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Sunday, April 19, 2020

Social Distancing In The Bakken -- Remember Alamo -- April 19, 2020

Updates

April 20, 2020: wells released from confidential status; data posted below. 

April 19, 2020: be sure to see the first comment regarding growing up in Alamo.

April 19, 2020: from a reader regarding these Kraken wells -- see below:

Some rough, inaccurate - yet illustrative - numbers involving these Kraken wells ... 300, 000 barrels @$50 brings $15 million gross revenue in a little over 4 months. $25/barrel brings in $7 1/2 million gross for 3 wells, first ~4 months.
(The Red and White wells could have restricted output in February by the looks of it).
Close proximity of 3 wells portends lowered overall cost - relatively speaking - for drilling and completion. Two middle Bakken, 1 Three Forks wells, it seems. [That is correct.]
If these wells are shallower (data available shortly?), then overall costs will be lower yet. [Data will be available later this week.]
The details from these 3 wells could be far more important than an initial, cursory view might indicate. This scrappy, private little outfit (like Slawson and a few others) may offer glimpses into future shale development throughout the country.
Microscopically examining 'fringe' areas of various shale plays, these little outfits will put up their own money - incorporating best, cutting edge practices - to either succeed or go 'down' valiantly trying in their efforts to economically extract hydrocarbons. Your characterization - accurate and yet, possibly, understating the potential ramifications - of this Burg field as Tier 2/3 holds enormous, exciting future possibilities.
Can you imagine Kraken's discussions if (when?) WTI hits $75/bbl? These types of scenarios - planning/evaluations of Tier 2/3 areas - are playing out on the fringes of the Permian, Appalachian Basin, and probably other more mature shale plays. T
hese Kraken guys - and these 3 wells in particular - bear close watching in future months, IMHO. [Great note; this will be fascinating. I do not forget the original estimates of OOIP (original oil in place in the Bakken) and the percent of likely primary production.]
Original Post

Kraken Operating -- bless their heart(s) -- is reporting some nice wells in a very remote area in North Dakota -- for the Bakken, Tier 2 at best, maybe Tier 3 if one is a pessimist. Whatever.

This area is so remote that in the screenshot below of the NDIC map to include the 2.5-township-sized oil field (about 78 sections) I don't even see any "city boundaries" in the screenshot.

Wow. Oh, I'm wrong. I missed it. There is a bit of blue ("city boundary"): Alamo, at the southern end of the field.

Alamo, ND: population, 57, in 2010.  I hope the "kids" know how incredibly lucky they are to be raised in this part of the world. Most of them will undoubtedly move on when they turn 18 years old, but some day, it may be decades later, but some day they will look back on these days in Alamo as the best days of their lives. There will be "life-altering events" and "coming-of-age" years but every so often they will think back to what they were doing when they were six years old. It's too bad the census count does not include horses.

Gosh darn it. I see I missed another one: Wildrose, ND, about 14 miles ENE of Alamo. Population: 110, and founded in 1910, six years before Alamo, ND, was founded. With only 96.4% of the population white, it is slightly more ethnically diverse than Alamo which was 100% white in the 2010 census.

And, yes, there are other towns/cities in this area, but they don't show up on this particular screenshot.


But I digress.

The oil field: Burg oil field.

The wells:
  • 36652, 897, Kraken Operating, Red 22-15 1H, Burg, t11/19; cum 100K 2/20; 60 stages; 10.2 million lbs; TD = 20,185 feet; middle Bakken, 9,631 feet (TVD);

DateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN2-20202913600138272802016306015929
BAKKEN1-20203124352243324587928488028040
BAKKEN12-20193136073362207220441267040822
BAKKEN11-20192722301218935617625513025160
BAKKEN10-2019113895370331146405103919
  • 36651, 1,017, Kraken Operating, White 23-14 1H, t11/19; cum 108K 2/20; 60 stages;10.2 million lbs; TD = 20,420 feet; middle Bakken, 9,638 feet (TVD);
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN2-202024964198581674912305011991
BAKKEN1-20203120158201763804926979026533
BAKKEN12-20193032332327505931833076032642
BAKKEN11-20192630320302397212031018030684
BAKKEN10-20191115145143986959714979014850
  • 36650, 779, Kraken Operating, Blue 26-35 1TFH, t11/19; cum 91K 2/20; 60 stages, 10.2 million lbs; TD = 20,557 feet; middle Bakken, 9,741 feet (TVD); 10' target zone between 11' and 21" below the top of the Three Forks; curve built overnight, from 21:15, August 1, 2019, to 08:46, August 2, 2019; max gas at 3,128 units near end of lateral;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN2-20202920622206953831727242026866
BAKKEN1-20203122855226895359426855026405
BAKKEN12-20193021707219886141024311023874
BAKKEN11-20192820573202818891523042022677
BAKKEN10-2019115359509527331542905297

2 comments:

  1. As a boy growing up SW of Alamo and graduating in 67, I do understand how lucky we were to experience that way of Life. Many of us return most summers to enjoy fellowship on Main street and festivities at the Fire Hall. Many moved on to the Service, Nursing School, Law School, farming etc. I would venture there isn't many days that go by where we don't count our blessings ..Riding a horse 3 miles to visit my friends in Appam (5 Mi. E of Alamo. Kraken and Crescent point are big and battling in Marmon, Winner, Blue Ridge. Bruin has a few wells around..but they won't leave the Reservation with the production level of those vs 157-100-4 or 157-100-23. Always enjoy your blog for my daily fix....

    ReplyDelete
    Replies
    1. Great note, made my day. Sorry for the delayed reply. Family commitments. Thank you for the kind words. I didn't have it as good as you did when I was growing up in Williston -- no horse -- but it was a great experience. Lots of great memories.

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