Another Lackluster Hess Well

Some months ago I was taken to task when I opined about the lackluster Hess wells based on IPs (yes, I know the argument).

Today, another Hess well was reported on the NDIC daily activity report: #18228, EN-Uran-154-93-1213H-1 (this link is now broken; suggestion that this dual lateral abandoned the Middle Bakken, and this is a fracked Three Forks Sanish well). Based on its designation, it's a long lateral. The IP was reported to be 225. This is about the same as other IPs for Hess wells in the same area; in fact the nearest Hess well to the EN-Uran had an IP of 225 (coincidentally) and another Hess well had an IP of 425. None of these are exciting. These wells are in the Robinson Lake field, just west of the prolific Sanish field. Adding insult to injury, this newest well (#18228) is exactly one mile west of the Sanish. Actually, none of the wells in the immediate area are all that exciting, on either side of the Robinson Lake/Sanish line. [Update, November 5, 2013: #18228 has now produced 136,560 bbls of oil.]

Perhaps more frustrating: this well was advertised as a dual lateral. If this is a dual lateral, it raises even more questions about the IP. Dual laterals target two formations: in this case, the two formations would be the Three Forks Sanish and the Middle Bakken. (See note above regarding abandonment of the Bakken lateral, and is now only a Three Forks Sanish well.)

Sinclair, yes, Sinclair, has a well 3.4 miles southwest of this newest Hess well (IP, 225) that reported an IP of 685. Not necessarily all that exciting, but better than 225 (by about three times).

We've been "spoiled" by four-digit IPs in the Bakken.

Update: even folks on the Bakken Shale Discussion Board asked about the poor performance (this link is now broken). At Bakken Shale, ChemGuy says "Bad frac.  Only a couple of stages were depolyed (sic) ...  Second lateral has not been frac'd yet." That may be, a bad frac, but all their wells in this area had similarly low IPs.

BUT, I am still waiting to see what the six Hess wells on one pad in Ross field do!

UPDATES

Update, October 22, 2010: It looks like I wasn't the only that has raised questions about the wells that Hess drills (this link is now broken).

Pipeline Capacity: For Those Keeping Track

A year ago, pipeline oil capacity in North Dakota was estimated to be 250,000 barrels/day. With the upgrades in the Enbridge system (+50,000 barrels) and the addition of the EOG Stanley railroad terminal (+60,000 barrels/unit train/day) at the end of 2009, the estimated capacity to ship oil was increased by 110,000 barrels/day, which would be 360,000 barrels/day.

With the announcement yesterday that an additional railroad terminal will be operational in the Dickinson area in October, 2010, estimated capacity to ship oil out of North Dakota should be 420,000 barrels/day.

Unlike pipelines, the railroad tankers are scalable. The tracks aren't scalable, but the number of unit trains are.

(Note: a few days from now the link above will be broken/lost due to the source. But I am sure you will be able to google another source for the story.)

(Note: as long as we're talking "pipeline capacity," here's an update on the TransCanada pipeline slated to go through Montana.  Although the pipeline is not currently routed to go through North Dakota, oil from that state could easily be shunted to Montana to join the TransCanada pipeline.)

Investing: QEP

As of November 14, 2010, this page will follow only QEP, not Questar. 

Yahoo!Finance: QEP

Finance!Yahoo: STR
4Q09 Earnings Conference Call
Annual Report, SEC Filing, 2009

NEWS

June 12, 2015: huge sand fracks.

January 30, 2014: QEP to spin of midstream business, QEP Field Services, will sell off non-core assets.

October 14, 2013: QEP will request permission to unitize the Helis-Grail. 

May 26, 2013: from Mike Filloon --

QEP Resources  has built a position in the Bakken to increase oil production. Some believe it spent too much to get the Helis acreage in northeast McKenzie County. My guess is it wasn't just purchasing the acreage, but also the know-how behind some of the best Three Forks wells in North Dakota. It closed the purchase in September of 2012. At the beginning of this, it began pad development. It has 4 rigs here, and plans a 5th by year end. It plans to stick with 8 wells per 1280 acre spacing. 4 wells will target the middle Bakken and 4 the upper Three Forks. QEP reported much lower crude production than expected in the first quarter. It spent the first three months of the year drilling pad wells in the Bakken. All of the wells must be drilled before completion work starts. This will push the majority of production into upcoming quarters. QEP only turned one South Antelope well to sales in the first quarter. The IP rate was not great at 1,397 boepd, but at the end of the first day of production this increased to 3,100 boepd. I don't like mentioning peak rates for production, but it is meaningful because the peak was at the end of the day and not the beginning. Well costs have decreased to $11 million in South Antelope.

QEP completed 11 Fort Berthold wells in the first quarter. Six (6) were middle Bakken and the other 5 in the upper Three Forks. The average IP rates were 2,190 boepd in this area. In Skunk Creek it completed 5 wells with an average IP rate of 2,479 boepd. A third party produced water gathering system is now completed, it saves QEP $5/barrel. Bakken crude sold for 96% the price of WTI or $90.81/bbl in the quarter. This compares to 88% the price of WTI in the first quarter of 2012. On the reservation, well costs are $10.8 million. It believes under $10 million as a target cost/well is possible by the end of this year. Decreased costs will be seen through pad drilling, fracs with more sand and using ceramic tails, but decreased drilling and completion times. Three rigs are running here. QEP has several pads under development. The most important is the Independence pad in Fort Berthold. It consists of 10 wells. One is being drilled with four waiting on completion. There are two additional four well pads on the reservation. In South Antelope, QEP has two four-well pads and one two-well pad. One of the four well pads has one drilling and three awaiting completion.

April 17, 2013: QEP has permits for 12 wells in one section in Heart Butte, in a 2560-acre spacing unit. 

November 1, 2012: highlights of 3Q12.

August 23, 2012: The Biggest Story of the Year to Date

• QEP Pays $1.3 Billion for Larger Stake in the Bakken
• Includes 27,600 net acres in the Heart of the Bakken 
• Black Hills Corporation sells some Bakken assets to QEP 
• Helis, LLC sells Bakken assets to QEP

April 9, 2012: QEP has completed drilling on its 10-well pad in Heart Butte oil field.

November 12, 2010: Questar approves spin-off.

July 15, 2010: Spin-off and name change, June, 2010. The exploration and development company, now known as QEP, was spun off from Questar Corp (STR) in June, 2010.

April 22, 2010: Questar is considering a tax-free spin-off of its exploration and production (E & P) businesses. One company would be involved with oil and gas exploration and production; the other company would be primarily a pipeline company.

BACKGROUND

I had not  heard of Questar (NYSE: STR) until I started following the Bakken. Questar might be something to consider by those who are concerned about the more speculative, smaller companies operating in the Bakken but don't want to invest in the major players in the Bakken either. Questar seems to be somewhere in the middle.

At first blush I would not have been interested in this company because it seems to be a natural gas play more than an oil play, and I don't know the natural gas industry as well as I think I understand the oil industry. (If I understand 1% of the oil industry, I understand 0.1% of the natural gas industry.)

I do not own any Questar shares and I don't plan to buy any in the near term. Here I look at Questar just as I looked at EOG some weeks ago. I also do not own any EOG shares.

COMMENTARY

A quick look at some basic data points from Yahoo!Financial key statistics regarding STR, compared to a few other companies operating in the Bakken, follows the commentary. The more I look at STR suggests this may be one of the few publicly traded companies that is very, very safe to invest in, and is just getting into the Bakken. This might be an opportunity to actually get into the Bakken if you have not yet invested in the Bakken. But Questar has major exposure to natural gas. Just saying.

Again, here is the link to the 4Q09 conference call.

The downside for me with regard to STR is their huge exposure to natural gas. The upside is the apparent interest by STR to increase their oil presence in the Bakken. The company has lowered its earnings estimates for natural gas going forward.

With regard to earnings, Questar had the second best earnings quarter (4Q09) in the company's history, only $200,000 lower "than the high water mark set in the fourth quarter of 2008." If folks remember correctly, we saw a price spike of $150/barrel of oil in 2008.

Questar is operating in five locations: Haynesville shale (Louisiana, natural gas); Pinedale Anticline Project Area (PAPA, Wyoming, natural gas), Granite Wash (Texas), Woodford Shale (Oklahoma, natural gas), and Bakken Oil.

In addition to these five E&P plays, Questar operates the following businesses:

Wexpro: E&P in the Rockies
Questar Gas Management: midstream business; could be a transforming year in 2010
Questar Pipeline: a regulated business; includes Wyoming
Questar Gas: a regulated business, natural gas distribution (Utah, SW WY)

Relatively high IPs were highlighted by Questar in their 4Q09 conference call, suggesting to me this company knows there is some value to high IPs. North Dakota passed tax incentives in 2007 to encourage drilling in the Bakken; the incentives affect the first 75,000 barrels of production.

Market caps; P/E; P/E, going forward; dividend (%); debt; operating cash flow:

EOG: $24 billion; 44; 15; 0.6%; $2.8 billion; $2.9 billion
STR: $7.5 billion; 19; 15; 1.2%; $2 billion; $1.6 billion
CLR: $6.8 billion; 96; 19; 0%; $0.5 billion; $0.375 billion
MDU: $3.9 billion; N/A; 12; 2.1%; $1.5 billion; $0.8 billion
BEXP: $1.68 billion; N/A; 24; 0%; $0.16 billion; $0.03 billion

Debt as percent (%) of market cap:

EOG: 12%
STR: 27%
CLR: 7%
MDU: 38%
BEXP: 10%

Is MDU an outlier with regard to debt as percent (%) of market cap?

MDU: $1.5/$3.9 = 38%
OTTR: 502 million 730 million = 69%
BKH: 1.15 billion / $1.12 billion = 103%

Is it possible to estimate Questar's potential recoverable oil in the Bakken?

Some data points: Questar has 80,000 net acres in the Bakken. (4Q09 conference call)
80,000 acres/640 acres per section = 125 sections.
In the best field (Parshall), EOG estimates 700,000 barrels EUR (per well)
EOG has been putting one well in each section
CLR opines that dual laterals could increase the EUR by another 400,000 barrels EUR.
36 sections/township: 125 sections / 36 = 3.5 townships.
At least one of "STR's townships" seems to be a "good" area.

Now some "back of the envelope calculations":
Let's say STR's acreage is 1/4 as good as EOG's best estimate: 1/4 of 700,000 = 175,000 bbls/well
125 sections: 125 wells x 175,000 bbls = 22 million barrels

What if they had 1/2 of the 700,000 plus 1/2 of what the dual lateral would add? 350,000 + 200,000 = 550,000.  125 wells x 550,000 = 70 million barrels. 

Activity in the Bakken

2008: three permits

17434, 880, 150-90, Deep Water Creek Bay
17929, permit, 150-90, Wild, nr DWCB
17940, 1,405, 150-90, Deep Water Creek Bay

2009: three permits

18158, 780, 149-90, DWCB
18322, permit, 150-92, Van Hook
18331, permit, 152-92, Van Hook

2010: four permits to date

18665, confidential, 149-91, Heart Butte
18666, confidential, 149-91, Heart Butte
18885, new permit, Deep Water Creek Bay, 150-90
18886, new permit, Deep Water Creek Bay, 150-90

Spaceholder

Heart Butte Field Update -- KOG's Two Shields Butte Wells

Scroll down below the news for the original description of the Heart Butte field. 

See also mega-pads in Heart Butte.

2017 Permits (no new permits as of May 12, 2017)

2016 Permits (list is complete)
33057,
33056,
32985,
32957,
32956,
32790,
32789,
32763,
32762,
32761,
32707,
32694,
32693,
32692,
32528,
32472,

2015 Permits (list is complete)
32302,
32291,
32290,
32282,
32281,
32280,
32279,
32063,
32062,
32061,
32060,
31303, conf, QEP, see graphic at this post, MHA 5-25-36H-148-92,
31302, conf, QEP, see graphic at this post, MHA 7-25-36H-148-92,
31301, conf, QEP, see graphic at this post, MHA 3-25-36H-148-92,
31300, conf, QEP, see graphic at this post, MHA 1-25-36H-148-92,
31299, conf, QEP, see graphic at this post, MHA 3-26-35H-148-92,
31298, conf, QEP, see graphic at this post, MHA 1-26-35H-148-92,
31297, conf, QEP, see graphic at this post, MHA 7-26-35H-148-92,
31296, conf, QEP, see graphic at this post, MHA 5-26-35H-148-92,
31288, 903, Enerplus, Ocotillo 149-92-35A-04H, Heart Butte, t3/17; cum 113K 7/17;
31221, N/D, XTO, FBIR Reese 43X-33D, Heart Butte, t3/16; cum 34K 7/17;
31220, N/D, XTO, FBIR Reese 43X-33G, Heart Butte, t3/16; cum 34K 7/17;
31219, 157, XTO, FBIR Reese 43X-33C, Heart Butte, t3/16; cum 41K 7/17;
31218, 594, XTO, FBIR Reese 43X-33F, Heart Butte, t3/16; cum 40K 7/17;
31217, 590, XTO, FBIR Reese 43X-33B, Heart Butte, t2/16; cum 44K 7/17;
31216, 601, XTO, FBIR Reese 43X-33E, Heart Butte, t2/16; cum 43K 7/17;
31215, 479, XTO, FBIR Reese 43X-33A, Heart Butte, t2/16; cum 55K 7/17;
31187, 571, Enerplus, Wooly Torch 149-92-35A-04H, t3/17; cum 85K 7/17;
31170, 2,208, Whiting, Skunk Creek 4-18-17-8H, t11/15; cum 195K 7/17;
30773, 477, XTO, FBIR Grinnell 34X-33A, t2/17; cum 42K 7/17;
30772, 634, XTO, FBIR Grinnell 34X-33E, t2/17; cum 26K 7/17;
30771, 403, XTO, FBIR Grinnell 34x-33B, t2/17; cum 21K 7/17;
30770, 494, XTO, FBIR Grinnell 34X-33F, t2/17; cum 27K 7/17;
30769, 531, XTO, FBIR, Grinnell 34X-33G, t1/17; cum 13K 7/17;
30768, 612, XTO, FBIR Grinnell 34X-33D, t1/17; cum 25K 7/17;
30643, 3.69, Whiting, Two Shields Butte 13-22-16-1H, t8/15; cum 293K 7/17;
30642, 3,572, Whiting, Two Shields Butte 13-22-33-16H, t9/15; cum 301K 7/17;
30641, 1,679, Whiting, Two Shields Butte 13-22-16-1H3, t8/15; cum 314K 7/17;

2014 Permits (list is complete)
30172, conf-->loc, QEP,
30171, conf-->loc, QEP,
29976, conf-->loc, QEP,
29975, conf-->loc, QEP,
29971, conf-->loc, QEP,
29970, conf-->loc, QEP,
29789, 2,028, Enerplus, Euphorbia 149-92-35B-05H, t7/15; cum 324K 7/17;
29788, 1,430, Enerplus, Cactus 149-92-35B-05H TF, t7/15; cum 310K 7/17;
29717, 800, QEP, MHA 8-32-29H-150-91, t6/15; cum 242K 7/17;
29716, 1,910, QEP, MHA-6-32-29H-150-91, t6/15; cum 182K 7/17;
29715, 1,624, QEP, MHA-6-06-01H-149-92, t6/15; cum 192K 7/17;
29714, 2,014, QEP, MHA 8-06-01H-149-92, t6/15; cum 269K 7/17;
27443, 2,153, XTO, FBIR Guyblackhawk 24X-27ER, t7/14; cum 209K 7/17;


2013 Permits (list is complete)
27176, conf, QEP, MHA 4-26-23H-149-91,
27175, conf, QEP, MHA 2-26-23H-149-91,
27174, conf, QEP, MHA 3-26-23H-149-91,
27173, conf, QEP, MHA 1-26-23H-149-91,
27172, conf, QEP, MHA 4-26-24H-149-91,
27171, conf, QEP, MHA 2-26-24H-149-91,
27170, conf, QEP, MHA 3-26-24H-149-91,
27169, conf, QEP, MHA 1-26-24H-149-91,
27168, conf, QEP, MHA 4-26-25H-149-91,
27167, conf, QEP, MHA 2-26-25H-149-91,
27166, conf, QEP, MHA 3-26-25H-149-91,
27165, conf, QEP, MHA 1-26-25H-149-91,
26970, conf-->loc, XTO, FBIR Lawrence 24X-26E,
26881, dry, XTO, FBIR Guyblackhawk 24X-27E, comp 4/14;
26879, 1,940, QEP, FBIR Guyblackhawk 24X-27A, t7/14; 199K 7/17;
26878, 1,367, XTO, FBIR Guyblackhawk 24X-27F, t7/14; cum 183K 7/17;
26733, PNC, QEP, 12/14;
26732, 1,544, QEP, MHA 8-27-34H-148-92, Heart Butte, t5/17; cum 63K 7/17;
26731, PNC, QEP,
26706, PNC, QEP, 7/14;
26705, 1,777, QEP, MHA 5-27-34H-148-92, t1/15; cum 269K 7/17;
26704, 1,317, QEP, MHA 7-27-34H-148-92, t1/15; cum 121K 11/15;
26703, 1,858, QEP, MHA 1-27-34H-148-92, t1/15; cum 102K 11/15;
26702, 1,310, QEP, MHA 3-27-34H-148-92, t1/15; cum 36K 3/15;
26400, PNC, XTO, FBIR Headlessturle 44X-32H, 2/15;
26399, PNC, XTO, FBIR Headlessturle 44X-32D, 2/15;
26365, 1,461, QEP, MHA 4-28-29H-148-92, t5/15; cum 64K 11/15;
26364, 1,645, QEP, MHA 2-28-29H-148-92, Heart Butte, t7/16; cum 99K 7/17;
26363, 1,260, QEP, MHA 8-28-29H-148-92, Heart Butte, t7/16; cum 98K 7/17;
26362, 1,215, QEP, t7/16; cum 93K 7/17;
26355, conf, QEP,
26354, conf, QEP,
26353, conf, QEP,
26352, conf, QEP,
26286, conf, QEP, 

26285, conf, QEP,
26285, conf, QEP,
26284, conf, QEP,
26283, conf, QEP,
25431, 1,785, XTO, FBIR Youngbear 31X-9F, t2/14; cum 9136K 7/17;
25430, 1,759, XTO, FBIR Youngbear 31X-9A, t2/14; cum 89K 11/15;
25429, 1,410, XTO, FBIR Youngbear 31X-9E, t3/14; cum 81K 11/15;
25414, 1,701, QEP, MHA 1-10-15H-149-91, t11/13; cum 115K 11/15;
25413, 838, QEP, MHA 3-10-15H-149-91, t11/13; cum 86K 7/17;
25412, 903, QEP, t2/17; cum 72K 7/17;
25411, 732, QEP, t2/17; cum 65K 7/17;
25410, 1,416, QEP, t4/17; cum 53K 7/17;
25409, 588, QEP, t4/17; cum 40K 7/17;
25408, 1,174, QEP, t3/17; cum 90K 7/17;
25407, 606, QEP, t4/17; cum 52K 7/17;
25406, 1,056, QEP, MHA1-10-11H-149-91, 4 sections, t3/14;cum118K 11/15;
25405, 1,223, QEP, MHA 3-10-11H-149-91, 4 sections, t2/14; cum 90K 11/15;
25404, 812, QEP, MHA 2-10-11H-149-91, 4 sections, t2/14; cum 94K 11/15;
25403, 1,004, QEP, MHA 4-10-11H-149-91, 4 sections, t2/14; cum 148K 11/15;
24850, 1,619, QEP, MHA 6-06-07H-147-92, ICO, t11/13; cum 99K 11/15;
24849, 1,661, QEP, MHA 8-06-07H-147-92, t11/13; ICO, t11/13; cum 82K 11/15;
24848, 2,187, QEP, MHA 5-06-07H-147-92, ICO, t5/14; cum 150K 11/15;
24847, 2,238, QEP, MHA 7-06-07H-147-92, ICO, t5/14; cum 103K 11/15;
24846, 2,013, QEP, MHA 1-06-07H-147-92, ICO, t6/14; cum 110K 11/15;
24845, 2,736, QEP, MHA 3-06-07H-147-92, ICO, t5/14; cum 212K 11/15;

2012 Permits

• 22237, conf, ERF, Curve 149-92-19C-18H TF, no production data,
• 22238, 878, ERF, Knuckle 149-92-19C-18H, t7/12; cum 294K 11/15;
• 22239, conf, ERF, Deuce 149-92-30B-31H TF, no production data,
• 22240, 603, ERF, Net 149-92-30B-31H, Heart Butte, t7/12; cum 219K 11/15; 
• 22466, 1,370, KOG, Skunk Creek 12-7-8-9H3, Heart Butte,  t11/12; cum 130K 11/15;
• 22467, 1,975, KOG, Skunk Creek 12-7-8-9H, t10/12; cum 191K 11/15;
• 22468, 1,448, KOG, Skunk Creek 12-7-8-8H, t10/12; cum 137K 11/15;
• 22649, 709, WPX, Charles Blackhawk 31-30HA, t10; cum 153K 11/15;
• 22650, 247, WPX, Charles Blackhawk 31-30HX, t11/12; cum 127K 11/15;
• 22651, 219, WPX, Charles Blackhawk 31-30HB, t11/12; cum 155K 11/15;
• 22652, conf, WPX, Charles Blackhawk 31-30HY,
• 22653, conf, WPX
• 22654, conf, WPX
• 22655, conf, WPX
• 22826, 899, WPX, Helstad 157-99-2A-11-1H, t3/13; cum 174K 11/15;
• 22828, 84, WPX, Edward Goodbird 9HD, Heart Butte, 9 stages; 1.9 million lbs; t8/12; cum 115K 11/15;
• 22829, conf, WPX  
• 23093, 2,052, QEP, MHA 3-06-31H-150-92, t9/13; cum 192K 11/15; 
• 23094, 2,512, QEP, MHA 2-06-05H-149-92, t9/13; cum 170K 11/15;
• 23096, 825, QEP, MHA 1-06-05H-149-92, t9/13; cum 82K 11/15;
• 23097, 2,512, QEP, MHA 2-06-31H-150-92, t9/13; cum 258K 11/15; 
• 23098, 1,632, QEP, MHA 4-06-32H-150-92, t2/13; cum 134K 11/15;
• 23099, 1,994, QEP, MHA 2-06-32H-150-92, t2/13; cum 187K 11/15;
• 23100, 1,922, QEP, MHA 3-06-32H-150-92, t2/13; cum 225K 11/15;
• 23101, 1,777, QEP, MHA 1-06-32H-150-92, Heart Butte, t2/13; cum 306K 11/15;
• 23102, 1,966, QEP,MHA 4-06-31H-150-92, Heart Butte, t2/13; cum 299K 7/17;
• 23169, 202, WPX, Sarah Yellow Wolf 22-27HC, Heart Butte, t10/12; cum 179K 11/15;
• 23331, 2,282, QEP, MHA 1-03-34H-150-92, Heart Butte, t3/13; cum 189K 11/15;
• 23332, 2,348, QEP, MHA 3-03-34H-150-92, Heart Butte, t3/13; cum 186K 11/15;
• 23333, 2,310, QEP, MHA 1-03-35H-150-92, Heart Butte, t3/13; cum 178K 11/15;
• 23334, 1,949, QEP, MHA 3-03-35H-150-92, Heart Butte, t3/13; cum 162K 11/15;
• 23335, 1,791, QEP, MHA 2-03-35H-150-92, Heart Butte, t3/13; cum 128K 11/15;
• 23336, 1,386, QEP, MHA 4-03-35H-150-92, Heart Butte, 4 sections, t12/13; cum 85K 11/15;
• 23337, 873, QEP, MHA 1-03-02H-149-92, Heart Butte, 4 sections, t12/13; cum 61K 11/15;
• 23338, 1,831, QEP, MHA 3-03-02H-149-92, Heart Butte, 4 sections, t12/13 (error on the ticket stub); cum 90K 11/15;
• 23339, 2,217, QEP, MHA 2-03-02H-149-92, Heart Butte, 4 sections, t12/13; cum 123K 11/15;
• 23340, 2,306, QEP, MHA 4-03-02H-149-92, Heart Butte, 4 sections, t12/13; cum 180K 11/15;
• 23393, 943, XTO, FBIR Baker 34X-25F, t1/13; cum 138K 11/15;
• 23394, 1,170, XTO, FBIR Baker 34X-25A, t1/13; cum 172K 11/15;
• 23395, 1,158, XTO, FBIR Baker 34X-25E, t1/13; cum 154K 11/15;
• 23401, 1,325, XTO, FBIR Smith 11X-10E, t1/13; cum 165K 11/15;
• 23402, 1,045, XTO, FBIR Smith 11X-10F, t1/13; cum 160K 11/15;
• 23403, 2,148, XTO, FBIR Smith 11X-10A, t1/13; cum 242K 11/15;
• 23692, PNC, XTO, 2/15;
• 23694, 1,816, XTO, FBIR Beaks 24X-8A, t12/13; cum 143K 11/15;
• 23881, 850, XTO, FBIR Bird 31X-19G, t9/13; cum 88K 11/15;
• 23883, 1,617, XTO, FBIR Bird 31X-19D, t8/13; cum144K 11/15;
• 23884, 1,436, XTO, FBIR Stephen 31X-19D, t8/13; cum 137K 11/15;
• 23885, 1,566, XTO, FBIR Stephen 31X-19H, t8/13; cum 79K 11/15;
• 23933, 1,676, XTO, FBIR Beaks 24X-8E,  t1/14; cum 94K 11/15;
• 23937, conf-->loc, XTO,
• 23938, conf-->loc, XTO,
• 23939, conf-->loc, XTO,
• 23940, conf-->loc, XTO,
• 23941, conf-->loc, XTO,
• 23942, conf-->loc, XTO,
• 24024, PNC, ERF, 9/14;
• 24037, 1,868, XTO, FBIR Darcie 34X-14H, t6/13; cum 103K 11/15;
• 24038, 1,620, XTO, FBIR Darcie 34X-14D, t6/13; cum 177K 11/15;
• 24084, 1,241, XTO, FBIR Stephen 31X-19G, t8/13; cum 101K 11/15;
• 24115, conf, Whiting/KOG, Skunk Creek 4-18-17-1H, producing as of 11/15;
• 24116, conf, Whiting/KOG, Skunk creek 4-18-17-1H3, producing as of 11/15;
• 24117, conf, Whiting/KOG, Skunk Creek 4-18-17-8H, producign asof 11/15;
• 24130, 977, XTO, FBIR Walterpackswolf 31X-12G, t6/13; cum 62K 11/15;
• 24131, 1,536, XTO, FBIR Walterpackswolf 31X-12H, t7/13; cum 108K 11/15;
• 24132, 1,385, XTO, FBIR Walterpackswolf 31X-12D, t71/3; cum 136K 11/15;
• 24206, 2,342, QEP, MHA 8-04-33H-150-92, Heart Butte, t5/13; cum 167K 11/15;
• 24207, 2,641, QEP, MHA 6-04-33H-150-92, Heart Butte, t5/13; cum 169K 11/15;
• 24208, 2,573, QEP, MHA 6-04-33H-150-92, Heart Butte, t5/13; cum 196K 11/15;
• 24209, 2,854, QEP, MHA 6-04-33H-150-92, Heart Butte, t5/13; cum 163K 11/15;
• 24366, 2,102, QEP, MHA 4-04003H-149-91, Heart Butte, t7/13; cum 190K 11/15;
• 24367, 1,004, QEP, MHA 2-04-03H-149-91, Heart Butte, t7/13; cum 133K 11/15;
• 24398, 2,909, QEP, MHA 1-04-33H-150-92, Heart Butte, t7/13; cum 224K 11/15;
• 24399, 2,381, QEP, MHA 3-04-33H-150-92, Heart Butte, t7/13; cum 193K 11/15;
• 24400, 2,844, QEP, MHA 2-04-33H-150-92, Heart Butte, t7/13; cum 298K 7/17;
• 24401, 2,384, QEP, MHA 4-04-33H-150-92, Heart Butte, t7/13; cum 197

Miscellaneous Wells in Heart Butte

QEP's permits for 12 wells in one section 10-149-91; 2560-acre spacing.

• 25414, 1,701, QEP, MHA, t11/13; cum 142K 7/17;
• 25413, 838, QEP, MHA
• 25412, conf, QEP, MHA
• 25411, conf, QEP, MHA
• 25410, conf, QEP, MHA
• 25409, conf, QEP, MHA
• 25408, conf, QEP, MHA
• 25407, conf, QEP, MHA
• 25406, 1,056, QEP, MHA
• 25405, 1,223, QEP, MHA
• 25404, 812, QEP, MHA
• 25403, 1,004, QEP, MHA, t2/14; cum 202K 7/17;

QEP permits for 6 wells in sections 6/7-147-92;

• 24850, 1,619, QEP, MHA
• 24849, 1,661, QEP, MHA
• 24848, 2,187, QEP, MHA
• 24847, 2,238, QEP, MHA
• 24846, 2,013, QEP, MHA
• 24845, 2,736, QEP, MHA, t5/14; cum 279K 7/17;

2011 Permits   

• 20273, 2,372, XTO, FBIR Headlessturtle 44X-32; t9/12; cum 218K 11/15;
• 20417, 1,730, XTO, FBIR Goeseverywhere 31X-11; t5/12; cum 231K 11/15;
• 20419, 1,454, XTO, FBIR Grinnell 34X-33; t8/12; cum 180K 11/15;
• 20424, 1,156, XTO, FBIR Grinnell 41X-1C, t7/12; cum 128K 11/15;
• 20483, 1,562, XTO, FBIR Georgeblackhawk 21X-6, t7/12; cum 74K 6/13;
• 20487, 606, QEP, MHA 1-04-03H-149-91; s4/11; t11/11; hz south; cum 164K 6/13;
  
• 20488, 1,571, QEP, MHA 3-04-03H-149-91; s4/11;t11/11; hz south, cum 188K 6/13;
• 20489, 933, QEP, MHA 3-32-29H-150-91; hz north; cum  148K 6/13;
  
• 20490, 2,609, QEP, MHA 1-32-29H-160-91, s4/11;t11/11; hz north; cum 249K 6/13;
• 20511, 2,647, KOG, Two Shields Butte 5-7-8-1H3, Heart Butte, t10/12; cum 145K 6/13;
  20600, 1,831, XTO, FBIR Blackmedicine 24X-21, t6/12; cum 106K 6/13;
• 20632, 765, XTO, FBIR Nellieoldmouse 13X-13, t5/12; cum 39K 6/13;
  
• 20964, 1,035, QEP, MHA 1-32-33H-148-92, s8/11; t1/12; cum 73K 6/13;
• 20965, 810, QEP, MHA 3-32-33H-148-92, s8/11; t1/12; cum 56K 6/13;
• 21120, 1,135 XTO, FBIR Huntsalong 31X-2, t9/12; cum 36K 6/13;
• 21404, 328, QEP, MHA 3-06-01H-149-92, t5/12; cum 59K 6/13;
• 21405, 1,766, QEP, MHA 4-06-01H-149-92, t2/12; cum 110K 6/13;
• 21551, 2,757, QEP, MHA 3-31-25H-150-92, 2,560-acre; t10/12; cum 95K 6/13;
• 21552, 2,351, QEP, MHA 2-31-25H-150-92, 2,560-acre; t10/12; cum 78K 6/13;
  
• 21553, 2,202, QEP, MHA 4-31-25H-150-92, 2,560-acre; t10/12; cum 93K 6/13;
  
• 21554, 2,430, QEP, MHA 1-31-30H-150-91, 2,560-acre; t10/12; cum 84K 6/13;
  
• 21556, 2,376, QEP, MHA 3-31-30H-150-91; 2560-acre, t10/12; cum 76K 6/13;
  
• 21557, 2,140, QEP, MHA 1-31-36H-150-92, Heart Butte, t5/13; cum 29K 6/13;
• 21558, 2,359, QEP, MHA 3-31-36H-150-92, Heart Butte, 4 section, t5/13; cum 36K 6/13;
• 21559, 2,032, QEP, MHA 5-31-25H-150-92, Heart Butte, 4 section, t5/13; cum 24K 6/13;
• 21560, 673, QEP, MHA 7-31-25H-150-92, Heart Butte, 4 section, t5/13; cum 40K 6/13;
• 21561, 1,731, QEP, MHA 1-31-25H-150-92, Heart Butte, 4 section, t5/13; cum 19K 6/13;
• 21699, conf, KOG, Skunk Creek 13-18-17-16H, Heart Butte,
• 21700, 1,719, KOG, Skunk Creek 13-18-17-16H3, Heart Butte, t6/12; cum 29K 9/12;
  
• 21701, 2,057, KOG, Skunk Creek 13-18-17-9H, Heart Butte, t6/12; cum 19K 6/12; 
• 21904, 1,542, QEP, MHA 4-06-07H-147-92, Heart Butte, t8/12; cum --
  
• 21905, 2,223, QEP, MHA 2-06-07H-147-92, Heart Butte, t8/12; cum --
  
• 21906, 2,142, QEP, MHA 4-32-33H-148-92, Heart Butte,  t8/12; cum 220K 7/17;
• 21908, 2,180, QEP, MHA 2-32-33H-148-92, Heart Butte, t8/12; cum 3K 9/12;
• 22028, 2,737, QEP, MHA 2-32-29H-150-91, t11/12; cum 58K 2/13;
• 22029, 1,961, QEP, MHA 4-32-29H-150-91, t11/12; cum 56K 2/13;
• 22092, 1,073, QEP, MHA 2-05-04H-148-91, Heart Butte, t10/12; cum --
• 22093, 710, QEP, MHA 4-05-04H-148-91, Heart Butte, t10/12; cum 94K 7/17;

KOG Two Shields Butte wells:

• 17981, 1,666, Whiting/KOG, Two Shields Butte 16-8-7H, Heart Butte, t6/09; AL; cum 343K 11/15; 
• 18022, 711, Whiting/ KOG, Two Shields Butte 16-9-16H, Heart Butte, t6/09; AL; cum 233K 7/17;
• 18051, 1,309, Whiting/KOG, Two Shields Butte 14-33H, Heart Butte, t8/09; AL; cum 337K 11/15; 
• 18107, 903, Whiting/KOG, Two Shields Butte 14-33-6H, Heart Butte; t9/09; AL; cum 151K 11/15; 
• 18455*, 1,089, Whiting/KOG, Two Shields Butte 14-21-4H, Heart Butte; t12/10; AL; cum 198K 11/15; 
• 18517, 1,595, Whiting/KOG, Two Shields Butte 2-24-12H, Mandaree; t9/11; cum 406K 11/15; 
• 18518, 2,736, Whiting/KOG, Two Shields Butte 3-24-12H, Mandaree/wildcat; t4/14; cum 231K 11/15; 
• 18987*, 223, Whiting/KOG, Two Shields Butte 14-21-16-2H, Heart Butte; t4/11; cum 485K 11/15; 
• 18988*, 1,835, Whiting/KOG, Two Shields Butte 14-21-33-15H, Heart Butte; t12/10; cum 386K 11/15; 
• 18989*, 958, Whiting/KOG, Two Shields Butte 14-21-33-16H3, Heart Butte,; t12/10; cum 233K 11/15; 
• 19826, 2,845, Whiting/KOG, Two Shields Butte 2-24-12-1H3, Mandaree; t9/11; cum 443K 7/17;
• 20257, 2,475, Whiting/KOG, Two Shields Butte 3-24-12-3H, Mandaree,  cum 196K 11/15;

* = 4-well pad

Permits added since original posting:

• 18844, canceled, WPX/Zenergy, Dakota-3 Packineau 4-32H, 3/10;
• 18875, 170, Zenergy, Dakota-3 Black Hawk 15-34H,  s2/11; t4/11; cum 76K 1/12
• 18987, 223, KOG, Two Shields Butte 14-21-16-2H, s9/10; t4/11; F; cum 28K 1/12;
• 18988, 1,835, KOG, Two Shields Butte 14-21-33-16H, SESW 21-149N-92W
• 18989, 958, KOG, Two Shields Butte 14-21-33-16H3, SESW 21-149N-92W
• 19263, 2,429, KOG, Two Shields Butte 14-21-33-16H3, t10/12; cum 92K 2/13;
• 19292, 1,358, XTO, FBIR Baker 34X-25, t7/11; cum 71K 2/13;
• 19293, 1,537, XTO, FBIR Waler 34X-25, t7/11; cum 259K 11/15;
• 19696, 1,201, XTO, FBIR Walterpackswolf 31X-12, t2/12; cum 26K 4/12;
• 19769, 523, ERF/Peak, Baker 29-31H; t8/11; cum 101K 9/12;
• 19800, 906, XTO, FBIR Beaks 24X-8; t4/12; cum 54K 9/12;
• 19801, 1,045, XTO, FBIR Huntsmedicine 24X-8, t4/12; cum 69K 9/12;
• 19805, 1,461, XTO, FBIR Stephen 31X-19, t8/11; cum 107K 2/13;
• 19806, 1,463, XTO, FBIR Bird 31X-19, t8/11; cum 130K 2/13;
• 19940, 1,196, XTO, FBIR Yellowwolf 21X-10; s6/11; t1/12; F; cum 21K 1/12;
• 19948, 2,106, XTO, FBIR Ironwoman 21X-10; s6/11; t12/11; F; cum 10K 1/12;
• 20036, 2,331, XTO, FBIR Smith 11X-10; s7/11; t10/11; F; 72K 1/12;
• 20114, 1,338, XTO, FBIR Darcie 34X-14; s8/11; t12/11; F; 15K 1/12;
• 20115, 1,211, QEP, MHA 3-05-08H-147-92, t7/11; cum 165K 2/13;
• 20116, 2,533, QEP, MHA 1-05-08H-147-92, t7/11; cum 201K 2/13;
• 20117, 1,478, XTO, FBIR Youngbear 31X-9, t5/12; cum 187K 11/15;
• 20143, 1,794, XTO, FBIR Lawrence 24X-2, s1/12; t5/12; cum 55K 9/12;
• 20215, 2,140, XTO, FBIR Guyblackhawk 24X-27, t2/12; cum 286K 11/15;
• 20236, 824, WPX/Zenergy, Packineau 15-32H/Dakota-3 Packineau 15-32H, t6/11; cum 262K 7/17;

NEWS

November 22, 2018: a reminder that in 2017 QEP was starting to re-frack wells in Heart Butte.

October 18, 2012:  QEP with permits for a four-well pad.


August 22, 2012: random update of pad drilling (XTO, QEP) in Heart Butte.


March 26, 2012: WPX with permits for a 7-well pad.

December 8, 2011: with some very nice IPs being reported by QEP, it was time to update this field; it appears now to be about 128 sections, almost double the size of the original field; this is a very, very good field; it appears to be "owned" by XTO and QEP with some KOG acreage. There are currently four rigs on site in the field. .

February 9, 2011: With more permits in the Heart Butte field, this is a good time to remind folks that the Arrow pipeline is in the Heart Butte field.

February 5, 2011: The Heart Butte field is getting a bit more active, perhaps after the report of the two nice Questar wells each reported IPs of 1,300 bbls. Two more Heart Butte permits were granted on February 4, 2011 -- these to XTO, now owned by XOM. 

August 1, 2010: Spotted Hawk Development bringing excitement to the Van Hook.

April 18, 2010: Arrow Midstream has signed an agreement to provide pipeline support for XTO in the Heart Butte oil field.

April 18, 2010: Questar has a pair of snake eyes in the north, #18665 and #18666, MHA 1-06-01H-149-92 and MHA 2-06-01H-149-92, respectively.  #18665 reports an IP of 1,271 barrels with a cumulative of 63K barrels in the first five months.  Meanwhile, #18666 reports an IP of 1,309 barrels with a cumulative of 31K barrels in the first three months. 

March 15, 2010: Peak, North Dakota, LLC,  was granted two permits in Heart Butte today; the two permits (18809, Baker 20-34H; 18810, Baker 29-31H) are sited in the same section (section 20), one targets section 20; the other goes south into section 29. 

The Original Update

The Heart Butte field caught my eye when I was transcribing the March 24, 2010, NDIC docket. A reminder: the Arrow pipeline.

In case #12284 of the docket, Questar asks that the Heart Butte field be extended by adding adjoining sections to the field, creating 24 new 640-acre spaced units, and a request to drill not more than two (2) horizontal wells on each 640-acre unit. That's a total of 48 new wells. And the Heart Butte is a very small field.

Currently, Heart Butte field is only 66 sections, encompassing most of T149N-92W, and about half of the two sections 148-92 and 149-91. It is located entirely within the Fort Berthold Indian Reservation, directly south of and across the river from the exciting Big Bend field, and directly south of New Town, ND. Drilling was delayed in the FBIR due to bureaucratic necessities, but those have been addressed, and it is likely that drilling will pick up. Questar and Kodiak Oil and Gas (KOG) each have one rig in North Dakota (KOG took possession of a second rig in February, 2010, and moved that one to the Bakken in Montana). With a request by Questar to add up to 48 more horizontal wells in Heart Butte, one can reasonably expect to see more activity there.

The Heart Butte field represents on a small scale why the Bakken is so exciting and why producers are moving in more rigs, paying top dollar for mineral acres, and drilling at a furious pace: To date, there are only six producing wells in Heart Butte: four of them are KOG wells and two of them are Peak Oil wells. Of the six, four have announced initial production (IP) numbers. In the "old days" (two years ago) three of these IPs would have been outstanding (465, 711, and 829) but "we've" been spoiled by four-digit IPs elsewhere in the Bakken. Regardless, these are very nice IPs, and, at the end of the day, it will be the total production over the life of the well that matters. Having said that, KOG had a stellar well (#17981, Two Shields Butte 16-8H) with an IP of 1,661. The remaining two wells, both KOG wells, have come off the confidential list as "plugged or producing" but IPs have not been announced (at least I have not seen them). (In the Bakken, "plugged or producing" will end up being a producing well.)

Four wells are on the confidential list (18132, 18455, 18665, and 18666 // Peak, KOG, Questar, Questar). The two Questar wells must be on the same pad; they are only 50 feet apart on the GIS map server.
18665, 1,271
18729, 743
18988, 1,835
18989, 958

As with most oil fields in the Bakken, there are no hamlets, villages or towns in this field, just beautiful scenery.

Another Awesome Day in the Bakken

This was another awesome day for the Bakken. The March dockets have been released.  A great Anschutz well came off the confidential list.

1. I've transcribed the March dockets. Abbreviated.

a. Lots of sweeping changes proposed.  Bigger spacing units: a commission proposal for 2560-acre spacing units for ALL future horizontal wells; elimination of setbacks.

b. Look at all the CLR Eco-Pads. I count at least eleven (11) Eco-Pads. CLR will put four wells on each pad. Two pads (8 wells) in one 2560-spacing unit. CLR currently drilling one Eco-Pad in the Bakken.

c. Note more requests for horizontal wells in the Madison Pool -- something we are seeing more of.

d.  Case #12284: Questar, extending the Heart Butte Field and creating 24 640-acre spacing units in Dunn, McLean and Mountrail Counties, with two horizontal wells in each (48 wells).

e. Hess with another request to put in six wells on one pad (?) in a 2560-acre spacing unit.

2. New wells reporting: look at the Anschutz well, Martin 34-31H, that came off the confidential list today: 1,666 bopd IP and then look at this posting. I doubt Anschutz is "inflating" IP numbers. History of Anschutz here and the Wikipedia version. 

3. NDIC is on track to issue 1,175 permits in 2010. Through the first 59 calendar days of 2010, NDIC has granted 190 new permits in North Dakota.  For comparison, there were 627 permits issued in 2009, 954 permits in 2008, and 497 permits in 2007.  In the first 60 calendar days of 2008, only 118 permits had been issued compared to the 190 new permits in the first 59 calendar days of 2010.

4. Another 100-unit oil railroad tanker facility approved by Stark County (Dickinson) commissioners and could be operational by October, 2010. This is the second such railroad operation to ship oil out of North Dakota. EOG was first with a similar facility in Stanley, ND, which went operational New Year's Eve, 2009, about one month ahead of schedule.