Saturday, August 11, 2018

The Waterton Wells In Keene Oil Field

These are the Waterton wells in Keene oil field:
  • 24343, 2,880, BR, Waterton 34-32TFH, Keene, Three Forks, t5/13; cum 275K 6/18;
  • 24342, 2,823, BR, Waterton 34-32MBH, Keene, middle Bakken; t5/13; cum 334K 6/18;
  • 24341, 2,803, BR, Waterton 44-32TFH, Keene, t5/13; cum 421K 6/18;
  • 23838, 2,334, BR, Waterton 21-29TFH, Keene, t5/13; cum 235K 6/18;
  • 23837, 2,444, BR, Waterton 11-29MBH, Keene, t4/13; cum 247K 6/18;
  • 23836, 2,984, BR, Waterton 11-29TFH, t4/13; cum 275K 6/18;
Neighboring horizontals:
  • 25892, 1,728, BR, Blue Ridge 41-30MBH ULW, t6/14; cum 299K 11/18; small bump;
  • 24342, 2,823, BR, Waterton 34-32MBH, t5/13; cum 344K 11/18;
  • 24343, 2,880, BR, Waterton 34-32TFH, t5/13; cum 284K 11/18;
  • 17970, 987, BR, Waterton 34-32H, t4/09; cum 2939K 11/18; nice bump 5/14; needs to be re-fracked;
The graphic:

The Art Page

Here's looking at you, kid.

 Olivia, 2017

Random Update Of Two Petro-Hunt Van Hise Trust Wells -- August 11, 2018

Van Hise Trust wells are tracked here (updated).

No data from FracFocus that this well has been re-fracked (previously posted). A reader confirms that this well has not bee re-fracked. The well:
  • 21716, 943, Petro-Hunt, Van Hise Trust 153-95-28C-21-2H, t12/12; cum 476K 6/18; neighbor well, #19845 is also interesting -- production posted down below)
Production data of interest - 21716:

At time of initial frack - 21716:

Now, the second well:
  • 19845,1,084, Petro-Hunt, Van Hise Trust 153-95-28C-21-1H, Charlson, t8/11; cum 515K 6/18;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare

Mountain Gap Postings

Postings by date:

CLR 2Q18 Highlights That Caught My Eye -- August 11, 2018

Link here.

Bakken 2.5
  • "step change" in well performance across the Bakken: # of wells that produced greater than 100,000 boe in 90 days:
    • first fifteen years (2000 - 2014): 12 wells/year
    • past three years (2015 - 1Q18): 157 wells/year
    • memo to self: note to Art Berman; Jane Nielsen 
    • in first fifteen years: CLR had one Bakken well in ND that produced 100,000 bbls in 90 days
    • last three years: CLR had more than 25 wells that produced 100,000 bbls in 90 days
From The CLR 2Q18 Presentation

  • "step change" in well performance across the Bakken: # of wells that produced greater than 100,000 boe in 90 days:
    • in first fifteen years: CLR had one Bakken well in ND that produced 100,000 bbls in 90 days; in addition, CLR had one Bakken in MT that produced 100,000 bbls in 90 days
    • last three years: CLR had more than 25 wells that produced 100,000 bbls in 90 days
  • Bakken type curve EUR increase; oil-weighted focus 
    • 1.2 million boe (2Q18) vs 1.1 million boe (1Q18)
    • budget breakeven at low 40s WTI
  • oil currently unhedged
  • says it has the highest "recycle ratio" among peer-- slide 5 -- see notes at end of this post below
  • record CLR Bakken 30-day rate: 3,104 boepd; Mountain Gap 7-10H
  • 35 Bakken wells deliver 2,282 boepd average 24-hour rate
    • 4 of CLR's top ten 30-day rate Bakken wells
      • $3.5 million incremental first-year cash flow per well
    • record production driven by 60-stage completions
  • DAPL's impact on CLR and the Bakken in general (and to think a few malcontents tried to shut it down)
  • free cash flow: almost $1 billion 
  • 2Q18 LOE per boe: $3.49
  • new subsidiary, joint venture with Franco-Nevada: minerals acquisition
  • production guidance, 2018 production: high side raised to 300,000 boepd; 24% y/y growth
  • production exit rate raise to 325,000 boepd on high side
  • capex increased from $2.3 billion to $2.7 billion ($400 million increase)
Regarding 60-stage completions:
  • CLR boasts 70 "60-stage" optimized completions
  • adds $500K cost per well
  • provides $350K incremental first-year cash flow per well
  • ROR doubled to 175% (~ 7-month payout)
EUR history:
  • 2011: 430 mboe
  • 2014: 980 mboe
  • 2015: 800 mboe
  • 2017: 980 mboe
  • 2018, 1Q: 1.1 million boe
  • 2018, 2Q: 1.2 million boe
  • CLR notes that the "rocks did not change"
Top 10 CLR-operated wells Bakken wells (those in bold red make the top 10 list for the entire Bakken -- all operators):
  • ROR
    • pre-tax rate of return (ROR) is based on projected cash flow and time value of money; costs include completed well cost, production expense, severance tax and variable operating costs.$3.00 Henry Hub is used for oil price sensitivities and $70 WTI is used for gas price sensitivities.
  • With regard to "recycle ratio":
    • definition here
    • peers: APC, CXO, DVN, EOG, NBL, NFX, OAS, PXD, WLL, WPX, XEC

Week 32: August 5, 2018 -- August 11, 2018

For the archives:
The Bakken

Geoff Simon's top North Dakota energy stories this week: link here.

EOG well, only five years old, goes over one million bbls
Another EOG well -- this one ten years old -- goes over one million bbls
CLR reports a huge Vardon well, 161K in four months; looks like it will be the first of many huge Vardon wells;
MRO continues to report incredible wells;
BR reporting some huge Midnight Run wells; and, here;
Newfield reporting huge Sorenson wells;
Fourteen DUCs reported as completed; some huge wells
Twenty-five permits renewed on one day; same day WTI plunges 4%
Whiting with permits for an 8-well pad in Tier 2

Early talk that DAPL could be expanded

Natural gas
Natural gas expansion project proposed for the Roosevelt Gas Plant near Watford City; would quadruple daily throughput; US natural gas production will rise to record highs in 2018;

Bakken economy
Parshall school district filling twelve teaching positions
Williston airport: taxiway contractor fired; missing deadlines; could impact opening day
Williston calls for bids on former Herman oil gas station; demolition to begin August 14, 2018
Pizza Hut celebrates ground breaking for new restaurant; to be opened before end of the year; new location not noted in press release
South Grand movie theater on Main Street, Williston, getting a makeover

The quality of recent Bakken wells is simply staggering. CLR has raised the bar: CLR is now targeting EURs of 1.2 million bbls for wells with optimized completions. See 2Q18 corporate presentation.

Top North Dakota Energy Stories -- Geoff Simon -- August 11, 2018

Refinery update: Meridian Energy has begun construction on the Davis Refinery near Belfield. No mention of the decision to build out the entire refinery instead of building it in phases. Will have capacity of 49,500 bbls/day. Keeping it below 50,000 bbls/day removes some regulatory hoops.

Belfield prepares for growth, now that folks see activity out at the construction site. As an aside it was noted that a recent Ukrainian Dance Festival was so successful the organizers have already booked Belfield for next year's event.

Boom redux? Williston's Economic Development Director says activity in western North Dakota "looks a little like it did at the height of the boom a few years ago. He needs to invite editors of The Atlantic Monthly to visit North Dakota.

Highway construction west of Minot near Burlington: construction of turn lanes, approaches, and a median cross over.