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,

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	31	46108	46112	21549	41841	39091	0
BAKKEN	11-2021	29	37741	37605	23757	32592	30393	0
BAKKEN	10-2021	21	35968	35615	24983	28195	24371	2019

• 37243, 4,888, MRO, Fitterer 11-3H, Killdeer,
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	29	44966	45306	52423	34267	31054	0
BAKKEN	11-2021	7	18578	17974	18004	12006	10624	137

• 37999, 4,482, MRO, Burger USA 41-18TFH, Van Hook,
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	31	35550	35602	28023	34155	32029	0
BAKKEN	11-2021	27	32880	33107	29492	29597	27532	0
BAKKEN	10-2021	30	66476	65823	60664	58905	50627	4098

• 37157, 4,274, MRO, Helseth 41-16H, Killdeer,
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	30	20968	21061	42648	14895	13413	40
BAKKEN	11-2021	26	35456	35173	77741	25740	23051	231

• 37782, 2,119, MRO, Spencer USA 11-17TFH, Van Hook,
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	31	28813	27759	34895	28473	26347	93
BAKKEN	11-2021	30	31726	31884	39777	30650	28143	296
BAKKEN	10-2021	18	15140	14189	17795	11630	10188	299

• 38207, 3,982, MRO, John Bergan 24-22H, Killdeer,
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	30	31589	31744	43989	17115	14182	834
BAKKEN	11-2021	24	46233	45776	106189	31413	20342	7862

• 37388, 2,784, MRO, Saxvik 14-22H, Killdeer,
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	29	24790	24765	44062	15466	12715	981
BAKKEN	11-2021	15	21478	21266	35910	10172	8531	279

• 37158, 5,283, MRO, Gunvaldson 44-9H, Killdeer, 34K over 14 days extrapolates to 74K over 30 days;
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	29	35050	35006	36557	28102	25728	0
BAKKEN	11-2021	14	34328	34054	39132	22937	20585	99

• 38016, 2,956, MRO, Loraas 44-21H, Bailey,
  

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	22	32325	31413	33334	25938	23472	67

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:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	12-2021	31	30516	30499	45474	26201	23208	118
BAKKEN	11-2021	22	32568	32997	66498	26260	22865	230
BAKKEN	10-2021	10	25246	24597	59155	19729	8965	8391
BAKKEN	9-2021	0	0	0	0	0	0	0
BAKKEN	8-2021	0	0	0	0	0	0	0
BAKKEN	7-2021	0	0	0	0	0	0	0
BAKKEN	6-2021	0	0	0	0	0	0	0
BAKKEN	5-2021	0	0	0	0	0	0	0
BAKKEN	4-2021	0	0	0	0	0	0	0
BAKKEN	3-2021	0	0	0	0	0	0	0
BAKKEN	2-2021	5	145	319	82	114	38	42
BAKKEN	1-2021	31	1053	1012	210	808	38	532

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:

$91.77	2/15/2022	02/15/2021	02/15/2020	02/15/2019	02/15/2018
Active Rigs	32	15	56	64	57

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 

*******************************
Very Short Clip

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

Active rigs:

$92.67	2/15/2022	02/15/2021	02/15/2020	02/15/2019	02/15/2018
Active Rigs	32	15	56	64	57

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.