Keeping North Dakota Great -- June 19, 2018 -- Denbury, EOR, Southwest North Dakota

From a press release:

PLANO, Texas, June 18, 2018 -- Denbury Resources Inc. announced that the Company has sanctioned a CO2 enhanced oil recovery project at Cedar Creek Anticline. 

CCA is a massive geological feature stretching approximately 125 miles in length across parts of Montana, North Dakota and South Dakota.

Denbury's portion of CCA covers approximately 175,000 acres and is estimated to hold up to five billion barrels of original oil in place.

KEY PROJECT HIGHLIGHTS:

• targets EOR potential greater than 400 million barrels, with initial tertiary production expected by late 2021 or early 2022
• modest capital to first tertiary production of approximately $250 million (including CO2 pipeline) can be funded with cash flow
• first two project phases are estimated to generate $3 billion of cumulative net free cash flow at $60 oil

If one gets 50% of that OOIP from primary production and EOR, we are talking about 2.5 billion bbls of oil.

One of the more pleasing observations from that press release: it's out of Plano, TX -- just up the road from us. Plano is home to many Fortune 500 companies, including Toyota, after it moved out of California a couple of years ago. Toyota has completely transformed Plano.

Denbury "needs" $60-oil long-term to make this project viable (after 2024 or thereabouts).

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Outlet Mall

Near Seaside, Oregon -- Along The Coast

Tesla Charging Station

 Can you imagine if every car in Oregon was an EV? Wow!

Denbury Completed Wells Update -- Bakken, North Dakota, USA

Denbury (DNR) provides the following information in its December corporate presentation.  DNR says these wells were completed in 2010. Some of these wells have been reported elsewhere on this blog. The IPs are based on "consecutive 24-hour tests." In some cases, the IP that DNR reports is significantly greater than that reported in the NDIC file report. On my blog, the IP report can vary, depending on the source, and I seldom provide the source. If there are two conflicting numbers, the larger number is probably a "24-hour flowback test" provided in a corporate presentation; the lower number is probably the number reported in the NDIC file report, which is more likely a 30-day, or even a 60-day average.

DNR reports that the Klamm well below was in the Cherry oil field; my database shows the Siverston oil field, east of Watford City; the Cherry Creek oil field is southwest of Watford City, but DNR calls this area their "Cherry" prospect.

They also refer to the non-Bakken formation as the "Sanish" formation. I assume that is the Three Forks formation. Early on, most folks referred to this formation as the Three Forks Sanish; then, the Three Forks/Sanish; and, now, most refer to it simply as the  Three Forks formation.

So, with all that preamble, here goes (well name, area, formation, 24-hour IP):

• Werre Trust 44-34H, Bear Creek, Sanish, 2,532 
• Porcupine 14-35H, Bear Creek, Sanish, 1,681
• Porcupine 11X-2H, Bear Creek, Bakken, 1,885
• Swenson 31-33SWH, Charlson, Bakken, 2,355
• Gilbertson 11-26H, Charlson, Bakken, 1,500
• Beckert 24-7H, Bear Creek, Bakken, 1,519
• Klamm 34-9NWH, Cherry, Bakken, 1,212
• Hanson 11-12H, Murphy Creek, Bakken, 944
• Jorgenson 34-9, Bear Creek, Sanish, 1,471
• Joseph 11-1H, Camp/Indian Hill, Bakken, 1,329

The 60-day average dropped to the 400 - 800 range in most cases.

A reminder: DNR acquired Encore back in 2009 and these wells were permits filed by Encore.