Monday, May 8, 2017

CLR Well With IP Of "754" Goes On To Produce Half-Million Bbls Of Oil In Primary Production -- And Still Going Strong -- May 8, 2017

The well:
  • 18159, 754, CLR, Rollefstad 1-3H, Antelope, t9/09; cum 500K 3/17; 
Plus, at 6:1, almost 100,000 boe of natural gas, putting this well at almost 600K boe since it was spud in late 2009.

To the best of my knowledge it was fracked only once; jumps in production over the years have been for other reason. FracFocus does not show any results for fracking. The last sundry form on file was dated 2013 when CLR put the well on a pump.

What Universe Do These Guys Live In? -- May 8, 2017

This is the headline:

This is the story from Reuters:
Benchmark Brent crude settled up 24 cents, or 0.5 percent, at $49.34 a barrel. U.S. light crude gained 21 cents to $46.43 a barrel.
Rebound? LOL.

EOG Announces 1Q17 Earnings

From an EOG press release, 1Q17 results:
  • exceeded high-end oil production forecast
  • increased premium net resource potential by 27% to 7.5 billion boe
  • reduced the cost to complete a well by 6% in major plays compared to 2016
  • completed four record-setting Permian Basin horizontal oil wells
  • 1Q17 net income: $28.5 million (5 cents/share) compared to 1Q16 of a net loss $471.8 million (86 cents/share)
  • adjusted: $89.2 million (15 cents/share) vs 1Q16 of a loss of 455.4 million  (83 cents/share) 
  • company record: 315,700 bopd

Two New Permits -- Otherwise Meager Daily Activity Report -- May 8, 2017

Active rigs:

Active Rigs492784191185

Two new permits:
  • Operator: MRO
  • Field: Bailey (Dunn)
  • Comments:
One oil and gas permit renewed:
  • Peregrine Petroleum Partners: a Burlington Fee permit, McKenzie
SM Energy temporarily abandoned thirteen (13) wells. These were all in Divide County, permit numbers in the 31XXX and 32XXX range with names Bella, William, Bison, Bobcat, Antelope, Russ, Rufus, Rodney, Eagle, Owl, Beaver, Dusty, and Smokey.

Filloon On AXAS -- May 8, 2017

Over at SeekingAlpha:
  • AXAS continues to improve well design, which continues to improve oil production from ND wells
  • AXAS is outperforming adjacent Bakken operators in McKenzie County
  • Its recent pullback seems overdone, and driving season could be a significant catalyst in the short term
  • AXAS has additional upside from its Ward County acreage in the Delaware Basin, and de-risking could prove significantly beneficial to valuations
The Apple Page

I've had Apple computers since 1984. But it's amazing. I keep finding new things that Apple can do.

I have no idea what led me to sort this out but the other day I heard about "Airdrop" for the first time. It is a built-in app on all Apple products (in the last few years) that allows one to easily send documents, URLs, photos, etc., to someone else within "wi-fi' radius.

I used to attach "stuff" to e-mail and then mail it to my wife in the next room. With "Airdrop" one click I can send it to her.

I don't know if Steve Jobs or Tim Cook has ever even talked about "Airdrop" on stage -- the application is just there. 

Just one more reason that the Apple ecosystem is so incredibly cool. 

Random Update Of Whiting WIsness Well -- Pembroke Oil Field -- May 8, 2017

On March 28, 2017, I posted:
March 28, 2017: check #18786 (Whiting, Wisness 21-34H) when it comes back on-line to see if there was a bump in production after Smokey well running opposite direction was completed late 2016, #31050.  Also, take a look at  #21442, and #21439.
The newly fracked well:
Meanwhile, #21442 and #21439, off-line for the same period of time that #18786 was taken off-line and those two (#21442 and #21439) did not show any increase in production.

Today, I checked the production of #18786. Here is the production profile for #18786 for the past 12 months:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

Worth Repeating: EURs For Bakken Wells Now Tracking 1 Million BOE Type Curves -- May 8, 2017

NOG: Worth repeating. This is from NOG's 1Q17 press release. Note the EURs for new wells:
  • production: averaging 13,299 boepd
  • producing wells with a 30-day IP average of 1,485 boepd; a 34% increase over the 2016 additions
  • 2016 producing wells are tracking a 1 million boe average type curve, a 59% increase over the 2015 additions
Skarston Wells Update
Some of the Skarston wells that had been taken off-line are now coming back on line. I track the Skarston wells here but this page has not been updated.

The Market And Energy Page, T+108 -- May 8, 2017

Disclaimer: this is not an investment site.

Miffed? A follow-up. Don sent this link as a response to my earlier post about Iowa being the first state in decades to build a new fertilizer plant in the US.  From The Dickinson Press:
  • $500 million urea fertilizer plant
  • Hazen, ND: north of Beulah, adjacent to Basin Electric Power Cooperative's synfuels plant 
    • synfuels plant: turns lignite into natural gas
  • 750 workers to build; 60 employees to operate
  • won't take up all the slack created by the Bakken but it's a start
  • the urea plant is a bet that the next generation of farmers moves away from potentially dangerous and cumbersome cylinders of anhydrous ammonia fertilizer and moves to urea pellets
  • (anhydrous ammonia fertilizer -- also made by the synfuels plant)
  • so, we have anhydrous ammonia fertilizer: the big white cylinders on wheels seen everywhere in farming communities, and not urea pellets
  • about half of the anhydrous ammonia fertilizer made by the synfuels plant is shipped elsewhere
  • urea is safer to ship, safe to store
  • should be ready for the 2017 planting season
  • Basin plans to produced 380,000 tons annually
  • ND is estimated to use 450,000 tons urea annually 
Northern Oil And Gas: 1Q17 Results

From a press release:
  • production: averaging 13,299 boepd
  • producing wells with a 30-day IP average of 1,485 boepd; a 34% increase over the 2016 additions
  • 2016 producing wells are tracking a 1 million boe average type curve, a 59% increase over the 2015 additions
OPEC Crude Oil Exports -- A Shell Game

This is why the attempt by OPEC to boost oil prices fizzled. In graphic form:

Monday's Market

Opening: the market is down a bit on opening, but I believe AAPL has just hit another all-time high. [Update: AAPL hits an all-time high; up about 3%; adds another $4 / share; company hits a market value of $800 billion.]

Snarky: a news report talked about the fact that Warren Buffett does not own Amazon. A comment from a reader suggested that he (the one commenting) preferred hard assets, not virtual assets like Amazon. Companies with lots of hard assets: deep sea drilling. All underwater -- literally and figuratively. 

The Political Page, T+108 -- May 8, 2017

Not being reported: the Obama administration gave "Flynn" his top security clearance.

Nationalism vs Globalism: the narrative is that the French election showed that the drive toward nationalism has been stopped. So, we have two "business" plans: nationalism vs globalism. It appears the US is one of a handful of countries favoring nationalism. It will be interesting to see which business plan "wins" -- and when the outcome will be seen.

US Producers Boosting Oil Hedges -- RBN Energy -- May 8, 2017

Active rigs:

Active Rigs492784191185

RBN Energy: US producers boost oil hedges to backstop accelerated capital investment. A few companies do not, including Continental Resources.

North Dakota fertilizer plant update: at this link.