EOG EOR In Clarks Creek? -- May 18, 2016

Updates

December 19, 2019: well, this turned out to be a bust. I don't know what this was all about but EOG canceled almost all these permits, and yet the early wells were incredibly good wells. Distracted by the Permian?

Original Post 

Note: for a closer look at two wells mentioned in this long post, this this post: http://themilliondollarway.blogspot.com/2016/05/random-look-at-two-eog-wells-in-clarks.html. 

Note: in a long note like this, there are likely to be typographical and/or factual errors. There may be errors in the graphics. Some items are conjectures at this point based on my understanding of the Bakken. There may be errors in the graphics. I have not triple-checked this post. If this is important to you, go to the source.

It's easy to forget just how incredible the Bakken is.

Maybe this will help.

EOG has recently talked about EOR. When I get a chance, and if I remember, I will provide the link.

Hold that thought.

Today, EOG has renewed eight permits.

Hold that thought.

Down below, I have three graphics to help tell the story of these eight renewed permits.

Near the area of interest, EOG has a permit for a monitoring well.

Hold that thought.

Based on what little I know, the wells in the graphic below are targeting the middle Bakken and the Three Forks, the first bench. There are at least two more benches that can be targeted.

Hold that thought.

Finally (can there be more? oh yes), operators in the Bakken pretty much aren't drilling a well right now if they can't expect a EUR of 900,000 bbls in this part of the play.

Okay, that's the final thought you have to hold. Now look at the graphics.

This is the first graphic that shows the general area of the area of interest: Clarks Creek in the Bakken:

This second graphic zooms in a bit. Note the area of interest. Note the four numbered existing horizontals that run north to south. These are among the longest horizontals in the Bakken, "three sections" long. Most Bakken horizontals are now "two sections" long; in the beginning, back in 2007, they were only "one section" long.

The third graphic. There are eight existing horizontal wells in this graphic. Three of them run from the north, to the south. Five of them run from the south, to the north. There are already 15 wells on confidential status in this area. And now, the eight (8) permits in this immediate area that have been renewed. Note the EOG "monitoring" well, #29679 (text/arrow in blue); it will target the Duperow formation, not for production but for monitoring.

Okay, the fourth graphic. Not much except to show the 15 wells on confidential status and where the area of interest is today (the eight permits that were renewed).

Summary: eight existing horizontals + 15 wells on confidential status + eight permits renewed = 31 wells. These 31 wells target only the middle Bakken and the first bench of the Three Forks. There are two more benches in the Three Forks that could be targeted.

Note: one well below, on-line for less than four (4) years, has produced over 700,000 bbls of oil. 

Now go back to all those thoughts you were holding.

31 x 900,000 = 28 million bbls EUR / 1280 acres = 22,000 bbls/acre.

*********************************

Eight permits renewed May 18, 2016:

• 31246, PNC, EOG, West Clark 8-0136H,  
• 31251, PNC, EOG, West Clark 107-0136H,
• 31252, PNC, EOG, West Clark 116-0136H,
• 31253, loc, EOG, West Clark 126-0136H,
• 31254, PNC, EOG, West Clark 127-0136H,
• 31255, PNC, EOG, West Clark 134-0136H,
• 31256, PNC, EOG, West Clark 128-0136H,
• 31257, PNC, EOG, West Clark 129-0136H,

Fifteen wells on confidential status at time of posting:

• 31388, PNC, EOG,
• 31387, PNC, EOG,
• 31386, PNC, EOG,
• 31385, PNC, EOG,
• 31384, PNC, EOG,
• 31383, PNC, EOG,
• 31382, PNC, EOG,
• 31381, PNC, EOG,
• 31380, PNC, EOG,
• 31379, PNC, EOG,
• 31378, PNC, EOG,
• 31377, PNC, EOG,
• 31376, PNC, EOG,
• 31375, PNC, EOG,
• 31374, PNC, EOG,

Of the eight additional horizontals in this sections: the four running north to south (three sections long):

• 22485, 1,926, EOG, Hawkeye 01-2501H, Clarks Creek, t1/13; cum 696K 10/19; only 21 days 3/16;; only 2 days 5/16; only 9 days; 6/16;
• 22486, see below,
• 22487, 67, EOG, Hawkeye 02-2501H, Clarks Creek, t12/13; cum 853K 10/19; only 22 days 3/16; 0 days 4/16; 1 day 5/16; 22 days 6/16;
• 22484, 2,946, EOG, Hawkeye 102-2501H, Clarks Creek, t1/13; cum 601K 10/19; only 21 days 3/16; 0 days 4/16; 2 days 5/16; 6/16;

Of the eight additional horizontals in this section: the four running south to north:

• 31403, 1,447, EOG, West Clark 117-0136H, Clarks Creek, as of 6/16, t5/16; cum 322K 10/19;
• 31247, 1,613, EOG, West Clark 103-0136H, Clarks Creek, as of 6/16, t5/16; cum 197K 10/19;
• 31248, 1,272, EOG, West Clark 104-0136H, Clarks Creek, as of 6/16, t5/16; cum 198K 10/19;
• 31249, TA/127, EOG, West Clark 105-0136H, Clarks Creek,  as of 6/16, producing, looks like it was never completed; minimal oil over three days back in 6/16;

****************************

22486, 2,421, EOG, Hawkeye 100-2501H, Clarks Creek, t9/12; cum 703K 6/16; only 22 days 3/16; see production profile below; only 7 days in 5/15; off line 4/19; back on line 10/19;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	3-2016	22	1836	1863	1643	4036	3394	78
BAKKEN	2-2016	29	2897	2860	2398	5910	4969	141
BAKKEN	1-2016	31	3124	3101	2817	7378	6211	319
BAKKEN	12-2015	31	3785	3741	3443	9053	8117	99
BAKKEN	11-2015	13	1901	1951	1629	7583	7047	191
BAKKEN	10-2015	31	5411	5411	4880	19161	18105	201
BAKKEN	9-2015	30	5139	5186	4793	24246	23397	25
BAKKEN	8-2015	31	5748	5695	5199	21283	20347	81
BAKKEN	7-2015	31	5911	5907	4986	21260	17404	614
BAKKEN	6-2015	26	4513	4553	3690	14977	11931	384
BAKKEN	5-2015	31	6287	6306	5136	21724	17829	653
BAKKEN	4-2015	30	7235	7225	5685	24752	21414	227

Silly Days -- May 18, 2016; Tesla To Sell About 10 Million New Shares; Raise $2 Billion In Cash

This is so cool. We just talked about it the other day. Tesla would offer more shares to raise badly needed cash. MuskMelon did that today. The only question: how much dilution? Let's see. The original talk was 11%. I said 10% was typical. So, let's see: $2 billion. But how many shares? The sources don't say. But at $211/share today, and $2 billion, that equates to about 10 million shares in round numbers. Outstanding: 135 million in round numbers. 10/135 = 7%.

Back on May 13, 2016, this was posted:

Analyst Brian Johnson of Barclays projected a $3 billion equity raise sometime in the second quarter. At current stock prices, a transaction of that size would be about 14.5 million shares, an increase of 11 percent to the number of shares outstanding.

So 7%. Way less than the typical 10%, and way less than projected by at least one analyst. This is a no-brainer for raising cash.

But what a snake salesman. To make this a bit more palatable, MuskMelson says 1.2 million shares will be donated to charity. Whom is he trying to kid?

****************************************
Silly Days

The market was up nicely today, and then finished down slightly, almost flat.

Oil was up nicely today, and then finished down slightly, almost flat.

What accounted for the positive move to slightly negative, almost flat? There was talk that the Fed might possibly, but not very likely, but could, if the stars aligned right, could possibly raise the Fed rate from ... oh, about zero ... to about ... oh, about one-quarter point.

And that takes up from a nice upside to slightly negative. Great buying opportunities, eh?

***************************

Venezuela -- Tick, Tick, Tick

Unrest continues to grip Venezuela as president threatens to make opposition-controlled legislature 'disappear' -- Los Angeles Times. I assume President Obama wishes he had had similar powers.

***************************

Bullet Train

Lifeline for the bullet train. President Obama extends federal funding deadline for California's bullet train by four years.

************************************

Perspective

From her perspective, all those visitors and no one was paying attention to the brochures. She figured that if she spread them out for folks to see, they might take more interest.


And, yes, we replaced all the brochures after we finished filming.

Oasis Reports Three Nice Tyrone Wells; Four More DUCs In The Bakken -- May 19, 2016

Wells coming off confidential list Thursday:

• 27685, 872, Oasis, Logan 5601 11-26 8T, Tyrone, t11/15; cum 43K 3/16;
• 27689, 1,325, Oasis, Logan 5601 13-26 4T, Tyrone, t11/15; cum 63K 3/16;
• 29042, 914, Oasis, McCauley Logan 5601 11-26 6T29, Tyrone, t12/15; cum 40K 3/16;
• 29133, SI/NC, Hess, BW-Erler-LE-149-99-1522H-1, Cherry Creek, no production data,
• 31201, SI/NC, XTO, Kaye Federal 13X-3G, Lost Bridge, no production data,
• 31226, SI/NC, XTO, Harley Federal 24X-15A, Sand Creek, no production data, 
• 31788, SI/NC, XTO, Lund 21X-17B, Siverston, no production data,  
• 31881, drl, CLR, Corsican Federal 8-15H2, Sanish, no production data,

Nine (9) permits renewed:

• EOG (8), eight West Clark permits in McKenzie County, it looks like all on one pad, one middle Bakken, and seven Three Forks wells
• BR, a Gladstone permit, in McKenzie County

One (1) new permit --

• Operator: SM Energy
• Field: Whiteaker (Divide)
• Comments:

*******************************

29042, see above, Oasis, McCauley Logan 5601 11-26 6T29, Tyrone:

Date	Oil Runs	MCF Sold
3-2016	13157	9369
2-2016	5343	2784
1-2016	9991	2732
12-2015	10109	5390

27689, see above, Oasis, Logan 5601 13-26 4T, Tyrone:

Date	Oil Runs	MCF Sold
3-2016	13357	11196
2-2016	14304	8574
1-2016	11576	7337
12-2015	17554	7100
11-2015	6116	3782

27685, see above, Oasis, Logan 5601 11-26 8T, Tyrone:

Date	Oil Runs	MCF Sold
3-2016	9810	7078
2-2016	11852	8231
1-2016	6714	0
12-2015	12190	2545
11-2015	2003	1340

**************************************

Ten (10) Minutes Prep

Salmon: 16 minutes (for this size) in the oven (400); 

a little Teriyaki sauce before going into oven

Tuna, 2-hour marinade (if possible): 5 minutes stove top

Asparagus: 2 minutes in microwave; 

1 minute or so stove top to finish, flavor

The "Trillion-Dollar-Mistake" -- It May Be Worse Than "We" Think -- May 18, 2016

Bloomberg is reporting:

Saudi Arabia has told banks in the country that it is considering giving contractors IOUs to settle some outstanding bills.

A projected budget deficit this year is prompting the government to weigh alternatives to limit spending. Contractors would receive bond-like instruments to cover the amount they are owed by the state which they could hold until maturity or sell on to banks.

Contractors have received some payments from the government in cash and the rest could come in "I-owe-you" notes.

"It" may be worse than we are being led to believe. More from the story:

The government started delaying payments last year to prevent the budget deficit from exceeding $100 billion after the oil slump.

Deputy Crown Prince Mohammed bin Salman told Bloomberg News in an interview in March that authorities have started paying companies back.

Note: it was back in March, 2016, that it was reported that the Saudibinladin Group was struggling due to low prices (see below).

The picture becomes a bit more clear why Prince Salman needs to launch a Saudi Aramco IPO, albeit, incredibly small.

I track the Salman Plan here.

The big dots that now connect, in the chronological order they appeared:

• *** Saudi's 80-year-old oil minister takes early retirement -- May, 2016
• **** first time ever Saudi sells oil on the spot market -- April, 2016
• *****  Saudi takes out $10 million loan to learn how it's done -- April, 2016
• *****  Saudibinladin Group starts to struggle due to low oil prices -- March, 2016 
• emergency OPEC meeting to curtail production; only at last minute did Saudi scuttle plan -- March, 2016
• ****  Saudi getting ready to monetize its assets (this was not the Saudi Aramco IPO; this came before talk of an IPO; I noted this as the top international story of the week) -- March, 2016
• *****  the kingdom orders its agencies to cut spending by 5% -- March, 2016
• Saudi Arabia: a failing kingdom -- March, 2016
• social media starts tracking Saudi decline in cash/equity reserves -- February, 2016
• *****  the kingdom confirms it is looking at a Saudi Aramco IPO -- January 31, 2016
• Saudi citizens told to "embrace austerity" as defaults loom -- January, 2016
• ***** the kingdom announces an 8-year delay in huge solar energy program -- May, 2015 
• the "trillion-dollar-mistake" -- October, 2014

Huge Well Taken Off-Line -- Slawson's Hunter In Big Bend -- May 18, 2016

Updates

July 13, 2016: #18575 was noted to have been taken off-line earlier this year. This is one of six wells on this pad. It turns out all six wells were taken off-line at the same time and it appears all were placed back on-line in 5/16. I can't find explanation at the file report.  This is a Hunter / Jeriyote pad. It appears that Hunter 1-8-17H and Hunter 2-8-17H may have interfered with each other during frack operations.

• 19993, 1,242, Slawson, Hunter 2-8-17H, Big Bend, t11/11; cum 251K 5/16;  

Original Post

 

If I remember, I will come back to this one later; NDIC map not loading now.

The well:

• 18575, 1,007/IA, Slawson, Hunter 1-8-17H, Big Bend, t6/11; cum 430K 3/16; off-line all of 11/15; only one day production 1/16; only one day production 2/16; IA as of 3/16; back on-line 5/16;

Production profile (has been update):

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2016	4	1090	384	333	836	752	64
BAKKEN	4-2016	1	61	0	0	5	0	0
BAKKEN	3-2016	0	0	0	0	0	0	0
BAKKEN	2-2016	1	0	0	0	6	1	0
BAKKEN	1-2016	1	171	338	143	155	116	34
BAKKEN	12-2015	28	3229	3015	2841	2607	2467	0
BAKKEN	11-2015	0	0	39	0	0	0	0
BAKKEN	10-2015	30	4583	4776	2086	3646	2352	1144
BAKKEN	9-2015	30	7005	6671	2429	5423	4697	576
BAKKEN	8-2015	31	4920	5107	4615	4008	2237	1616
BAKKEN	7-2015	31	6808	6929	4270	5237	4677	405
BAKKEN	6-2015	30	4588	4568	4657	3758	2364	1244
BAKKEN	5-2015	31	4482	4442	3579	3830	3660	15
BAKKEN	4-2015	30	3317	3340	2854	2124	1377	597
BAKKEN	3-2015	31	5007	5062	3927	3761	1035	2571
BAKKEN	2-2015	28	2964	2889	3024	3186	438	2608
BAKKEN	1-2015	31	8720	8902	5693	7876	5651	2070
BAKKEN	12-2014	31	13478	13376	8725	11620	9967	1498
BAKKEN	11-2014	30	17198	17198	10136	16345	12121	4074
BAKKEN	10-2014	31	25844	25891	14620	24638	20375	4108
BAKKEN	9-2014	30	14362	14320	3972	12367	6052	6165
BAKKEN	8-2014	15	5021	4642	2322	75	0	0
BAKKEN	7-2014	1	25	237	0	10	5	0
BAKKEN	6-2014	0	0	0	0	0	0	0
BAKKEN	5-2014	0	0	0	0	0	0	0
BAKKEN	4-2014	0	0	0	0	0	0	0
BAKKEN	3-2014	0	0	0	0	0	0	0
BAKKEN	2-2014	1	65	238	0	5	0	0
BAKKEN	1-2014	0	0	0	0	0	0	0
BAKKEN	12-2013	0	0	0	0	0	0	0
BAKKEN	11-2013	0	0	0	0	0	0	0
BAKKEN	10-2013	0	0	0	0	0	0	0
BAKKEN	9-2013	0	0	0	0	0	0	0
BAKKEN	8-2013	22	4487	4815	1253	2841	2731	0
BAKKEN	7-2013	31	6403	6172	1898	3786	3476	0
BAKKEN	6-2013	30	5939	6137	1695	3792	3492	0
BAKKEN	5-2013	31	6512	6876	1870	4038	3728	0
BAKKEN	4-2013	29	6127	5771	1637	3633	3343	0
BAKKEN	3-2013	31	6850	6551	1937	3837	3527	0
BAKKEN	2-2013	18	3111	2883	830	1803	1623	0
BAKKEN	1-2013	23	5271	6203	1385	3036	2806	0
BAKKEN	12-2012	11	2013	1573	875	1163	1053	0
BAKKEN	11-2012	25	6242	6313	1550	5658	5408	0
BAKKEN	10-2012	31	9810	10152	2502	7204	6894	0
BAKKEN	9-2012	30	11029	10809	2768	10981	10681	0
BAKKEN	8-2012	30	15830	15806	3740	13944	13644	0
BAKKEN	7-2012	31	7773	7703	2306	5431	5121	0
BAKKEN	6-2012	27	7100	6671	2022	4745	4475	0
BAKKEN	5-2012	31	14350	15035	3361	10501	10191	0
BAKKEN	4-2012	30	12645	12200	3412	8193	7893	0
BAKKEN	3-2012	31	11427	12039	4021	7335	7025	0
BAKKEN	2-2012	29	14320	14087	3735	8194	7904	0
BAKKEN	1-2012	23	7134	7062	1250	3527	3297	0
BAKKEN	12-2011	20	5664	5651	1434	3425	3225	0
BAKKEN	11-2011	29	14913	15436	5464	9639	9639	0
BAKKEN	10-2011	23	12774	12799	3839	8599	8369	0
BAKKEN	9-2011	30	17796	18312	4866	11507	11207	0
BAKKEN	8-2011	28	18475	17508	5053	5755	5475	0
BAKKEN	7-2011	31	21881	22818	6609	310	0	0
BAKKEN	6-2011	30	27735	27066	8920	300	0	0
BAKKEN	5-2011	10	14175	12932	3422	100	0	0

Interim Production Update On SHD Three Forks Well With Huge Frack, #19296, Golden 22-31H -- May 18, 2016

Updates

March 25, 2018: production update; nothing in sundry form to explain jump in production back in October, 2017. But look how incredible this well is. But look at this: still flaring all its natural gas; on the reservation.

There are three more wells on this pad on confidential status: 31109, 3110, 3111. This is -- to put it simply -- an incredible well. 

The updated production since 3/16:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2018	30	9477	9600	12671	5763	0	5763
BAKKEN	12-2017	31	8185	8070	11052	5690	0	5690
BAKKEN	11-2017	30	9267	9473	6982	12054	0	12054
BAKKEN	10-2017	31	10655	10501	13754	8181	0	8181
BAKKEN	9-2017	30	9449	9359	12482	6739	0	6739
BAKKEN	8-2017	31	11766	11584	14079	9125	0	9125
BAKKEN	7-2017	31	11638	11546	14762	8536	0	8536
BAKKEN	6-2017	30	12835	12968	16318	8372	0	8372
BAKKEN	5-2017	17	6597	6464	9392	3374	0	3374
BAKKEN	4-2017	24	13341	13659	15457	9245	0	9245
BAKKEN	3-2017	31	14438	14090	16896	9506	0	9506
BAKKEN	2-2017	28	14863	15206	17197	9984	0	9984
BAKKEN	1-2017	30	13992	13742	17928	7621	0	7621
BAKKEN	12-2016	27	11381	11567	12009	5557	0	5557
BAKKEN	11-2016	29	14469	14342	18037	8328	0	8328
BAKKEN	10-2016	31	16196	15951	19279	8704	0	8704
BAKKEN	9-2016	30	15827	15596	23118	8224	0	8224
BAKKEN	8-2016	31	16913	16435	23912	9236	0	9236
BAKKEN	7-2016	31	19195	18703	29312	10760	0	10760
BAKKEN	6-2016	30	17398	17300	28221	9269	0	9269
BAKKEN	5-2016	31	17426	17058	28779	9157	0	9157
BAKKEN	4-2016	30	17658	17680	0	9219	0	9219
BAKKEN	3-2016	31	18009	17482	28734	9273	5258	4015

Original Post

If I remember I will come back to this one; take a better look at production jump in October, 2015; NDIC map not loading now.

The well:

• 19296, 2,388, SHD, Golden 22-31H, Deep Water Creek Bay, TF Bench 1, 62 stages, 15 million lbs, t3/15; cum 622K 1/18;

Production profile:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	3-2016	31	17759	17482	28734	9273	0	9273
BAKKEN	2-2016	28	15188	14852	26159	7977	0	7977
BAKKEN	1-2016	31	20664	20370	30233	10665	0	10665
BAKKEN	12-2015	31	20810	20523	39346	13444	0	13444
BAKKEN	11-2015	30	22221	22166	36204	16791	0	16791
BAKKEN	10-2015	31	21570	21420	30901	16005	0	16005
BAKKEN	9-2015	29	13597	13731	27738	10789	0	10789
BAKKEN	8-2015	31	17615	17237	12474	35799	0	35799
BAKKEN	7-2015	31	18846	18416	29250	13299	0	13299
BAKKEN	6-2015	30	21452	20597	29348	14637	76	12971
BAKKEN	5-2015	31	27545	27019	40307	17610	15838	129
BAKKEN	4-2015	30	30953	29896	46226	21505	16776	3139
BAKKEN	3-2015	31	50914	48348	68728	39880	2189	36048
BAKKEN	2-2015	23	30105	29502	70346	23000	0	23000