Random Look At A Re-Entry, Re-Fracked CLR Bridger Well -- March 7, 2018

This is (another) great example of Bakken 2.0 and how traditional methods of "evaluating" an unconventional play simply don't work. It's my contention that Wall Street analysts have not yet noted this. One can be sure that the Saudis understand this as do the Russians. 

I track the Bridger wells here, though that page has not been updated in a long time.

The well:

• 17089, 400, CLR, Bridger 44-14H, Rattlesnake Point, 33-025-00731, a very nice well; t4/08; cum 247K 1/18; 

Note the permit/file number -- #17089. This well was originally drilled back in 2008 -- before the Bakken boom hit its stride. This well was recently put back on the confidential list and today it comes off the confidential list.

As an aside, when I first started following the Bakken, I was told by a Bakken "expert" at another discussion group, that a North Dakota well could only be on the confidential list once. So much to learn. And I probably only know 1% of all there is to know.

So, what's going on? I don't know.

Let's explore together. As noted, the well has been producing since 2008. The first six months of production data:

BAKKEN	9-2008	23	3517	3107	1041	3092	3092	0
BAKKEN	8-2008	31	4164	4350	620	3418	3418	0
BAKKEN	7-2008	31	5446	5346	1191	4035	4035	0
BAKKEN	6-2008	30	4233	4102	668	3098	3098	0
BAKKEN	5-2008	31	7422	7454	1733	5364	5364	0
BAKKEN	4-2008	30	936	798	2061	0	0	0

Not very exciting, huh?

Now, look at this. Incredible, huh, for a re-entry, a re-fracked well?

17089:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2018	23	12507	12087	9752	13229	12402	827
BAKKEN	12-2017	17	8018	8624	6968	9880	9880	0
BAKKEN	11-2017	30	16622	16901	19907	19639	19639	0
BAKKEN	10-2017	31	22673	21904	16941	24616	22715	1901
BAKKEN	9-2017	27	18302	18465	15589	19122	16196	2926
BAKKEN	8-2017	31	27510	27488	27427	28501	21738	6763
BAKKEN	7-2017	5	2102	2047	837	1178	85	1093
BAKKEN	6-2017	1	519	230	1306	317	0	317
BAKKEN	5-2017	0	0	0	0	0	0	0
BAKKEN	4-2017	0	0	0	0	0	0	0
BAKKEN	3-2017	0	0	0	0	0	0	0
BAKKEN	2-2017	0	0	0	0	0	0	0
BAKKEN	1-2017	0	0	0	0	0	0	0
BAKKEN	12-2016	0	0	0	0	0	0	0
BAKKEN	11-2016	0	0	0	0	0	0	0
BAKKEN	10-2016	0	0	0	0	0	0	0
BAKKEN	9-2016	0	0	0	0	0	0	0
BAKKEN	8-2016	0	0	0	0	0	0	0
BAKKEN	7-2016	6	335	644	87	433	66	367

From the file report:

The newest data has not yet been scanned in by the NDIC. The cover page says the well is still confidential but I assume we will see the updated file in the next week or so.

The most recent geologist's report was received by the NDIC on October 3, 2016. It was spud September 17, 2016, and drilling ceased on September 19, 2016 or two days of drilling. From the file report:

• the Bridger 44-14H is a horizontal re-entry well targeting the middle Bakken porosity
• the rig started drilling ahead in the re-entry middle Bakken lateral at a MD of 20,845' on September 18th, 2016, at 9:44 p.m. CDT
• gas ranged from 1,400 to 2,100 units 

From an earlier sundry form:

• CLR planned to re-enter and deepen the existing lateral of the Bridger 44-14H; plans to extend the existing lateral by 336 feet to a TVD of 11,090 feet
• that was an open hole frack with slightly more than a million lbs of sand

The sister well on the same pad as #17089:

• 32740, 1,485, CLR, Bridger 10-14H2, Rattlesnake Point, 41 stages; 10.2 million lbs, t9/17; cum 137K 1/18;

The nearest well to the west of these two wells, on another pad, is:

• 31847, 1,515, CLR, Bridger 9-14H1, Rattlesnake Point, 40 stages; 15.1 million lbs, t8/17; cum 125K 1/18; 

One can assume the re-entered Bridger 44-14H was fracked with a similar amount of sand.

Note the production profile. If one simply looks at the "IP test date" and the current date, one misses much of the story. According to the "IP test date" this well has been producing for eight months. In fact, only five months suggest some level of "unconstrained production":

Monthly Production Data

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2018	31	22479	22592	29091	30923	22909	8014
BAKKEN	12-2017	31	25030	24856	42472	26335	25701	634
BAKKEN	11-2017	2	1350	1435	2851	1512	1444	68
BAKKEN	10-2017	28	18550	18609	23933	21854	18996	2858
BAKKEN	9-2017	30	22351	22386	34827	27299	20714	6585
BAKKEN	8-2017	31	33264	33134	51363	33145	24450	8695
BAKKEN	7-2017	5	1901	1846	5914	271	180	91
BAKKEN	6-2017	2	0	0	3148	0	0	0

Aha! It just dawned on me. There's another way to find frack data. Let's see if FracFocus has any new data.

Yup, there it is, fracked 4/28/17 - 5/19/17.

• water : 85% of total proppant by weight
• water: 10,332,000 gallons
• sand: 14.76% by weight
• a gallon of water weighs 8.345404 million pounds
• 10,332 million gallons of water weight 86.224714 million pounds
• 85% of what = 86.224714 million lbs
• 101.4408 million lbs total proppant (sand+water+all that other stuff)
• 14.76% of 101.4408 = 15 million lbs of sand 
• my numbers may be off a bit but the neighboring wells were fracked with 10 million lbs and 15 million lbs of sand

Comments:

• with the exception of sand, there was very little additional cost to re-frack this well; the frack spreads were already in the area
• in the process, CLR essentially got a new well
• CLR did not have to drill a new well: it did not have to build a new pad; it did not have to pay a bonus for a new lease; it did not have to wait for permits; minimal cost in re-evaluating the well; developing design plans, etc
• absolutely (well, almost absolutely) no risk of a dry hole (yes, a few re-entry wells are failures)
• a lot of the extra cost of the sand and re-frack was already "covered" by fracking neighboring wells (I won't go through the details)
• they simply drilled less than two more days, extending the horizontal in the process 
• the Bakken 10,000 to 20,000 wells that are candidates for re-works; mini-refracks; re-entry - extension; big re-fracks; etc; and, that's even before we get to tertiary production (EOR)
• and, yes, I'm inappropriately exuberant about the Bakken