Random Look At Section 22-152-96, Clear Creek; Three (3) Rigs In One Section

This has to be an interesting area for the locals to be watching: three rigs in one section, all on a line along the section's south line.

23295: on a single well pad; rig on site; conf,  BR, Mesa Verde 14-22TFH, Clear Creek;

18442: on a single well pad; 2,348, BR, Mesa Verde 24-22H, t3/10; cum 254K 9/12;

23293: on a two-well pad; conf, BR, Mesa Verde 24-22TFH,
23294: 2,962, on a two-well pad; BR, Mesa Verde 34-22MBH, 2-section spacing, t2/13; cum --

23261: on a three-well pad; rig on site; conf, BR, Mesa Verde 24-22TFH,
23262: on a three-well pad; conf, BR, Mesa Verde 44-22MBH,
23263: on a three well pad; conf, BR, Mesa Verde 44-22TFH,

Idle chatter: one almost wonders what the hurry is. Why three rigs in one section? The leases are held by production. My hunch: much eagerness to see what the Three Forks can do in this area, where the Bakken is already well-proved. But still: three rigs? Wow. I am not sure if there is any other section in the Williston Basin with three rigs on site.

Random Observation: Close Working Relationship Between CLR and BR -- The Multi-Year-Multi-Well Three Forks Study

Midnight Run wells: CLR and BR.

CLR mentions BR's Sunline 11-1TF well as part of the multi-year, multi-well Three Forks study.

For newbies: BR is a wholly-owned subsidiary of COP. Flashback:

On the evening of December 12, 2005, ConocoPhillips and Burlington Resources Inc. announced they had signed a definitive agreement under which ConocoPhillips would acquire Burlington Resources Inc. The transaction has a preliminary value of $33.9 billion.

This transaction is expected to close on March 31, 2006, subject to approval by Burlington Resources shareholders at a special meeting set for March 30, 2006. Under the terms of the agreement, Burlington Resources shareholders will receive $46.50 in cash and 0.7214 shares of ConocoPhillips common stock for each Burlington Resources share they own. This represents a transaction value of $92 per share, based on the closing of ConocoPhillips shares on Friday, December 9, 2005, the last unaffected day of trading prior to the announcement.

COP is one of Warren Buffett's ten largest holdings in Berkshire Hathaway. 

Earlier this year, COP spun off Phillips 66, creating the newest independent US refiner.

CLR, market cap: $14 billion.

COP, market cap: $70 billion; cash on hand: $1 billion; operating cash flow: $18 billion.

PSX, from Motley Fool:

Last summer, Berkshire Hathaway purchased shares of Phillips 66 stock over and above what it received when the company was spun off from Conoco. Since the spin-off, Phillips has outperformed its former parent company and major indexes. Since mid-July, Phillips has gone from around $32 per share to today's $45.15. In addition to refineries, the company conducts many of the marketing operations for Conoco, including the branded "76" gas stations.

So far, Phillips 66 looks like another win for the Berkshire money managers and further evidence that they have what it takes to deliver shareholder value.

PSX shares are rising significantly today. [Disclaimer: this is not an investment site; make no investment decisions based on what you read at this blog.]

Interesting observation from Motley Fool, again, today, regarding COP:

ConocoPhillips, meanwhile, is Buffett’s ninth most bullish investment, as it accounts for a little over $1.6 billion of his 13F portfolio. Since its split, the upstream portion of the company has traded in tight range of $56-$57, as its second quarter net income fell year-over-year.

Conoco has also reportedly ended its operations in the Caspian Sea, which was expected to have between 9 and 16 billion barrels of oil, whilst selling its stake in LUKoil. While it appears that investors don’t like the company’s new streamlined look, bargain-hunters – Buffett included – may find it attractive.

A significant element of share price of an oil company is its proved reserves.

Midnight Run Wells and Midnight Run Project -- The Bakken Pool, The Williston Basin, North Dakota, USA

Updates

July 5, 2018: the wells are updated with graphic at this post --

Running north from the south --

• 31317, 157, BR, Midnight Run 2-8-12MTFH, Union Center, t3/18; cum 39K after 41 days; cum 345K 5/21;
  
• 31318, 133, BR, Midnight Run 3-8-12MBH, Union Center, t3/18; cum 37K after 40 days; 266K 5/21;
  
• 31319, 448, BR, Midnight Run 4-8-12MTFH, Union Center, t3/18; cum 253K 5/21;

Running south from the north --

• 24537, IA/2,842, BR, Midnight Norse 11-1MBH-ULW, Union Center, t5/13; cum 313K 5/18; nice jump in production; cum 357K 1/21; off line 1/21; remains off line 5/21;
  
• 22675, IA/2,640, BR, Midnight Run 11-1TFH, Union Center, t10/12; cum 272K 5/18; nice jump in production; cum 297K 8/19; intermittent since 8/19; remains off line 5/21;
  
• 20323, IA/3,325, BR, Midnight Run 11-1MBH, Union Center, t12/11; cum 345K 5/18; huge jump in production; cum 373K 3/21; off line 3/21; remains off line 5/21;
  
• 20324, IA/1,963, BR, Midnight Run 12-1TFH, Union Center, t12/11; cum 211K 5/18; huge jump in production; cum 269K 5/21; off line 4/21; remains off line 5/21;
  
• 20325, IA/2,846, BR, Midnight Run 21-1MBH, Union Center, t12/11; cum 287K 5/18; off-line since 12/17; cum 354K 3/21; remains off line 5/21;
  
• 20326, IA/2,083, BR, Midnight Run 13-1TFH, Union Center, t12/11; cum 302K 5/18; nice jump in production; cum 360K 1/21; remains off line 5/21;
  
• 17421, AB/544, BR, Midnight Run 41-1H, Union Center, t11/08; cum 421K 5/18; cum 427K 10/19;
  
• 20327, IA/2,443, BR, Midnight Run 41-1TFH, Union Center, t12/11; cum 292K 5/18; cum 349K 12/20; remains off line 5/21;
  

June 20, 2012: the folks over at the Bakken Shale Discussion Group have also noted the relationship between CLR and BR with regard to the Midnight Run wells.

Original Post

From the CLR transcript:

We also have a 320-acre development project underway for the Middle Bakken and first bench of the Three Forks. The Midnight Run project, as it is called, consists of 3 Middle Bakken producers and 3 Three Forks producers within one 1,280-acre unit. The wells in each horizon are spaced 1,320 feet apart, with the Middle Bakken wells offset 660 feet from centerlines of the Three Forks. These wells began producing in the first quarter with average IPs of 1,300 barrels of oil equivalent per day per well. Interference testing is underway, and results will help guide future drilling density for the play.

But the Midnight Run wells are all BR (Burlington Resources) wells in Union Center oil field, and they are just as CLR described; a mix of MB and TF, all in 1-152-96:

• 17421, 544, BR, Midnight Run 41-1H, Union Center, Bakken, 7/08; t11/08; cum 351K 9/13; 9-stage fracture; still producing 12,000 bbls/month; on a pump; 3/13: it looks like it is choked way back.
• 20323, 3,325, BR, Midnight Run 11-1MBH, Union Center, Bakken, t12/11; cum 216K 9/13;
• 20324, 1,963, BR, Midnight Run 21-1TFH, Union Center, Bakken, t12/11; F; cum 108K 9/13;
• 20325, 2,846, BR, Midnight Run 21-1MBH, Union Center, Bakken, t12/11; F; cum 170K 9/13; 14K/month
• 20326, 2,083, BR, Midnight Run 31-1TFH, Union Center, t11/11; F; cum 156K 9/13; 
• 20327, 2,443, BR, Midnight Run 41-1TFH, Union Center, t12/11; F; cum 121K 9/13;
• 22675, 2,640, BR, Midnight Run 11-1TFH, Union Center, t10/12; cum 111K 9/13;
• 24537, 2,842, BR, Midnight Horse 11-1MBH-ULW, Union Center, announced November 30, 2012; will be squeezed in between #22675 and the west line; 30 stages; 3.3 million lbs;

All seven eight of these wells are in the same section, running west-to-east across the north end of the section.

 

In the transcript, CLR talks about increasing their involvement in non-operated wells (the NOG model). 

 

They don't mention that the Midnight Run wells are BR wells.

I find it hard to believe that BR and CLR both have Midnight Run wells/Midnight Run projects.

Perhaps more to follow.