Saturday, August 10, 2019

Pumped -- The Long Creek Unit (LCU) -- CLR

The Wells

Last updated March 14, 2020 (about 46 permits, so far):
  • 37015, conf, LCU, Reckitt Federal 2-27H, 
  • 37014, conf, LCU Reckitt Federal 3-27H1
  • 37013, conf, LCU Reckitt Federal 4-27H, 
  • 37012, conf, LCU Reckitt Federal 5-27H1
  • 37011, conf, LCU Foster Federal 12-29HSL1
  • 37010, conf, LCU Reckitt Federal 2-22H, 
  • 37009, conf, LCU Reckitt Federal 3-22H1,
  • 37008, conf, LCU Reckitt Federal 4-22H, 
  • 37002, conf, LCU Reckitt Federal 5-22H1,
  • 37001, conf, LCU Reckitt Federal 6-22H,
  • 37000, conf, LCU Reckitt Federal 7-22H1,
  • 36999, conf, LCU Reckitt Federal 8-22H,
  • 36998, conf, LCU Ralph Federal 6-27H,
  • 36997, conf, LCU Ralph Federal 7-27H1,
  • 36996, conf, LCU Ralph Federal 8-27H,
  • 36995, conf, LCU Ralph Federal 9-27H1,
  • 36986, conf, LCU Truman Federal 2-23HSL, 
  • 36985, conf, LCU Truman Federal 3-23H1,
  • 36984, conf, LCU Truman Federal 4-23H,
  • 36983, conf, LCU Truman Federal 5-23H1,
  • 36982, conf, LCU Truman Federal 6-23H1,
  • 36981, conf, LCU Truman Federal 7-23H,
  • 36980, conf, LCU Truman Federal 8-23H1,
  • 36960, drl, LCU Reckitt Federal 9-22H1, drl status noted 2/27/20;
  • 36959, drl, LCU Reckitt Federal 10-22H1, drl status noted 2/26/20;
  • 36958, drl, LCU Reckitt Federal 11-22H, drl status noted 2/24/20;
  • 36957, drl, LCU Reckitt Federal 12-22H1, drl status noted 2/22/20;
  • 36956, drl, LCU Ralph 10-27H1, drl status noted 2/20/20;
  • 36955, drl, LCU Ralph 11-27H, drl status noted 2/19/20;
  • 36954, drl, LCU Ralph 12-27H1, drl status noted 2/16/20;
  • 36751, PNC, LCU Jessie 2ND /LCU Jessie 2-24H1,
  • 36752, PNC, LCU Jessie 3ND/LCU Jessie 3-24H,
  • 36753, PNC, LCU Jessie 4ND/LCU Jessie 4-24H1,
  • 36760, drl, LCU Jessie 5-24H, the first well of this group to  have been spud; drilling began on/about August 27, 2019; SWSE 13-153-99; 850 FSL 2008 FEL; rig remains on site, according to NDIC map, November 6, 2019;
  • 36761, drl, LCU Jessie 6-24H1, drl status noted 9/13/19;
  • 36762, drl, LCU Jessie 7-24H, the second well of this group to have been spud; noted September 4, 2019;
  • 36763, drl, LCU Jessie 8-24H1, the third well of this group to have been spud; noted September 4, 2019;
  • 36764, drl, LCU Jessie 9-24H1, drl status noted 9/13/19;
  • 36765, drl, LCU Jessie 10-24H, drl status noted 9/13/19;
  • 36766, drl, LCU Jessie 11-24H1, drl status noted 9/13/19;
  • 36767, drl, LCU Jessie 12-24H, drl status noted 9/13/19;
  • 36865, drl, LCU Truman 9-23H, drl status noted 11/5/19;
  • 36866, drl, LCU Truman 10-23H1, drl status noted 11/6/19;
  • 36867, drl, LCU Truman 11-23H, drl status noted 11/9/19;
  • 36868, drl, LCU Truman 12-23H1, drl status noted 11/11/19; 6398-acre drilling unit (10 sections);
  • 36869, drl, LCU Truman 13-23HSL, drl status noted 11/12/19; 6398-acre drilling unit (10 sections);
  • 36942, loc-->conf, LCU Jessie 2-24H1, drl status noted 4/4/20;
  • 36943, loc-->conf, LCU Jessie 3-24H, drl status noted 4/4/20;
  • 36944, loc-->conf, LCU Jessie 4-24H1, drl status noted 4/4/20;
  • 90450, drl, LCU Jessie SWD; drl status noted August 29, 2019; obviously started somewhat earlier; 
Updates

April 25, 2020: unless I'm missing it, I don't see the one active rig in the Long Creek Unit any more. There was still work to be done, but this past week, CLR announced it was shutting down production in the Bakken due to prices for WTI going negative.

April 14, 2020: graphic update --


April 4, 2020: graphic update --


March 14, 2020: all wells are now on drl status or conf status; no more wells on loc status;

February 15, 2020: the Long Creek Unit as of this date; note three rigs in the unit:



January 26, 2020: the Long Creek Unit as of this date; note two rigs in the unit:

January 8, 2020: the Long Creek Unit as of this date; note two rigs in the unit:



December 24 2019: the Long Creek Unit as of this date:


December 5, 2019: again, I see only one rig on the NDIC map. There has been no change in the status of any of the wells noted above since the last update.

November 28, 2019: there may have simply been a delay in the graphic ten days ago; tonight there is only one rig in this unit. Again, the original plan was to have two rigs drilling out this 60-well project.

November 19, 2019: the original plan was to drill out this 60-well unit with two rigs. Today,I noted that there are two active rigs operating in this unit.


November 6, 2019: one rig operating in the unit today; at site/permit #36760:


October 29, 2019: one small area -- look at the number of sites in this area (compare to an earlier map down below):


September 13, 2019: seven new LCU wells, #36954 - #36960; LCU Ralph / LCU Reckitt Federal, added; three wells go from loc to conf; several wells go go drl status; eight LCU wells now on drl status;

September 4, 2019: Note, of interest, CLR has renamed three LCU Jessie wells --
  • 36751, loc, CLR, Jessie 2ND (was LCU Jessie 2-24H1),
  • 36752, loc, CLR, Jessie 3ND (was LCU Jessie 3-24H),
  • 36753, loc, CLR, Jessie 4ND (was LCU Jessie 4-24H1),

August 12, 2019: natural gas processing plant? Plastics plant?

August 12, 2019: already eleven new locations for the Long Creek Unit have been identified. New map here; sections identified with a "star." New locations annotated on the map.

 
 Original Post
Originally Posted August 10, 2019

See also this note from July 19, 2019, which appears to be the first time I wrote about this pad. 

It's really interesting how things turn out. I'm not going to "divulge" how I first saw this, but it's quite a story. Most of the time, my "big" stories originate with links sent to me by readers. This one I found on my own, but I had to connect several dots. The Williston Herald reported the story 37 minutes ago (Saturday, August 10, 2019, 8:47 a.m.); I first noted something was going on August 8, 2019, but didn't note the impact until August 9, 2019. I'm pretty "pumped" (pun intended). LOL.

This is a huge story on so many levels.

Background from NGI (paywall):
Oklahoma City-based Continental Resources Inc. has announced new details for its Long Creek Bakken Unit development project, which includes a production start date in the third quarter of 2020.
Background from The Williston Herald (archived):
Continental will continue to capitalize on its favorable margins in the Bakken with a new, high-impact oil project in Williams County, Stark added.
The 10-square-mile Long Creek Bakken Unit is in Williams County. Lessons learned in the company’s Springboard project in Oklahoma, where larger pads are allowing cost reductions of 10 to 15 percent, will be applied to the Bakken project.
Continental will operate two rigs in the Long Creek unit, adding 56 new wells to the existing five parent wells. That new production is expected to begin in the third quarter of 2020, and peak in the second half of 2021.
Long Creek is ultimately expected to add up to 20,000 net barrels of oil per day to production, which will be gathered and distributed by pipelines to centralized facilities.
Monthly production: 600,000 bbls. 

For newbies:
  • the standard drilling unit in the Bakken is now 1280-acres (two 640-acre sections)
  • a single 640-acre section is one mile square
  • a 10-mile square project would likely be a 5 x 2 (5 miles by 2 miles)
  • that would be five stand-up 1280-acre drilling units
  • that all computes; the article said there were five parent wells; most operators put in one parent well in each 1280-drilling unit in the Bakken during the boom to hold the "lease by production"
  • 56/5 = 10
  • in drilling unit C at this link: it looks like sixteen wells are going in where there are two parent wells;
Related blogs:
Snarky comment: Years ago, QEP sought to unitize its phenomenal Helis Grail field. Professional analysts and advisors, notably ********** (bank/brokerage) according to readers (I can't verify that) recommended voting against unitizing that field. QEP failed in their attempt. It was very clear to me, and I said this as clearly as I could on the blog at the time, that this was a huge mistake; unitizing was the best way to go. So, CLR continues to be the "face" of the Bakken. Whether it succeeds or not is a story that will be told later. But QEP will remain a footnote in the Bakken, albeit a major footnote due to the Helis Grail.

*****************************************
Long Creek Unit

From this post.

Long Creek Bakken Unit -- slide #12 at the presentation --

  • 10 square miles
  • 6,400 gross acres; 5,600 net acres
  • five 1280-acre stand-up drilling units 
  • 56 wells, 2 rigs
  • first production: 3Q20
  • drilling to begin 4Q19
  • 87% average working interest
  • all products to be on pipe
  • row development
  • installation of facilities already underway
***********************************
Observations -- Long Creek Unit
CLR's graphic of the Long Creek Unit:



Screenshot of NDIC map, Long Creek:

CLR's graphic:
  • 1-2-1-1
  • four drilling units, west to east
NDIC graphic, Long Creek field:
  • only three drilling units, west to east
  • so it looks like one unit is either in Crazy Man Creek (to the west) or the Truax (to the east) 
  • we already know sections 22/27 make up one of the five drilling units
From a CLR document:
  • Location: T153N-R99W, sections 15, 22, 23, 24, 25, 26, 27, 28, 33, and 34. 
***************************************
The Graphics

September 21, 2019


2 comments:

  1. Agreed, will be interesting to see how it goes. Won't be until well into 2020 that we see the production. It's mostly a cost reduction thing though. Good idea. Probably also building a capability in this sort of project.

    ReplyDelete
    Replies
    1. You are quite correct: if there was a global shortage of oil and oil was selling for $150/bbl, CLR would be adding rigs.

      Delete