Sunday, June 11, 2017

Random Update Of Whiting/KOG Koala Wold #25802 -- June 11, 2017

The well:
  • 25802, 1,944, Whiting/KOG, Koala Wold 153-97-1-5-9-15H, Banks, t3/14; cum 186K 4/17;
Production profile.
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

CLR's Angus And Angus Federal Wells, Elm Tree Oil Field

The wells:
  • 23493, Simmental Federal well on same pad as some Angus wells; 568, CLR, Simmental Federal 4-16H, t6/13; cum 332K 3/20; offline for about half the month, 4/19; off line 6/21; remains off line 7/21; cum 355K 5/21;
  • 23495, Simmental Federal well on same pad as some Angus wells; 240, CLR, Simmental Federal 3-16H, t6/13; cum 363K 3/20; off line 6/21; remains off line 7/21; cum 378K 5/21;
  • 23496, 300, CLR, Angus Federal 4-9H, 30 stages, 2.8 million lbs, 4 sections, t5/13; cum 379K 3/20; cum 437K 7/21;
  • 23494, 360, CLR, Angus Federal 5-9H, 30 stages, 2.7 million lbs, 4 sections, t6/13; cum 475K 3/20; cum 509K 7/21;
  • 20805, 487, CLR, Angus 3-9H, Three Forks, 28 stages, 2.5 million lbs, t2/13; cum 359K 3/20; subtle jump in production, 4/19; off line 6/21; remains off line 7/21; cum 380K 5/21;
  • 20804, 329, CLR, Angus 1-9H, 30 stages; 2.7 million lbs, t2/13; cum 336K 3/20; offline as of 12/18; still offline 4/19; back on line as of 5/19; off line 6/21; remains off line 7/21; cum 352K 5/21;
  • 24473, 598, CLR, Angus 2-9H2, Three Forks, 30 stages; 2.7 million lbs, t2/13; cum 393K 3/20; perhaps a slight bump in production; off line 6/21; remains off line 7/21; cum 417K 5/21;
  • 33965, 2,746, CLR, Angus Federal 6-16H2, Elm Creek, 26,729 feet; producing as of 5/19; t9/19; cum 210K 3/20; see this post; cum 336K 7/21;
See also this post.


June 6, 2019: noted that the CLR Hereford wells to the west have recently been fracked; CLR's Angus wells to the east show a slight change in production, and some that were off line are back on line. Also, noted, #33965, an Angus Federal well is a DUC

Tea Leaves -- What Did Friday's Action On The Nasdaq Mean? -- June 11, 2017

After Friday's NASDAQ plunge (all of 1.8%) everyone and his analyst are going to be reading the tea leaves tonight to see what Monday brings. Futures, I've learned, mean squat, but at the moment, the futures:
  • Dow: - 26
  • S & P: - 3.55
  • Nasdaq: -11
A reminder: the Dow closed at a record high, I believe. I could be wrong, but I think that's what was said.

Disclaimer: this is not an investment site. Do not make any investment, financial, travel, job, or relationship decisions based on what you read here or think you may have read here. 

New Link Added: North American LNG Export / Import Terminals -- 2017

A reader provided a great link: North American LNG export/import terminals -- 2017; it's now at the "Data Links" page.

You Can Take This To The Bank: This Never Would Have Happened Under Hillary Clinton -- But She Would Have Promised Increased Unemployment Benefits And A New Training Program -- June 11, 2017


Later, 7:03 p.m. Central Time: okay, maybe I was wrong. Even under Trump we will get training programs. Link here. If the link is broken: Pikeville, KY; small start-up company; Bit Source, Inc.; teaching laid-off coal miners (and others) software coding.
Original Post
I posted the link to this story as an update to an old "war-on-coal" post; I was not particularly interested in posting it as a stand-alone. Here's the link to the story: first new coal mine of Trump era opens in Pennsylvania. I had only read "above the fold."
President Trump lauded the opening of the nation's first new coal mine in recent memory.

Corsa Coal Company will operate the mine in Somerset County, Pa. - outside of Pittsburgh.

Corsa CEO George Dethlefsen said the mine will be a boon to the struggling local economy. He praised Trump's easing of regulations and encouragement for fossil fuel exploration.

[News reporter] said the news contrasts with Hillary Clinton's message that she would "put a lot of coal miners out of work."

Pennsylvania Gov. Tom Wolf (D), who endorsed Clinton, joined the mine company in watching a video message from Trump commemorating the occasion.
But the reason I posted the link is because a sharp-eyed reader noted a huge error in the linked article, below the fold, which I had not read (I probably would have missed it anyway). See if you can spot the error. 

Later, June 19, 2017: if you did not spot the error, this story provides a huge hint
He’s right about that. Just days after the event, progressives on Twitter slammed the mine, comparing the opening of an energy-supplying coal pit to the launching a VCR factory in the digital age. In their minds, it’s a waste of time.
And the response from the people of Acosta? Stop treating other Americans like the enemy.
They also point out that the criticism is wildly misinformed. The coal from this mine is not going to be used for energy — instead, it will be used for the production of steel for the next 15 years. (According to the World Steel Association, coal is used to make 70 percent of the steel today.)
Every single one of us relies on steel in our daily lives. It’s found in our cars, bikes and public transportation. Those wind turbines so loved by environmentalists? Made of steel. The utensils we use to eat? Steel. Medical devices used to save lives? Steel.

Clearing Off The Desk Top -- June 11, 2017

Wind gusts in North Dakota:

Volume of crude oil trading the day oil plummeted 5% most recently:

Sunday morning last month (I do not recall if this has been previously posted):

More Bad News For Saudi -- EOG's Monster Wells In The Permian -- Filloon -- June 11, 2017

Link here at SeekingAlpha:

  • EOG continues to outperform competitor's initial production rates, and this is seen in the Permian Basin
  • EOG's improvements continue as it shows other operators how to squeeze more oil per foot from the Delaware
  • EOG's results should be looked at as a futuristic indicator, as history has shown other operators will mimic design and also improve as it copies new well designs
  • Northern Loving and southern Lea counties look to be a new US core, as $50 or even $40 oil provide excellent economics
The lede:
  • Our overview of northern Loving and southern Lea counties has provided some clarity as to results in the Delaware Basin core. This could be the best area in the US, and there is still a significant inventory of locations to drill and complete. Results like these have provided oil bears with leverage of a lower for longer narrative. $50 WTI seems to provide exceptional economics here. It is likely results will get better, as shown by the most recent EOG wells. 
Other data points:
  • Many of these wells model to over 700 MBOE over 12 months
  • A large number of these locations have already produced over 500 MBO or model to it on a 12-month basis. 
  • The worst producing well could produce 200 MBO in 12 months. 
  • EOG had initially started focusing on better fracs close to the well bore. 
  • We also saw other operators mimic this type of design. 
  • Competitors moved from sliding sleeves to plug and perf. 
  • Plug and perf not only improved EOG's results, but other operators as well. 
It looks like these are $8+ million wells.

Several Wells Coming Off Confidential List Early In The Week -- June 11, 2017

Tuesday, June 13, 2017
  • 32210, 1,060, Oasis, Rolfson S 5198, 43-20 10T, Siverston, Three Forks 1st bench, 50 stages, 4.1 million lbs, t12/16; cum 105K 4/17;
I follow the Rolfson S wells here. See also this post with graphics.

Monday, June 12, 2017
  • 28728, see below, EOG, Parshall 28-2928H, Parshall, FracFocus, fracked 11/16; small frack, 4,392,665 million gallons of water; 14% sand by mass;
  • 29300, 804, EOG, Parshall 98-33H, Parshall, 21 stages; 6.1 million lbs, t12/16; cum 46K 4/17; (#17621 -- no jump in production; slight jump in production back in 5/15)
  • 31890, 2,275, HRC, Fort Berthold 152-94-22D-15-11H, Antelope, 4 sections, 33 stages; 9.9 million lbs, t12/16; cum 121K 4/17; (#20567 - no jump in production)
  • 31986, SI/NC, Petro-Hunt, Kostelnak 145-97-32D-29-5H, Little Knife, no production data,
Sunday, June 11, 2017
  • 25958, SI/NC, Statoil, Mark 4-9F-3H, Williston, no production data,
Saturday, June 10, 2017
  • 28726, 1,054, EOG, Parshall 29-2928H, Parshall, 31 stages, 6.5 million lbs, t12/16; cum 31K 4/17;
  • 28727, 374, EOG, Parshall 85-2928H, Parshall, 25 stages; 5.5 million lbs; t12/16; cum 37K 4/17; (#17933 -- jump in production; #17294 -- small jump in production 3/15, but not 12/16)

28727, see above, EOG, Parshall 85-2928H, Parshall:

DateOil RunsMCF Sold

28726, see above, EOG, Parshall 29-2928H, Parshall:

DateOil RunsMCF Sold

31890, see above, HRC, Fort Berthold 152-94-22D-15-11H, Antelope:

DateOil RunsMCF Sold

29300, see above, EOG, Parshall 98-33H, Parshall:

DateOil RunsMCF Sold

 28728, see above, EOG, Parshall 28-2928H, Parshall:

DateOil RunsMCF Sold

32210, see above, Oasis, Rolfson S 5198, 43-20 10T, Siverston:

DateOil RunsMCF Sold

New Nominee For The 2017 Geico Rock Award -- June 11, 2017

This was the original post (at this link):

It was brought to my attention that Clifford Kraus, NY Times, needs to be nominated for the 2017 Geico Rock Award for being unaware why gasoline prices are so low this summer. From the linked post above:
The writer actually wrote this:
But whatever lies behind the dividend at the pump, drivers are happy to have it.
"Whatever lies behind" low prices? Wow. Shallow reporting at the NY Times
Cliff will be added to the list of 2017 nominees. This, by the way, is probably the perfect example of what the "Geico Rock Award" is all about.

Lazy Days Of Summer

Road To California -- June 11, 2017

This is such an incredibly amazing story coming out of California regarding electricity, I'm just going to post the link; maybe come back to it later.

Here's the link: a Central Valley power plant may close as the state pushed new building at customers' expense.

This was absolutely predicted: we called it "the road to Germany."

This story, of course, naturally requires an update of Ivanpah. From Bloomberg. California now says Ivanpah meets "emissions standards" and can continue operating. If you read between the lines, it is easy to see that lawyers and regulators for both sides (the state vs Ivanpah) saw across the table, did some fancy calculations and projections, and came to some sort of agreement. It pretty much means this experiment is not likely to be tried again if Californians have any sense.

Breitbart has another view.
The California Air Resources Board’s most recent analysis reportedly found that during Ivanpah’s second year of operation, carbon emissions from gas, used to focus Ivanpah’s mirrors at night, jumped by 48.4 percent, to 68,676 metric tons.

The joint venture between BrightSource Energy, NRG, Google and Bechtel was approved by the Obama administration as its biggest alternative-energy project on public lands. The project also received $1.6 billion in taxpayer loan guarantees, and $600 million in federal tax credits, to reduce carbon emissions by 400,000 tons of carbon-dioxide emissions per year.

But carbon emissions data from the U.S. Energy Information Administration demonstrats that natural gas consumption at Ivanpah increased by about 7 percent in the first three quarters of 2016, compared to the prior year.

WSJ: Before "Repeal And Replace," Kentucky Is Already Dismantling ObamaCare -- June 11, 2017

From The Wall Street Journal:
As Congress works to repeal President Barack Obama’s signature health law, Kentucky Republican Gov. Matt Bevin is already at work unwinding some of its provisions in his state.
Mr. Bevin has dismantled the state’s health-insurance exchange, moving patients to the federal website last year. He has proposed introducing new conditions for recipients of Medicaid, the federal-state health program for the poor, that would require patients to pay premiums of up to $15 a month and perform employment-related or community-service activities, among other provisions.
His administration is waiting for the federal Centers for Medicare and Medicaid Services to decide whether to approve the plan. The agency’s new head, Seema Verma, helped craft Kentucky’s proposal, but said she would recuse herself from the decision-making process.
Better or worse, I've always maintained health care was better handled by the states than the federal government.

All politics is local. US Senate may be doing the right thing by being very careful in acting.

WSJ With Update On The Bakken -- June 11, 1027

This is the third such story I've seen in the couple of weeks; this one in The Wall Street Journal today:
Beyond the Bust: North Dakota drilling region rebounds in a sign the U.S. oil recovery is spreading.
Dateline, Watford City:
Radio stations here are again running ads from oil-field companies seeking drivers and mechanics. A store is serving up an alligator-and-crawfish lunch to welcome workers from the Gulf Coast. New rigs are rising across the sprawling prairie.

Drillers are inching back to action in North Dakota’s Bakken shale region, a sign the recovery of the American oil and gas sector is spreading beyond the Texas and Oklahoma fields, where production is cheaper because there is more oil that is easier to tap.

The revival after a nearly three-year bust is welcomed by local industry leaders, officials and merchants, who are grateful to see new signs of life in places such as Watford City, a community of about 6,400 people that was booming just a few years ago. The area is expected to get a boost from the June 1 start-up of the Dakota Access Pipeline, another conduit for oil out of the region. But some are concerned that too much too soon could send oil prices plunging once again.
Again, there is much focus on the number of rigs, but for me that only indicates "activity" and there is so much more to the story in 2017 than simply "rig counts."