Henry Bad Gun Goes Over 500K Bbls Crude Oil; Small Frack; Seven New Permits -- February 7, 2020

Active rigs:

$50.34	2/7/2020	02/07/2019	02/07/2018	02/07/2017	02/07/2016
Active Rigs	54	63	58	40	42

Seven new permits, #37366 - #37372, inclusive:

• Operators: Petro-Hunt (6); Enerplus
• Fields: East Tioga (Burke County); Moccasin Creek (Dunn County)
• Comments:
• Petro-Hunt has permits for a 6-well Jorgenson/Estby pad in SWSW section 35-159-94, East Tioga oil field;  
• Enerplus has a permit for an Amphibolite well in NENE section 17-147-93; Moccasin Creek;

Five permits canceled:

• EOG: five Wayzetta permits in Mountrail County --
• these five wells are to the far east of the Parshall oil field; not a particularly great area; perhaps a bit too far east
• #32540, #32541, #32523, #32522, #32521 
• Wayzetta 92-0136H
• Wayzetta 93-0136H
• Wayzetta 90-1312H
• Wayzetta 89-1312H
• Wayzetta 407-1312H
• interestingly, the one well in the 640-acre drilling unit in this area:
• 17281, 1,320, EOG, Wayzetta 13-01H, Parshall, t10/08; cum 481K 12/19; 
• my hunch: someone will come back to this drilling unit

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The Enerplus Metamorphic Rock Pad

This pad is tracked here. 

Amphibolite will be on/near the Enerplus pad with these wells:

• 36225, drl, Enerplus, Horfels 147-93-08D-05H, Moccasin Creek,
• 36226, drl, Enerplus, Mylonite 147-93-08D-05H-TF, Moccasin Creek,
• 36229, drl, Enerplus, Slate 147-93-08D-05H-TF, Moccasin Creek,
• 36231, drl, Enerplus, Argillite 147-93-08D-05H, Moccasin Creek,
• 36228, loc, Enerplus, Phyllite 147-93-17A-20H-TF, Moccasin Creek,
• 36230, loc, Enerplus, Quartzite147-93-17A-20H-TF, Moccasin Creek,
• 36232, loc, Enerplus, Marble 147-93-17A-20H, Moccasin Creek,
• 36233, loc, Enerplus, Gneiss 147-93-17A-20H-TF-LL, Moccasin Creek,

The well holding this lease by production:

• 18752, 2,194, Enerplus, Henry Bad Gun 17A-20-1H, 22 stages; 2.4 million lbs; Moccasin Creek, t7/10; cum 501K 12/19; from the file report:

• 10 miles southeast of Mandaree in Dunn County
• part of Simray's Bakken program within the Williston Basin
• offset wells were essential in curve operations and for landing the well bore within the preferred target interval
• spud March 29, 2010
• vertical hole drilled in 66 hours
• the curve was drilled in 34.5 hours (currently, curves are generally drilled in 12 - 18 hours)
• it appears the lateral was drilled in 133 hours
• the lateral well bore remained in the target zone 90% of the time; and, 100% of its length was drilled within the greater middle Bakken interval
• background gas: 100 - 1,800 units
• gas shows ranged from 500 to 3,500 units before the flow was directed to the gas buster;
• some shows were as high as 6,000 units
• flares: 1-3 feet; increased to 10' as the lateral progressed
• the rig: Precision 512; spud to TD -- 21 days; an incredible job back in 2010

Production steady but non-descript from July, 2010, to December, 2019.

For a mineral owner, what does a 500K well mean?

• assumptions
• family inherited and kept 160 acres of minerals in this 1280-acre spacing unit
• during the height of the boom, these acres sold for $10,000/acre = $1,600,000 
• the family negotiated a 20% royalty
• the average price of oil: $40/bbl
• calculations (usual disclaimer)
• 160/1280 =  12.5%
• 12.5% x 500,000 bbls = 62,500 bbls
• x $40 = $2.5 million 
• x 0.20 (royalty) = $500,000
• total: $2.1 million 
• and monthly royalties continue to be paid
• one well; repeat: one well
• this family will eventually have upwards of 24 wells in this drilling unit

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Tulip Season

My favorite season: tulip season.