Garden-Bakken, flaring
22540, XTO, Jim Creek and/or Murphy Creek-Bakken, establish eleven (11) overlapping 2560-acre units; 1 well each; Dunn
22541, XTO, Indian Hill and/or Camp-Bakken, establish an overlapping 2560-acre unit, 1 well, McKenzie
22363, cont'd
22542, Slawson, Big Bend-Bakken, siting of a single well
22543, Slawson, Stockyard Creek, alter stratigraphic limits of the pool
22544, WPX, Van Hook-Bakken, establish 2 overlapping 2560-acre units; 1 well each, Mountrail 
22545, CLR, Cedar Coulee-Bakken, 16 wells on each existing 1280-acre unit in Zones IV, Vi, and VI; 32 wells on each 2560-acre unit in Zones VII, VIII, and IX, Dunn
22546, CLR, Corral Creek-Bakken, 16 wells on each existing 1280-acre unit within Zones II, III, and IV, Dunn
22547, CLR, Jim Creek-Bakken, 16 wells each existing 1280-acre unit within Zones I, II, III, IV, V, and VI; 16 wells on each existing 1920-acre unit within Zone VII; 32 wells on each 2560-acre unit in Zones VIII and IX; Dunn
22548, CLR, Haystack Butte-Bakken, 16 wells on each existing 1280-acre unit within Zones II, III, IV, V, and VI; 32 wells on each 2560-acre unit in Zone VII; Dunn, McKenzie
22549, CLR, Rattlesnake Point-Bakken, 16 wells on each existing 1280-acre unit withink Zones I, II, and III; 16 wells on each existing 1920-acre unit within Zone IV; 32 wells on each 2560-acre unit in Zones V and VI; Dunn
22550, CLR, Oakdale-Bakken, 16 wells on each existing 1280-acre unit within Zone I; 32 wells on each 2560-acre unit in Zones III and IV; Dunn
22551, CLR, Chimney Butte-Bakken, 16 wells on each existing 1280-acre unit within Zones I, II, III, IV and V; 32 wells on each 2560-acre unit in Zones VI, VII, VIII, IX, and X; Dunn
22564, Newfield, Sand Creek-Bakken, 8 wells on each of two 640-acre units; 8 wells on each of two 1280-acre units, McKenzie
22552, CLR, Beaver Lodge-Bakken, flaring
22553, CLR, Pershing-Bakken, multiple wells on an existing 2560-acre unit
22554, CLR,  Elm Tree-Bakkne, multiple wells on an existing 2560-acre unit
22366, cont'd
22364, cont'd
22555, CLR, Sanish-Bakken, terminate a 2560-acre unit; create two stand-up 1280-acre units; multiple wells; Mountrail
22556, CLR, State Line-Red River establish a 640-acre unit, 1 well, Bowman
22365, cont'd
21755, cont'd
22197, cont'd
22214, cont'd
22218, cont'd
22190, cont'd
22201, cont'd
22367, cont'd
21997, cont'd
20926, cont'd
20927, cont'd
20928, cont'd
20929, cont'd
15224, cont'd
22356, cont'd
21287, cont'd
22161, cont'd
22162, cont'd
22557, cont'd
22557, Emerald Oil, risk penalty legalese, Boxcar Butte-Bakken, McKenize
22558, Emerald, pooling
22559, Newfield, pooling
22560, Newfield, pooling
22561, Newfield, pooling
22562, Newfield, pooling
22563, Newfield, Keene-Bakken/Three Forks, 8 wells on an existing 1280-acre unit; McKenzie
22564, Newfield, Sand Creek-Bakken, 8 wells on each of two 640-acre units; 8 wells on each of two 1280-acre units, McKenzie
22565, Newfield, Westberg-Bakken, 3 wells on one 640-acre unit; 8 wells on one 640-acre unit; 8 wells on each of three 1280-acre units; McKenzie
22566 Corinthian, pooling
22567, Corinthian, pooling
22568, Corinthian, commingling
22569, Corinthian, commingling
22570, Corinthian, commingling
22571, XTO, pooling
22572, XTO, pooling
22573, XTO, pooling
22574, XTO, risk penalty legalese, Capa-Bakken
22575, XTO, risk penalty legalese, West Capa-Bakken
22576, Triangle, pooling
22577, Triangle, Ft Buford-Bakken, 6 wells on an existing 960-acre unit, Williams
22578, Hunt, pooling
22579, Arsenal, commingling
22580, Samson Resources, commingling
22581, Samson Resources, commingling
22582, Samson Resources, commingling
22583, XTO, commingling
22584, XTO, commingling
22585, commingling
22586, Slawson, Clarks Creek-Bakken, 14 wells on an existing 640-acre unit; McKenzie
22587, CLR, pooling
22588, CLR, Edge-Bakken, 14 wells on an existing 1280-acre unit, McKenzie
22589, CLR, Camel Butte-Bakken, 14 wells on an existing 1280-acre unit; McKenzie
22590, CLR, commingling
22591, CLR, commingling
22592, CLR, commingling
22593, CRL, commingling
22594, CLR, SWD
22595, Zavanna, SWD
22225, cont'd
22226, cont'd
22227, cont'd

Illinois And EPA's Proposed New Rules In President Obama's Relentless War On Coal

I don't plan to write much or often about President Obama's new rules in the relentless war-on-coal, but this is a nice article sent to me be a reader. Chicago Business is reporting how the state of Illinois will be affected by the new rules and how they will respond:
Are Illinois power plants a source of significant emissions?
Yes, indeed. Only five other states emitted more greenhouse gases from power plants than Illinois in 2012, according to the EPA. And while the Obama administration is saying that the proposed rule requires a 30 percent reduction of carbon from the power sector by 2030 based on their emissions in 2005, the reductions don't fall equally state by state. Illinois is being asked to cut its power-plant emissions by 33 percent from its 2012 emissions. Only two other Midwestern states, Wisconsin and Minnesota, are being asked to do more. Strangely, neighboring Indiana, which emits more greenhouse gases than far larger Illinois thanks to its heavy dependence on carbon-heavy coal, must cut its emissions by only 20 percent.
This was my reply to the reader:
Another very good article.
This is exactly what will happen: states will apply for / receive waivers to delay.
From the article: ".. pushed by mining and transportation unions along with the coal industry, called on the EPA to allow Illinois to take longer to comply with the rule and to meet less stringent standards (if it desires) in the interest of keeping coal-fired power plants open."
A couple of days ago I posted a story that said the EPA cannot have different rules for different regions, giving unfair advantage to one region over another (inter-state commerce law), so it only takes one state to win a delay/waiver, as far as I can tell -- because many states provide electricity for neighboring states (Utah coal-electricity for California; ND coal-electricity to MN).
The other good news: presidents come and go.

Mineral Owners Breathe A Sigh Of Relief: New Analytic And Metering Verification Service Opens New Facility In Williston

The Bakken Magazine is reporting:
Inspectorate, a division of Bureau Veritas Commodities Division, has opened a new analytical testing facility in Williston, N.D., which specializes in the analysis of crude oil and gas production from the Bakken shale play in North Dakota.
Bureau Veritas also provides meter verification services for Williston and the surrounding areas. Meter verification ensures that both the government and the land owner are getting accurate representation of what is being pulled out of the ground, and that royalty payments are accurate.

For Investors Only -- June 3, 2014; Seattle Raises Minimum Wage To Double Federal Minimum

Dividends: Lowe's increased their dividend substantially, from 18 to 23 cents.

Trading at new 52-week highs: DVN, EPD, ERF, PSXP, TRGP,

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here.

AAPL is moving back up after yesterday's incredible WWDC announcements. I thought the presenters' narratives were often a bit cheesy and unnecessary, but the software was incredible. Steve Jobs would have been a better pitchman. May he RIP.

AAPL will soon execute its announced 7-1 stock split. Just looking at the graphs of a number of energy stocks it looks like there may be a number of other companies that may be split 3-2 or 2-1 before the end of 2015.

Car company news I heard on the radio sounded good. So let's check.

Ford: May sales rose 3.0% year/year to 254,084 vehicles: Retail sales set several model records with 174,889 vehicles sold - an increase of 6 percent.
Data points:
  • Fusion: best month ever 
  • Escape: best month ever 
  • Explorer: best month in 10 years 
  • Lincoln MKZ: best May ever
Ford sales in India? Up 105%. Most of the probably run on gasoline.
Comment: this certainly doesn't sound like a bad economy despite all the bad mainstream news. No wonder the president is not worried about jobs.
General Motors: same with GM -- a huge month. General Motors delivered 284,694 vehicles in the United States in May, up 13% compared to a year ago.
Data points:
  • company's best May in seven years
  • best total sales since August 2008
  • sales to individuals up 10 percent
  • fleet sales up 21 percent
Comment: this certainly doesn't sound like a bad economy despite all the bad mainstream news and the lawsuits. No wonder the president is not worried about jobs.
Gold his a four-month low, longest losing streak in seven months.

T is getting a lot of press today: the company raised revenue guidance, but lowered earnings guidance. Maintains #1 position among Dow dividend payers.

I see the city of Seattle increased its minimum wage to $15/hour.
This may be one of the more interesting "local" stories to watch. If the entire state went to $15/hour minimum wage, that's one thing, but the city is awash with suburbs just outside city limits. It doesn't take a Ronald McDonald clown to figure out where Burger King will expand.
Inner city folks will note it first. In Seattle it may not be a big deal, the inner city is probably not as poor as the inner cities of Detroit, NYC, Boston, and Atlanta. But stereotypically, inner city residents will have more difficulty paying higher prices for commodities (fast food, gasoline, everything in Wal-Mart) than the folks in the suburbs.
I saw a great example of this in Belmont, a suburb of Massachusetts, during the four years our younger daughter and her family lived there. Not quite the same story, but a great analogy.
Belmont is a prosperous suburb (home of Mitt Romney). A lot of rich folks live there. The not-so-rich represent the spectrum: well-to-do to lower middle class homeowners. It's a big suburb, population: 24,000.
But over the four years I visited there I noted there were no restaurants to speak of (except pizzarias). I did not notice any nice restaurants. Finally, I asked about that, curiosity getting the best of me.
It turns out Belmont was a "dry" city up until very recently: no alcohol allowed to be served in any restaurants. So, no restaurants. But plenty of nice restaurants in the city of Boston and all the surrounding suburbs. So, I suspect the same thing will happen in Seattle and other cities who unilaterally raise the minimum wage to double the state minimum wage: new retail stores will build on the other side of the street, just outside the city limits. Gradually, over time, the existing retail base will gradually melt away. The city will lose its tax base, and its poorer citizens will lose access to less expensive alternatives. The inner city workers -- bankers, brokers, lawyers, pharmacist, physicians -- might work in the inner city during the day, but they will go home to their suburbs on evenings and weekends.
It will be interesting to watch this play out. I may be wrong. Inner city folks may get used to paying higher prices for McDonald's, along with their higher electricity bills, and earning $15/hour will allow them that luxury.
With regard to the "Suicide-in-Seattle" a reader raised a couple of issues:
  • customers willingness to tip "high-paid" Starbucks baristas?
  • 7.65% for social security from both employer and employee
  •  grocers to benefit as more folks brown-bag it, rather than stop at fast-food restaurant for lunch
>Sleepless in Seattle

, Soundtrack

How Good Are The Bakken Wells? Getting Better And Better Every Day

These are the "high-IP" wells that have been reported in the past 24 - 48 hours: wells coming off the confidential list and wells that came of the confidential list some time ago, went to DRL status, and have not been completed, tested, and reported:

25860, 2,716, QEP, Zorro 4-35-26BH, Grail, middle Bakken, 1280-acre unit; 32 stages; 3.3 million lbs sand; t1/14; cum 288K 9/19;
25861, 2,655, QEP, Zorro 3-35-26BH, Grail, middle Bakken, 1280-acre unit; 31 stages; 3.1 million lbs sand; t1/14; cum 278K 9/19;
26060, 2,323, QEP, Zorro 27-34-26-35LL, Grail, Three Forks, 1280-acre unit; 31 stages; 2.1 million lbs sand; t1/14; cum 186K 9/19;

25208, 2,149, Bruin/HRC, Fort Berthold 148-95-22C-15-4H, Eagle Nest, t4/14; cum 325K 9/19;

25682, 2,040, BR, Rising Sun 31-1TFH-7NH, Clear Creek, t5/14; cum 280K 9/19;
25829, 2,088, BR, Sunline 21-1MBH-5SH, Clear Creek, 4 sections, t5/14; cum 241K 9/19;
26046, 2,485, BR, Capitol 14-7MBH, Westberg, t5/14; cum 227K 9/19;
26047, 1,683, BR, Capitol 24-7TFH, Westberg, t5/14; cum 174K 9/19;

26375, 1,960, Whiting/KOG, P Vandeberg 154-99-1-1-12-16, Stockyard Creek, t5/14; cum 255K 9/19;
26376, 1,267, Whitng/KOG, P Vandeberg 154-99-1-1-12-16H3, Stockyard Creek, t5/14; cum 89K 9/19;
26377, 2,198, Whiting/KOG, P Vandeberg 154-99-1-1-12-15H, Stockyard Creek, t4/14; cum 212K 9/19;
26378, 2,086, Whiting/KOG, Vandeberg 154-99-1-1-12-15H3, Stockyard Creek, t4/14; cum 171K 9/19;

Tuesday, June 3, 2014

Active rigs:

Active Rigs189189215171121

RBN Energy: moving natural gas bi-directionally from / to the Gulf / the Marcellus.
With the Northeast natural gas market now dominated by physical flows from the Marcellus/Utica, Appalachia producers are targeting the Midwest, the Southeast and—the biggest prize of all—the LNG export projects under development along the Gulf Coast. Getting gas to market, however, requires a top-to-bottom re-plumbing of interstate pipelines originally designed to move gas from the Gulf Coast, not to it. In today’s episode of our series on moving gas out of the Marcellus/Utica we look at plans to add bi-directionality to pipelines within the Midwest and to the Gulf.