The Million Dollar Way (The Bakken Oil Blog): 01/13/18

Saturday, January 13, 2018

A "Monster" Well Has Been Updated -- Whiting's Liffrig Well In The Sanish -- January 13, 2018

Link here. At the linked post, note the sharp increase in production. FracFocus has no data to suggest this well was re-fracked.

Monster wells are tracked here.

Random Note On Enbridge -- January 13, 2017

I've always been fascinated by Enbridge. I first became aware of Enbridge during the early days of the Bakken boom. Enbridge had a relatively small operation south of Williston but it was impressive, and it seemed to be among the first big players in the Bakken. Since then, that operation (as "measured" by the footprint) has steadily grown. So, it's been interesting to watch Enbridge in the Bakken.

Disclaimer: this is not an investment site. Do not make any investment, financial, travel, job, or relationship decisions based on anything you read here or think you may have read here. With regard to Enbridge, I've owned a small amount of shares over the years but have no plans to buy any more shares in Enbridge.

From Motley Fool, from a couple of days ago:

Last fall, Canadian pipeline giant Enbridge announced that it would increase its dividend 10% for 2018. That pushes the company's dividend-growth streak to an impressive 23 years, which is just two shy of the years necessary to become a Dividend Aristocrat.

Enbridge fully expects to lay claim to that title in 2020 since it also plans to increase its payout 10% in 2019 and 2020. Those future increases will push Enbridge's already impressive 4.7%-yielding dividend even higher.

Fueling Enbridge's fast-growing dividend are 22 billion Canadian dollars ($17.5 billion) of high-return expansion projects currently underway. The company expects recently completed expansions and those coming on line this year to increase its available cash flow from operations by about 15% in 2018.

That puts the pipeline giant on pace to grow cash flow by at least a 10% compound annual rate per share through 2020, providing it with the fuel to keep raising the dividend.

From an earlier post, December 27, 2017:

Enbridge: growth portfolio is underappreciated -- Morningstar.

Enbridge is positioned to benefit from growing oil sands supply dynamics with its Mainline system and regional oil sands pipelines. The regulated Mainline system generates attractive tolls and represents approximately 70% of Canada’s pipeline takeaway capacity. The system offers refinery access to various markets, adding to the network’s attractiveness.

While crude pipelines are Enbridge’s bread and butter, the company operates a diverse energy portfolio. Gas distribution operations benefit from regulated returns and provide the company with reliable cash flows. Enbridge also operates natural gas pipelines and processing assets that supplement its crude pipeline network. Future natural gas pipeline projects benefit from long-term contracts that are tied into emerging projects.

Recently, Enbridge finalized its acquisition of Spectra Energy. The deal positions Enbridge to diversify its operations toward natural gas. The company intends to increase its annual dividend and has maintained an average distributable cash coverage ratio of approximately 3 times over the past three years.

Overall, Enbridge is in a strong position to benefit from the growing oil sands supply, which we expect to outstrip pipeline takeaway capacity in the near term. We expect the Line 3 Replacement to help; we project it to be in service by the end of 2019 and fuel tremendous growth for the company. We believe the stock is undervalued based on the company’s vast growth portfolio, highlighted by the lucrative natural gas projects associated with the Spectra acquisition and the Line 3 Replacement.

Enbridge Energy Partners: 10% dividend just got safer -- Motley Fool.

Not only that, but management expects the payout to grow at around 3% per year through 2020. Investors were rightly shocked by the news, sending shares up by as much as 10%. Enbridge Energy Partners and its parent, Enbridge, Inc. (NYSE: ENB), have made multiple moves in recent years that would leave anyone's head spinning. But the ship seems to have been righted, and the stock's sky-high yield appears safe for the foreseeable future in light of the outlook's key details. In fact, for venturesome investors, EEP is a great high-yield stock to consider heading into the new year.

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

The BR Mathistad Wells In Croff Oil Field

Locator: 10010MATHISTAD.

Updates

September 4, 2024: compare today's map with the original map --

January 14, 2018: see first comment. A reader has really made some interesting observations, including a great link.

Just a couple notes of interest:

The lateral for the Mathistad 2-35H runs 50 feet above and parallel to the 1-35H. It was originally owned by Continental Resources and was an experimental well partially funded by the State of North Dakota to determine possible communication between nearby laterals most notably the 1-35H. The details are on the attached link:

https://www.rigzone.com/news/oil_gas/a/79041/Continental_Reports_Successful_TwoReservoir_Test_in_Bakken_Shale

Also, there looks to be room for another 4 well pad between the new and older wells?

And, then, of course, my reply: yes, there is more than enough room for another 4-well pad between the older well pads, and then, of course, vertically, additional benches in the Three Forks, possibly.

With regard to communication between formations, see this post: http://themilliondollarway.blogspot.com/2010/02/communication-between-formations.html, February 7, 2010.

Also, this post from May 4, 2011.

Also, a "fracturing question," March 3, 2011.

Original Post

Note production profile of two older Mathistad wells, scroll down to bottom of post.

The Mathistad wells:

16983, 15 (no typo), BR, Mathistad 1-35H, Croff, API: 33-053-02852, t6/08; cum 321K 11/19; was off line 6/19; returned to production, 9/19; cum 380K 6/24; off line;
18013, 842, BR, Mathistad 2-35H, Croff, API: 33-053-03011, t7/09; cum 281K 11/19; cum 337K 2/24; off line;
33144, 318, BR, Mathistad 22A MBH, Croff, 30 stages; 10.5 million lbs, t10/17; cum 476K 11/19; cum 766K 7/24;
33146, 273, BR, Mathistad 22B UTFH, Croff, 4 sections, Three Forks, 31 stages; 15 million lbs, t10/17; cum 493K 11/19; cum 702K 7/24;
33152, 414, BR, Mathistad 6-8-35 MBH, Croff, 29 stages; 10 million lbs large, t11/17; cum 562K 11/19; cum 791K 7/24;
33150, 655, BR, Mathistad 3NC-MTFH, Cross, 4 sections, Three Forks, 29 stages; 14.5 million lbs, t11/17; cum 466K 11/19; cum 633K 7/24; off line;
33155, 40, BR, Mathistad 7-8-24 MBH,t3/20; cum 381K 7/24;
37580, conf, BR, Mathistad 2A MTFH, no production data,
37578, conf, BR, Mathistad 2B MTFH, no production data,

The graphic:

Recent production for two older wells:
16983:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold
BAKKEN	11-2017	15	3277	3289	508	2839	2802
BAKKEN	10-2017	1	0	0	0	0	0
BAKKEN	9-2017	0	0	0	0	0	0
BAKKEN	8-2017	23	894	685	286	1558	1501
BAKKEN	7-2017	30	1136	1109	256	1977	1903
BAKKEN	6-2017	30	1156	1349	196	1928	1854
BAKKEN	5-2017	31	1132	905	228	2111	2034

18013:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold
BAKKEN	1-2018	11	1776	1638	336	1728	1701
BAKKEN	12-2017	27	5528	5169	958	5814	5747
BAKKEN	11-2017	15	3024	3084	621	2899	2862
BAKKEN	10-2017	0	0	0	0	0	0
BAKKEN	9-2017	0	0	0	0	0	0
BAKKEN	8-2017	11	411	597	44	847	822
BAKKEN	7-2017	31	1461	1350	213	2897	2820
BAKKEN	6-2017	30	1449	1597	141	2573	2499
BAKKEN	5-2017	31	1575	1586	165	2675	2598
BAKKEN	4-2017	28	1788	1576	170	2305	2235

16983:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2018	31	6003	5930	1024	6635	6558	0
BAKKEN	12-2017	31	6246	6280	1621	7012	6874	61
BAKKEN	11-2017	15	3277	3289	508	2839	2802	0
BAKKEN	10-2017	1	0	0	0	0	0	0
BAKKEN	9-2017	0	0	0	0	0	0	0
BAKKEN	8-2017	23	894	685	286	1558	1501	0
BAKKEN	7-2017	30	1136	1109	256	1977	1903	0
BAKKEN	6-2017	30	1156	1349	196	1928	1854	0

Week 2: January 7, 2018 -- January 13, 2018

Equity market surged this past week; WTI solidly above $64/bbl -- at least for a day or two.

The US is hit by a cold snap; natural gas drawdown sets record; record year for natural gas.

Operations
Active rigs up to 56 just as winter hits hard
An old Williston Airport well now flaring again
Old MRO well with jump in production
Old Slawson well with jump in production
CLR with a 25-million-lb frack
Bakken resurgence -- RBN Energy
Some suggest weather will hurt Bakken production
Hess reports five completed DUCs
WPX with a record-breaking Bakken well

Operators
New operator in the Bakken
New operator in the Bakken

CBR
Canadian CBR is booming

Other formations
Update on the Tyler

Bakken economy
Bakken truck traffic increases
ND farmers unhappy with tax bill; will get it changed
Mapping Williston's new airport

Bakken 101
Spot price of Bakken oil at Flint Hills Resources

Too Big To Fail -- January 13, 2018

Two links:

Vanguard, early 2017, reaches $4 trillion for the first time -- WSJ
Blackrock, early 2018, reaches new milestone, $6 trillion; up more than $1 trillion at end of 2016 -- WSJ

Blackrock:

net inflows for the year (2017) $367 billion; sets a new record
$1 billion of new client cash every day
passed $6 trillion in assets for the first time
up more than $1 trillion from the end of 2016
most new cash (67%) went to it iShares ETFs -- low-cost products tied to indexes
iShares finished 2017 with more assets than BlackRock's actively managed products for the first time
pace of new investor cash puts BlackRock in same league as rival Vanguard Group
Vanguard Group
$369.3 billion in new money last year (2017)
ended 2017 with $4.9 trillion
everyone else "fighting for scraps"
Vanguard and BlackRock together: $11.2 trillion -- higher than the GDP of China in 2016
BlackRock topped $5 trillion in assets at the end of 2016
BlackRock has a larger international business than Vanguard