Whiting's "Gen 5" Fracking -- March 23, 2019

Link here.

Generation 5.0 fracking:

The design oncentrates more of the stimulation near new infill wells, uses lower sand loading, more entry points and more diversion techniques for infill wells. The team is also trying to create a mix of far-reaching fractures and near-wellbore concentrations that feature higher sand loading, adequate entry points and diversion to ensure the entry points are connected.

Design:

A range of 635 lbs./ft of proppant to 900 lbs./ft of proppant are placed on stage spacing at a range of 220 feet to 280 feet. Per foot, 15 barrels to 25 barrels of fluid is used. All wells are fracked with a cemented liner using plug-n-perf technology along with diversion technology.

Guidance:

Whiting expects to grow production by roughly 11 percent and spend $820 million, all of it in the Bakken. Each quarter, Whiting will drill more than 30 wells. The company will complete 30 wells in Q1, 52 wells in Q2, 43 wells in Q3 and 29 wells in Q4.

Although Whiting will only bring on 12 wells to production in Q1, it will ramp up in Q2 by bringing 58 wells onto production, followed by 45 and 31 wells onto production in Q3 then Q4.

The North Williston Team will get $216 million to drill and complete wells in the Cassandra and Wildrose areas. The East Williston Team will receive $180 million to drill 60 wells, complete 40 wells and put 37 wells on production. Some of the wells will be Three Forks infill wells. The South Williston team will use $266 million to focus on drilling 53 wells and completing 57 wells.

This surprised me:

• At $55 NYMEX oil prices, Whiting will grow free cash flow.

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Bakken University

Week 12: March 17, 2019 -- March 23, 2019

National:

• WTI breaks through $60, briefly.  
• Exxon looks to produce Permian oil for $15/bbl

Top non-energy story of the week: NDSU did well against Duke in first round, March Madness

Geoff Simon's top ND energy stories this past week:

• Legacy Fund extension; Legacy Fund looking healthy; currently at almost $6 billion;
• infrastructure bill signed;
• Sunday morning ban on shopping likely to end with governor's signature
• Tribes to get more oil money; split with state was 50-50; will now go to 80 (tribal) - 20 (state)
• State won't eliminate the state income tax (at least for now)
• Williston airport on schedule to meet October 2019 in-service date
• seasonal load restrictions starting
• Whiting reveals impact of Generation 5 frack designs for the Bakken; link here; and, here;

Operations
Enerplus plans a 9-well "Metamorphic Rock" pad;
CLR reports a huge Weydahl well;

Fracking
QEP re-fracks the Paul wells;

Bakken economy
Legacy Fund deposits recover in most recent month;
The Bakken is back! Williston's airline boardings up significantly;

Time Goes By Fast When One Is Having Fun -- March 23, 2019

From Geoff Simon's top ND energy stories this week:

A North Dakota Senate committee is considering a resolution that would ask voters to approve a constitutional amendment that would automatically reinvest all earnings from the state’s Legacy Fund.

The fund was established by voters in 2010 and receives 30 percent of extraction and production taxes on oil and gas produced in North Dakota. Its current balance is approaching $6 billion. Earnings from the fund were required to be reinvested for the first seven years of its existence, but are now transferred to the state general fund. HCR 3055 would ask voters to change that so earnings would once again be reinvested, and could only be spent with a two-thirds vote of the legislature.

The resolution was introduced by Rep. Corey Mock, D-Grand Forks, who told the Senate Finance and Taxation Committee this week if all earnings are spent over the next 40 years, the fund balance would be about $34 billion. But noting the power of compound interest, Mock said if all earnings were reinvested for the next 40 years, the Legacy Fund would grow to $143 billion.

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