Five (5) New Permits; CLR Reports A Nice Well; 2/4 DUCs -- September 28, 2015

From Penn Energy today:

COURTENAY, N.D. (AP) — Minneapolis-based Xcel Energy is starting construction on a 200-megawatt wind farm in southeastern North Dakota.

KQDJ radio reports that a ground-breaking ceremony was scheduled Friday. The project should be completed next year.

Details here.

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Back To The Bakken

In addition to the wells reported earlier coming off the confidential list this weekend and today, add eight (8) Corinthian Exploration (USA) Corp permits, these were eight (8) Brandjord permits for wells targeting the Spearfish/Madison formation in Botteneau County were canceled. In addition, nine (9) Slawson permits were also canceled; these nine permits were all in Mountrail County and include a Silencer permit; two Jugard permits, a River Rat permit, a Rebel permit, and four Snakeeyes permits.

Four (4) producing wells were completed:

• 25184 (scroll down for more information), 2,317, Slawson, River Rat Federal 7-23-14TFH, Big Bend, t9/15; cum --
• 25185 (scroll down for more information), 1,169, Slawson, River Rat Federal 4-23-14TFH, Big Bend, t9/15; cum --
• 28371 (scroll down for more information), 941, Hess, AN-Brenna-153-94-3130H-6, Sanish pool, Antelope, 9/15; cum --
• 30356, 819, Hess, BL-Kerbaugh-156-96-3427H-5, Beaver Lodge, t9/15; cum --

Active rigs in the Bakken:

	9/28/2015	09/28/2014	09/28/2013	09/28/2012	09/28/2011
Active Rigs	70	190	184	190	195

Wells coming off the confidential list Tuesday:

• 29192, 1,051, CLR, Rennerfeldt 7-30H, Brooklyn, 29 stages, 3.3 million lbs, t51/5; cum 56K 7/15;
• 29363, 563, Hess, CA-Ferguson Smith-155-95-3031H-2, Capa, t8/15; cum --
• 30701, SI/NC, Statoil, Irgens 27-34 8H, East Fork, no production data,
• 30855, SI/NC, EOG, Shell 29-2820H, Parshall, no production data,

Five (5) new permits --

• Operators: Whiting (3), EOG (2)
• Field: Glass Bluff (McKenzie), Ross (Mountrail)
• Comments:

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29192, see above, CLR, Rennerfeldt 7-30H, Brooklyn:

Date	Oil Runs	MCF Sold
7-2015	16579	24648
6-2015	17175	24303
5-2015	19517	30770
3-2015	1909	0

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25184: this well is one of several lateral re-entry projects to previously drilled vertical and curve sections on the same pad. In July, 2013, the vertical hole was drilled to a depth of 10,008' MD, and the curve was landed within the Three Forks Formation at a depth of 10,827' MD. Intermediate casing was set at 10,796' MD before the well would lay dormant. Unit #123 re-entered the well on May 18, 2015....

So, even before the marked slump in oil prices (beginning in October, 2014), operators were drilling DUCs.

The target zone was 12 feet, the top of which was 16 feet below the Pronghorn Member. Much attention was given to keeping the wellbore in the seam. The wellbore remained within the ideal target for 81% of its lateral exposure.

Background gas on occasion over 2,000 units. Reached 3,000 units at times with connections over 3,500 units. Flares: 35' to 45' -- these are some of the highest flares I've seen recorded.

25185: another Three Forks well. Background gas ranged around 2,160 units. Target zone, 12 feet thick. "At 17,424' MD, the decision was made to trip out of the borehole and change-out the failing directional mud motor and inspect the drill bit. While tripping back into the wellbore and returning back into the Pronghorn shale, reaming forward was necessary to advance. The next decision was made to abandon this trip-into the hold, for fear of getting stuck somewhere, in the 700-feet  of open and exposed Pronghorn shale. A stratum, oil field wide, that is notorious for causing very expensive and time consuming calamities."

"Slawson's geologists are targeting the Upper Three Forks Formation's highest porosity (5 to 6 percent) stratum. A stratum that is always referred to as, the target zone. the target zone's stratigraphy is identified by its following characteristics: lithology, penetration rate (ROP), gamma ray API counts per second, the visual liquid lighter fluid / fluorescence cuts, and the total gas units and accompanying chromate C1 through C6 ppm values.

"The lithology of the River Rat Federal 4-23-14TFH's 11-foot thick, stratigraphic target zone is described from the top, down. At the top, the target zone is a dolostone, interbedded with very thin stringers or beds of shaley argillaceous limy mudstone and silty dolic limestone. The target zone's lithology is further identified by the API gamma ray counts: dolostone API 30 - 45 counts, dolic-silty-limestone API 40 - 70 counts, shaley-lmy-mudstone API 80 - 110 counts."

At the end, the borehole's formation total gas ranged from 2500 to 5000 units.

28371: this pad calls for six horizontal wellbores to be drilled, with 33' spacing between wellheads. This well will target the 1st bench of the Three Forks. Reminder: C1 - C4 (methane, ethane, propane, butane, and isobutane [iso-butane: iC4 and normal butane: nC4]) components were recorded in ppm.

Upper Bakken Shale is easily recognized by the increase in drilling rate, high gamma values, and a decrease of weight on bit.

The Middle Bakken had a marked decrease in gamma values and drilling rate from the upper shale. The middle Bakken: primarily a lime packstone; further into the middle Bakken, a white silty sandstone.

The Lower Bakken Shale was identified by a large increase in gamma values and rate of penetration, the shale was described as black, soft to firm. Similar to the upper shale, the lower shale contains earthy porosity and gas shows approaching 415 units.

The Three Forks was distinguished by reduced gamma values and drilling rate from the lower shale. The Three Forks showed a complex interbedding of shale and dolomite interpreted as near-shore marine deposits.

The report stops here; it was a DUC. The well would await intermediate casing and would be re-entered in order to drill the lateral.