Tuesday, August 23, 2022

The Grayson Mill Jay Wells In Banks Oil Field

Updates

August 23, 2022: new permits --

  • 39185, loc, Jay 24-13 5H, Banks, McKenzie,
  • 39186, loc, Jay 24-13F 4TFH, Banks, McKenzie,
  • 39187, loc, Jay 24-13F 3H, Banks, McKenzie,
  • 39188, loc, Jay 24-13F 2TFH, Banks, McKenzie, 

These wells will be sited in the NENE quadrant of section 25 just south of the river and the horizontals will run north under the water.

Other laterals already running under the river in this location:

  • 21791, PA/989, Grayson Mill, Jay 24-13 1H, Banks, t9/12; cum 26K 10/13;
  • 24096, 3,148, Grayson Mill, Jay 24-13F 1H-$, Banks, t10/15; cum 598K 6/22; this was off line 10/21 - 6/22 and just came back on line 6/22, with no jump in production;
  • 38612, F/A, Grayson Mill, Jay 24-13F 6H, Banks, first production, 4/22; t--; cum 69K 6/22;
  • 38611, F/A, Grayson Mill, Jay 24-13F XE 1H, Banks, first production, 3/22; t--; cum 148K 6/22;

Producing wells in that drilling unit:

21791:

  • 24096:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN6-202226286328081493921446184312642
BAKKEN5-20220000000
BAKKEN4-20220000000
BAKKEN3-2022002010000
BAKKEN2-20220000000
BAKKEN1-20220000000
BAKKEN12-20210000000
BAKKEN11-20210000000
BAKKEN10-20218106312851940291613401576
BAKKEN9-202130370441435123105646369928
BAKKEN8-202131354835166767993740135924
BAKKEN7-202124294227195274823181430
BAKKEN6-202130338133966380998398630
BAKKEN5-202131297828296407928091560
BAKKEN4-202130260027905208838882680
  • 38612:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN6-20223015232155492941561503528577576
BAKKEN5-20222519018187953408962607548607747
BAKKEN4-202221301413013153441916083947452134
BAKKEN3-202234145376789171239716712230
  • 38611:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN6-20223029779294172851877100741281661
BAKKEN5-20222947938478943298714011311012429989
BAKKEN4-202223334893355330218885255386234663
BAKKEN3-202215364343622736516969504680150149
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The Ovintiv Rolfstad Wells In Westberg

Original Post

August 23, 2022: new permits --

  • 39189, loc, Ovintiv, Rolsrud 152-96-32-29-4H, Westberg,
  • 39190, loc, Ovintiv, Rolsrud 152-96-32-29-15H, Westberg,
  • 39191, loc, Ovintiv, Rolsrud 152-96-32-29-5H, Westberg,
  • 39192, loc, Ovintiv, Rolsrud 152-96-32-29-16H, Westberg, 

Three wells sited in that section:

  • 23022, 1,645, Ovintiv, Rolfsrud 152-96-32-2H, Westberg, Bakken, t7/13; cum 200K 6/22;
  • 16942, 521, Ovintiv, Rolfsrud 1-32H, Westberg, Bakken, t10/08; cum 161K 6/22;
  • 8661, PNC, Kissinger Petroleum Corp, Rolfsrud 4-32, wildcat, Westberg, Red River,

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Eight New Permits; Three DUCs Reported As Completed; That Intel Plant -- Chandler, AZ -- Deal Inked For $30 Billion -- August 23, 2022

Before we get started:

  • WTI: up 3.4%; up $3.06; trading at $93.42.
  • Natural gas: up 1.85; up 17 cents; trading at 9.853.

Comment:

  • Prince MbS not a big fan of Joe Biden.

API weekly data, link here:

The American Petroleum Institute reported a large draw this week for crude oil of 5.632 million barrels. Analysts had predicted a draw of less than a half million barrels.

The build comes as the Department of Energy released a massive 8.1 million barrels from the Strategic Petroleum Reserves in week ending August 19, leaving the SPR with just  453.1 million barrels. If confirmed, this is the largest one-week release of the SPR in history.

Despite U.S. crude inventories having shed some 67 million barrels since the start of 2021, there has been a 4-million-barrel gain since the start of 2020, according to API data.

Intel: Brookfield will finance 49% of a chip factory expansion. $30 billion project. Chandler, AZ, near Phoenix, link here. 

Intel also has said it could spend as much as $100 billion each on new plant complexes in Ohio and Germany. It appears the $20-chip-factory slated for Columbus, Ohio, that received a lot of fanfare earlier this year was put on hold pending the CHIPS act and is yet to be announced. Google Intel Columbus Ohio. Now The WSJ is reporting that Intel could spend as much as $100 on the plant in Columbus, if I'm reading that correctly.

Chesapeake: to exit oil; will focus on natural gas.

***************************
Back to the Bakken

WTI: $93.59. A nice 3.65% jump in price today.

Natural gas: $10.02 earlier today before dropping back a bit. To $10 for first time since 2008.

Active rigs: 45.

Eight new permits, #39185 - #29192, inclusive:
  • Operators: Grayson Mill (4); Ovintiv (4)
  • Fields: Banks (McKenzie); Westberg (McKenzie)
  • Comments:
    • Grayson Mill has permits for four Jay wells in NENE 25-153-98; 
      • to be sited 220 FNL and between 664 FEL and 754 FEL
    • Ovintiv has four permits for four Rolfsrud wells in SESE 32-152-96, 
      • to be sited between 997 FSL and 1072 FSL and at 600 FEL
Three producing wells (DUCs) reported as completed:
  • 37480, 0, BR, F Jorgenson 1D MBH, Elidah, no production data,
  • 37482, 0, BR, F Jorgenson 1B MBH, Elidah, no production data,
  • 38535, 710, BR, Hunt Oil, Halliday 145-93-15-22H 3, Lake Ilo, no production data,

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Pet Peeve: The Meme -- "Underinvestment In Infrastructure" -- August 23, 2022

I must hear that excuse a half dozen times every day, that the reason we have an energy problem is because we failed to invest in infrastructure. 

Absolutely not true. 

It was not a lack of infrastructure. It was policy changes. Period.

"We" spend a lot of money on wind turbines: no shortage of investment in infrastructure there. 

But we shut down nuclear plants in Europe.

This had nothing to do with too little investment. 

Link here.

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Another Well With Jump In Production -- August 23, 2022

The well:

  • 18135, 599, WPX, Pennington 16-15H, Van Hook, t9/09; cum 267K 6/22;

Recent production:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN6-202230349034661354261125420
BAKKEN5-202231315930011199152314530
BAKKEN4-202230257727081148301602951
BAKKEN3-202231207020624353180
BAKKEN2-20220000000
BAKKEN1-20220000000
BAKKEN12-20210000000
BAKKEN11-20210000000
BAKKEN10-20210000000
BAKKEN9-20210000000
BAKKEN8-20210000000
BAKKEN7-20210000000
BAKKEN6-20210000000
BAKKEN5-20210000000
BAKKEN4-20211100000
BAKKEN3-20213000016500
BAKKEN2-20210000000
BAKKEN1-20210000000
BAKKEN12-20200000000
BAKKEN11-20200000000
BAKKEN10-2020002380000
BAKKEN9-20200000000
BAKKEN8-20200000000
BAKKEN7-20200000000
BAKKEN6-20200000000
BAKKEN5-202010012000
BAKKEN4-20200000000
BAKKEN3-20200000000
BAKKEN2-20200000000
BAKKEN1-20200000000
BAKKEN12-20190000000
BAKKEN11-20190000000
BAKKEN10-201919031140
BAKKEN9-201930915749891699997439
BAKKEN8-20193197596510218091035509
BAKKEN7-2019318869071131648908475
BAKKEN6-201930843778801564421267
BAKKEN5-201931871960781620395961
BAKKEN4-2019308568238615903201013
BAKKEN3-2019318791013731632527840
BAKKEN2-201926785773701456632601
BAKKEN1-2019278607681221597790569
BAKKEN12-2018319039878416773961014
BAKKEN11-201830882753841636351342
BAKKEN10-201831942972891752241456
BAKKEN9-2018309221002971712141434
BAKKEN8-201830982968861824618943
BAKKEN7-201829830704771541666628
BAKKEN6-2018309231141971713548901
BAKKEN5-201831966963901794551465
BAKKEN4-2018268827151091639832579
BAKKEN3-201831936909891739658810
BAKKEN2-201828871984731617646725
BAKKEN1-201831994980971836753813
BAKKEN12-201731942946861748161461
BAKKEN11-201730948118085176001494
BAKKEN10-20173198667010218315191036
BAKKEN9-20173094712329017581067425
BAKKEN8-201731100472710318641153433
BAKKEN7-2017311013112710318811102


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Random Update Of CLR's Long Creek Unit -- August 23, 2022

Before we get started:

  • WTI: up almost 3%; up $2.63; trading at $93.
  • Natural gas: up fourteen cents; trading at $9.823.

LCU tracked here. The unit needs to be updated.

A nice note from a reader overnight:

You wrote some weeks ago that some of the LCU Truman wells were offline. I thought the next 7 wells were fracked. 

And pictures tell the story. The new 2022 GIS map layer from Williams County is amazing. Much much better than 2021 and before. The DMR GIS does not show the 2022 layer yet. 

And a rig picture from LCU Foster. Williams County Historical Imagery (arcgis.com) 

LCU Truman:

LCU Truman:

LCU Foster:

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There's So Much Work Left To Be Done In The Bakken -- August 23, 2022

This well was a DUC that was reported today:
  • 38534, 798, Hunt, Quill 145-93-10-3H 3, Lake Ilo, no production data, 

Here's the graphic: southeast of Bailey oil field; east of Killdeer.

Lots of work yet to be done in the Bakken.

First of all, look at all that open space. The Tier 1 Bakken will have a minimum of twelve wells, and possibly as many as twenty-four wells in each 1280-acre drilling unit. 

Second, Hunt has not been particularly active in the past few years in the Bakken: still much work to be done.

Third: when looking at #38534 and #38535 coming off confidential list, look at what else opens up.

Four singletons, all old wells, re-work, halo effect, re-fracks, lots of work:

  • 18222, 471, Hunt, Quill 10-3H 1, Bailey, t11/09; cum 328K 3/22; off line 3/22;
  • 19401, 415, Hunt, Halliday 1-15-22H 1, t1/11; cum 256K 5/22; off line 6/22;
  • 21567, 471, Hunt, Quill 2-10-3H, Bailey, t5/13; cum 251K 3/22; off line 3/22;
  • 22402, 324, Hunt, Halliday 2-15-22H, t7/12; cum 212K 5/22; off line 6/22;
  • (38778: SWD)

Then, on top of that, a six well pad:

  • 38565, conf, Hunt, Halliday 145-93-15-22H 4, Lake Ilo,
  • 38566, conf, Hunt, Halliday 145-93-15-22H 5, Lake Ilo,
  • 38567, conf, Hunt, Halliday 145-93-15-22H 6, Lake Ilo,
  • 38568, conf, Hunt, Quill 145-93-10-3H 4, Lake Ilo,
  • 38569, conf, Hunt, Quill 145-93-10-3H 5, Lake Ilo,
  • 38570, conf, Hunt, Quill 145-93-10-3H 6, Lake Ilo,
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Bakken Acquisitions -- August 23, 2022

From yesterday on social media:

Raisa?
Old news, press release from June 15, 2022:

Riverbend Energy Group, on behalf of certain of its affiliates, announced today the execution of a definitive agreement with a private buyer for the sale of all of the equity interests in Riverbend Oil & Gas VI, LLC, Riverbend Oil & Gas VI-B, LLC and Riverbend Oil & Gas VIII, LLC, for total consideration of $1.8 billion. 
The transaction is subject to customary terms and conditions and is expected to close in the third quarter of 2022, with an effective date of May 1, 2022. The divested portfolios represent a substantial, diversified asset base of non-operated interests across the Bakken/Three Forks, Utica, Fayetteville and Haynesville. As of the effective date, these properties produced approximately 47,000 barrels of oil equivalent per day from over 11,000 wells. 

MNRL: small acquisition. 

  • press release:
    • $132.5 million
    • 3,900 net acres
    • core of the Midland Basin ni Martin and Midland counties
    • 750 - 950 boepd, 60% oil
    • 132.5 / 3,900 = $34,000 / acre
    • 132.5 / 1,000 boed = $132,000 boepd
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SPR Chatter -- August 23, 2022

Link here.

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Intel -- Columbus, Ohio -- Recession? Depression? August 23, 2022

Yesterday: Investor's Business Daily. 

Microsoft (MSFT) was one of the worst Dow performers as it fell nearly 3%. MSFT is trying to reach its 200-day moving average. Given Microsoft is an IBD Long-Term Leader, this key level can be used as an entry point. But it was Microsoft's old partner Intel (INTC) that was having the worst time on the Dow Jones average today. It fell more than 4% for the day and is now among the worst 18% of stocks tracked over the past 12 months. Volume was running at about average levels.

INTC: needs 7,000 workers (but not all at the same time) to build it's $20 billion chip plant in Ohio.

  • the link;
  • as noted by the Associated Press, Intel’s project won’t require all 7,000 workers at once, and this number might be only a fraction of the workers required to build the complexes that surround Intel’s factories. This includes a 500-acre business park built by VanTrust Real Estate dedicated to Intel’s suppliers.

From NPR: 

Labor leaders and state officials acknowledge there's not currently a pool of 7,000 extra workers in central Ohio, where other current projects include a 28-story Hilton near downtown Columbus, a $2 billion addition to The Ohio State University's medical center, and a $365 million Amgen biomanufacturing plant not far from the Intel plant.

And that's not counting at least three new Google and Amazon data centers, plans for a new $200 million municipal courthouse south of downtown Columbus and solar array projects that could require nearly 6,000 construction jobs by themselves. Federal data shows about 45,000 home and commercial construction workers in central Ohio. That number increased by 1,800 from May 2021 to May 2022, meaning a future deficit given current and future demands.

Recession?

Or could it be worse? Link here.

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University Endowowments -- Harvard Vs UT -- August 23, 2022

University endowments:

At the end of 2020, link here, top 20:

From Investopedia, also 2020 data: 

The five largest university endowments belong to Harvard University ($41.9 billion), the University of Texas system ($31.9 billion), Yale University ($31.2 billion), Stanford University ($28.9 billion), and Princeton University ($26.6 billion). 

Now this, from yesterday: UT is making $6 million each day off the Permian.

And, now, Bloomberg:

$10 billion difference, shapshot in time.

  • 365*6 = $2.2 billion (per year)
    $10 billion / $2.2 = 4.5 years.
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No New Wells Coming Off Confidential List -- August 23, 2022

Yesterday: link here.

Link here.

OXY and Buffett: The WSJ. 

Buoyed by soaring commodity prices, Occidental has substantially paid down its debt load and is generating cash. The company now looks like a strong fit for Mr. Buffett, say investors and analysts. It is strengthening its balance sheet and returning cash to shareholders; it holds the largest position in the most active U.S. oil field; and it is investing in technologies to reduce carbon emissions, which some of Mr. Buffett’s businesses are also doing.

That strategy is paying off. Occidental generated a record $4.35 billion in free cash flow in the second quarter and $3.7 billion in profit. After its shares fell roughly 80% in 2020, Occidental’s stock has jumped 138% this year, a rally driven, in part, by Mr. Buffett’s purchases. 

Occidental entered the pandemic saddled with debt from a $38 billion deal to take over rival Anadarko Petroleum Corp., part of which it funded with $10 billion from Berkshire. Plunging oil prices led the company to lay off employees and cut executives’ salaries—including Ms. Hollub’s—and slash expenses in the oil patch.

But while the deal looked ill-timed, analysts say, the assets Occidental acquired from Anadarko have since helped solidify its position as the largest producer in the Permian basin, the prolific shale oil field in West Texas and New Mexico. The company said it produced roughly half a million barrels of oil a day domestically in the second quarter of the year, compared with about 280,000 barrels before it acquired Anadarko.

6:04 a.m.: 

*******************************
Back to the Bakken


The Far Side: link here.

WTI: $91.83. After Saudi suggested they want to stabilize the oil markets.

Natural gas: $9.801. Will we hit $10 this week?

Active rigs: 46.

No wells coming off confidential list.

RBN Energy: the case for Corpus Christi to become a clean hydrogen hub, part 3. 

It wouldn’t be hard to work up a checklist of the qualities that a major clean hydrogen hub should offer. Easy access to low-cost natural gas for methane reforming, and to carbon sequestration sites for captured carbon dioxide (CO2). Plentiful wind and solar energy to power electrolyzers that split water into hydrogen and oxygen. Lots of available land for clean hydrogen and ammonia production facilities. Nearby refineries and other industrial consumers of hydrogen. And don’t forget export terminals, because the rest of the world will continue to demand U.S.-sourced energy. Well, as we discuss in today’s RBN blog, Corpus Christi seems to check all the boxes.


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