Wednesday, September 28, 2016

BR WIth Another Huge Merton Well -- September 27, 2016


September 29, 2016: see comments below. A reader has provided an excellent comment that helps explain what another reader noted. Comment brought up here for easier googling:
Rig counts are a little "dicey". Todays report shows Nabors X10 and Nabors X-10. I believe this one and the same rig. The White Mt. 252 is a "spuder" rig just drilling and setting 2000 ft surface casing. 
The OneOK gas plant is likely a factor in Dunn County. Also some of the more difficult Badlands locations are drilled in summer and fall when road conditions are better. Come winter and early spring, rigs are more common in more accessible locations in Mountrail, Williams and McKenzie Counties. It appears to me the actual deep-drilling rig count is 30. There is also a Key Drilling rig (146-100) in McKenzie County which might be drilling a vertical Madison formation test in the Rough Rider Field (or drilling surface hole only?)
Later, 9:47 p.m. Central Time: a reader noted there are 12 rigs in Dunn County an 10 rigs in McKenzie -- wondering why more rigs in Dunn County -- if it had anything to do with new ONEOK gas processing plant coming on-line soon? See first comment. 

Original Post
Wells coming off confidential list Wednesday:
  • 31359, SI/NC, Statoil, Samson 29-32 1H-R, Banks, no production data,
  • 32281, SI/NC, XTO, FBIR Blackmedicine 24X-21H, Heart Butte, no production data
One new permit:
  • Operator: North Range Resources, LLC
  • Field: Rough Rider (McKenzie)
  • Comment:
Four permits renewed:
  • Newfield (3): three Sturgeon permits in McKenzie County
  • EOG: a Mandaree permit in McKenzie County
Four permits canceled:
  • Resource Energy Can-Am (3): a Blanca State, a Jim, and an Ekness permit, all in Divide County
  • Slawson: a Pike Federal permit in Mountrail County
Producing wells completed:
  • 30280, 3,327, BR, Merton 21-15TFH, North Fork, 4 sections, t9/16; cum --
  • 30435, 174, SM Energy, Anne 13B-19HS, Ambrose, t9/16; cum -- 
  • 31009, 828, EOG, Shell 44-3229H, Parshall, t9/16; cum --
  • 31010, 1,344, EOG, Shell 46-3229H, Parshall, t9/16; cum --
  • 31018, 973, EOG, Shell 40-3229H, Parshall, t9/16; cum --
  • 31019, 835, EOG, Shell 42-3229H, Parshall, t9/16; cum -- 
Active rigs:

Active Rigs3270190184190

US Shale Gas Reaches Britain -- First Time -- Wednesday, September 28, 2016

Presidential poll:

Completing The Deal

TransCanada to buy Columbia Pipeline Partners for nearly $1 billion. Link here. From an earlier post:
Kinder Morgan Inc., with 32,000 miles of large-diameter pipeline, has more than double the mileage of TransCanada Corporation, which acquired Columbia Pipeline Group in July 2015. 
Also, back on March 17, 2016:
The deal is announced -- TransCanada will buy Columbia for $10.2 billion. It looks like Warren Buffett missed a deal.
From today's link:
Calgary, Alberta-based TransCanada Corp. TRP announced that it has offered $848 million to buy Columbia Pipeline Partners LP (CPPL), the master limited partnership affiliate of its newly acquired Columbia Pipeline Group Inc. unit. 
The Canadian oil company also announced its intention to take control of the other 53.8 million outstanding units in Columbia Pipeline Partners for $15.75 per common unit. The offer signifies a premium of about 3% over the limited partnership closing price of $15.30 on Sep 23, 2016. 
Active rigs in North Dakota:

Active Rigs3270190184190

RBN Energy: estimating rates for a new pipeline.

Video of the day: Carson Wentz paper toss trick shots -- five-time world champion.

Two days ago it was reported that the first ethane shipment from US Gulf of Mexico arrived in Europe. Today, it is being reported that the first shale gas from the US has now reached Britain for the first time:
Chemicals giant Ineos shipped in Britain's first shale gas from the United States on Tuesday, sparking debate on the country's manufacturing future and Scotland's opposition to shale gas fracking.
Ineos is importing ethane, obtained from rocks fractured at high pressure -- or "fracking", in a foretaste of larger deliveries of liquefied natural gas (LNG) from shale set to reach Europe in 2018.
Chairman Jim Ratcliffe, one of Britain's richest men, argues that as the North Sea is unable to keep supplying the base ingredients to make chemicals, shale gas will be an important future energy resource.
"There simply is insufficient raw material (oil and gas) coming out of the North Sea to run Grangemouth so we're talking about 10,000 jobs in total that depend on that facility," Ratcliffe told BBC Radio Scotland.
"So were it not for the shale gas that we're bringing in from the U.S., Grangemouth would have closed three years ago," he said referring to the petrochemicals hub to the west of Edinburgh.
The Market

 Futures: up 11 points.