Wednesday, February 24, 2021

Activity On The Charles Blackhawk Wells -- Rig On Site; Six Wells Being Drilled -- February 24, 2021

These wells were originally posted here. These wells were first posted October 31, 2012. The point of posting these again now is to remind folks how much work there is left to be done in the Bakken. 

The Charles Blackhawk wells are now being drilled:

  • ******22652, ros, WPX, Charles Blackhawk 31-30HY, Heart Butte, Dunn,
  • ******22653, conf, WPX, Charles Blackhawk 31-30HC, Heart Butte, Dunn,
  • ******22654, conf, WPX, Charles Blackhawk 31-30HZ, Heart Butte, Dunn,
  • ******22655, conf, WPX, Charles Blackhawk 31-30HD, Heart Butte, Dunn,
  • ******37842, conf, WPX, Charles Blackhawk 31-30HDL, Heart Butte, Dunn,
  • ******37843, conf, WPX, Charles Blackhawk 31-30HY, Heart Butte, Dunn,

From the original post, with production data updated.

In section 36-148-93, there are fourteen (14) wells. The two "original" wells were on single wells pads. The next twelve wells were on four 3-well pads. 23309 - 23314 are to the north; 23303 - 23308 parallel the ones to the north; they run west to east (or east to west). The horizontals will pretty much be straight north/south.

  • 21218, running north, IA/463, WPX, Good Bird 36-25HC, Moccasin Creek, t7/12; cum 116K 9/20; 7 stages; 800K lbs sand frac; off line 10/20; remains off line 12/20;
  • 21219, running south, 401, WPX, Black Hawk 1-12H, Moccasin Creek, t6/12; cum 426K 12/20; 30 stages; 3.6 million lbs sand frac;
  • 23314, 1,224, WPX, Good Bird 36-25HA, Moccasin Creek, t5/13; cum 314K 12/20;
  • 23313, 1,441, WPX, Good Bird 36-25HW, Moccasin Creek, t5/13; cum 277K 12/20;
  • 23312, 690, WPX, Good Bird 36-25HB, Moccasin Creek, t6/13; cum 282K 12/20;
  • 23311, 996, WPX, Good Bird 36-25HX, Moccasin Creek, t11/13; cum 280K 12/20;
  • 23310, 1,365, WPX, Good Bird 36-25HZ, Moccasin Creek, t10/13; cum 250K 12/20;
  • 23309, 1,140, WPX, Good Bird 36-25HD, Moccasin Creek, t10/13; cum 264K 12/20;
  • 23303, 1,697, WPX, Blackhawk 1-12HA, Moccasin Creek, t4/13; cum 434K 12/20;
  • 23304, 1,444, WPX, Blackhawk 1-12HW, Moccasin Creek, t7/13; cum 348K 12/20;
  • 23305, 1,480, WPX, Blackhawk 1-12HB, Moccasin Creek, t5/13; cum 365K 12/20;
  • 23306, 1,508, WPX, Blackhawk 1-12HY, Moccasin Creek, t8/13; cum 373K 12/20;
  • 23307, 1,442, WPX, Blackhawk 1-12HZ, Moccasin Creek, t8/13; cum 402K 12/20;
  • 23308, 2,005, WPX, Blackhawk 1-12HD, Moccasin Creek, t8/13; cum 416K 12/20;
Just to the east of these wells, one mile to the east, in section 31-148-92:
  • 22649, IA/709, WPX, Charles Blackhawk 31-30HA, Heart Butte, t11/12; cum 4/20; remains off line 12/20;
  • 22650, 247, WPX, Charles Blackhawk 31-30HX, Heart Butte, t11/12; cum 190K 12/20;
  • 22651, 219, WPX, Charles Blackhawk 31-30HB, Heart Butte, t11/12; cum 243K 12/20;
  • ******22652, ros, WPX, Charles Blackhawk 31-30HY, Heart Butte,
  • ******22653, conf, WPX, Charles Blackhawk 31-30HC, Heart Butte,
  • ******22654, conf, WPX, Charles Blackhawk 31-30HZ, Heart Butte,
  • ******22655, conf, WPX, Charles Blackhawk 31-30HD, Heart Butte,
  • ******37842, conf, WPX, Charles Blackhawk 31-30HDL, Heart Butte,
  • ******37843, conf, WPX, Charles Blackhawk 31-30HY, Heart Butte,
And in the same section 31-148-92, an additional four wells:
  • 21904, 1,542, QEP, MHA 4-06-07-H-147-92, t8/12; cum 343K 12/20;
  • 21905, 2,223, QEP, MHA 2-06-07-H-147-92, t8/12; cum 289K 12/20;
  • 21906, 2,142, QEP, MHA 4-32-33-H-148-92, t8/12; cum 278K 12/20;
  • 21908, 2,180, QEP, MHA 2-32-33-H-148-92, t8/12; cum 238K 12/20;
And now another 4-well pad in this section, 31-148-92:
  • 24845, 2,736, QEP, MHA 3-06-07H-147-92, Heart Butte, t5/14; cum 355K 12/20;
  • 24846, IA/2,013, QEP, MHA 1-06-07H-147-92, Heart Butte, t6/14; cum 183K 8/20; remains off line 12/20;
  • 24847, 2,238, QEP, MHA 7-06-07H-147-92, Heart Butte, t5/14; cum 202K 12/20;
  • 24848, 2,187, QEP, MHA 5-06-07H-147-92, Heart Butte, t5/14; cum 282K 12/20;
And a 2-well pad in this section, 31-148-92:
  • 24849, 1,661, QEP, MHA 8-06-07H-147-92, Heart Butte, t11/13; cum 182K 12/20;
  • 24850, 1,619, QEP, MHA 6-06-07H-147-92, Heart Butte, t11/13; cum 198K 12/20;

Waiting For Sophia -- February 24, 2021

Waiting for Sophia -- Corky on the left and Flower Blossom on the right:

Aren't six-old-old children just so precious and just so innocent?

Dow Climbs To New High -- What's Going On? February 24, 2021


March 8, 2021: rising interest rates are a good sign for stocks -- managing editor, Yahoo!Finance.

Original Post 

On Sunday, February 21, 2021, just a few days ago, I wrote:

When I last watched CNBC the new meme: rising interest rates (10-year Treasuries and 30-year Treasuries) will put a damper on stocks. That's true for the short term, let's say from six months to a year; that's not true over the long term, let's say fifteen to thirty years. There's a difference between trading and investing.

Well, so much for that "damper." LOL

FOMO? I don't think so. 

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. 

Saudi Arabia Borrows At Negative Rates

Speaking of interest rates, this is amazing: from The WSJ, Saudi Arabia borrows at negative rates:

The recovery in oil prices has boosted investor appetite for Saudi Arabian government debt abroad, allowing the kingdom to borrow at negative interest rates for the first time. 
The kingdom raised €1.5 billion, equivalent to $1.8 billion, through a bond sale on Wednesday (February 24, 2021). The yields were minus 0.057% for three-year debt and 0.646% for nine-year, the cheapest borrowing costs it has achieved to date. It was the second time it has issued bonds in euros.

One wonders if US shale companies can start raising cash by selling bonds with negative rates. LOL.  

Five DUCs Reported As Completed; Twelve Permits Renewed; One New Permit (Iron Oil Operating) -- February 24, 2021

 Gasoline demand: link here

Back to the Bakken 

Active rigs:

Active Rigs1549665741

One new permit, #38175:

  • Operator: Iron Oil Operating, LLC
  • Field: Sather Lake (McKenzie)
  • Comments:
    • Iron Oil has a permit for an Antelope well in seciton 2-32-29H
    • lot 3, section 2-148-102; 605 FNL 2050 FWL;
    • Iron Oil Operation had another Sather Lake permit earlier this year:
    • #38088; Antelope 3-32-28N

Five producing wells (DUCs) reported as completed:

  • 37254, loc/A, EOG, Liberty LR 53-1416H, Parshall, first production, -- ; t--; cum --; no frack data;
  • 36314, drl/A, BR, State Dodge 1C TFH, Dimmick Lake, first production, -- ; t--; cum --; fracked 11/1/20 - 11/14/20; 8.5 million gallons of water; 87% water by mass;
  • 36315, drl/A, BR, State Docge 1D MBH, Dimmick Lake, first production, -- ; t--; cum --; fracked 11/1/20 - 11/14/20; 7 million gallons of water; 87.1% water by mass;
  • 36458, drl/A, BR, Glacierfill 1E, Clear Creek, first production, -- ; t--; cum --; fracked 11/17/20 - 11/25/20; 7.8 million gallons of water; 87.2% water by mass;
  • 36459, SI/A, BR, Glacierfill 1F, Clear Creek, first production, -- ; t--; cum --; fracked 11/17/20 - 11/25/20; 7.8 million gallons of water; 87% water by mass;

Twelve permits renewed:

  • Petro-Hunt (5): three Blikre and two Powell permits, all in Burke County
  • Whiting (4): three Miller permits in Williams County and one Naomi TTT permit in Mountrail County,
  • NP Resources (3): three 9210 Barkland permits in Golden Valley,

Weekly EIA Petroleum Report -- Not Unexpected -- February 24, 2021

WTI commentary: I honestly can't remember when I saw shares in publicly traded oil companies jump this fast. This is quite remarkable. Some are suggesting that traders are betting on $100-oil following the "Texas Freeze." That may be, but I think there's much more going on:

  • re-opening;
    • pandemic; cases dropping; another vaccine approved
    • folks have been in lockdown mode coming up on a year (remember: three weeks to flatten the curve)
    • folks are ready to get back to normal
    • most importantly: the Biden administration must realize that they need to turn this ship around and fast; if we're still wearing masks, talking about lockdowns, and not opening schools this autumn, the administration is in huge trouble; even folks who hated the previous president, saw light at the end of the tunnel; under Biden, all we're seeing is more masks, including double-masking;
  • oil companies cautious under new administration; legal permits revoked; approved pipelines shut down; will exacerbate oil shortage if there is one
  • money from previous "stimulation" initiatives still working its was through the economy
  • new stimulus initiative soon to be passed by government 
  • looks like a huge risk-off trade;

Market Links

First group:

Second group:

  • 30-Year Treasury: link here. At 2.239%, at 0.04. 

TBT: at 20.45, up 1.64%. 

SRE Earnings

From SeekingAlpha, February 24, 2021:

Sempra Energy is scheduled to announce Q4 earnings results on Thursday, February 25th, before market open. 
The consensus EPS Estimate is $1.57 and the consensus Revenue Estimate is $3.52B. 
Over the last 2 years, SRE has beaten EPS estimates 75% of the time and has beaten revenue estimates 25% of the time. 


EIA's weekly petroleum report: pending.

  • US crude oil in storage increased by 1.3 million bbls;
  • US crude oil in storage: 463.0 million bbls; right at 5-year average for this time of year
  • US crude oil imports averaged 4.6 million bopd; decreased by 1.3 million bpd from the previous week; over the past four weeks, crude oil imports average 13.3% less than the same four-week period last year;
  • refiners operating at an incredibly, shockingly, unprecedented low of 68.6%
  • distillate fuel inventories decreased by 5.0 millioo bbls; but still 3% above the five-year average;
  • propanee / propylene inventories decreased by 5.2 million bbls; a whopping 17% below the five-year average; Michigan governor still wants to shut down propane pipeline;
  • jet fuel supplied was down 32.3% compared with same four-week period last year

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

Whoo-hoo!: WTI soars. Up over 2%; adds $1.45; trading above $63. Oil-related shares (and these "increases" on top of bigger increases yesterday, February 23, 2021):

  • ENB: up 0.7%
  • EPD: up 1.06%
  • KMI: up 2.6%
  • CVX: huge surge; was flirting with $100 yesterday; today, trending toward $104; up over 4%;
  • COP: up a whopping 4%; now trading at $54.27;
  • XOM: up 3.33%; trading at $56.88
  • CLR: up over 7%; last week trading at $21.65; now at $26.51;
  • EOG: up 7.13%
  • HES: up 3.05%;
  • OVV: up an astounding 2.55%;

AAPL: too little too late? Unless Apple comes through with a significant increase in its dividend, the increase will be seen as too little too late. Tim Cook says Apple will raise dividend. Details not provided. 

  • History
    • AAPL has paid a very miserly dividend for several years now
    • currently paying 0.65%
    • AAPL, like most publicly traded companies, maintains a dividend for four quarters
    • in mid-2020, AAPL raised its dividend twice
    • in late November, 2020, AAPL announced a dividend of 20.5 cents/share (is that correct) -- if accurate that's a cut to 1/4 from the previous 80 cents; see link; I don't quite understand it; did I miss something along the way? See first comment: change in dividend reflects 4 - 1 AAPL split; dividend remained unchanged.
  • Tim Cook's comments suggests next dividend increase will be payable May, 2021;

WTI Continues To Surge; Fifteen Active Rigs; Hess Reports A Nice Well -- February 24, 2021

Dak: the only sports "news' that takes Dak off the top of the show -- a Tiger Woods injury. Tiger Woods:

  • great golfer: yup
  • NASCAR driver: not so much
    • excuses pouring in: most likely, it was the road's fault 
  • no charges expected; a "crash" is not a crime according to experts -- having said that, excess speed is; the speed limit on that stretch of road is 45 mph; 
    • a reporter drove that stretch at 60 mph and had no problems
    • I've driven that road scores of times; have never seen an accident on that stretch; and a very, very safe road despite what apologists are now reporting;
  • it will be interesting if anyone has the courage to estimate the speed he must have been going; no skid marks; crossed the median; crossed two lanes of traffic in the other direction; and landed 20 yards+ in the brush; that was not a trivial roll-over;

EIA's weekly petroleum report: pending.

Linear A; deciphered

XOM: sells North Sea package that has languished on the market. $1 billion+. 

CBR: the rush begins


Back to the Bakken

Active rigs:

Active Rigs1549665741

The rigs: sixteen are shown below, but one rig (H&P 515) is shown twice.

RigOperatorWell Name and NumberCurrent LocationCountyFile NoAPIStart Date** Next Location
H & P 515PETRO-HUNT, L.L.C.HURINENKO 144-98-11C-2- 2HNENW 14-144N-98WBIL36078330070191800002/21/2021Undetermined
H & P 454CONTINENTAL RESOURCES, INC.Rodney 8-29H1NENW 32-147N-96WDUN37379330250399800002/11/2021Undetermined
CYCLONE 38CONTINENTAL RESOURCES, INC.Rodney 11-29H1NWNE 32-147N-96WDUN37396330250400500002/18/2021Undetermined
NABORS B27WPX ENERGY WILLISTON, LLCCharles Blackhawk 31-30HYSESW 31-148N-92WDUN37843330250408600002/18/2021Undetermined
H & P 516Ovintiv Production Inc.KESTREL 154-96-33-28-2HSESE 32-154N-96WMCK34332330530832200001/30/2021Undetermined
AES 4CONTINENTAL RESOURCES, INC.Harms Federal 18-33HSESW 32-153N-93WMCK37988330530961000002/22/2021Undetermined
NABORS X28HESS BAKKEN INVESTMENTS II, LLCEN-RICE- A-155-94-0310H-3LOT3 3-155N-94WMTL37333330610466400001/25/2021Undetermined
PATTERSON 808WHITING OIL AND GAS CORPORATIONLittlefield 41-2HLOT1 2-152N-92WMTL37601330610474500002/13/2021Undetermined
H & P 259MARATHON OIL COMPANYLittle Owl USA 31-6TFHLOT1 6-150N-93WMTL37772330610478900002/7/2021Undetermined
NABORS X10MARATHON OIL COMPANYLindley USA 41-4HLOT1 4-150N-93WMTL37791330610480000002/15/2021Undetermined
H & P 492MARATHON OIL COMPANYBrusseau USA 11-3TFHLOT4 3-150N-93WMTL37801330610480300002/14/2021Undetermined
H & P 515PETRO-HUNT, L.L.C.State 158-91-16C-9-2HSESW 16-158N-91WMTL37888330610482800002/11/2021Undetermined
UNIT 414SLAWSON EXPLORATION COMPANY, INC.Sniper Federal 4-6-7TFHLOT3 6-151N-92WMTL37918330610483100002/18/2021Undetermined
NABORS X24HESS BAKKEN INVESTMENTS II, LLCEN-JOYCE-LE- 156-94-1721H-5SWSW 8-156N-94WMTL37978330610483600002/18/2021Undetermined
NABORS B13OASIS PETROLEUM NORTH AMERICA LLCBorden Federal 5300 14-36 9BNENE 36-153N-100WWIL34339331050464600002/20/2021Undetermined

One well coming off the confidential list: 16 for the month, 49 for the quarter, 49 for the year.

  • 37096, A/F, Hess, BW-Spring Creek-LE-149-99-1201H-1, Cherry Creek, first production, 8/20; t--; cum 120K 12/20;

RBN Energy: URI scrambles Gulf Coast gas flows, briefly shuts off Texas LNG feedgas.

What started out as a novel snow day for parts of Texas, replete with Facebook posts full of awestruck kids and incredulous native Texans, quickly escalated to a statewide energy crisis last week. A lot of the state’s electric generation and natural gas production capacity was iced out just when demand was highest, sending gas and electricity prices soaring and leaving millions without power for days. Frigid temperatures like the ones we saw would register as a regular winter storm in northerly parts of the U.S. and in Canada — but in Texas? 
A disaster. 
Market analysts, regulators, and observers will be unpacking the events of the past week — and the many implications — for a long time to come. We may never know the full extent of the chaos and finagling that went on among traders and schedulers behind the scenes as they tried to wrangle molecules. However, we can get some insight into the madness using gas flow data to provide a window into how the market responded and, in particular, the effect on LNG export facilities. Today, we examine the impacts of Winter Storm Uri on Gulf Coast and Texas gas movements.