Monday, May 18, 2015

A Reader Asks Why Newfield Appears To Have Taken Three Wells Off-Line -- May 18, 2015

Over at the Discussion Group a reader asks a question about Newfield's three (3) wells, #28765 - 28767: the wells were completed in initial runs in December and Janaury, but then they appear to have been taken out of production in February. Does anyone know why?

There may be specific reasons peculiar to these three wells why Newfield may have taken them out of production, but the three likely reasons:
  • hold back production until prices recover
  • required to choke back due to NDIC flaring rules
  • required to bring in equipment to "condition" the oil before it can be shipped by rail
My money would be reason #1 -- holding back production until prices recover. It's possible there are operational reasons, so we'll see.

Production profiles:

28765, 2,190, Newfield, Sand Creek Federal 153-96-21-28-3H, t1/15; cum 29K 3/15:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN3-20153012002300
BAKKEN2-2015283226359859265531606299
BAKKEN1-2015302565325010718534991034991

28766, 1,562, Newfield, Sand Creek Federal 153-96-21-28-10h, t1/15; cum 25K 3/15:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN3-20153012005800
BAKKEN2-20152820642504112548111464571
BAKKEN1-2015312308222438960529329029329

28767, 970, Newfield, Sand Creek Federal 153-96-21-28-2H, t1/15; cum 29K 3/15:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN3-20153012001400
BAKKEN2-201528283932845825293445156
BAKKEN1-2015312388423520586933345033345
BAKKEN12-20141248021010000

 Note that production for all three wells was identical in the month of March, 2015: 12 barrels of oil from each well. This is a great example of how operators can control very precisely how much oil they will produce from each well.

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