Saturday, September 8, 2018

ONEOK North Dakota Update -- September 8, 2018 -- Might ONEOK Have The Largest Natural Gas Processing Plant In North Dakota?

See this ONEOK post for background, back in February, 2018.

I can't recall if I posted this story, but it's starting to get some national attention. From The Williston Herald, March 2, 2018: suspended plant out of mothboalls -- ONEOK's Demicks Lake "large" gas processing plant is back on the table. Data points:
  • project suspended when oil prices collapsed -- that was back in 2015
  • since then, huge flaring problem in the Bakken
  • the "new" plant will be located in McKenzie County near Fort Berthold
  • this area has the highest amount of flaring in the state
    • as much as 30% of gas produced in Fort Berthold was flared in 2017; back to 20% now
  • statewide: 13 percent of production flared; 284 million cubic feet (50K boe) flared in December, 2017
  • the new plant raises total gas processing in the state to exceed that produced but due to regional differences, flaring won't end statewide
  • footprint: 160 acres; 13 miles northeast of Watford City
  • 400 million cubic feet/day; two separate cryogenic turboexpanders units ("trains")
  • original (2015) cost estimate: $321 million; now $400 million
  • in service by 4Q19
North Dakota natural gas processing plants are tracked here.

But note this: the link above still shows the Demicks Lake plant with a capacity of 200 mcfpd, whereas the linked story above says the plant is likely to go to 400 mcfpd.

Oasis has bragging rights with the largest natural gas processing plant (Wild Basin) at 345 mcfpd, but ONEOK could claim the title if it goes to 400 mcfpd.

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Meanwhile, Kinder Morgan ...

This story was posted earlier, but for those who missed it the first time, from August 8, 2018, The Bismarck Tribune:
  • to expand the Roosevelt Gas Plant in McKenzie County by 150 million cubic feet per day
  • increasing the capacity to process up to 200 million cubic feet per day
Besides the obvious -- more natural gas processing capacity -- but more importantly, it needs drillers can increased oil production.

For newbies, crude oil production in North Dakota is constrained by:
  • the price of oil; demand for light oil
  • takeaway capacity (not much of an issue now that the DAPL is flowing)
  • flaring (a big issue)
  • workforce: competition with the Permian
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Highway Change

When biking along a busy highway, I generally won't stop to pick up a single penny, but occasionally I hit the "mother lode."

The other day, on the frontage road along the highway this treasure trove.


The ratio was very unusual. Generally I don't find nickels. The ratio is usually about 25 pennies to every two dimes and to every one quarter. But seldom any nickels. But look at all those nickels on the left. No quarters.

Down the road a bit further, same day, same ride:


The mix was a bit more typical, although the two nickels were still surprising. Four quarters (on the right), two dimes, only five pennies; an unusual mix.

Great Scott! An Error On A Permit? -- September 8, 2018

It's unusual to find an error on a permit, so it's possible I'm misreading something, either on the permit or the NDIC map.  But this is what I'm seeing:

First, a screenshot of the permit:



Now, a screenshot of the map:


The wells:
  • 17437, 583, Lime Rock Resources, Scott 34-7H, Murphy Creek, t8/09; cum 183K 7/18; offline while neighboring well being drilled / fracked?
  • 35029, drl, Lime Rock Resources, Scott 3-7-6H-143-95, Murphy Creek, 
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Banking

Saturday, Labor Day weekend, I had to stop by the bank. Sophia was with me.

I knew the line would be long, so I made sure Sophia brought her own work along to keep her busy.

Wow, she's good. The wait was not that long, but she immediately got out her dry-erase sharpies and went to work.


Rig On Site Northeast Of The Bakken -- Target: The Madison -- September 8, 2018

The wells:
  • 35102, conf, Resonance Exploration, Resonance Lodoen 4-6H North, Sergis oil field; 
  • 35174, conf, Resonance Exploration, Resonance Lodoen 4-6H South, Sergis oil field;
By the way, note this well, about a mile to the northwest:

  • 10352, Resonance Exploration, Resonance Lodoen 1
  • Madison: 1/5/1984: dry; TD = 3,446 feet, a wildcat;
  • Madison: loc, 10/2/2017, drilling unit of 80 acres; permit dated 10/1/2017; "a planned vertical Midale re-entry completion," 

The graphic:


Permit Renewed For Another Year -- Now, Rig-On-Site; Two Three Forks/Pronghorn Wells On The Fringe -- September 8, 2018

Fortunate to have captured these two wells before they go confidential:
  • 28009, rig on site / drl, NP Resources, Roosevelt 23-29-1PH, Roosevelt, will cross a Whiting Birdbear well; 1280-acre spacing, Three Forks B1 (Pronghorn sands)
  • 28010, permit renewed / loc, NP Resources, Roosevelt 23-29-2PH,
In the southwest corner of the Bakken, both are Three Forks first bench well (Pronghorn):


Very few wells in the immediate area; one would almost think of these as wildcats. They are not wildcats because, technically, we know the Pronghorn/Three Forks is here.
  • 9534, sited 900 feet to the northeast of the two wells noted above; Whiting, COGC/Canterra 29-142-102 BN 1H, Roosevelt;
  • Three Forks, 52, t2/83; cum 2K -- PNA in 1984;
  • Birdbear, 500, t8/05; cum 178K 7/18; still producing about 500 bbls/month;
  • 16225, short lateral, 131, Foundation Energy, Kukowski 44-28H, Roosevelt, t1/07; cum 80K 7/18; a Birdbear (Nisku) well;
  • 16188, an interesting dual lateral; one lateral running to the northeast, ending section 20-142-102; the other lateral running to the southwest, ending in section 30-142-102; 242, Foundation Energy, Federal 41-30, Roosevelt, t6/07; cum 84K 7/18; a Birdbear (Nisku) well; 

Another EOG Well Hits The One-Million-Bbl Threshold On July 4, 2018 -- Keeping North Dakota Great!

Wow, I just posted another EOG well that just hit the one-million-bbl mark. Now, another one. Wow.

The well:
  • 25374, 1,414, EOG, Austin 39-3204H, Parshall, 60 stages, 14.6 million lbs, 1920 acres, t9/13; cum 1,004,672 bbls/ 7/18; according to FracFocus, fracked from 7/6/2013 to 8/8/2013
Data points:
  • 1,004,672 bbls at the end of July, 2018
    • produced 5,438 bbls in July = 175 bbls/day
    • 1,004,672-5,438 = 999,234 bbls at the end of June
    • 1,000,000 - 999,234 = 766 bbls / 175 bopd = 4 days
  • this well went over the one-million-bbl mark on July 4, 2018
  • it was drilled back in summer of 2013
  • a five-year well goes over the one-million-bbl mark on July 4, 2018 -- and no headline in the Williston Herald!?? -- keeping North Dakota great!
  • oh, by the way -- on a pump? NOPE! This well is still flowing on its own
  • according to an EOG sundry form, this well was fracked with 60 stages, 14.6 million lbs, tested August 7, 2013; took 16 days to drill; TD = 22,349 feet; vertical depth = 9,628 feet;
  • going down two miles deep, the geologist noted that the casing point was 1.28 feet = 15.36 inches BELOW the top of the middle Bakken dolomite; I can't even measure the size of my desk that accurately;
There is only one other actively producing well in this section:
  • 17122, 581, EOG, Austin 23-32H, Parshall, t8/09; cum 657K 7/18; 
Other permitted locations in this section, note the chronologic numbers:
  • 26516, loc, EOG, Austin 40-3204H, Parshall,
  • 26514, loc, EOG, Austin 41-3204H, Parshall,
  • 32261, loc, EOG, Austin 97-3204H, Parshall,
  • 32262, loc, EOG, Austin 98-3204H, Parshall,
  • 32263, loc, EOG, Austin 99-3204H, Parshall,

Something Happening With CLR's Whitman Wells In Oakdale 34-147-96? -- Setpember 8, 2018

I first noted that the spectacular Whitman well in this section was taken off-line a few months ago.

Looking at the other wells in this section, note production profile re: #17061. FracFocus does not have any data for a recent re-frack:
  • 17061, 664, CLR, Whitman 11-34H, Oakdale, t6/08; cum 450K 7/18:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN7-20183122292230142291424950
BAKKEN6-201830223725091482785235228
BAKKEN5-201831237822201542695239454
BAKKEN4-20183023712166160272424840
BAKKEN3-201831244023871522619234230
BAKKEN2-20182822942581111225120270
BAKKEN1-201864960403513030
BAKKEN12-2017100011110
BAKKEN11-2017200022220
BAKKEN10-20170000000
BAKKEN9-20177420545306696130
BAKKEN8-20173119722157114305428060
BAKKEN7-2017311982181111529142448218
BAKKEN6-20173018832080108273324930
BAKKEN5-20173120011938112296827200
BAKKEN4-20173019901910117293526950
BAKKEN3-20173120301960115292526780

Other wells in this section:
  • 20212, 482, CLR, Whitman 3-34H, Oakdale, t9/11; cum 181K 7/18; aha! -- re-fracked 9-10/2017! 9.8 million gallons of water; 84% water; 14% sand by weight;
BAKKEN2-20182553105088595444542610
BAKKEN1-201831105131072518698937864150
BAKKEN12-2017312190321790484124087238390
BAKKEN11-201730194521980953791966718479968
BAKKEN10-201721121501140168471354971916268
BAKKEN9-20170000000
BAKKEN8-20170000000
BAKKEN7-20170000000
BAKKEN6-20170000000
BAKKEN5-20171002000
BAKKEN4-20175380363981151140
BAKKEN3-201761573200108990
BAKKEN2-2017416217001740158
 
  • 20211, sited in this section but runs north,
  • 20210, 803, CLR, Whitman 2-34H, Oakdale, t9/11; cum 159K 7/18; still off-line; FracFocus does not show this well to be re-fracked;
  • 20208, sited in this section but runs north,

EOG's Short-Lateral Austin 10-34H, #17120, Went Over One Million Bbls On July 7, 2018

See this post also

The well:
  • 17120, 2,051, EOG, Austin 10-34H, Parshall, t8/08; cum 1,037,422 bbls 8/19;
See full production profile at this post. Some data points:
  • drilled back in 2008
  • a short lateral
  • still producing at a very, very respectable 3,500 bbls/month
  • small bump in production in 7/16
  • produced 3,453 bbls in July, 2018
    • 1,002,679 - 3,453 = 999,226 at the end of June, 2018
    • 1,000,000 - 999,236 =764 /111 bopd =  7 days 
  • #17120 hit 1 million bbls cumulative on July 7, 2018
  • drilled/tested 8/18: almost exactly ten years old
  • will produce for another 25 years
See graphic at this post, November 3, 2016 (I've been tracking this well for at least the past two years -- LOL)

Other wells in this section, note the chronological numbers of these wells:
  • 31666, 887, EOG, Austin 433-3402H, Parshall, 43 stages; 17.4 million lbs, t7/16; cum 442K 8/19; will be another monster well;
  • 31667, 418, EOG, Austin 434-3402H, Parshall, 51 stages; 25.1 million lbs, 7 days to drill; TD = 22,232 feet, middle Bakken, in-zone, 98.9%; low gas units; gas buster not used, t7/16; cum 233K 8/19;
  • 31668, 823, EOG, Austin 435-3402H, Parshall, t7/16; cum 205K 8/19;
  • 31350, 1,176, EOG, Austin 53-3402H, Parshall, t7/16; cum 330K 8/19; will be another monster well;
  • 31351, 1,241, EOG, Austin 54-3420H, Parshall, t7/16; cum 265K 8/19;