Zavanna With One New Permit; Enerplus Renews Six Permits; Petroshale Reports One Completed DUC -- Palindromic Friday - 2-25-22

Wow, wow, wow, more to follow as details come in, but there's going to be a huge shift in energy flows over the next six months.

• first, Bloomberg is now reporting a huge plunge in Mexico's crude oil exports for January, 2022, as it tries to maintain refinery operations at max capacity;
• three weeks ago, Mexico said it was pretty much going to cease sending oil to India;
• today, a report that India is looking for other sources to make up the shortfall (see "India" below);
  
• China said today it won't go along with Biden's push for global SPR releases; could be a political decision, or China could be short oil (I'm thinking the latter but both probably in play);
  
• Apache announced it will sell non-core assets in the Permian for almost one billion dollars; more details below; and, finally,
• the EU energy crisis this winter: this is quite unbelievable -- details need to be fact-checked to make sure we're comparing apples to apples, but oilprice is reporting that the EU energy bill this year will be $1.2 trillion; this compares to previous year expense of ... drum roll ... only $200 billion; and,
• then, of course, Russia spokesperson says if Nord Stream 2 is buried empty at the bottom of the ocean, Europe can expect upwards of 5x more in energy costs, again, specifics need to be fact-checked, but,
• things are moving rapidly.

India:

• Russia is producing 10.164 million bopd
• expects to export 4.176 million bopd
• Indian has stepped in to buy 6 million bbls of Urals (most in three years)
• Urals and other Russia grades are not being purchased by others

Apache: multiple sources; other scan fact-check me on this; posting in a hurry; family errands to run:

• link here;
• earnings call;
• gross acreage position in the Permian: 4.9 million acres
• Apache has 1.8 million net mineral Permian acres (1.8 / 4.9 = 37%)
  
• to sell 70,000 acres non-core Permian -- see reader's note below -- apparently just selling minerals in this non-core area, not the whole enchilada ...
  
• production consists of 7,000 boepd, 44% oil
• in round numbers, it look like APA produces about 240,000 boepd in the US
  
• $805 million deal to close by end of February
• Apache has 1.8 million net mineral Permian acres
• back-of-the-envelope:
• $850 million / 70,000 acres = $12,000 / acre
• $850 million / 7,000 boepd = $120,000 / boepd
• the numbers seem "bizarre"; someone else can fact check them but this is based on the linked article;
• later, from a reader who knows this a whole better than I do -- They are selling their minerals rights only - not their operated wells and acreage. Some of the conventional metrics when valuing operated acreage will seem out of whack here. Comment: that's a big help. Thank you. 

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Back to the Bakken

Active rigs:

$91.59	2/25/2022	02/25/2021	02/25/2020	02/25/2019	02/25/2018
Active Rigs	32	15	49	66	57

One new permit, $38798:

• Operator: Zavanna
• Field: Stockyard Creek (Williams)
• Comments: 
• Zavanna has a permit for a Galloway well in SESE 18-154-99;
•  to be sited 742 FSL and 1089 FEL;

Six permits renewed:

• Enerplus: five LK-Olson permits in Dunn County; and one Storhaug permit in Williams County; I assume these were all acquired from Hess; certainly the LK-Olson wells were; not sure about the Storhaug well in Dublin oil field;

One producing well (a DUC) reported as completed:

• 36619, 574, Petroshale, Anderson South 3MBH, Croff, NDIC scout ticket shows this as PNC/A.