Week 35: August 31 -- September 6, 2010

• Most recent NDIC presentation
• Bottleneck in takeaway capacity: it may not be getting better
• NOG presentation
• Oil money for state could double to $1 billion next year
• Confidential wells and other trivia
• 146: new record -- active drilling rigs in North Dakota
• A new record: 40-stage fracturing
• CLR on CNBC

The Owan Wells West of Williston

West of Williston, along US Highway 2, there are a number of wells coming on line, all with six to ten tanks on their pads. The pads for these wells were being made for these wells this past summer (2010) and already they are close to completion. Several remain on the confidential list.

They include, by file number, west to east:

• 18791, Abe 30-31 1-H (named for Abe Owan), BEXP
• 18443, Owan 29-32 1-H (yes, named for Abe Owan), 1,976, BEXP,
• 18796, Abe Owan 21-16 1-H (I will let you guess who this one is named for), 2,213, BEXP
• 18324, long lateral, producing,Owan-Nehring 27-34 1-H, 2,215, BEXP
• 18906, Michael Owan 26-35 1-H, BEXP, 2,640

These are all in Painted Woods oil field.  They are all confidential except #18324; the Owan-Nehring 27-34 1-H is a long lateral going running directly north-south. I assume the other four wells are the same: long laterals, running directly north-south.

These IPs are in the usual range for BEXP wells, so I suppose some would refer to them as "lackluster" or average wells -- at least average for BEXP.

Just joking.

New Site Linked: Fourfiftygas.blogspot.com

I should have linked this site a long time ago: the author does a much better job than I do regarding green energy and energy in general with a focus on high fuel costs.

Regardless, it's linked now. Enjoy.

CLR: 21% Increase in Proved Reserves

CLR announces a 21 percent increase in proved reserves, mostly as a result of drilling in the Bakken. To see what this means for investors, click here.

In the same press release, CLR announced the completion of thirteen (13) company-operated gross wells (7.4 net) in the North Dakota Bakken since July 1, 2010, and their one-day test results:

• 18769, Roadrunner 1-15H, Murphy Creek, 1,722
• 18679, Medicine Hole 2-27H, Jim Creek, 1,702
• 18909, Rollefstad 2-3H, Antelope, 1,689
• 18795, Bonney 2-3H (Bonney 2-3M), Jim Creek, 2,435
• 18958, Howard 1-5H, Dolphin, 1,201
• 18584, Ravin 1-1H, wildcat -- 150-97, 1,034
• 18851, Bjella 1-24H, Temple, 1,029

The best thing about this list? Except for two wells in the Jim Creek oil field, these wells are all in different fields, showing the potential of CLR.

How have other wells in immediate area of these wells done?

• Near the Roadrunner well, there were two wells, the Bartlet 21-16H, file #18074, a BR well, with an IP of 25. Yes, 25. Also, the Nanette Strommen 21-13H well, file # 17608, a MRO well, with an IP of 120. Yes, 120.
• There are four wells practically on the same pad as the Medicine Hole well: 19168, 17574, 16548, and 18679. I have data for only one of these (besides 18679): 17574 a CLR well, had an IP of 273.
• Near the Rollefstad well are 18159 and 17609. The former is a CLR TFS well with an IP of 754, and the latter is a Hess well with an IP of 504.
• Near the Bonney well are two: the 17135, a BR well with an IP of 143; and 17379, another BR well, with an IP of 83. 

Comment: by today's standards those "old" IPs are pathetic. If folks were excited two and three years ago with these wells with IPs less than 250, can you imagine the excitement of these 2,000 bopd IP wells? (Yes, I know that the way IPs are measured and reported has changed over the years, but still, 250 vs 2,500.)

Also, for investors, see this article in Barron's.

A "Green Energy" Headline Story That I Like

I like the headline because, finally, we see some honesty. "Green energy" is not going to result in many new jobs in this economy. That's according to our President, our number one "green energy" cheerleader.

Flashback: from my "Green Energy: Notes From All Over." And then scroll down to February 2, 2010.  I guess everyone but the administration knew this.

By the way, Jim Cramer is bailing out of solar. So is President Obama: "No solar panels on the White House roof."

Meanwhile, the US will see the highest increase in poverty rate in decades -- maybe back to those rates we saw in the 1960s. I guess this is what you get when the president and his inner circle have never run a business.