Isn't This Interesting -- Active Rigs Increase Over 3% -- March 31, 2015; Twelve (12) New Permits; Eighteen (18) Producing Wells Completed; OXY USA With Six (6) OXY USA Wells; BR With Two Big Wells

Active rigs:

	3/31/2015	03/31/2014	03/31/2013	03/31/2012	03/31/2011
Active Rigs	99	194	188	206	168

Wells coming off the confidential list on April Fool's Day:

• 21386, 1,905, White Butte Oil Operations, Panzer 2-20MLH, Antelope, TF second bench, 3-well pad, two dual laterals, consisting of two 4,504 - 5,234' long laterals drilled to the south; the first later accessing the TF 2 was completed November 11, 2014; the second lateral penetrated the Middle Bakken was completed November 27, 2014; the second curve was landed at 10,972 feet into the Middle Bakken, after drilling the Three Forks lateral and then coming back and milling a window in the casing of the vertical hole; the initial curve was landed into the deepest of the two targeted intervals; very little background gas (20 - 50 units) were noted in the first half of the first lateral; lack of permeability and porosity suggested that a strong response to hydraulic fracturing will be needed to unlock the TF 2. Despite the low levels of drilling gas, other wells from the area drawing from the Sanish pool have performed admirably. The ideal target zone (Middle Bakken) was defined as a 20-foot interval; background gas much higher at 1,000 to 1,500 units; even averaging 2,500 units during connections. Summary: the Panzer 2-20MLH was the first of 3 wellheads with 6 total lateral objectives to be compled on the panzer pad, with the cmoplete dual-lateral well reaching completion onf November 27, 2014. The TF2 appears to be less promising than the middle Bakken in this area. The spacing unit is 320 acres; this was originally a Slawson permit; this permit has been renewed at least three times; original Slawson permit was dated 9/1/11. See graphic and spacing below.
• 26769, 526, EOG, Mandaree 134-05H, Squaw Creek, one section, t10/14; cum 49K 1/15;
• 26779, 1,014, EOG, Mandaree 17-05H, Squaw Creek, one section, t10/14; cum 69K 1/15;
• 28666, 2,341, QEP, Johnson 4-9-4BH, Grail, t2/15; cum 42K 2/15; 28 days in February;
• 29231, drl, Statoil, Heen 26-35-4TFH, Todd, no production data,

Two (2) Hess Stanley permits canceled.

Eighteen (18) producing wells completed:

• 28264, 5, Denbury, CHSU 24-23NH 15, Cedar Hills, a South Red River B well, t8/14; cum 6K 1/15;
• 28905, 1,441, Oasis, Harbour 5601 42-33 2B, Tyrone, t2/15; cum --
• 28352, 2,445, BR, CCU Pullman 1-8-7TFH, Corral Creek, t2/15; cum --
• 29218, 1,643, BR, CCU North Coast 4-8-23TFH, Corral Creek, t3/15; cum --
• 28551, 1,057, XTO, HM Hove 34X-33C, West Capa, t3/15; cum --
• 28650, 1,701, XTO, HM HOve 34X-33H, West Capa, 4 sections, t2/15; cum --
• 29061, 964, Whiting, Barb W. 11-6TFH, Sanish, 1 section, t2/15; cum --
• 25849, 1,223, Whiting, Elsie Bartleson Federal 14-29TFX, Sanish, ICO, t2/15; cum --
• 28581, 226, OXY USA, State 4-21-16H-143-96, Fayette, t3/15 cum --
• 28759, 854, OXY USA, Raphael Stroh 3-13-24H-143-97, Fayette, t2/15; cum 14K 1/15;
• 28758, 963, OXY USA, Raphael Stroh 4-13-24H-143-97, Fayette, t2/15; cum 15K 1/15;
• 28757, 633, OXY USA, Kenneth Stroh 4-12-1H-143-97, Cabernet, t2/15; cum 13K 1/15;
• 28582, 438, OXY USA, Schneider 2-28-33H-143-96, Fayette, t2/15; cum 3K 1/15;
• 28583, 661, OXY USA, Schneider 3-28-33H-143-96, Fayette, t2/15; cum 4K 1/15;
• 29124, 633, CLR, Kennedy 3-31H, Dimmick Lake, 4 sections, t3/15; cum --
• 29123, 605, CLR, Kennedy 4-31H1, Dimmick Lake, 4 sections, t3/15; cum --
• 29122, 639, CLR, Miles 3-6H, Dimmick Lake, 4 sections, t3/15; cum --
• 29121, 567, CLR, MIles 4-6H1, Dimmick Lake, 4 sections, t3/15; cum --

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Twelve (12) new permits --
Operators: XTO (6), BR (3), Hess (3)
Fields: McGregor, Elidah, Dimmick Lake, Robinson Lake
Comments:

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26769, see above, EOG, Mandaree 134-05H, Squaw Creek:

Date	Oil Runs	MCF Sold
1-2015	8704	14133
12-2014	8642	12568
11-2014	9659	11782
10-2014	21900	12168

26779, see above, EOG, Mandaree 17-05H, Squaw Creek:

Date	Oil Runs	MCF Sold
1-2015	12514	19586
12-2014	14004	19479
11-2014	15085	15483
10-2014	27030	23885

28666, see above, QEP, Johnson 4-9-4BH, Grail:

Date	Oil Runs	MCF Sold
2-2015	41383	41164

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Graphic and Spacing for the Panzer Well-Pad