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Tuesday, February 15, 2022

Brigham Minerals To Acquire Midland Basin Position -- February 15, 2022

Link here. And, here.

  • 1,800 net royalty acres
  • 225,000 - 275,000 boepd estimated for 2022
  • Midland Basin
  • largely operated by Pioneer Natural Resources and Endeavor Energy Resources
  • valued around $32.5 million
  • back-of-the-envelope:
  • $18,000 / acre
  • $32.5 million for 250,000 boepd? See first comment: this had to be an error. Here's the correction -- business wire ... link here ... 225 to 275 boepd

Prior, the largest MNRL deal was in the D-J Basin; link here;

  • $43 million + 2.2 million shares, ~$22 / share = $48 million = $91.4 million
  • $91.4 million / 8,400 acres = $11,000 / acre
  • $91.4 million / 1,200 boepd = $76,000 / boepd

Note: there may be a number of content / typographical errors. If this is important to you, go to the source.

Closer Look At DUCs Reported Completed By MRO Today -- February 15, 2022

From today's daily activity report.

Nine producing wells (DUCs) reported as completed:

  • 37998, 3,715, MRO, Old Bear USA 11-17H, Van Hook,
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-20213146108461122154941841390910
BAKKEN11-20212937741376052375732592303930
BAKKEN10-20212135968356152498328195243712019
  • 37243, 4,888, MRO, Fitterer 11-3H, Killdeer,
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-20212944966453065242334267310540
BAKKEN11-202171857817974180041200610624137
  • 37999, 4,482, MRO, Burger USA 41-18TFH, Van Hook,
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-20213135550356022802334155320290
BAKKEN11-20212732880331072949229597275320
BAKKEN10-20213066476658236066458905506274098
  • 37157, 4,274, MRO, Helseth 41-16H, Killdeer,
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-202130209682106142648148951341340
BAKKEN11-2021263545635173777412574023051231
  • 37782, 2,119, MRO, Spencer USA 11-17TFH, Van Hook,
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-202131288132775934895284732634793
BAKKEN11-2021303172631884397773065028143296
BAKKEN10-2021181514014189177951163010188299
  • 38207, 3,982, MRO, John Bergan 24-22H, Killdeer,
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-2021303158931744439891711514182834
BAKKEN11-202124462334577610618931413203427862
  • 37388, 2,784, MRO, Saxvik 14-22H, Killdeer,
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-2021292479024765440621546612715981
BAKKEN11-202115214782126635910101728531279
  • 37158, 5,283, MRO, Gunvaldson 44-9H, Killdeer, 34K over 14 days extrapolates to 74K over 30 days;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-20212935050350063655728102257280
BAKKEN11-202114343283405439132229372058599
  • 38016, 2,956, MRO, Loraas 44-21H, Bailey,
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-202122323253141333334259382347267

Wells of interest:

  • 22668, IA/1,436, MRO, Diamond A 41-28H, Bailey, t5/13; cum 262K 9/21;
  • 17107, IA/511, MRO, Pam Reckard 11-17H, Bailey, t6/08; cum 345K 9/21;
  • 18040, 993, MRO, Arvid Bangen USA 31-18H, Van Hook, t8/10; cum 689K 1/21; back on line 6/22; cum 719K 8/23;
  • 17553, 681, MRO, Lil J Reiss 34-9H, Killdeer, t2/10; cum 356K 12/21; full production here; just went off line, again, 8/23; cum 582K 7/23; recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN12-2021313051630499454742620123208118
BAKKEN11-2021223256832997664982626022865230
BAKKEN10-2021102524624597591551972989658391
BAKKEN9-20210000000
BAKKEN8-20210000000
BAKKEN7-20210000000
BAKKEN6-20210000000
BAKKEN5-20210000000
BAKKEN4-20210000000
BAKKEN3-20210000000
BAKKEN2-20215145319821143842
BAKKEN1-2021311053101221080838532

Others Are Noticing What We've Been Reporting For Years -- Efficiency Of Rigs -- February 15, 2022

From Dave Boyer, quoting Rystad Energy:

  • 2014: 1300 rigs; drilled less than 20 million lateral feet;
  • 2021: 300 rigs; drilled 46 million lateral feet

And that thread referenced a YouTube video on the Pangea:

  • holy mackerel
  • I've been re-reading and taking notes on Dvorak's How Mountains Grew
  • this video dovetails very nicely with the book

Perhaps more on this later. 

********************************
Truckers - 1, Trudeau - 0

Premier of Ontario Doug Ford admits that the Vaccine Passport Program was a massive failure. Ends it. Link here.

Apparently the poll numbers are in.

CLR With Two New Permits; Nine Permits Renewed; And, MRO Reports Nine DUCs Completed -- February 15, 2022

Active rigs:

$91.772/15/202202/15/202102/15/202002/15/201902/15/2018
Active Rigs3215566457

Two new permits, #38783 - #38784, inclusive:

  • Operator: CLR
  • Field: Rattlesnake Point (Dunn)
  • Comments:
    • CLR has permits for two Bonneville wells in NWNE / NENW 23-146-96; 
    • the wells will be sited between 570 FNL and 577 FNL and between 2622 FEL and 2610 FWL;

Nine permits renewed:

  • Whiting (6): in McKenzie County -- two Gullikson permits; one Wold permit; one Green permit; one Klose permit; in Mountrail County, one Roggenbuck permit,
  • XTO: one Hartel permit in McKenzie County
  • White Rock: one BSMU permit in Billings County
  • EOG: one Liberty LR permit in Mountrail County

Change of operator, ten wells from Kraken Operating to Whiting Oil, all in Mountrail County

  • eight KCH Murphy permits/wells
  • one Jeffrey (#38234),
  • one Gayne (#38235)

Nine producing wells (DUCs) reported as completed:

  • 37998, 3,715, MRO, Old Bear USA
  • 37245, 4,888, MRO, Fitterer
  • 37999, 4,482, MRO, Burger USA
  • 37157, 4,274, MRO, Helseth
  • 37782, 2,119, MRO, Spencer USA
  • 38207, 3,982, MRO, John Bergan
  • 37388, 2,784, MRO, Saxvik
  • 37158, 5,283, MRO,Gunvaldson
  • 38016, 2,956, MRO, Loraas

It's Starting -- Bitcoin Mining In North Dakota -- COP Providing Natural Gas -- February 15, 2022

From SeekingAlpha:

  • In an emailed statement, Conoco disclosed that the oil and gas producer is now selling natural gas to a bitcoin miner in North Dakota.
  • The Company indicated that they are not operator of the mine, and are supplying gas that would otherwise be flared.
  • Conoco has set a target for zero routine flaring by 2030, and projects of this nature will help the company achieve its goal, though it will have no impact on the Company's scope three carbon emissions.
  • Bitcoin mining represents a new way to evacuate unwanted natural gas without flaring or building expensive pipeline infrastructure; it will be interesting to see if the energy-intensive solution gains traction as producers look to eliminate routine flaring in the lower 48.

For bitcoin mining in North Dakota, see this post.

Notes From All Over -- Part 1 -- February 15, 2022

Meme:

  • "25% increase in capex for a 3% increase in production"-- insert whatever numbers you want to insert; there's a huge fallacy using this kind of "reasoning.

Permian:

  • forecast to hit record production in March, 2022;

Market:

  • Intel: agrees to buy Tower Semiconductor, $5.4 billion deal;
  • Buffett: 4Q21 -- increased his position in CVX
    • CVX low in 4Q21: $104 / share; in September, CVX was trading for $94
    • yesterday: $136

RIVN:

  • Soros bought $2 billion of RIVN; held it at year end;
    • two weeks ago, the value of that stake was down 50% to $1 billion

Ukraine:

  • going through the motions
    • Russia's parliament asks Putin to recognize breakaway east Ukrainian regions -- Reuters
      • so tanks / trucks roll across the border into contested areas?
      • prolonged stand-off as both sides negotiate?
  • only question: does Russia occupy Kiev?
  • at minimum, Putin gets "buffer state" between NATO and motherland 

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Very Short Clip

Hess And Enerplus Each Report A Nice Well; Thirty-Two Active Rigs -- February 15, 2022

Active rigs:

$92.67
2/15/202202/15/202102/15/202002/15/201902/15/2018
Active Rigs3215566457

Tuesday, February 15, 2022: 32 for the month, 87 for the quarter, 87 for the year

  • 37796, conf, Koda Resources, Stout 3409-1BH, Hanks, no production data,
  • 37334, conf, Hess, EN-Rice-A-155-94-0310H-2, Manitou, first production, 8/21; t--; cum 86K 12/21;
  • 34064, conf, Enerplus, Trapdoor 149-92-32-29H-TF1, Heart Butte, first production, 8/21; t--; cum 71K 12/21;

RBN Energy: what happens when a midstream company gets flipped?

In the early days of the Shale Revolution, merger-and-acquisition activity in the midstream sector was happening at a frenetic pace. 
That frenzy peaked with crude oil prices in 2014, then petered out over the next five years before hitting bottom in COVID-impacted 2020, when abysmal demand and commodity pricing hampered prospects for the production and transportation of oil, natural gas and NGLs. In those dark days, it seemed the only deals getting done were for bulk orders of hand sanitizer and toilet paper from Amazon. 
Now, with energy prices soaring and energy companies regaining some of their pre-pandemic luster, the pace of deal-making in the oil patch in 2022 looks poised to maintain the momentum that carried through the end of 2021. But buying or marketing midstream assets isn’t nearly as simple as ordering through your Amazon Prime account. Considerable effort is put into the strategy of selling and the diligence of purchasing and, for the uninitiated, the process can be daunting. In today’s RBN blog, we continue our series on midstream dealmaking with a look at what to expect in a sales process.

Weather Forecast, Eastern North Dakota Up Through Minnesota -- February 15, 2022

I would have missed this. Sent to me by a reader overnight with this observation:

A high of 3 degrees for today.  And with those kind of numbers, it really doesn't matter if it's above zero or below zero.  Now, that part was true. 

This chart is an exaggeration, albeit a slight exaggeration.

Don't Fight The Fed; Don't Bet Against Buffett -- Seems To Be Good Investing Advice -- February 15, 2022

The benefits of sitting on multiple boards. 

Link here

Berkshire Hathaway bought Activision Blizzard shares before Microsoft takeover. 

In round numbers: $1 billion deal. 

Warren Buffett's Berkshire Hathaway Inc acquired nearly $1 billion of shares in Activision Blizzard Inc before Microsoft Corp agreed to buy the video game maker for $68.7 billion, according to a Monday regulatory filing.

Berkshire said that as of Dec. 31, it owned 14.7 million shares worth about $975 million of the "Call of Duty" maker.

Microsoft announced its plan to buy Activision Blizzard on Jan. 18, in its largest ever acquisition.

Activision shares are up 23% this year to $81.50, though they remain well below the proposed $95 per share takeover price, reflecting potential antitrust concerns.

Is Anyone Paying Attention? USA, KSA, And RUS -- February 15, 2022

Link here

I'm sure I'm misreading "things," but it certainly seems there are a lot of folks who still suggest KSA is the #1 producer of crude oil in the world. 

There are so many story lines in this one graph:


This is latest data through January, 2022, I assume, and it's my understanding, the Permian will set -- or has already set -- another new production record.