Amber Renee Updated -- August 27, 2022

This post from 2013 is trending, top spot, at the sidebar at the right. 

So, let's update the three wells and introduce a fourth:

Amber Renee, stalled out at 822K:

• 18408, TA/1,945,  Murex, Amber Renee 25-36H, Sanish, one mile to the west of the Chandler James; s12/09; t2/10; F ; "long" lateral; cum 750K 2/13;  822K 12/13; off line since 12/13;
  

Chandler James, goes over one million bbls:

• 17263,  3,124, Chandler James 25-36H, s7/08, produced 500,234 bbls in 484 days; as of 8/12 -- 899K; no pump; still producing 8,000 to 9,000 bbls/month; t10/08; cum 921K 2/13; cum 1,216,690 bbls 6/22;
  

Jacob Daniel:

• 16839, 864, Murex, Jacob Daniel 25-36H-RE, Sanish, t1/08; cum 417K 2/13; cum 562K 6/22;
  

Any others of note in that section or drilling unit?

On the same pad as #18408:

• 36887, drl/A, Murex, Amber Renee 25-36H-R, Sanish, first production, 8/21; t--;  cum 105K 6/22; full production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	6-2022	26	6607	6607	621	18190	11116	6736
BAKKEN	5-2022	31	8045	8045	1260	16872	16872	0
BAKKEN	4-2022	23	5795	5795	1574	12972	12665	8
BAKKEN	3-2022	17	4195	4195	1939	7543	7322	0
BAKKEN	2-2022	28	9249	9249	710	18975	15437	3174
BAKKEN	1-2022	31	10147	10147	689	20219	19816	0
BAKKEN	12-2021	31	10887	11087	870	21382	19875	1104
BAKKEN	11-2021	30	11255	11255	1064	19430	17960	1080
BAKKEN	10-2021	31	13372	13472	1378	21344	19666	1275
BAKKEN	9-2021	29	13075	13136	2282	17713	10699	6624
BAKKEN	8-2021	30	12650	12289	3328	15589	14631	568

Off Net Net In A Few Minutes -- August 27, 2022

I'll be off the net in a few minutes. As soon as the Nebraska - Northwestern game is over, I'm taking a short bicycle ride.

It looks like Nebraska is going to be upset in Ireland!

Yes! They are! Nebraska intercepted! Inside 90 seconds and inside the 20-yard line -- Northwestern has the ball. Wow. What an upset.

I will be back later. 

NASCAR: today at 6:00 p.m.?  Daytona. Final regular season race. Last two drivers selected for post-season.

It's only 3:00 p.m. Saturday! Wow, what a weekend! It's just beginning. And I've completely blown off the PGA tournament, though I will check in periodically, and if it's close, watch tomorrow.

Biggest let down: the PGA this weekend. Even Week 0, NCAA Football surpassed expectations.

Back later.

***************************
Mistake

The entire extended family is out of town for the three-day weekend. I am completely free, no responsibilities.

But I messed up. I should have rented a car from Enterprise and drove to Nashville, TN, to see Arianna.

I won't let this happen again. 

Going forward, I'm going to watch the school calendar like a hawk.

An Old QEP Well -- Now A Chord Energy Well -- Goes Over 500K Bbls Crude Oil Cumulative -- August 27, 2022

The well:

• 24615, 3,167, Oasis/QEP, Hemi 3-34-27BH, Grail, t5/13; cum 549K 5/22;

Recent production:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	6-2022	0	0	8	0	0	0	0
BAKKEN	5-2022	15	98	150	121	810	445	0
BAKKEN	4-2022	30	398	396	522	3682	3136	0
BAKKEN	3-2022	31	599	631	323	2973	2485	0
BAKKEN	2-2022	28	625	600	530	3819	2567	750
BAKKEN	1-2022	31	713	798	91	1940	1346	0
BAKKEN	12-2021	28	1552	1592	3738	2198	2002	16
BAKKEN	11-2021	30	2712	2578	8316	2850	2543	226

Oasis Acquires Select QEP Resources In The Bakken -- August 27, 2022

I'm sure I posted this but I've long forgotten and I'm not in the mood to look for it, at least not now. [Later: see this post.]

But back on October 21, 2021 -- about a year ago -- Oasis Petroleum -- now Chord Energy -- completed the acquisition of select Williston Basin assets of QEP Resources. Link here.

Oasis Petroleum Inc. entered into a definitive agreement to acquire select Williston Basin Assets of QEP Resources, Inc. for approximately $750 million on May 3, 2021. 

The consideration is expected to be financed through cash on hand (approximately $106 million as of March 31, 2021), revolver borrowings ($450 million elected commitment on $500 million borrowing base, none drawn as of March 31, 2021), and a $500 million fully committed underwritten bridge loan committed by  J.P. Morgan and Wells Fargo (expecting high yield financing to replace the bridge loan), net proceed from the Permian Basin Sale and the net proceeds from the offering of $400 million in aggregate principal amount of senior unsecured notes due 2026 completed on June 9, 2021. 

The transaction is expected to close in the third quarter of 2021. As of May 24, 2021, the transaction is expected to close in July 2021. As of June 28, 2021, completion is expected to occur by the end of July 2021. As of August 2, 2021, the transaction is expected to close in late third quarter of 2021. As of September 30, 2021, the parties extended the outside date for the consummation of the acquisition to October 27, 2021. Net proceeds from the transaction are expected to be applied towards debt reduction. The transaction is accretive to cash flow per share and free cash flow per share in both the near and long-term before accounting for synergies.

Is this:

• $106 million cash-on-hand,
• $450 million, revolver borrowings,
• and a $500 million bridge loan
• net proceeds from $400 million from Permian sale?

The deal:

• 95,000 net acres.
• $745 million.
• $745 million / 95,000 net acres = $8,000 / acre. 

Much to say to the nay-sayers, but I don't have time for that now. Maybe later.

XTO And CLR -- A Smiley Face -- August 27, 2022

See this post.

See this post.

A reader asked me about this. My reply:

It certainly looks like XTO and CLR are trying to come to some kind of deal, but with CLR's focus on cutting debt they may be looking at other ways of playing this. 

This is really quite fascinating if you think about it. 

This may be a win-win for both XTO and CLR. 

By doing it this way, CRL does not have to come up with a lot of cash and over-pay for drilling locations in the Bakken. 

Meanwhile, XTO benefits from oil production and high oil prices without spending CAPEX on the wells and still hold their acreage in the Bakken.

I think it's brilliant. 

Mom-and-pop mineral owners benefit big time: if CLR and XTO didn't come to this arrangement, these drilling units might lie idle while XTO focuses elsewhere and doesn't drill in the Bakken. 

I'm lovin' it.

ERCOT -- For The Archives -- August 27, 2022

See previous statement.

I was "sweating" this bill.

I "watched" / conserved electricity last month (July, 2022) but this current month (August, 2022) I didn't pay as much attention to electricity usage, letting my spousal unit use the air conditioner as much as she needed (not necessarily wanted).

We have no natural gas, only electricity.

This is our only energy utility bill, our entire energy / utility bill.

This was the hottest August we've had in quite some time. Note the average high temperature this August compared to August last year, 100°F vs 94°F.

Note that we had two less days in the billing cycle than the previous month.

$90.30 / 30 = 3.01 * 32 days = $96.32.

Lake Mead Water Level Rising -- August 27, 2022

Link here.

Is it just me or does the recent Lake Mead curve match that of the average price of gasoline in the US over the past few weeks?

My Favorite Chart -- August 27, 2022

Link here. My favorite chart.

Texas Likes Wind, Solar, Oil, And Natural Gas -- Just Don't Go Down The Nuclear Energy Road -- August 27, 2022

Link here.

Doesn't bother me a bit. Texas:

• has lots of oil money to spend on a lot of stupid stuff;
• has lots of empty space west and southwest of DFW.

Bird enthusiasts aren't going to like it but that train left the station years ago. 

North Dakota Historical Oil Production Stats -- August 27, 2022

Look at the number of wells that were reported:

• in 3Q19; 202 (three months); and, then compare that list to the current list:
• 3Q22: 50 (two months, extrapolates to 75 over three months)
  

Number of oil and gas rigs:

• August 27, 2019: 63
• August 27, 2022: 46

Production on a daily bases, 3Q19 and 3Q22 -- very similar. 

NDIC historical oil production stats: link here.

PGA --- August 27, 2022

Updates

Later, 1:26 p.m. CT: impossible to watch. Unnecessary weather delay, and now the switchover from "Golf Channel" to NBC switching to LPGA. Impossible to watch. Switching to Fox and watching NCAA football.

• Nebraska vs Northwestern: in Ireland. Apparently, beer is free inside the stadium.
  

Original Post 

The PGA is in the fight for its life competing with the LIV.

All year, I can find live action and re-airing of PGA tournaments throughout the four-day tournament.

Now, the most important, the final, the championship tournament, nada, nothing, zilch. The first two rounds were televised live only on the "Golf Channel" meaning most / many folks did not see either round on television.

Now, the third round will be shown live only on "Golf Channel" for the first ninety minutes later this afternoon and then moved over to NBC.

Same for the Sunday round. 

What are they thinking?

Link here.

The favorite, Will Zalatoris, withdrew due to a back injury suffered last week.

Of course, Tiger Woods, Phil M., Bryan D, and the other big names won't be there either.

So, we're left with Scottie Scheffler, up by two, followed by Xander Schauffele, Jon Rahm, and Patrick Cantlay, followed by also-rans. Except for Rory McIlroy but he's seven strokes back and simply enjoying another walk in the park.

Truly pathetic. 

After this weekend, expect more PGA players to move over to the LIV. 

On another note, fans of professional golf may have just dropped below critical mass. Viewership is already very low and now if twenty-five percent of the PGA fan base leaves with the big names that left for LIV, it's going to be tough sledding for the PGA. 

The fact that NBC is airing and streaming so little of the tournament this weekend speaks volumes. Couldn't find enough advertisers to make it worthwhile. Meanwhile, I can watch Caddyshack on Hulu.

Week 34: August 21, 2022 -- August 27, 2022

Top Stories

Top energy story: 

US oil data from the US Energy Information Administration for the week ending August 19, 2022, showed that despite a record withdrawal of crude from the SPR, a drop in our oil exports, and a decrease in​ our​ refining, we had to pull oil out of our stored commercial crude supplies for the 4th time in 6 weeks, and for the 23rd time in the past 39 weeks, in part due to a big decrease in oil supplies that could not be accounted for.

Javier Blas:

Focus on fracking: weekly installment.The lede:

• natural gas touches $10;
• US oil supplies at a 19-year low;
• SPR at a 37.5-year low after a record withdrawal.

Top story of the week:

• Jay Powell's 8-minute speech telegraphing a coming recession, just in time for Christmas
• Ukraine: no longer talking peace; talking victory
  

Top international energy story:

Top national non-energy story:

• US equity markets plummet after Jay Powell's "recession" speech

Top national energy story:

Top North Dakota non-energy story:

Top North Dakota energy story:

Geoff Simon's top North Dakota energy stories:

• Quick connects.

Bakken economy:

Commentary:

Entertainment:

• Final episode, second season: "Only Murders in the Building"
  

Reflections From Overnight -- Now That I've Had A Chance To Think About It -- August 27, 2022

Most prescient headline ever. Posted at 6:53 a.m. Friday morning, hours before Jay Powell's 8-minute warning:

Later, 3:26 p.m. CT after market close: Dow falls 1,000 points and NASDAQ slumps 4 percent. 

For investors: all things being equal, after Jay Powell's speech yesterday,

• would you have preferred getting a 6% APR dividend; or,
• a WSJ article telling you "your" company authorized more stock buybacks

Jay Powell, a new sheriff in town:

• I don't think pundits truly understand what happened yesterday;
• the timing came right after the Inflation Reduction Act was passed and the Student Debt relief order was announced;
• Powell started his speech even before CNBC was ready to televise it;
• CNBC talking heads were standing by, waiting, never got the word, and were caught off-guard when they joined Powell's speech already in progress
• shortest major Fed speech ever; shortest Jackson Hole speech ever;
  
• most transparent Fed speech ever
• mispronounced "recession" when he said "pain"
  
• pushed a few incumbents under the bus
• the speech will be interpreted as empty words by many if Jay Powell doesn't announce a Fed meeting this next week (to convene before August 31, 2022)

The speech, link here.