"Damn The Torpedoes, Full Speed Ahead" -- Daughter Wells Don't Produce As Well As Parent Cells -- Another Meme -- March 16, 2021

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The CLR Gordon Federal wells are tracked here.

The wells:

• 36098, F/A, CLR, Gordon Federal 10-5H1, Haystack Butte, first production, 11/20; t--; cum 89K 1/21;
• 36097, F/A, CLR, Gordon Federal 11-5H, Haystack Butte, first production, 11/20; t--; cum 84K 1/21;
  

Compare the parent well with the daughter wells.

By the way, it's one parent well; 23 daughter wells.  

So far, the four completed/reported daughter wells have each produced significantly more oil in three months than the parent well produced in thirteen years.

Parent well:

• 16683, IA/224, CLR, Federal Jorgenson 14-5H, Haystack Butte, t12/07; cum 71K 2/20; inactive since 2/20; remains off line 1/21;

So, the parent well has produced all of 71,000 bbls of crude oil since being drilled in early 2007. 

Compare that with the daughter wells reporting today, posted above:

• 36098: 89K in three months;
• 36097: 84K in three months;
• 36054: 106K in less than three months;
• 36099: 106K in three months; 
  

36098:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2021	31	19510	19601	16993	34008	31472	2536
BAKKEN	12-2020	31	28764	28752	24460	44845	39387	5458
BAKKEN	11-2020	29	40686	40435	35638	57022	49499	7523

36097:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2021	31	29553	29464	23782	49680	45978	3702
BAKKEN	12-2020	31	18820	18868	17008	31396	27570	3826
BAKKEN	11-2020	29	35692	35472	34173	55106	47829	7277

36054: note -- 32K over 19 days extrapolates to 51K over 30 days.

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2021	31	27913	28080	21022	51596	47745	3851
BAKKEN	12-2020	31	45113	44898	41478	75946	66689	9257
BAKKEN	11-2020	19	32068	31870	27030	52973	45974	6999

36099:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	1-2021	31	28426	28496	20329	49354	45674	3680
BAKKEN	12-2020	31	35089	35017	26852	54886	48205	6681
BAKKEN	11-2020	29	40484	40235	35517	63859	54912	8947

By the way, since most folks won't click on the "Gordon Federal" link above, here are the twenty-three Gordon Federal "daughter" wells:

• 36107, loc-->EXP-->renewed, CLR, Gordon Federal 1-5H, Haystack Butte, 2560-acre; 4/5/8/9-148-87; middle Bakken; renewed February 22, 2021;
  
• 36106, loc-->EXP-->renewed, CLR, Gordon Federal 2-5H1, Haystack Butte, 2560-acre; 4/5/8/9-148-87; Three Forks B1; enewed February 22, 2021;
• 36105, loc-->EXP, CLR, Gordon Federal 3-5H, Haystack Butte, 2560-acre; 4/5/8/9-148-87; middle Bakken;
• 36104, loc-->EXP-->renewed, CLR, Gordon Federal 4-5H1, Haystack Butte, 2560-acre; 4/5/8/9-148-87; Three Forks B1; renewed February 22, 2021;
• 36103, loc-->EXP-->renewed, CLR, Gordon Federal 5-5H, Haystack Butte, 2560-acre; 4/5/8/9-148-87; middle Bakken; renewed February 22, 2021;
• 36102, loc-->EXP, CLR, Gordon Federal 6-5H1, Haystack Butte, 2560-acre; 4/5/8/9-148-87; Three Forks B1;
• 36101, loc-->EXP, CLR, Gordon Federal 7-5H, Haystack Butte, 2560-acre; 4/5/8/9-148-87; middle Bakken; bottom hole, 4-148-97;
• 36100, loc-->EXP, CLR, Gordon Federal 8-5H1, Haystack Butte, 2560-acre; 4/5/8/9-148-87; Three Forks B1;
• 36099, loc-->F/A, CLR, Gordon Federal 9-5H, Haystack Butte, 2560-acre; 4/5/8/9-148-87; middle Bakken; first production, 11/20; t--; cum 77K 12/20;
  
• 36098, loc-->conf, CLR, Gordon Federal 10-5H1, Haystack Butte, 2560-acre; 4/5/8/9-148-87; Three Forks B1; producing; big well;
  
• 36097, loc-->conf, CLR, Gordon Federal 11-5H, Haystack Butte, 2560-acre; 4/5/8/9-148-87; middle Bakken; producing; nice well;
  
• 36096, loc-->conf, CLR, Gordon Federal 12-5H1, Haystack Butte, 2560-acre; 4/5/8/9-148-87; Three Forks B1; producing nice well;
  

• 36054, dr-->F/A, CLR, Gordon Federal 13-8H, Haystack Butte, 2560-acre; 4/5/8/9-148-87; middle Bakken; spud, July 30, 2019; cease drilling, October 16, 2019; bottom hole, 9-148-97; first production, 11/20; t--; cum 78K 12/20;
  
• 36055, drl-->conf, CLR, Gordon Federal 14-5H1, Haystack Butte, producing, nice well;
  
• 36056, drl-->conf, CLR, Gordon Federal 15-8H, Haystack Butte, producing, nice well;
  
• 36057, loc, CLR, Gordon Federal 16-5H1, Haystack Butte,
• 36058, loc, CLR, Gordon Federal 17-8H, Haystack Butte,
• 36059, loc, CLR, Gordon Federal 18-5H1, Haystack Butte,
• 36060, loc, CLR, Gordon Federal 19-8H, Haystack Butte,
• 36061, loc, CLR, Gordon Federal 20-5H1, Haystack Butte,
• 36062, loc, CLR, Gordon Federal 21-8H, Haystack Butte,
• 36063, loc, CLR, Gordon Federal 22-5H1, Haystack Butte,
• 36064, loc, CLR, Gordon Federal 23-8H, Haystack Butte, 

Manufacturing Phase -- Full-Field Development -- September 23, 2014

It is interesting how things work out. Some time ago we started talking about the "manufacturing phase" in the Bakken, but never went much beyond that stage. I was subconsciously following the development of various fields but not really thinking about it as a singular concept, as it were.

Then, out of the blue, Jane Smith asks what appears to be a simple question; coincidentally another reader talks about the progress of some pad drilling he noted in Vern Whitten's photographs, and before you know it, we are off and running.

I have a new tag at the bottom of the blog, "Field_Development" and I also put the link at the sidebar at the right, making it easier for me to find it. That link will take you to a location where I will try to aggregate these stories, if I remember.

Field development can probably be broken down into at least two components: a) operational constraints of pad drilling; and, b) administrative management (unitization, for example).

This has been a great two days with regard to developments in the Bakken. First, there is the issue of fracking (wells waiting to be fracked, shares of CRR plummeting, new completion studies); and, second, the discussion of field development.

Field Development: A Reader Notes The Progression Of Pad Activity / Drilling In Vern Whitten's Photographs -- September 23, 2014

Updates

Later, 6:58 p.m. CDT: a look at CLR's approach to full-field development using the Jersey mega-pad as an example; provided by a reader. 

Later, 6:21 p.m. CDT: this is starting to feel like a tennis or ping-pong match, and I'm the net. The earlier reader has come up with a good explanation for what Jane is seeing (see note below):

I believe one of the primary factors the operators consider in their development decisions is "cash flow."  Another is one I think Jane referred to -- gaining an understanding of the geology and reviewing results, before applying completion designs "whole hog."

The 12-well Hess pad in 26-154-94 was planned for 9 EN-Freda wells in the sections 26-35 standup spacing unit and 3 EN-Leo wells in the sections 23-24 lay down spacing unit immediately to the north. Neither of the spacing units had been drilled previously.

The first batch of 3 wells were 2 EN-Freda's and 1 EN-Leo.  One of the EN-Freda's was a Three Forks well, the other two wells Middle Bakken.

The second batch of wells was 2 EN-Leo's.  When Hess started these wells they only had a couple months of data from the EN-Leo H-1, an MB well.  For the EN-Leo H-2 Hess drilled a planned-exploratory bore a couple thousand feet into the Three Forks with whatever equipment they use, and then tripped back out and drilled a MB lateral.  The EN-Leo H-3 was subsequently  drilled in the TF.

I am really embarrassed. I should have known this. After reading all the file reports that I've read,  should have known this. The best, most recent example for me was the MRO-Tyler well. The geology report was a bit equivocal about whether the well might be economic/productive, and said the data would be studied by the "home office" before a decision would be made to complete the well. And in all cases it only seems common sense that the operator would study the geologist's report before completing the well. On top of that, these guys are so busy in the Bakken, it probably takes more time than expected, just to get to all the wells and through all the data.

Yes, this should have been an easy question to answer, and I missed it. Very embarrassed. A big "thank you" to the second reader for answering the question.

September 23, 2014: see comments below. Another reader has made observations regarding Hess -- with minor changes --

Comments about the different approach to field development is really interesting. I have been following Hess's rig movements and have observed how the spud rigs (Noble's) seem to dart all over -- they will be in McKenzie for 6-8 days spudding 2-3 wells in a section and then go to Dunn to do the same thing only to return to do some additional spudding.

I have been closely following the activity in Ellsworth and Cherry Creek. It is curious to see that last November, Hess got permission for 6+ wells on the land they lease in these two fields. In May/June Hess got permits in Ellsworth for 2 new wells in section 12; 3 in section 11; and, 4 in section 10. But they are drilling 2 wells in section 10 and 2 wells in section 15. It is curious that they don't drill out all the wells that they have permission for. One would think it would be more cost effective. However, another observation is that they are getting them drilled -- but not fracked very quickly -- particularly in Cherry Creek.

I have wondered if they are doing this because of the potential for increased production from periodically adding wells and stimulating production in the older wells. It may be that the increased cost of swirling between locations is offset by the potential increase in production.

Your observation about delaying fracking is very, very interesting. One wonders. In the most recent Director's Cut, it was noted that there are now more wells waiting to be fracked than the previous month, and summer should be the most active for fracking. One wonders if you might not be correct.

Publicly traded companies know that analysts focus on quarterly results. If an operator can delay the expense of fracking into the next quarter without significantly hurting production, their quarterly results will look better, all things being equal.

In addition, remember that new flaring rules take effect in October (?). It's very possible operators are purposely delaying completion of their wells until they get the natural gas collection and processing network in place.

A huge "thank you" to the reader for taking time to write. Each little bit of data helps to better understand the Bakken.

Bottom line: right now there are two new developments affecting completion/fracking of wells: a) new flaring rules; and, b) high cost of proppant. To some extent, operators may be studying new completion methods and putting previous plans on hold while they reconsider the completion method to be used. I don't yet think the price of WTI is significantly affecting fracking schedules in the Bakken.

Original Post

This is a long note from a reader who provides much more detail regarding some of the photos in Vern Whitten's most recent set of aerial photographs. It's the kind of thing I would like to do (write a more detailed review of the photographs) but I simply don't have the time. I really appreciate readers providing additional background to the photographs.

I don't have any secondary agenda in posting these notes, or or any secondary agenda talking about Vern Whitten's photos again. Based on the e-mail I get and the "hits" on the blog, it is obvious that a lot of folks like the photos.

Because of the nature of the e-mail thread, it may be a bit hard to follow at first; the specifics are not particularly important. The last paragraph in the long thread below is the "takeaway," but along the way, one gets an explanation of some of the photographs.

So, without further ado, here is part of a much longer note that a reader sent me:

A special aspect of this photo set is represented by slide 13 of Vern Whitten's "Never Ending Winter" set, which was taken February 14, is of the same pad and the same rig featured in "MillionDollarWay back on May 22 [the large rig on that pad was the Nabors B5, which was drilling the EN-Freda H-5 well when the photo was taken August 9]. The Nabors B5 rig was drilling the EN-Leo H-2 well at that time; the completed EN-Freda H-1 and H-2 wellheads can be seen in the lower left corner of the slide.  The completed EN-Leo H-1 wellhead is just out of the picture to the left.

Vern Whitten most appropriately titled his most recent August photo set, "Bakken Sights and Progress."

The comparison of these two "Winter" and "Summer" photos and their companion slides -- 12 and 14 in the "Winter" set and  16 and 17, which you note as "multiple pads along the Lake; stunning" in the "Summer" series -- vividly presents this progress.

The companion "Winter" slides 12 and 14 both show the Hess EN-Freda/EN-Leo pad and Continental's Vachal pad, which is just across the road to the west in NENE 27-154-94.  The recent "Summer" series companion slide 16 looks east and shows the Hess and Continental pads along with White Earth Bay in the distance, as well as four "new" Oasis pads strung further west.  These four Oasis pads are sited along the bottom of 22-154-94, and they are all drilling Helling Trust wells.

The second "Summer" series companion photo, slide 17, looks west from White Earth Bay and presents a closer view of Continental's Vachal pad in the lower left of the picture,  and the four Oasis Helling pads extending in a line to the west.  The current NDIC GIS Map Server, updated August 16, has a rig on each of these four Oasis pads.  Since then, the Active Drilling Rig List shows the Extreme 25 rig has moved off the SESE 22-154-94 Oasis pad, but that the three remaining Oasis pads currently have rigs drilling Helling wells.

This is why this is so interesting, and perhaps important, if one is trying to understand the Bakken:

While Vern Whitten's photography chronicles all types of progress in the Bakken, in this instance progress on a particular pad and increased activity in a specific area, it also provides some insight into the processes various E&P's use in developing their holdings.  Hess performs a "ballet" with their rigs, as they drill small batches of wells, move the rigs off, frack, bring the rigs back, drilling, moving off, fracking....  Oasis, on the other hand says, "we want 15 or 16 wells -- okay, I'll get four pads with 3 or 4 wells on each, and go at them all right now."  Then we have Continental's approach with their "full-field development." 

More to follow in another stand-alone post. 

Example Of CLR's Approach To Full-Field Development Using The Jersey Pad As An Example -- September 23, 2014

Take a look at these CLR wells, currently on confidential status with one rig-on-site. Below the graphic a very, very long note from a reader on "field development."

These are the Jersey wells which I posted back on March 26, 2014.

Note: one Jersey well was reported dry, most likely due to "early" casing problems:

• 27832, dry, CLR, Jersey 29-6H, Alkali Creek, a 4-section well; no production data, nothing yet in the file report that might explain what happened;

I hope Vern Whitten documents a photographic history of this mega-pad.

Here is the long note from a reader who discusses these Jersey wells:

At Continental's 3Q13 earnings call last November 7, the one where Harold Hamm laid out his "ears pinned back" program, Winston Bott - Continental's then President and COO, stated they intended to insure they get production online as quickly as possible and "don't inventory capital" as they move to larger and larger pads.

Bott indicated Continental would segregate these mega-pads into subareas to enable them to drill, complete and bring 7 or 8 wells online at a time.  He said they would sequentially go through the entire pad this way until it was completely online.  The implication is Continental will perform simultaneous operations whenever possible, as they develop a mega- pad.

This is the basis of my understanding of their full-field development approach.

Continental has 30 Jersey wells sited in the northeast quarter of section 6-153-93.  The main pad has three strings of 7, 7, and 8 wells running basically north-south in SENE - see the graphic above.  A separate pad with two strings of 3 and 5 wells is located close to the north section line.

Five wells on the main pad's furthest east string have been spud this year, and I believe drilling is finished on them.  These wells are:

• 27828, Jersey 25-6H, spud 7/11
• 27829, Jersey 26-6H2, spud 5/16
• 27830, Jersey 27-6H1, spud 5/16
• 27832, Jersey 29-6H, spud 3/13
• 28333, Jersey 29-6XH, spud 5/16

The 29-6H was the first Jersey well drilled, and as you recently noted the well came off the confidential list about a week ago, and was reported "dry" due to an apparent issue with the surface casing.  The Jersey 29-6XH is its replacement well. [Note the nomenclature.]

The Cyclone 35 rig has been reported on the main Jersey pad since March.  The Active Drilling Rig List has shown it on the Jersey 25-6H well since July 11, until today when the report shows the rig on the Jersey 1-6H well as of September 12.  This latter well is located on the smaller 8-well pad to the north.  I sense Continental may not bother to provide updated rig information to the NDIC.

Six of the wells on the smaller 8-well pad have recently been spud:

• 27997, Jersey 1-6H, spud 8/30
• 27996, Jersey 2-6H2, spud 8/29
• 27995, Jersey 3-6H1, spud 8/28
• 28002, Jersey 4-6H3, spud 9/1
• 28000, Jersey 6-6H2, spud 8/27
• 27999, Jersey 7-6H1, spud 8/29

Based on the directional information Continental provided last fall, it is likely they will complete the four wells already drilled on the main Jersey pad, as they concurrently proceed with drilling the six wells recently spud on the smaller pad.

The Jersey wells provide a somewhat unique challenge with the Lake and topology.  I believe this forced Continental  to utilize a separate pad to accommodate their operations at this venue, and that they will develop future mega-pads without building separate pads whenever possible.

For your reference I scanned and attached as a pdf Continental's Jersey Wells Array Plan prepared in January of this year, and a Vicinity Map of section 6-153-94, the location of the Jersey wells.  These documents were obtained from the Jersey 29-6H well file.  The eight wells on the separate, smaller pad are not listed on the Vicinity Map.  Also, Continental has since removed "Federal" wherever it appeared in the Jersey well names.

 Here are the two graphics the reader sent me; they should be self-explanatory: