A reader asked: your post on drilling rigs today made we wonder, what happened to XTO?
My reply, not-ready-for-prime-time, right, wrong, or indifferent:
Great question.
1. If you can't get past the paywall on this article let me know, and I will send you the key points of the article some other way:
I
think that article explains everything if one reads between the lines.
Bottom line: Lynn Helms is working with XTO to get them to bring in two
rigs.
2. The good news: as recently as yesterday, XTO renewed four permits which tells me XTO is NOT leaving the Bakken:
Seven permits renewed (https://themilliondollarway.blogspot.com/2021/04/clr-reports-another-nice-duc-active.html):
- XTO (4): four Don permits all in McKenzie County
- Rimrock (2): a Bloodaxe permit and an Ironsdie permit, both in Dunn County
- Petro Harvester Operating Co: an LIG2 permit in Burke County;
XTO told some of their water suppliers that they were scrapping this year's entire drilling program. They could be stringing everyone along, but are acting as if everything will come back next year.
ReplyDeleteI could believe that XTO is going to NOT drill this year in the Bakken. EOG has certainly made that decision. Just not worth the trouble to set up one or two rigs for a company that size with so many opportunities elsewhere. They may have been able to lay off a whole division at corporate headquarters this year -- the division that managed the Bakken. Sounds cold and cruel, but .... it's business.
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