A Reader Had A Question About Number Of Wells Whiting Might Be Selling -- January 12, 2016

With regard to the information below, a reader asked about Whiting selling wells to Foundation Energy Management LLC. The press is reporting that Whiting is selling a total of 331 wells to five different companies, but the reader thought he had heard Whiting was selling significantly more than that to Foundation Management. For now, this is what I have regarding new operators in the Bakken and the number of wells being transferred.

One of the nice things about re-posting information, sometimes one sees things not previously noted. With the news that Petroshale (USA) received its first North Dakota permit yesterday, and then running through the list below, it is interesting to note all the new oil and gas companies with ties to Canada entering the North Dakota Bakken. Just an observation; may or may not be relevant (or accurate).

I thought I had posted this, but maybe I haven't (yes, here is additional information posted at this site; perhaps some of this is redundant). From Oil Patch Hotline based on a December 9, 2016, briefing by Lynn Helms, NDIC:

• Whiting Petroleum and OXY USA led operators in selling off producing oil wells in North Dakota
• 710 well sales so far have brought nine new operators into the Bakken play (I believe this number "nine" was corrected to "seven" but I can't say for sure. Two of the "nine" new operators entered the Bakken prior to 2015 -- from what I vaguely recall)
• OXY USA has sold off 346 wells to Lime Rock Resources—previously reported but those reports did not include exact number of well
• Whiting sold 112 wells to Cobra Oil and Gas Corp. and to White Rock Oil and Gas LLC.
• American Eagle Energy Corp. of Littleton, CO, which declared bankruptcy in May with $215 million in debts, sold off 87 Divide County wells to Resource Energy Can-AM LLC.
• Enduro Operating LLC of San Antonio, TX sold four wells to Resource Energy Can-Am LLC.
• According to the ND DMR, EOG Resources, Frontier Ventures LLC, Key Energy Services LLC, High Roller Wells LLC, Vanguard Operating LLC, Executive Drilling LLC, and Saul Azar dba Illinois Energy LLC all sold off one well each.
• The DMR is waiting on final paperwork from these new operators: 
• Foundation Energy Management LLC
• Prairie Hills Oil & Gas LLC
• Scout Energy Management LLC.

From The Bismarck Tribune, December 28, 2015:

• The number of North Dakota oil wells transferring to new owners has grown to more than 1,000, with state regulators getting more requests daily.
• About two-thirds of the wells being transferred are legacy wells that were drilled in the 1970s, 80s and 90s, Helms said.
• Occidental Petroleum, which is exiting the Bakken, is selling 346 wells, more than any other company. Lime Rock Resources, a private equity firm from Houston that acquires oil and gas properties in the U.S., is buying the wells.
• Whiting Oil & Gas is now selling 331 wells to five companies, according to paperwork submitted to the Department of Mineral Resources.

Since then, there has been another new operator in the Bakken identified: Petroshale (USA). 

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New Operators 

From that post linked near the top of this post:

Also in The Bismarck Tribune article is the list of seven new operators in North Dakota in 2015:

• Swanson Oilfield Services; Clarinda, IA -- not previously reported on the blog
• Prairie Hills Oil and Gas; Big Lake, MN
• Resource Energy Can-Am, Highlands Ranch, CO -- not previously reported on the blog
• Cobra Oil & Gas; Wichita Falls, TX -- not previously reported on the blog
• Foundation Energy Management; Dallas, TX -- not previously reported on the blog
• Scout Energy Management; Dallas, TX -- not previously reported on the blog
• White Rock Oil & Gas; Dallas, TX 

To the best of my knowledge, this one is also a new operator; it first popped up in a daily active report on December 15, 2015:

• Sedalia Energy, LLC, SFC Energy Partners II

Back in 2014 (list not complete):

• Missouri River Resources, ND

Back in 2013 (list not complete):

• Stephens Production