Bad Day For WTI -- Down 5% -- Five New Permits -- July 2, 2019

API:

• weekly crude oil draw: 5 million bbls
• forecast: 2.5 million bbls

WTI: drops almost 5% today; down almost $3/bbl. Closes near $56/bbl. Despite the "healthy" draw (API data above), WTI continued to fall.

Active rigs:

$56.27	7/2/2019	07/02/2018	07/02/2017	07/02/2016	07/02/2015
Active Rigs	60	67	58	30	75

Five new permits:

• Operators: Hess (4); Slawson
• Fields: Tioga (Mountrail County): Big Bend (Mountrail County)
• Comments:
• Hess has permits for a 4-well TI-Ives pad in section 6-157-94, Tioga oil field
• Slawson has a single permit for a Hunter well in section 17-151-92, Big Bend oil field

Re-entry permit (see below):

• 16654, 311, MRO, Buehner 34-12H, Bailey, t8/07; cum 191K 5/19; off line since 12/18; back on line 5/19 for nine days, small production;

Ten permits renewed:

• XTO (5): five Johnson Trust permits in McKenzie County
• CLR (5): three Morris permits and two Carson Peak permits, all in Dunn County

Three permits canceled:

• Oasis: a Merritt permit in Mountrail County
• XTO: a Zane Federal permit in McKenzie County
• Whiting: a Stenehjem Federal permit in McKenzie County

Five producing wells (DUCs) reported as completed:

• 35804, 1,738, Whiting, Link 24-12-3H, Foreman Butte, t6/19; cum --;
• 35805, 2,084, Whiting, Link 24-12HU, Foreman Butte, t6/19; cum --;
• 28956, 3,577, Hess, EN-Jeffrey-155-94-2215H-9, Alkali Creek, t5/19; cum 32K over 17 days;
• 28955, 2,074, Hess, EN-Jeffrey-155-94-2215H-8, Alkali Creek, t5/19; cum 11K over 12 days;
• 28954, 2,924, Hess, EN-Jeffrey-155-94-2215H-7, Alkali Creek, t5/19; cum 11K over 9 days;

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Re-Entry (see above)

From the sundry form for work to be performed on/about August 1, 2019:

MRO is planning to sidetrack and refrack [note the spelling] this well. Originally an open hole completion in 2007 and drilled in northwesterly direction across DSU, with toe setbacks that were 500' FNL of section 1. This well had an original TD depth of 19,917' MD and TD'd at approximately 606' FNL 674" FWL of section 1. 

MRO plans to put a drilling rig on this well, and sidetrack at a tie-in survey of 11,848' MD and straighten lateral to north and extend the lateral to a PBHL (projected bottom hole location) of approximately 19,993' MD (approximately 175' FNL and 2250' FEL of seciton 1). [Note: the bottom hole will be 431 feet closer to the north line.]

MRO will then run a cemented liner for a 40-stage plug and perf style completion, completing the well when three additional infill wells from the same pad are drilled and completed. 

These wells are scheduled to be drilled in August and completed in October, 2019.

It should be noted that another Buehner well just to the east of this well, #16993, Buehner 44-12H, is now off line (as of 5/19).

• 16993, 125, MRO, Buehner 44-12H, Bailey, t10/08; cum 226K 5/19; this well had a substantial jump in production 6/18 following completion of wells in the drilling unit to the east