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."

Saturday Evening Post -- June 21, 2014

CNN

I had to break down and go to CNN to get the latest on "regime change" in Iraq. Apparently:
A strategic border crossing and three other towns in western Iraq fell Saturday to the control of ISIS militants, a senior Iraqi security official said.
In addition to their offensives in northern Iraq, the militants have now strengthened their hand in the western province of Anbar, the country's largest geographically, and were controlling Al-Qaim, Rawa, Ana and Huseiba, said the senior official, who's based in Anbar.
Most importantly, the Islamic State in Syria and Iraq, or ISIS, controlled the strategic town of Al-Qaim on the border with Syria, where the enemy fighters enjoy a stronghold, Iraqi security officials said Saturday.
Together, the four towns are situated along a highway from Syria to Baghdad, heightening possibilities that the militants could now march from the west to lay siege to the Iraqi capital. One of the four towns, Huseiba, is just 100 kilometers, or 62 miles, outside Baghdad.
According to the Iraq government's spokesman, "Baghdad Bob": "Everything is under control. Mr Maliki is redeploying troops to the west. There is nothing to fear but fear itself. And ghastly 12th century beheadings."

The article also said President's Obama's combat troops returning to Iraq should be arriving any day now. 
 
The Wall Street Journal

GE "nabs" Alstom, but at a "cost" -- I don't follow this story close enough to comment

US to speed up migrant deportations. Really? UC Irvine? Really?  SRIR? Really?

Ukraine declares temporary cease-fire (according to early edition of WS), but elsewhere, it is being said that Putin has put troops at the border on alert after more US sanctions [As I see it, as we go into another presidential golfing weekend, we have Iraq spiraling out of control; the Ukraine sprialing out of control; the US southern border spiraling out of control. Generally, when North Korea feels slight -- not getting any NYT coverage, that country usually does something to get our attention.]

Hmmm, what a novel thought: Spain unveiled a sweeping package of tax cuts to lower the fiscal burden on the middle-class before general elections due in less than two years.

Iraqi insurgents (the Islamic State of Iraq and al-Sham) recent battlefield gains are providing a morale boost to many of the region's Sunnis (the peaceful ones).

Meanwhile, an Iraqi Shi-ite (the warring ones) cleric calls for throwing the current government under the bus.

Iraqis fleeing to Jordan don't plant to return. I assume the income tax rate is lower there.

Inversion frenzy rocks drug sector ("inversion" in the business world is when a US company buys a foreign address and the tax advantages that come with it. Sort of like the New Yorkers who claim their "winter" home in Florida as their primary residence for the tax advantages.

There were two LEGO stories in the WSJ yesterday and today. The first story: Lego will boost capacity at Mexican factory. Quick: what is the world's #2 toy maker by revenue? Lego. Behind Mattel. #2 toy maker and they only make one product: little plastic bricks. I think I've blogged about Lego's incredibly successful turnaround several times over the years. The second Lego story was posted on-line yesterday, not sure if it was in Friday's paper or today's paper: Lego's evolution will be digitized.

Global pork market starts to shift; may tamp down US hog prices.

The Los Angeles Times

Yesterday the top story in the LA Times had to do with slow federal response to Hurricane Sandy on the East Coast. Today's top story has to do with mass graves in south Texas. Must be running out of news in California. The paper could start with the-nation's-southern-borders-out-of-control but that would be troubling to the president. In fact, the thousands of Central Americans streaming across the border is not even one of the top five stories in the LA Times: the #3 story in The LA Times (and I can't make this up): "lifeguard helps rescue panicked deer in Malibu surf."

In fact, except for a brief Q & A on the subject, there is no article on the "Central-Americans-streaming-across-the-southern-border stories

Week 25: June 15, 2014 -- June 21, 2014

One-million bopd milestone
Seeking Alpha notes the milestone
The Director's Cut for April, 2014, data, posted in June, 2014

Operations
Strata-X Energy begins drilling the "Sleeping Giant"
MRO file released on its Tyler formation well in southwest North Dakota
Update on refinery construction in the Bakken
Several new "Sanish" wells in the Antelope oil field by multiple operators
CO2 injection could improve Bakken production -- study
Halcon has a Bakken guster; KOG with two "high-IP" wells; BR with two nice wells
Random update of inactive well nearing the one-million mark; could go back on active status
Random update on American Eagle operations in far northwest corner of North Dakota

Pipelines
The second-largest pipeline (in diameter) in North Dakota ready to go on-line 
Enbridge gets closer to getting "all its ducks in order" for huge new pipeline 
RBN Energy updates the Enbridge system from western Canad to the Gulf of Mexico 

Natural Gas
Hess' Tioga natural gas processing plant is back on-line / Rigzone's perspective

Bakken economy
Quantum Energy looking to build five (5) refineries in the Bakken
Buffalo Wild Wings coming to Dickinson (Williston already has a Buffalo Wild Wings)
Architect's drawing of new Williston High School

Miscellanous / International
Oil demand in US grew at fastest pace in the world in 2013; outstripped China for the first time since 1999

Update On Spearfish Activity Along The Canadian Border / Canada; Surge, Legacy, Corinthian

For those who are interested in the Spearfish; and interested in the short history of Surge, Legacy, and Corinthian, there is some new information posted at "Surge Energy."