WTI Holds Above $72; Active Rigs Back Up Go 66 -- September 25, 2018

Fed expected to raise rates tomorrow, Wednesday, September 26, 2018.

Crude oil inventories: weekly API numbers -- a build of 2.903 million bbls. I didn't see what analysts had forecast, so I'm not sure what this build means. Probably not much. There was concern that stocks at Cushing were dropping too far, too fast, but this would seem to allay that fear. A build of 3 million bbls is fairly significant but doesn't mean much until we see the EIA data tomorrow. [After hours, after the data was released, WTI fells 9 cents, trading just below $72.] [I now see that analysts expected to see a draw of 1.279 million bbls.]

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Back to the Bakken

Two producing wells (DUCs) reported as completed:

• 34055, 355, Rink 7-1-5UTFH, Pershing, a Three Forks toe down lateral, drilling unit -- 4 section stand-up; about 4 days to drill the lateral, center target was 38' into the Three Forks (TF silt target); depth severance was 72' below the top of the Three Forks; trip gas was higher than expected, peaking at 10,792 units; a 15' flare was maintained, t8/18; cum --;
• 34056, 320, Kermit 7-8-32UTFH, Pershing, drilling unit --  4 section standup, t8/18; cum --;

One error on the daily activity report: the NDIC reports that Oasis renewed and canceled the same permit, #29919, an OM Erickson permit in Williams County

Active rigs:

$72.29😃	9/25/2018	09/25/2017	09/25/2016	09/25/2015	09/25/2014
Active Rigs	66	58	33	71	192

Six new permits:

• Operator: Oasis
• Field: Banks (McKenzie)
• Comments: Oasis has permits for a 6-well Nikolai Federal pad in SESW 33-153-97; see graphic below

Other wells:

• 20266, 777, Oasis, Wold Federal 15-33H, Banks, t3/12; cum 128K 7/18; currently unremarkable; needs to be re-fracked; will neighboring wells make a difference?