Sunday, March 8, 2015

What A Treat! Vern Whitten Photographs -- March, 2015

Link here.

I am absolutely blown away by all the building in Dickinson. It is quite amazing.

The North Dakota landscape never ceases to amaze me. Despite all the activity since 2007, there is still a lot of open space. And for newbies, the Bakken activity is only in a few counties in the western 1/6th of the state.

Mr Whitten also provides a neat little quiz; I think the roughnecks will "ace" it but will have lots of fun taking the quiz.

For those interested in ordering photographs or contacting the photographer:
Vern Whitten Photography
(701) 261-7658
As an aside, Mr Whitten also sent a batch of aerial photographs of Santa Fe, New Mexico, after their recent trip there. What a great country! Link here

Ice Age Now -- Dallas / Ft Worth, Texas

Tomorrow the high is predicted to be 50 degrees. The historical mean for March 9th is 65 degrees. We will be 15 degrees below the "norm." Quite incredible. 

Wells Coming Off Confidential List Over The Weekend, Monday; Look At The Phenomenal WPX Victor Elk Well In Reunion Bay -- March 8, 2015

Monday, March 9, 2015
  • 27597, drl, Mountain Divide, Aaberg 8-5N-1H, Wildcat, no production data, 17-162-100,
  • 28467, drl, Hess, EN-Rehak-155-93-0718H-6, Alger, no production data,
  • 28695, drl, MRO, Hazel 14-8H, Murphy Creek, no production data,
  • 29039, 115, Enduro, NSCU J-715-H2, Newburg, a Spearfish/Charles well, t11/14; cum 8K 1/15;
  • 29079, 955, CLR, Tracey 1-34H, Williston, t12/14; cum 29K 1/15;
  • 29117, drl, XTO, Frisinger 34X-8D, Hofflund, no production data,
Sunday, March 8, 2015
  • 27266, 1,096, Emerald, Talon 3-9-4H, Charbonneau, interesting production profile; t9/14; cum 37K 1/15;
  • 28054, drl, Slawson, Ironbank 4-14-13TFH, Stockyard Creek, no production profile,
  • 28590, 1.258, WPX, Victor Elk 32-29HB, Reunion Bay, wow; a monster well; t1/15; cum 54K 1/15;
  • 28694, drl, MRO, Knopik 24-8H, Murphy Creek, no production data,
  • 29142, 806, Hess, W-Hagen-149-100-1522H-3, Ellsworth, t1/15; cum 18K 1/15;
Saturday, March 7, 2015
  • 27899, drl, XTO, Van Dyke Federal 44X-19A, Bear Den, no production data,
  • 28466, drl, Hess, EN-Rehak-155-93-0718H-5, Alger, no production data,
  • 28589, 1,273, WPX, Victor Elk 32-29HW, Reunion Bay, t1/15; cum 28K 1/15;
  • 28749, 523, Hunt, Smoky Butte 160-100-7-6H-1, North Fork, t12/14; cum 14K 1/15;
  • 29141, 708, Hess, BW-Hagen-149-100-1522H-2, Ellsworth, t1/15; cum 14K 1/15;
  • 29150, 369, CLR, Hart 1-11H, Temple, t12/14; cum 15K 1/15;

29079, see above, CLR, Tracey 1-34H, Williston:

DateOil RunsMCF Sold

27266, see above, Emerald, Talon 3-9-4H,  Charbonneau, interesting production profile:

DateOil RunsMCF Sold

28590, see above, WPX, Victor Elk 32-29HB, Reunion Bay:

DateOil RunsMCF Sold

28589, see above, WPX, Victor Elk 32-29HW, Reunion Bay:

DateOil RunsMCF Sold
29142, see above, Hess, W-Hagen-149-100-1522H-3, Ellsworth:

DateOil RunsMCF Sold

This Should Get Your Attention; 54,000 Bbls In First Month -- Coming Off Confidential List Monday -- March 8, 2015

Remember: the first month of production is generally not a full 31 days. With that in mind, look at production in the first month for this well coming off confidential list Monday:
  • 28590, conf, WPX, Victor Elk 32-29HB, Reunion Bay:
DateOil RunsMCF Sold

The Victor Elk wells are still confidential but because they are "Reunion oil field" wells, it means they run north into section 32-150-94 to the north and are 1280-acre spaced.

To the east, there is a four-well pad in section 32. Three of the wells are on confidential but one is active and producing:
  • 19246, 1,425, WPX/Zenergy, Wells 32-29H/Dakota-3 Wells 32-29H, Reunion Bay, 22 stages; 2.4 million lbs sand, background gases very high, t3/11; cum 457K 1/15; this well is actually tracked among the "monster wells."

Random Post On PADD Capacity -- March 8, 2015

Over the next few weeks, we are going to hear more and more stories (especially on CNBC) that "Cushing has reached full capacity." Those betting on (hoping to profit from) lower oil prices will be particularly vocal.

Others have been saying "the bottom (for the price of oil) is in."

So, there's going to be a media "tug of war" -- the price of oil has at least another leg down when Cushing reaches full capacity vs the price of oil has bottomed; it is in a trading range, but will gradually trend up.

Is the oil glut a myth?

Storage capacity by PADD:

This data is released twice a year. The September, 2014, data was released November 26, 2014, so I assume the March, 2015, data will be released around  May 26, 2015, just before Memorial Day and the beginning of the US driving season.

Cushing, Oklahoma, is in PADD 2. 

There are a number of story lines in the simple bar graph above.

North Dakota Oil And Gas Lease Sales Results, February, 2015

There may be typographical errors. If this information is important to you, go to the source. The link:

Here are the February, 2015, results, with bonus dollars/acre:

  Several 80-acre parcels; mostly $1/acre; some as high as $35/acre.

Fair number of 80-acre parcels; many for $1/acre, but one 20-acre parcel for $675/acre; many parcels in the $300/acre range.

Mostly in $250 - $400 range; many under $50/acre
SM Energy and Diamond Resources jumps out at you 

Almost all 80-acre parcels for $1/acre.

160-acre parcel, Empire Oil Company, $875/acre.
Otherwise not much.

An 80-acre parcel, Northern Energy Corporation, $400/acre.
A 20-acre parcel, Norwegian American Oil Corporation, $475/acre.

Mostly $1/acre parcels; a couple of $100/acre parcel exceptions.

One parcel, 80 acres, $33/acre, Northern Energy Corporation.

Almost all acreage bought by Northern Energy Corporation. Others:
  • Interwest Petroelum, Stark County, several parcels
  • Norwegian American Oil, Stark County, Mountrail County, a couple of parcels
  • White Butte Resources, one parcel
  • Trinity Western, one parcel
  • Cody Exploration, Mountrail County
  • Empire Oil, one parcel, McKenzie County
  • SM Energy and Diamond Resources in Divide County