Wednesday, October 22, 2014

Update On Kashagan -- October 23, 2014

Rigzone is reporting (some figures rounded):
Kazakhstan expects annual oil output to reach as high as 100 million tonnes after 2020 when the giant Kashagan oilfield resumes pumping compared with less than 82 million this year.
Kazakhstan, already the second-largest oil producer after Russia among the former Soviet states, aims to produce 90 million to 100 million tonnes of oil starting in the third decade of this century
The Kazakh government expects output to total 82 million tonnes this year and next.
Kazakhstan produced 81.7 million tonnes in 2013.
For January to September, output fell to 60 million tonnes from 60.5 million in the same period of 2013.
Production at the Kashagan reservoir, the world's biggest oil find in recent times, started in September last year but was halted just a few weeks later after the discovery of gas leaks in the pipeline network of the $50 billion project. Replacing the pipelines at the oilfield, which lies in the Caspian Sea off western Kazakhstan, will cost another $1.6 billion to $3.6 billion.
Mirzagaliyev confirmed earlier official estimates that Kashagan's production could restart in the second half of 2016.
The conversion factor varies based on the specific gravity of the particular petroleum under discussion, but as a rough approximation there are 7 boe in one metric tonne.

100 million tonnes * 7 = 700 million boe annually / 365 = 2 million bbls/day.

Note: I often make simple arithmetic errors. If this information is important to you, go to the linked source.

The delta between current production of about 80 million tonnes now and 100 million tonnes when Kashagan comes on line is 20 million tonnes, or about 140 million boe, about 400,000 boe/day.

Global Warming
Climate Change
Extreme Weather

The (London) Express is reporting:

John Coleman, who co-founded the Weather Channel, shocked academics by insisting the theory of man-made climate change was no longer scientifically credible

Instead, what 'little evidence' there is for rising global temperatures points to a 'natural phenomenon' within a developing eco-system.

In an open letter attacking the Intergovernmental Panel on Climate Change, he wrote:
  • "The ocean is not rising significantly.
  • "The polar ice is increasing, not melting away. Polar Bears are increasing in number.
  • "Heat waves have actually diminished, not increased. There is not an uptick in the number or strength of storms (in fact storms are diminishing).
  • "I have studied this topic seriously for years. It has become a political and environment agenda item, but the science is not valid."
I don't think this story is particularly new; I've seen variations of this story for some time now, I believe.

Increased Density Drilling -- The Discussion Continues -- October 22, 2014

A reader sent me a nice Bloomberg article on increased density drilling:
Based on tighter spacing being tested now in Texas, 16 wells could be drilled on the same parcel at a cost of $5.5 million each. Even if each well yields less, about 400,000 barrels, that’s still a recovery rate of 6.4 million barrels from the same land at a cost of $88 million. Profits in this scenario at today’s oil price would amount to $424 million, or almost triple.
To counter production declines in individual wells, companies are using a combination of methods, including drilling wells that extend farther underground horizontally and using more sand to prop open cracks during fracking. Data from EOG’s tight well spacing tests in Texas’s Eagle Ford are showing the tactics are helping producers keep per-well recovery the same, or even higher.
Tighter spacing was the primary reason EOG boosted its estimate for how much oil and gas it may be able to get out of the Eagle Ford by 1 billion barrels in the past year. The company’s use of spacing and other techniques has helped top operators such as EOG reduce their costs to $46 a barrel in the formation, according to Wells Fargo & Co. That’s about 32 percent below the average across the area estimated by ITG. 
Did you all see the "break-even" cost being suggested?

This is an excellent article, especially for newbies. I don't agree with some of the assumptions but at least an article like this puts everything on the table for those new to the discussion.

Speaking of Increased Density 

Four more permits today for little Stockyard Creek east of Williston. Zavanna permits. More later.

Flaring Update -- October 22, 2014

This July, North Dakota set goals to reduce flaring in the state significantly by 2020. The state planned to gradually reduce the amount of natural gas that each well site is allowed to burn off each quarter. According to the U.S. Energy Department, North Dakota was on track to meet these goals as of August. 
In August, the state reported flaring 28 percent of its natural gas, getting pretty close to its goal of a 26 percent flare-rate by the fourth quarter of 2014. Oil production itself rose in August as well, making it more difficult to reach its flaring goals.
From the Director's Cut for August data (October 15, 2014):
  • NDIC now breaks down location of captured gas: statewide (72%); statewide Bakken (72.5%); non-FBIR Bakken (74.4%); FBIR Bakken (64.5%)
Toward A Cashless Society

To be brutally frank, I never thought Apple would deliver on ApplePay in my lifetime. I thought there were too many hurdles. Even if Apple did it in my lifetime, I thought it would be another decade. But here it is, seemingly overnight, and folks are now paying with ApplePay on their iPhones. I saw one transaction today.

I'm sure everyone saw the amateur video in which a customer paid with ApplePay at a McDonald's.

A couple of minutes ago a reader said he received an e-mail from Wal-Greens saying they were now accepting ApplePay.

I replied:
I think Apple will change the way things are paid for in this country.
There are some glitches, to be sure (Bank of America / Apple reported a glitch today), but those glitches will be worked out.
The glitch, by the way, "proved" that there is no way for anyone to hack one's credit card number: neither Bank of America or Apple could verify a glitch had occurred; neither could access the credit card number. In the end, they had to take the word of the customer and the "evidence."
Apple may have the only"really" secure way to pay right now. The banks all went along, but the scuttlebutt is they had no choice. Once one credit card signed on with Apple, they all had to.
And that will be the same for retailers. I have a soft spot in my heart for Apple for many, many reasons, but none of them have to do with investing. I have never invested in Apple (I missed that one).
Maybe I should re-phrase that first sentence: Apple has, in one stroke, changed the way we will pay for things in the future, not just in the US, but worldwide. Literally overnight. I don't know when we first heard about ApplePay -- two years ago? Whatever.

This is revolutionary. 

I remember two or three years ago, after every quarter, the headline on some business page: What will Apple do next? I haven't seen that headline in a long time.

By the way, this speaks volumes about "focus." Either Tim Cook or someone else at Apple talked about "focus." Paraphrasing Steve Jobs, Tim Cook, or someone else: focus is when you can remain on task even when confronted with something else that is so much bigger and better. Apple put aside tablets some years ago to focus on phones. Then they got back to tablets. Or maybe it was the other way around, I forget. I think they put aside ApplePay until they got the phones and the tablets right. Then they worked on ApplePay. Sure, they can do all this in parallel, but some things have to be developed first, and ...

Comparing Legacy And Corinthian Wells Targeting The Spearfish In North Dakota: A Random Update -- October 22, 2014

A reader noted this less-than-spectacular well in the Spearfish, coming off the confidential list today. There are two names that make up most of the Spearfish activity in North Dakota right now: Legacy and Corinthian. My understanding is that Legacy bought Corinthian acreage earlier this year, but permits are still being issued for both Legacy and for Corinthian.

A reader noted this less-than-spectacular well that was reported today:
  • 28112, 11, Legacy, Legacy Berge 13-31H, North Souris, a Spearfish well, t6/14; cum --
I was curious: are the IPs of the wells significantly different between Legacy and Corinthian, and are their significant differences in IPs in the various Spearfish fields? The IPs are listed below for wells whose permits were issued in the given year. I did not include wells with permits from 2104; too many of them would not yet be completed.

About all I can tell, is that the "Corinthian" wells have marginally better IPs than the "Legacy" wells; and the North Souris oil field is probably a bit better than Red Rock.

I only looked at a couple of well files; it looks like these wells are being completed with 24 - 26 stages, and 200,000 lbs of proppant, compared to 2 million lbs and more of proppant in Bakken wells.

Maybe other readers have a different perspective. 

In a long note like this, there will be typographical errors. If this information is important to you, go to the source.

"Corinthian" wells
26035, 75, North Souris,
26150, drl, North Souris,
26036, 45, North Souris,
26573, 116, North Souris,
27052, 155, North Souris,
27051, 259, North Souris,
26942, conf, North Souris,
26941, 99, North Souris,
26762, 99, North Souris,
26724, 74, North Souris,
26714, 74, North Souris,
26713, 74, North Souris,
25813, 205, North Souris,
25697, 130, North Souris,
25696, 167, North Souris,
25685, 92, North Souris,
25643, 114, North Souris,
25561, 136, North Souris,
25560, 90, North Souris,
24940, 27, North Souris,
24883, 314, North Souris,   (North Souris average: 123)
26474, 52, Souris,
26492, 26,  Northeast Landa
26181, 11, Northeast Landa,
26349, 167, Northeast Landa,
26343, 34, Northeast Landa,
26336, 10, Red Rock,
26162, conf, Wildcat,

27210, 89, North Souris,
26004, 99, North Souris,
26003, 99, North Souris,
25993, 27, North Souris,
25523, 77, North Souris,
25054, 95, North Souris (North Souris average: 81)
25558, conf, North Souris,
26255, 100, Red Rock,
25517, 138, Red Rock,
27212, 100, Red Rock,
27211, 51, Red Rock,
25816, 34, Red Rock,
25752, 115, Red Rock,
25751, 56, Red Rock,
25750, 54, Red Rock,
25712, 38, Red Rock,
25702, 138, Red Rock,
25273, 75, Red Rock,
25214, 65, Red Rock,
25024, 132, Red Rock,


24680, 114, Northeast Landa, 
23895, 133, North Souris,
23894, 146, North Souris,
23815, 134, North Souris,
23811, 134, North Souris,
23704, 141, North Souris,
23581, 189, North Souris,
23143, 189, North Souris,
23075, 80, North Souris,
23073, 140, North Souris,
22969, 105, North Souris,
22964, 139, North Souris,
22321, 149, North Souris,
22257, 139, North Souris,
22254, 140, North Souris,

24177, 15, wildcat,
23399, 79, North Souris,
24148, 132, Red Rock,
22364, 138, Red Rock,

22123, 128, North Souris,
22121, 94, North Souris,
22064, 110, North Souris

21504, 126, North Souris,
21951, 157, North Souris, 
21821, 180, North Souris,
21820, 83, North Souris,
21549, 88, North Souris,
21482, 30, Red Rock,
21922, 94, Red Rock,
21921, 97, Red Rock,
21887, 182, Red Rock,
21389, 104, Red Rock,
21323, 125, Red Rock,

And So It Begans, The Evening News -- October 22, 2014

Bloomberg is reporting:
OXY said profit from the California oil producer it’s spinning off to shareholders next month fell during the third quarter as crude prices slid and production costs increased.
California Resources Corp. (CRC-W), as the unit will be known when it becomes a stand-alone company, had net income of $188 million during the July-to-September period, compared with $235 million a year earlier, Houston-based Occidental said in a statement today.
From a press release, ONEOK increases it's quarterly cash dividend:
The board of directors of ONEOK, Inc. today increased ONEOK's quarterly cash dividend by 1.5 cents per share, or 3 percent, to 59 cents per share, effective for the third quarter 2014, resulting in an annualized cash dividend of $2.36 per share. The dividend is payable Nov. 14, 2014, to shareholders of record at the close of business Nov. 3, 2014. 

Wells coming off confidential list Thursday:
  • 27965, drl, XTO, Kathy 31X-15H, Tioga, no production data,
  • 27983, drl, Statoil, Paulson 36-1 8TFH, Briar Creek, no production data,
Active rigs in North Dakota:

Active Rigs193182185195151

Fifteen (15) new permits:
  • Operators: Slawson (5), Zavanna (4), Whiting (2), Abraxas (2), Crescent Point, Zargon
  • Fields: Big Bend (Mountrail), Stockyard Creek (Williams), Timber Creek (McKenzie), North Fork (McKenzie), Little Muddy (Williams), Mackobee Coulee (Renville)
  • Comments:
Six (6) producing wells completed:
  • 26267, 1,672, Petro-Hunt, Van Hise Trust 153-95-28D-21-6H, Charlson, t9/14; cum --
  • 26801, 663, Hess, SC-Tom-153-98-1514H-6, t9/14; cum --
  • 27226, 1,051, Hess, BW-R Peterson-149-99-1102H-3, Cherry Creek, t9/14; cum --
  • 27297, 589, Hess, EN-Ortloff-156-94-2635H-4, Big Butte, t9/14; cum --
  • 27592, 780, Slawson, Challenger Federal 5-29-32TFH, Big Bend, t8/14; cum 10K 8/14;
  • 27593, 519, Slawson, Challenger Federal 3-29-32H, Big Bend, t9/14; cum 12K 8/14;

Apple Hits New All-Time High: $728-Pre-Split-Share -- October 22, 2014

A reader occasionally asks me the "climate" in DFW with regard to Ebola; if folks were nervous, etc. I replied that I'm pretty much of a hermit; I am out and about every day but don't have a group of with whom I join for coffee. I'm also in one of the many, many suburbs in the DFW area. I have been to Ft Worth numerous times (mostly to visit the art museums) but do not recall visiting Dallas the first 18 months that we have been here. We've been to Moneygram Soccer Park, north Dallas, apparently, but it sure isn't Dallas.

So, what are folks talking about in the Starbucks I generally visit? the iPhone 6. ApplePay. The new iPads. Not one person mentioned Ebola; even at the height of the Ebola scare, it wasn't much of a topic out here. This particular Starbucks has very few regulars, mostly folks coming in and out. I assume Ebola, politics, etc., are the major topics of conversation at other Starbucks, but out here ... the iPhone. 

Link here to the business story on AAPL shares hitting new all-time highs today:
As of this writing it's at $103.95, leaping past the previous high of $103.74.
There's no specific reason for the shares to be soaring today. If anything, it's a continued reaction to strong earnings on Monday, and a solid overall market for the day. 
The reason investors feeling good about Apple comes down to one thing — the iPhone 6. 
Apple says it is selling all the iPhones it can make. It says supply and demand aren't even on the same planet. Apple is the iPhone company, and iPhones are selling well.
Apple still isn't near it's all time highest market cap value, though. The company has bought back shares, so its market cap still lags its all-time high.
Apparently the writer doesn't read Tim Cook's comments posted elsewhere. The reason Apple is soaring today: Tim Cook said yesterday that Apple isn't coming close to keeping up with demand for the new iPhone and he does not know how long this situation will last.

Oh, one other thing: if Apple does catch up with demand in the next six weeks or so, then ... the holiday season and it starts all over again. 

The other reason: shorts are getting squeezed.

I cannot count the number of articles in the past three months saying AAPL has passed its peak. LOL.

This is not an investment site. Do not make any investment, financial, or relationship decisions based on what you read here or think you may have read here. I am Apple Fanboy #3; I have never owned shares in AAPL, and probably never will.


The EOG Liberty wells have been updated / are tracked here

The Number Of Active Rigs In North Dakota Hanging In There

I'm impressed -- the number of active rigs hangs in there --

Active Rigs192182185195151

A Note For The Granddaughters

The mnemonic for remembering all the species of penguins (the species of penguins as listed by the Boston Aquarium, 2012, from largest to smallest in size):


Each Krazy Girl Carries A Young Rabbit.
My Eyes See Funny Noses.
See My Hat And Gloves. Light Blue.
  • Emperor 
  • King 
  • Gentoo 
  • Chinstrap 
  • Adelie 
  • Yellow-Eyed 
  • Royal 
  • Macaroni 
  • Erect-Crested 
  • Snares Island 
  • Fiordland 
  • Northern Rockhopper 
  • Southern Rockhopper 
  • Magellanic 
  • Humboldt 
  • African 
  • Galapagos 
  • Little Blue
And, yes, both the older granddaughter and I knew this mnemonic for quite some time, though we haven't had occasion to use it in quite some time. 

High Initial Production Numbers -- Page 6

This is Page 6 for "high IP" wells. The first wells will be added October 23, 2014.

Page 7
Page 5
Page 4

From this point forward, I am relaxing the standards for IPs for a number of reasons.

25527, 1,525, Zavanna, Sylvester 32-29 3TFH, Springbrook, t12/14; cum --
26158, 3,771, Statoil, Johnston 7-6 3TFH, Banks, t11/14; cum --
26829, 2,085, XTO, Rolfson 14X-34B, Siverston, t111/4; cum --
26831, 2,379, XTO, Rolfson 14X-34A, Siverston, t12/14; cum 11 --
27698, 1,403, BR, Haymaker 31-15TFH-B, Elidah, t12/14; cum --
28156, 2,349, MRO, Conklin USA 31-17H, Van Hook, t11/14; cum --
28157, 1,665, MRO, Snow Bird USA 31-17TFH, Van Hook, t12/14; cum --
28356, 2,092, MRO, Boldt 14-22TFH, Bailey, t11/14; cum --
28357, 2,439, MRO, Davis 24-22H, Bailey, t11/14; cum --
26155, 4,076, Johnston 7-6 6H, Banks, t11/14; cum -- 26156, 3,657, Johnston 7-6 5TFH, Banks, t11/14; cum --

27144, 2,256, QEP, Kirkland 2-23-14TH, Grail, t9/14; cum 57K 11/14;
27145, 2,213, QEP, Kirkland 4-23-14BH, Grail, t9/14; cum 62K 11/14;
27146, 2,172, QEP, Kirkland 3-23-14BH, Grail, t9/14; cum 63K 11/14;
27705, 2,163, QEP, Kirkland 22-15-23-14LL, Grail, t9/14; cum 72K 11/14;
27791, 2,096, QEP, TAT 1-33-28BH, Grail, t8/14; cum 70K 11/14;
27792, 1,664, QEP, TAT 2-33-28-BH, Grail, t8/14 cum 64K 11/14;

27707, 1,368, BR, Haymaker 44-22TFH-B, Elidah, an "extended reach single lateral," Three Forks B1, it looks like "B" refers to a standard site plan (versus "A" and "ULW"); TD, 20,811 feet; t12/14; cum --
27712, 1,896, Statoil, Syverson 1-12 7TFH, Stony Creek, Three Forks B1, gas ranged from 10 to 2300 units; t12/14; cum --
27713, 2,980, Statoil, Syverson 1-12 6H, Stony Creek, middle Bakken; gas ranged from 10 to 3000 units; t12/14; cum --
27714, 2,439, Statoil, Syverson 1-12 5TFH, Stony Creek, Three Forks B1,  gas ranged from 10 to 1500 units; t12/14; cum --
26830, 2,443, XTO, Rolfson 14X-34E, Siverston, a Three Forks B1 well, background gas fluctuated between 500 - 2,000 units; highest gas show was 3,112 units; ideal target zone was 19 feet thick, an offset well suggested that the formaitn woudl stay nearly flat until a depth of 17,500 feet; TD = almost 21,000 feet; the lateral was 100% within the target interval; t12/14; cum -- 

26023, 2,213, Whiting, Mork Farm 24-8-2H, Pleasant Hill, t6/14; cum 62K 10/14;
26024, 2,532, Whiting, Mork Farm 24-8H, Pleasant Hill, t6/14; cum 46K 10/14;

26436, 1,944, BR, CCU Powell 41-29MBH, Corral Creek, t11/14; cum -- 
26843, 1,986, XTO, Roxy 21X-6E, West Capa, t11/14; cum --
26844, 1,999, XTO, Roxy 21X-6A, West Capa, t11/14; cum --
27005, 2,126, Statoil, Brown 30-19 5TFH, Alger, t11/14; cum -- 

27004, 2,358, Statoil, Brown 30-19 4TFH, Alger, t11/14; cum --
27462, 1,370, Hess, LK-Bice-LW-147-97-1201H-1, Big Gulch, 4 sections, t10/14; cum --
27472, 1,370, Hess, HA-Thompson-LW 152-95-2017H-1, Hawkeye, 4 sections, t11/14; cum 4K 10/14;
27801, 1,081, Hess, HA-Mogen-152-95-0805H-9, Hawkeye, t11/14; cum 12K 10/14;
27815, 1,257, Hess, HA-Mogen-LE-152-95-0805H-1, Hawkeye, 4 sections, t11/14; cum 5K 10/14;
27930, 1,787, Whiting, P Wood 154-98[15-23-15-3H, Truax, 4 sections, t11/14; cum --
27931, 1,802, Whiting, P Wood 154-98-15-23-15-2HA, Truax, 4 sections, t11/14; cum --
27932, 2,201, Whiting, P Wood 154-98-15-23-15-2H, Truax, 4 sections, t11/14; cum --
28884, 2,515, Whiting, P Wood 154-98-15-23-15-3HA, Truax, 4 sections, t11/14; cum --

27699, 2,232, BR, Haymaker 31-15MBH-A, Elidah, t10/14; cum 14K 10/14;

27745, 2,416, XTO, Brandvik Federal 44X-13C, Corral Creek, t11/14; cum --

26299, 2,273, Oasis, Oasis Meiers 5692 44-18 2B, Alger, t8/14; cum 43K 10/14;

28102, 2,917, WPX, Lucy Evans 29-32HB, Antelope, a Sanish well, t11/14; cum 2K 10/14;

27283, 4,523, Whiting, Skaar Federal 41-3TFHU, Twin Valley, 30 stages; 2.5 million lbs, Three Forks 2nd cycle, t6/14; cum 144K 10/14;
27284, 4,934, Whiting, Skaar Federal 41-3TFH, Three Forks NOS (error in geologist's report), Twin Valley, gas averaged 1,000 units with a max of 4,849 units, t6/14; cum 176K 10/14;
28330, 1,716, CLR, Salers Federal 3-27H, Antelope, a Sanish well; t10/14; cum 41K 10/14;
26608, 1,601, Enerplus, Courage 150-94-06A-18H, Spotted Horn, t6/14; cum 146K 10/14;

28384, 1,494, KOG, P Wood 154-98-1-27-35-13H3, Truax, 4 sections, t10/14; cum 5K 10/14;
28385, 2,241, KOG, P Wood 154-98-1-27-15-1H3, Truax, t10/14; cum 10K 10/14;

24754, 3,004, Statoil, Melissa 31-30 2H, East Fork, t10/14; cum 9K 10/14;
28386, 1,930, KOG, P Wood 154-98-1-27-34-16H, Truax, 4 sections, t10/14; cum 8K 10/14;
28387, 2,015, KOG, P Wood 154-98-1-27-16-1H, Truax, 4 sections ,t10/14; cum 7K 10/14;

23301, 3,042, Statoil, Timber Creek 13-24 2H, Alexander, t10/14; cum 7K 10/14;
25530, 1,383, Zavanna, Sylvester 32-29 2H, Springbrook, t11/14; cum --
27003, 3,182, Statoil, Brown 30-19 3H, Alger, t11/14; cum --
27307, 2,244, BR, Copper Draw 21-27MBH, Johnson Corner, 4 sections, t10/14; cum 5K 10/14;
27309, 2,004, BR, Copper Draw 21-27TFH, Johnson Corner, 4 sections, t10/14; cum 9K 10/14;
27696, 2,204, BR, Haymaker 41-15TFH-A, Elidah, t11/14; cum --
27860, 2,351, KOG, P Wood 154-98-16-23-14-1H3, Truax, t10/14; cum 4K 10/14;
27861, 1,946, KOG, P Wood 154-98-16-23-15-1H, 4 sections, Truax, t11/14; cum --
27862, 2,205, KOG, P Wood 154-98-16-23-14-1H3A, Truax, t10/14; cum --
27863, 2,080, KOG, P Wood 154-98-16-23-14-2H3, Traux, t11/14; cum --
26847, 1,855, QEP, Otis 3-28-33BH, Grail, t7/14; cum 109K 10/14;
26848, 1,530, QEP, Otis 3-28-33TFH, Grail, t7/14; cum 95K 10/14;
27045, 2,135, HRC, Fort Berthold 148-94-20C-21-6H, Eagle Nest, t5/14; cum 90K 10/14;
27188, 449, EOG, Austin 81-3130H, Parshall, t6/14; cum 99K 10/14;
27189, 416, EOG, Austin 82-31H, Parshall, t6/14; cum 89K 10/14;
27647, 1,581, QEP, Moberg 4-17-16BH, Grail, t7/14; cum 91K 10/14;
27648, 2,543, QEP, Moberg 3-17-16BH, Grail, t7/14; cum 64K 10/14;
27649, 2,262, QEP, Moberg 2-17-16TH, Grail, t7/14; cum 104K 10/14;
27702, 1,562, QEP, Otis 28-29-32-33LL, Grail, t7/14; cum 99K 10/14;

27287, 2,068, Whiting, Knife River State Federal 13-32H, Sanish, t10/14; cum --
27744, 2,026, XTO, Brandvik Federal 44X-13H, Corral Creek, t11/14; cum --
27575, 2,474, Statoil, Barstad 23-14 8H, Alger, t10/14; cum --

19954, 1,800, BR, CCU Olympian 21-2TFH, Corral Creek, t9/14; cum 14K 9/14;
27687, 2,855, Whiting, Roen 34-10-2H, Elk,t5/14; cum 50K 9/14;
27740, 2,057, XTO, Brandvik 24X-13E2, Corral Creek, t10/14; cum --
27889, 1,992, BR, CCU Olympian 11-2MBH, Corral Creek, t9/14; cum 10K 9/14;

26650, 1,075, XTO, Jan 14X-34F, Siverston, Three Forks first bench, a show of 5,927 gas units at 21,475', t10/14; cum --
26651, 2,932, XTO, Jan 14X-34E, Siverston, Three Forks first bench, a show of 3,191 gas units at 21,382', t10/14; cum --
26652, 2,086, XTO, Jan 14X-34B, Siverston, middle Bakken, a show of 5,559 gas units at 15,780',  t10/14; cum --
26653, 2,026, XTO, Jan 14X-34A, Siverston, middle Bakken, a show of 2,289 gas units at 15,369', t10/14; cum -- 
27981, 1,961, Statoil, Paulson 36-1 2H, Briar Creek, t10/14; cum --

27553, 3,645, XTO, Walton Federal 41X-19H, Bear Den, t9/14; cum 27K 9/14;
24755, 2,586, Statoil, Melissa 31-30 3TFH, East Fork, t10/14; cum --
28424, 2,302, Whiting, Good Shepherd 41-15-2H, Rawson, middle Bakken; 9-foot target window; 1,800 units average gas at one point; no frack data yet; two miles west of Rawson, ND; t10/14; cum -- ;

24759, 2,081, Statoil, Melissa 31-30 7TFH, East Fork, t10/14; cum --

24909, 2,090, Oasis, Kaleb 5501 12-1B, Cow Creek, t7/14; cum 18K 8/14;
27220, 1,933, Oasis, Mallard 5692 31-22 6B, Alger, t8/14; cum 30K 8/14;
27246, 2,237, Oasis, Tufto 5501 11-13 2B, Cow Creek, t5/14; cum 37K 8/14;

26424, 2,189, KOG, P Manning 154-99-2-2-11-14H, Stockyard Creek, t9/14; cum --
26422, 2,144, KOG, P Manning 154-99-2-2-11-15, Stockyard Creek, t9/14; cum --

28149, 2,566, XTO, Dave 11X-16A, Siverston, 38 stages; 3.4 million lbs sand; middle Bakken, 1280 acres; t9/14; cum --  

21375, 2,516, Statoil, Barstad 23-14 6TFH, Alger, t9/14; cum --
26327, 1,942, XTO, Boomer Federal 34X-35H, Lost Bridge, t9/14; cum --
26328, 1,916, XTO, boomer Federal 34X-35D, Lost Bridge, 69/14; cum --
27356, 1,490, XTO, Franchuk 24X-19A, Murphy Creek, t8/14; cum 5K 8/14;
27357, 1,431, XTO, Franchuk 24-19E, Murphy Creek, t8/14; cum 4K 8/14;
27358, 1,821, XTO, Franchuk 24X-19B, Murphy Creek, t8/14; cum 6K 8/14;
27359, 1,137, XTO, Franchuk 24X-19F, Murphy Creek, t8/14; cum 1K 8/14;
27552, 2,422, XTO, Walton Federal 41X-19G, Bear Den, t9/14; cum --

EOG Fracking Data -- October 22, 2014

The other day I mentioned in passing something about the amount of proppant various operators are using. I was curious about EOG. The fracking data for the last five wells that EOG has reported in the Bakken:

  • 26779, no frack data, 
  • 26602, 1,135, EOG, Liberty 28-23H, Parshall, 22 stages, 6.5 million lbs sand; Bakken, 320 acres,  t3/14; cum 71K 8/14;
  • 26601, 1,045, EOG, Liberty 27-23H, Parshall, 24 stages, 7.1 million lbs sand; Bakken, 320 acres, t3/14; cum 95K 8/14;
  • 26325, 343, EOG, Austin 42-1708H, Parshall, 39 stages, 12 million lbs,sand; Bakken, 1280 acres, t2/14; cum 93K 8/14;
  • 24571, 823, EOG, Hardscrabble 23-21H, Lake Trenton, 21 stages; 6.4 million lbs sand; Bakken, one section, t2/14; cum 52K 8/14;
The EOG Liberty wells are updated / tracked here.

Wednesday -- October 22, 2014

Earnings on tap today:
  • ATT, expectations, 64 cents, actual, barely misses; 63 cents after adjustments;
  • Boeing, expectations, $1.28; actual, $1.86 (up from $1.51 a year earlier: jumps 18%, raises earnings view;
This is not an investment site. Do not make any investment, financial, or relationship decisions based on what you read here or think you may have read here.


A reader notes that Bismarck area is really expanding -- in all directions, probably due to the Bakken, also:
Menards distribution center is being built 15 miles to the east by the tracks. The new side track is interesting. Appears they are working 24/7 to complete the all the dirt work and concrete. The size of this project is very large.
From The Bismarck Tribune back on May 20, 2013:
After two split votes, the Burleigh County Commission decided Monday to give Midwest Manufacturing, an arm of Menards, a 50 percent property tax break for three years on a $7.5 million manufacturing plant it plans to build in McKenzie Township.
It will be a block plant, truss plant, wood-treating plant and distribution facility along state Highway 10.
The corporation would still pay $25,000 a year to the Sterling School District and $5,000 to McKenzie Township every year of the tax break.
The county is awaiting word on whether Menards will accept the tax break terms. Menards had asked for a full tax break for two years and a 50 percent tax break for three years.
Active rigs in North Dakota:

Active Rigs193182185195151

RBN Energy: how coincidental. Just after the long post on LNG last night, RBN Energy has a post on Japan's long, expensive marriage to LNG:
The increased use of fossil fuels for power generation post-Fukushima resulted in a huge uptick in LNG imports (more than 95% of Japan’s gas comes from LNG).
According to the Japanese government, in 2010 the LNG equivalent of about 9 Bcf/d of natural gas was imported (with electric utilities accounting for more than 5 Bcf/d of the total). By 2013, LNG imports had soared to the equivalent of 11.5 Bcf/d (with utilities accounting for an even greater share—7.4 Bcf/d—in part because of new gas-fired plants coming online), and in the first eight months of 2014, LNG imports averaged 11.8 Bcf/d.
Japan has a stellar LNG import/regasification infrastructure (30 terminals with a total gas send-out capacity of 23 Bcf/d) and can handle the flood of LNG—that wasn’t and isn’t the issue. The problems for Japan are that 1) the fossil-fired units it now depends on for almost all its power (wind, solar and other renewables provide only a sliver) can barely meet demand on days or nights with high power demand, and 2) oil and gas (particularly when it’s supplied as LNG, as it needs to be in Japan) are way more expensive than nuclear fuel (uranium).
Japan has been smart over time in diversifying its LNG sourcing—a US Energy Information Administration pie chart (at the link) shows just how diversified its supply is, and now it’s planning on buying LNG from the US and Canada too.
As we noted earlier, the problem (or at least one of the problems) for Japan is that LNG has become very pricey, not only because of all the spot-market, premium-price buying Japan utilities have had to do the past three years, but because prices for the vast majority of the LNG the utilities buy under long-term contract continue to be based on a historical oil priced index formula and not on something more favorable—say, Henry Hub gas prices.

A reader alerted me to the following. I have watched snippets with the volume turned off just to see some video of Williston and the surrounding area.

Lisa Ling (CNN) Visits The Bakken
Season 1, Episode 4 
A nice review of the movie from a reader: 
I watched this when it came on this past Sunday. I thought it was a fair and well produced show. Some people of course were upset because they said it wasn't about the real Williston and made Williston look bad. I disagree. The first half was about women who made their way to Williston to work in the oil fields and their successes. The last part was about human trafficking in Williston and the people involved. The positive part about human trafficking were the locals and oil companies who are saying we are going to not tolerate this anymore. I am guessing there will be a follow up as LIsa Ling hinted on her Facebook that they could have done a 6-series show on WIlliston because of the complexity and changes taking place daily in Williston and she is anxious to return. Maybe they will show more positive stories on how the characters in this story are doing now...a year later, since this appears to have been documented last winter.
See other comments below.