Friday, June 28, 2019

Seventeen New Permits In North Dakota; WTI In Trading Range; Falls Short Of Hitting $60 -- June 28, 2019

Active rigs:
Active Rigs6166583075

Seventeen new permits:
  • Operators: Bruin (6); MRO (5); Kraken (3); Newfield (3)
    Fields: Reunion Bay (Mountrail); South Tobacco Garden (McKenzie); Burg (Williams); Four Bears (McKenzie)
  • Comments:
    • Bruin has permits for a 6-well Fort Berthold pad in lot 8 / section1-152-93; Four Bears oil field;
    • MRO has permits for a 3-well pad in section 28-151-93; and permits for a 2-well pad in section 8-151-93, Reunion Bay
    • Kraken Operating has permits for a red/white/blue, 3-well pad in Burg oil field
    • Newfield has permits for a 3-well Sturgeon pad in section 18-150-99; South Tobacco Garden
Change of operator:
  • from Thunderbird Resources to Prima Exploration
  • twelve permits
  • McKenzie, Stark, Billing counties
  • oldest permit: 21002
  • most recent permit: 25123
  • see Thunderbird Resources here; at that link, scroll down to GMX Resources

Notes From All Over -- Part 2 -- June 28, 2019

US crude oil imports from Saudi Arabia (link here):

Notes From All Over -- Part 1 -- June 28, 2019

I can't wait to see this. From oilprice, "oil rig count sees small rise ahead of OPEC meeting." And there it is. Total rig count ... OMG ...  unchanged. But that's only because oil rigs increased by four preventing an overall decrease. Natural gas rigs decrease by four. So, I guess the US oil companies got together and said, "Well, what should we do? It appears OPEC is going to have a meeting? Should we increase the number of rigs just to show OPEC we can do that? Sure, but we better drop the number of gas rigs to keep things in balance. Okay."

XOM getting out of deep water:
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EOG -- Case Study -- East Side Long Reach Wells -- June 28, 2019

The graphics and wells:


Area A:

The wells in graphic above:
  • 20037, 790, EOG, Liberty LR 17-11H, Parshall, t6/11; cum 345K 11/19; off line as of 6/19; remains off line 7/19; returning slowly to production, 8/19; full month, 11/19;

  • 20038, 625, EOG, Liberty LR 17-11H, Parshall, t4/12;  cum 261K 11/19; off line as of 6/19; remains off line 7/19; returning slowly to production 9/19;
  • 34361, drl--> conf, EOG, Liberty LR 49-1109H, Parshall, producing; a 28K month;
  • 33511, drl--> conf, , EOG, Liberty LR 50-1109H, Parshall, producing; 54K first full month;
  • 33432, drl-->conf, EOG, Liberty LR 43-1109H, Parshall, noted 9/19; producing; a 40K month;
  • 33433, conf, EOG, Liberty LR 42-1109H, Parshall, small production reported 9/19; a 38K month;
  • 23958, conf, EOG, Liberty LR 107-1109H, Parshall, see this post;
DateOil RunsMCF Sold
  • 33434, loc, EOG, Liberty LR 109-1109H, Parshall,


Area B:

The wells in graphic above:

  • 19231, 398, EOG, Liberty LR 13-14H, Parshall, t12/11; cum 337K 11/19; off line in 7/19; slowly returning to production, 7/19;
  • 19802, 1,215, EOG, Liberty LR 18-14H, Parshall, t10/11; cum 376K 11/19;
  • 33475, conf-->drl--> 1,513, EOG, Liberty LR 47-1416H, Parshall, t8/19; cum 99K 11/19;
  • 33474, conf-->drl--> 1,333, , EOG, Liberty LR 110-1416H, Parshall, t8/19; cum 87K 11/19;

Area C:

The wells in graphic above:
  • 19720, 510, EOG, Liberty LR 14-23H, Parshall, t4/11; cum 291K 11/19;
  • 19721, 1,063, EOG, Liberty LR 19-23H, Parshall, t3/11; cum 385K 11/19;
  • 30593, conf-->loc, EOG, Liberty LR 29-2321H, Parshall,
  • 30594, conf-->loc, EOG, Liberty LR 108-2321H, Parshall,
  • 30595, conf-->loc, EOG, Liberty LR 30-2321H, Parshall,
Area D:

The wells in graphic above:
  • 20255, 892, EOG, Liberty LR 15-26H, Parshall, t4/12; cum 369K 11/19;
  • 20254, 980, EOG, Liberty LR 20-26H, Parshall, t12/11; cum 346K 11/19;

Will WTI HIt $60 Today? -- June 28, 2019

US crude oil production: new all-time high -- 12.2 million bopd -- Rigzone/API. And note:
These milestones were achieved despite less drilling activity, which is testament to productivity but also pipeline infrastructure expansions that helped enable drilled but uncompleted wells to come to market,” the API report stated.
Subject du jour: crude oil inventories in the US; removing pipeline capacity as part of storage inventories; tank bottoms still included as part of US crude oil inventories. Buy-side analysts trying to suggest US crude oil inventories barely able to support US refiners' demand.

EIA chimes in:

Two wells come off confidential list today -- Friday, June 28, 2019: 79 for the month; 268 for the quarter;
  • 34955, 108, Petro Harvester Operating Company, PTL2 04-28 164-92 A, Portal, target: Madison, t3/19; cum 6K after 38 days; horizontal; TD = 15,354 feet;
  • 34400, SI/NC, WPX, Lion 18-19HY, Mandaree, no production data,
Active rigs:

Active Rigs5966583075

RBN Energy: Enbridge's mainline crude system advances toward a new era, part 4.
Enbridge’s long-running effort to revamp how it allocates space — and charges for service — on its 2.9-MMb/d Mainline crude oil pipeline system is about to enter a new and important phase. On July 15, the Calgary, AB-based midstream giant plans to initiate an open season for shippers interested in locking up long-term capacity on the Mainline, which serves as the primary conduit for heavy and light crude from Western Canada to U.S. crude hubs and refineries. If all goes well, shippers will know by late in the year how much space they will have on the system starting in mid-2021, assuming Enbridge’s plan is approved by regulators. This is a huge change. The Mainline isn’t just the largest crude pipeline system out of Western Canada, it’s also the only major line whose service is currently 100% “uncommitted” — that is, the Mainline has no capacity under long-term contracts with shippers. Today, we discuss the latest on the midstreamer’s Mainline tolling plan.
Enbridge’s multi-pipe Mainline system accounts for a staggering 70% of Western Canada’s total export-related pipeline capacity. The system’s parallel Lines 1, 2, 3, 4 and 67 transport crude from Edmonton and Hardisty, AB, to Clearbrook, MN, and Superior, WI. From there, other Mainline pipes move crude to Flanagan in north-central Illinois (Line 61), the Chicago area (Lines 6, 14 and 64), Michigan (Lines 5 and 78) and Ontario (Lines 5, 78, 7, 10 and 11). The Canadian side of the Mainline system is known (logically enough) as the Canadian Mainline), while the U.S. side is called the Lakehead Mainline (blue lines) because it runs near all five of the Great Lakes.