Big Butte Update -- May 31, 2016

A reader asked about the Big Butte oil field. 

I track the Big Butte oil field in North Dakota here. 

No new permits in Big Butte so far in 2016.

No Big Butte permits in 2015.

Only four Big Butte permits in 2014:

• 25-Jun-14 28719 Hess Mountrail Big Butte loc EN-Neset-156-94-0706H-5 
• 25-Jun-14 28720 Hess Mountrail Big Butte loc EN-Neset-156-94-0706H-4 
• 25-Jun-14 28721 Hess Mountrail Big Butte loc EN-Neset-156-94-0706H-3 
• 25-Jun-14 28722 Hess Mountrail Big Butte loc EN-Neset-156-94-0706H-2 

Like all operators, Hess moved quickly early in the boom to hold leases by production. See graphic below. Most drilling units in this area have at least one producing well.

Hess seems to be a "steady Eddy" in the Bakken. Nothing flashy, just going about its business. Hess appears to have five rigs in the Bakken, three in McKenzie County, two in Mountrail. Back in October, 2013, Hess had 16 rigs in North Dakota.

I can't imagine Hess going back into Big Butte until we see oil significantly higher. But eventually, there will be no less than 12 wells on every 1280-acre drilling unit in Big Butte. That, of course, is complete conjecture on my part based on what I've seen in the Bakken over the years. Holding minerals in the Bakken is "money in the bank."

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