Saturday, November 2, 2019

Another Old Bakken Well WIth Jump In Production -- November 2, 2019

Here is another example of jump in production in an old Bakken well. I was scanning the NDIC map, looking for a recently completed DUC. I found the DUC, a WPX Bison section line well. Just to the west of that horizontal, was another horizontal running in the opposite direction. I assumed it would be off line (while neighboring wells were being fracked) but I was pleasantly surprised.

From 1,600 bbls/month to 13,000 bbls/month -- an 8-fold jump in production.

The well:
  • 24163, 759, Enerplus, Cirrus 149-94-33D-28H, Eagle Nest, t4/13; cum 279K 9/19;
Recent oil production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN9-20192912689127231041919034124526483
BAKKEN8-2019317797732271871169650046599
BAKKEN7-201931144014151077216042066
BAKKEN6-2019239659767441447931289
BAKKEN5-2019311589173499723831330964
BAKKEN4-201930159517361135239311581148

Back of the envelope, a mom-and-pop mineral owner:
  • 1280-acre spacing
  • own 160 acres
  • 1/8 royalty (12.5%)
  • $40 oil
  • decimal unit works out to:
  • 160/1280 = 0.125
  • 1/8 royalty = 0.125
  • 0.125 x 0.125 = 0.015625
1,600 bbls x $40 x 0.015625 = $1,000 for that month for that one well, back in 4/19.

13,000 bbls x $40 x 0.015625 = $8,125 for that month for that one well, this past month, 9/19.

(There would be several wells on this drilling unit.)

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