Saturday, March 20, 2010

Overview and Background of the Oil Industry in North Dakota

Overview of the Petroleum Geology of the North Dakota Williston Basin, Thomas J. Heck, Richard D. LeFever, David W. Fischer, Julie LeFever, 1994. This is an excellent summary. Particularly well developed is the discussion of the four (4) cycles of oil exploratory drilling. The current boom is the fifth cycle and is not covered in this history.

Overview of the Bakken, current, North Dakota Geological Survey.

Geo News: North Dakota Department of Mineral Resources, January, 2010, Volume 31, Number 1.

Short history of the Bakken, undated, but appears to be September, 2004, by Julie LeFever. This is an important article since it was published just about the time the Bakken in Montana was reaching its peak and interest was moving to North Dakota Bakken. A great article (as all articles by Ms LeFever are).

*****

If one could turn back time!


If I Could Turn Back Time, Cher

I love the US Navy.

Kuroki Field Update

News

September 24, 2011: new permits (later than 18962) --
  • 19062, AB/37, Petro Harvester, Wright 12-12H, Madison; s8/10;t8/10; cum 10K 6/12;
  • 19194, PA/23, Petro Harvester, Lodoen 11-8H, Madison; s8/10; t8/10; cum 2K 6/12;
  • 19229, AB/1, Petro Harvester, Cameron 1-14, Madison; s9/10; t11/10; cum 27 bbls 6/12;
  • 19463, AB/11, Petro Harvester, Cameron 1-12, Madison; s9/10; t11/10; cum 197 bbls 6/12;
  • 21279, AB/3, Petro Harvester, Wright 12-10, Madison; t11/11; cum 0 bbls 6/12;
April 27, 2010: #18962AB/55, Sagebrush, Lodoen 11-7H, new permit. [Update: this turned out to be a Madison well; current operator is Petro Harvester Operating Company, LLC; the IP was 55; spacing is unitized; s5/10; t6/10; cum 17K 6/12]


March 24, 2010: New permit granted in Kuroki Field -- PA/59, 18849, Sagebrush, Wright 12-4H, section 12. [Update: this turned out to be a Madison well; current operator is Petro Harvester Operating Company, LLC; the IP was 59; spacing is unitized; s4/10; t5/10; cum 15K 6/12.]

The Kuroki Field

The Kuroki oil field is one of the smallest fields in the Williston Basin; it is comprised of four sections (1, 2, 11, and 12) in township T163N-81R. It is located six miles northwest of West Hope, ND, population 533 in the 2000 census; it is probably a bit more now with the oil crews. The oil field is one mile south of the Canadian border. West Hope is six miles south of the Canadian border and almost directly north of Minot on US-83.

The Kuroki field is in Bottineau County which has become of increasing interest with EOG bringing horizontal/fracking experience from the Canadian side of the border to target the Spearfish formation. 

For being such a small field, it certainly is very active and very interesting.

Go to NDIC's GIS map server. Go to the left sidebar and click on "Find Field/Unit." Type in "Kuroki"; click on "Kuroki" and you will taken to this small field. The first thing you will notice are the chicken feet. There are currently six (6) chicken feet horizontal wells, all of them Sagebrush.

The file numbers, IP, # of toes, status, name of well (Madison wells except for #18764)
18264, AB/75, 5, Cameron 1-11H, 5,778 feet, t11/09; cum 18K 6/12;
17653, AB/160, 5, Cameron 1 HZ; t11/08; cum 29K 6/12;
17752, AB/32, 6, Rosendahl 4, t12/08; cum 19K 6/12;
17695, AB/111, 5, Rosendahl 7, t12/08; cum 33K 6/12;
17563, AB/240, 3, Wright 13-12H, t10/08; cum 38K 6/12;
17611, AB/107, 5, Stavens 1 HZ, t12/08; cum 39K 6/12;
18746, PA/563, CLR, Glinz 1-15H, at the end of the 4th toe of #17653; t7/10; cum 90K 6/12; 
All of these Sagebrush wells (except the CLR Glinz well)  have targeted the Madison formation. In this field, the depth of the Madison is about 3,600 feet, compared to about 9,000 feet in the oil fields back towards Williston and the Montana border.

The second thing you notice about this small oil field is the number of wells that have been drilled here. Outside this field, you have to go many miles to the next field, and it's a long drive to the more prolific Sanish and Parshall fields, but this little, lonely field has had more than 20 wells drilled over the years. Based on the file numbers, some must go back to the 1960's. Of all those wells, only two have been dry. Several old vertical wells are still producing, at least according to the GIS server map. These include file numbers:
1260, a Madison well, t10/56; cum 223K 6/12; 
5367, a Madison well, t11/73; cum 109K 6/12;
5393, a Madison well; t3/74; cum 61K 6/12;
9638, a Madison well; t8/82; cum 5K 6/12; problems with well; 
15464, a Madison well, t11/03; cum 19K 6/12; 
15643, a Madison well; t3/12; cum 16K 6/12;
15754, a Madison well; t7/05; cum 3,416 bbls 6/12; 
16294, a Madison well; t8/06; cum 9,145 bbls 6/12;
It is interesting to note the history of the study of the Madison formation. In a 1981 study out of Utah, the authors stated that because the Madison was so deep and there was so little oil in that formation, the Madison in North Dakota would unlikely be productive.

Fast forward to 1985. In a study published in September, 1985, by the PCO2R Parnership (the federal government's Energy and Environmental Research Center [EERC] and the University of North Dakota), the authors noted:
1. The Madison GSU (aquifer) underlies both the Williston and Powder River Basins. It has the potential to be a significant sequestration unit in the PCOR Partnership region.
2. In the Williston Basin, the Madison is given group status and divided into three formations, which in ascending order are the Lodgepole, Mission Canyon, and the Charles. The Lodgepole and Mission Canyon are carbonates and have porosity; the Charles Formation is dominated by [salts] and lacks permeability.
3. The Madison Group is the primary oil-producing interval in the Williston Basin.  Again, this report was published in 2005.
4. In the Powder River Basin, the Madison is not subdivided, and the equivalent stratigraphic unit is called the Madison limestone. 
Key members of the PCO2R partnership that contributed to this report include Julie A. LeFever, North Dakota Geological Survey; Richard D. LeFever, UND, Geology/Geological Engineering; Lynn D. Helms, North Dakota Industrial Commission; as well as Fischer, Smith, Peck, Sorensen, Steadman and Harju of the EERC.

Friday, March 19, 2010

In Another Life

I apologize. I won't do this often, but it's a Friday night, relatively quiet in the Bakken, and my thoughts begin to wander to a different life:


Great video, great music


Short video clip

In another life:


Highway Fever, Slim Dusty

Finally: The Number of Wells are Increasing

From the McKenzie County Farmer:
In October 1981, the active rig count hit a record high of 146 rigs, and even though the current number is still far from the all-time high, the oil industry is still producing more than those 146 rigs did in 1981.

“From what I hear, we can expect the rig count to increase by 25 percent by late summer [125],” according to Ron Ness, president of the North Dakota Petroleum Council. “Nobody knows how high the rig count will get, but I doubt that we have the infrastructure or manpower to support activity near the all-time high for too long. However, we have to remember that today’s drilling rig does what eight rigs could do back in 1982, does it in one-third of the time and is much safer. Therefore, in terms of drilling wells and productivity, we have already surpassed the 1981 level. The technology is truly amazing.”

For the longest time (about six months) the number of wells coming off confidential status has been in the 45 - 55 / month range.

Finally, in August we will see upwards of 67 wells coming off the confidential list.  Here are the numbers this year, so far:

53 wells came off the confidential list in January, 2010.
55 wells came off the confidential list in February, 2010.
65 wells come off the confidential list in March, 2010.
42 wells come off the confidential list in April, 2010.
49 wells come off the confidential list in May, 2010.
50 wells come off the list in June, 2010.
It has been opined that the increase in wells coming off the confidential list early in 2010 was due to number of EOG wells that would have been reported earlier, but were delayed due to delay in fracking.
54 wells come off the confidential list in July, 2010.
I'm surprised we're not yet seeing a jump in number of wells coming off confidential list. In October, 2009, there were only 56 active rigs; in January, 2010, the number of rigs approached 90 rigs, and yet, the number of wells coming off confidential list in January, 2010, was 54, and the number of wells coming off confidential list in July, 2010, is 49. 
67 wells come off the confidential list in August, 2010.
Finally, we see the jump I have been expecting.

Incidentally, with 265 new permits granted in 2010 (as of March 19, 2010), North Dakota is on track to grant 1240 permits in 2010, well above the 626 granted in 2009, and even the 953 granted in 2008, the best year in the current boom.

Canceled Permits

BEXP canceled a couple of permits today, both in the Alger field, one in section 11 and one in section 5, both T155-N-92W.  Go to the Alger field link to read more about these cancellations; it looks like there is more to the story. We'll probably never know the whole story but something tells me it required adjudication by the NDIC.

This is a cut and paste from my "wells to watch" page because I'm too busy right now to clean it up:

Special Circumstances: the Alger Excitement
18647 (C): Fidelity, Anderson 11-13H 
17392 (C): BEXP, Anderson 1-11H, is in section 11. PERMIT CANCELED, MARCH 19, 2010. WOW, that's an interesting turn of events.  11-155-92.  A companion permit, Olson 5-6-1-H, 5-155-92, was also canceled same day. The Olson 5-6 1-H well was a permit that was originally granted to Lario.

Comment: the reason these two wells are so important -- an entity called the Irish Oil and Gas Company has just paid the equivalent of $4.7 million for 640 acres, by paying $7300/acre for 120 acres in sections 11, 12, and 13, T155N-92W, Alger Field. This is a better-than-average field but not THAT remarkable. What might be going on? For those who do not follow these things, acres in the township north of this location were going for as little as $600/acre (which "in the old days" was a nice price).

18712 (P): Slawson, Athena 1-36H, SESW 36-155N-92W

CLR also canceled a permit: 18661, Rosenquist 1-13H, Hamlet field, Divide County.