A Reader Asked Me About EOG In The Bakken -- October 11, 2022

Updates

Later, 2:34 p.m. CT: after posting the original note, I happened to come across the following:

Original Post

The usual disclaimers apply. This is from my data bases and there are likely to be errors. In addition, it is a snapshot in time, accurate, to the extent it was accurate at all, only at the moment it was posted.

My reply to the reader:

Permits in 2020:

• EOG: one permit, #37356 in Antelope oil field
  

Permits in 2021:

• EOG: eight permits, all in Parshall oil field, all Liberty LR wells; all CONF / LOC, suggesting not drilled yet
• 38324
• 38325
• 38326: NWSE 23-151-91
• 38327
• 38328
• 38329
• 38330
• 38331
  

Permits in 2022:

• 38965, Mandaree 48-0916H, Squaw Creek oil field: STATUS: DRL/CONF
• 38966, Mandaree 48-1015H, Squaw Creek oil field: STATUS: DRL/CONF

Miscellaneous comments that might affect the conversation:

1. Sometimes more than one operator has rights in any given drilling unit. Generally, the operator with the largest percent, gets the permits. However, if that operator appears not to be going after a permit, another operator can submit a permit request to drill in that drilling. At that point, the NDIC finds out if the operator with the bigger percent is going to drill; if not, the NDIC might grant the permit to another operator.

2. It's possible in the Parshall field, EOG is doing exactly that. Another operator was anxious to see wells there; EOG was going to drill, so the other operator stepped in. At that point, EOG went after the permits. They got the permits but haven't drilled.

3. In the big scheme of things EOG is not focused on the Permian, not the Bakken. Right now, EOG has no active rigs in North Dakota (https://www.dmr.nd.gov/oilgas/riglist.asp).

The reader also asked how long these wells would continue to produce?

Wow, wow, wow -- that's a great question. How long will these wells last. 

It really depends on the operator. Once the wells are more of a hassle than a benefit for the operator, they will either sell them or abandon them.

EOG is so big, that as these wells dwindle, they are a nuisance for the company and they most likely just want to get rid of them. It seems that companies like EOG are more likely to plug and abandon whereas smaller operators are more likely to sell them to someone who can make stripper wells work.

Other operators might go in and re-frack but EOG has just way too many other things to do right now; in addition, it's very, very difficult finding frack crews.

It looks like some of the operators most interested in the Bakken: CLR, Ovintiv, Hess, Grayson Mill, Slawson (see active rig list, linked above, for full list). Chord (Whiting/Oasis) -- my hunch -- is going to get very active.