Fifteen New Permits -- July 2, 2020

I'm not quite sure if we are ready to move into Bakken 5.0. We'll talk about that later.

Active rigs:

$40.37	7/2/2020	07/02/2019	07/02/2018	07/02/2017	07/02/2016
Active Rigs	11	60	67	58	30

Fifteen new permits, #37678 - #37692, inclusive:

• Operator: XTO
• Field: Hofflund (Williams County)
• Comments:  
• I believe the daily activity report is incorrect
• the DAR says these wells are sited in section 13-154-96; if so, they are being sited under water
• in addition, the legal description for #37685 is incorrect; the scout ticket is correct;
• it's much more likely these wells will be sited in section 13-154-95
• XTO has permits for fifteen wells in section 13-154-96  (sic) -- see comments above
• Hofflund Bakken Unit (HBU)
• fourteen of them are Hofflund Bakken unit wells; one had the same "family" name, but not preceded by the HBU designation; it was in the Alkali Creek oil field;
• one long single row of pads, running almost due north/south, but slightly SW to NE, very slightly off the N/S line
• running from the SESW quadrant to the NESW quadrant
• they are already on confidential list but based on several parameters, it's my hunch they will all run south into section 24
• thirteen will be 1280-acre spacing
• two will be 2560-acre unit line wells
• it looks like: a mix of middle Bakken well and Three Forks wells
• graphics:

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History Of The Bakken

This was posted here.

From FAQs.

82a. What do you mean by Bakken 2.0? See this post. Important data points:

• June, 2007: the very early days of the Bakken boom; began in Montana, 2000; Bakken 1.0
• October 19, 2016: the beginning of Bakken 2.0
• the event that triggered the Bakken 2.0 designation: the SM Energy announcement that it was selling some Bakken acreage/assets to Oasis
• it appears Permian Shale 2.0 began with the WPX, Noble, and XOM announcements regarding acquisitions in the Permian -- late 2016/early 2017

82b. What do you mean by Bakken 2.5? See this post.

• Bakken 1.0: began in the summer of 2007; it was originally tagged "Bakken101" and I continue to use the "Bakken101" tag 
• Bakken 2.0: October 19, 2016
• Bakken 2.5: April 10, 2018 -- correlates/corresponds with CLR's new completion strategies; North Dakota crude oil production to set new records; increased focus on the Permian vs the Bakken
• Bakken 3.0: We go to Bakken 3.0 if the "Lynn Helms' production surge (LHPS - 2018) is sustained for six months.  Link here.

82c. Bakken 3.0 -- see above. The surge noted in 2018 certainly lasted for six months.

82d. Bakken 4.0 -- oil shock - market meltdown, 2020. Tag: "Meltdown_2020." And, of course, "Bakken_4.0.

"New" and very common well designations started appearing just as we went to Bakken 4.0: SI/A; F/A; F/NC. Link here for examples. SI/A are wells that have been completed, have come off the confidential list, but are immediately shut in, sometimes with no production or very minimal production (less than 500 bbls) but often 15 days of great production, such as 17K bbls crude oil over 14 days. I didn't know whether to highlight them in "red" or "blue," but because they came off confidential list "on time," had been completed and had production following a frack, I highlighted them in "red." F/A; F/NC were wells that producing wells (DUCs) reported as completed. It appears that in Bakken 4.0 we will have wells that come off the confidential list, or the SI/NC list, but are immediately shut in or choked back significantly. See this post, dated March 26, 2020, first time I tagged a post with "Bakken_4.0."

Bakken 101: across all "eras."

Unconventional 1.0; 2.0; and, 3.0 -- WoodMac.