Saturday, February 28, 2015

Basin Shale ND, LLC -- New Bakken Operator? -- February 28, 2015

Updates

October 30, 2015: Bakken Shale ND is looking to place 8 wells in a 2560-acre spacing unit. When checking NDIC Well Search database I do not find Basin Shale ND, LLC, listed. 

Original Post
 
Whenever I post notes like these, I'm always concerned that I'm misreading something or posting something that is inaccurate. This is my "take" on what I see. It may be factually incorrect; there may be typographical errors. If this is important to you, go to the source, perhaps starting with the NDIC and then talking with a landman.

The full name of the company below is a very "generic" Basin Shale ND, LLC (we've talked about LLC's in the Bakken before):

From the March 25 - 26, 2015, agenda for the NDIC hearing dockets, the following cases:
  • 23846, Basin Shale, pooling, 13/24-145-100, in an unnamed Bakken pool, McKenzie
  • 23847, Basin Shale, pooling, 14/23-145-100, in an unnamed Bakken pool, McKenzie
  • 23848, Basin Shale, pooling, 15/22-145-100, in an unnamed Bakken pool, McKenzie
  • 23849, Basin Shale, pooling, 16/21-145-100, in an unnamed Bakken pool, McKenzie
  • 23850, Basin Shale, pooling, 25/36-145-100, in an unnamed Bakken pool, McKenzie
  • 23851, Basin Shale, pooling, 26/27-145-100, in an unnamed Bakken pool, McKenzie
  • 23852, Basin Shale, pooling, 28/33-145-100, in an unnamed Bakken pool, McKenzie
  • 23853, Basin Shale, pooling, 29/32-145-100, in an unnamed Bakken pool, McKenzie
  • 23854, Basin Shale, pooling, 30/31-145-100, in an unnamed Bakken pool, McKenzie
  • 23855, Basin Shale, pooling, 34/35-145-100, in an unnamed Bakken pool, McKenzie
When checking NDIC Well Search database I do not find Basin Shale ND, LLC, listed. 

The 20 sections are in the far southeast corner of McKenzie County:



Of interest is the well to the immediate west of this 20-section unnamed field:
  • 16185, 136, XTO, Rhoades Federal 4-20H, t11/06; cum 43K 12/14
This is an unusual well, to say the least. Dual laterals, both short laterals. Minimal fracking; less than 400,000 lbs of white sand (I do not know if that was total for both laterals, or just one lateral; I believe it was the total). It took a while longer for the first lateral to begin producing; lateral #2 began producing first; both legs completed sometime in 2007; extremely high pressure; background gases often at 5,000 units; as high as 20,000 units during some aspects of the operation; production never amounted to much, considering this was two laterals (1280-acre spacing); snapshot of early production (remember, completion sometime in 2007); the well is still active, producing about 500 bbls in a full month of production; no flaring:

BAKKEN1-2008317079409767100
BAKKEN12-20073130904617100
BAKKEN11-2007303754976086900
BAKKEN10-20073158368311417100
BAKKEN9-20073072773212186900
BAKKEN8-2007314582256827100
BAKKEN7-20073146066310307100
BAKKEN6-20073068375913716900
BAKKEN5-2007314322246687100
BAKKEN4-2007304014929606900
BAKKEN3-20072931922010247970726
BAKKEN2-20072829822210182530189
BAKKEN1-20073172772519868690798
BAKKEN12-200627791112820407660695
BAKKEN11-20062354401796000




Comment from Don: we may start seeing many NEW small players. Yesterday on CNBC they were talking for a few minutes about BlackRock and other hedge funds getting together pools of money to invest NOW in oil , oil wells, and E+P companies.

From Reuters/CNBC, February 19, 2015:
Still, oil prices are down 50 percent from last June, leaving many energy company stocks looking cheap. A Reuters review of regulatory filings, as well as interviews with more than two dozen company executives, investment bankers, lawyers and investors, reveal that many hedge funds are seizing the opportunity to buy shares on the cheap
"Activists are secretly buying up stakes now because they believe the markets have hit rock bottom," said Kai Haakon Liekefett, a partner at Vinson & Elkins LLP in Houston who heads the law firm's shareholder activism response team. He said hedge fund activity in the oil patch "may get hot" as early as this fall or winter.

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