Establishment Of Non-Governmental Strategic Petroleum Reserves -- October 27, 2015; 4/4 Bakken Wells To DUC Status; Statoil Reports High-IP Well

With the new, relaxed rules recently announced by the NDIC, we will start to see changes in the Bakken and in the daily activity report. Today's report included a list of seven (7) EOG wells in the Parshall oil field that have been "temporarily abandoned."I only looked at one of the file reports and it said that the well would be temporarily abandoned and would be brought back on line when oil prices improve. I assume that is true for all of them. [This is not something new; EOG has done this before. To the best of my knowledge, only EOG has done this -- or it's the only one that has really stood out.]

So, we now have at least three categories of wells that can be brought back on-line fairly quickly if need be:

• wells on the fracklog; DUCs; wells that have been drilled to total depth but not fracked;
• wells that are on-line but are choked way back to minimize production and flaring;
• wells that have been completed and are temporarily abandoned simply because of low prices; they will be inspected annually to insure they remain in good operating order

I've mentioned this before. I assume similar things are happening in the Permian and the Eagle Ford. If so, it is very clear that many (most?) of these wells could be brought to full production within days, if not hours. I think we are seeing a new phenomenon: the birth of a national non-governmental strategic petroleum reserve (NGSPR). 

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	10/27/2015	10/27/2014	10/27/2013	10/27/2012	10/27/2011
Active Rigs	68	195	182	186	200

Wells coming off confidential list Wednesday:

• 30434, SI/NC, SM Energy, Anne 13B-19HN, West Ambrose, no production data,
• 30652, SI/NC, XTO, Smouse 31X-28C, West Capa, no production data,
• 30684, SI/NC, MRO, Charlie 24-10H, Reunion Bay, no production data,
• 31034, SI/NC, Statoil, Vachal 3-34 6H, Alger, no production data,

Three (3) producing wells completed:

• 29230, 3,071, Statoil, Heen 26-35 7H, Todd, t9/15; cum --
• 29623, 293, SM Energy, Dohmstriech 15-20HS, Musta, t10/15; cum --
• 29624, 186, SM Energy, Dohmstriech 15B-20HN, Musta, t10/15; cum --

Four (4) new permits --

• Operators: XTO (3), EOG
• Fields: Tobacco Garden (McKenzie), Parshall (Mountrail)
• Comments: