USEG Announces A Great Well and Another Partnership -- BEXP, Zavanna -- Bakken, North Dakota, USA

Remember USEG? The company that partnered with BEXP back in 2009? That deal is still playing out.

On Friday, January 28, 2011, just as the Egyptian revolution was making news, USEG announced its highest initial production rate Bakken well to date in the Williston Basin:

• The Lloyd 34-3 #1H, USEG's highest initial production rate Bakken well to date, produced approximately 3,240 barrels of oil and 4.74 mmcf of natural gas or 4,030 boed during an early 24-hour initial flow back period. The well was completed with swell packers and 31 fracture stimulation stages.
• In addition, USEG participated in the following wells, and reported them in the same press release:
• Brad Olson 9-16 3H, Kalil Farms 14-23 1H, and MacMaster 11-2 1H should be completed in February.
• The Hovde 33-4 1H well, the 15th and final initial well under the drilling participation agreement with BEXP, is drilling and should be completed in March. The Hovde is a direct offset to the Lloyd well.
• These are all in the Rough Rider prospect (a BEXP designation).

The company also announced a new participation agreement. This one with Zavanna LLC. USEG paid $11 million to acquire 6,200 net acres ($1,775/acre). Under this agreement, USEG will particpate in drilling 31 gross 1,280-acre spacing unit with the potential of 93 gross Bakken and 93 gross Three Forks wells, based on three wells per formation per unit.

Wells affected by the Zavanna-USEG agreement:

• Cheryl 14-23 1H, currently drilling
• Olson 8-5 1H, scheduled to drill after the Cheryl well
• Colfax 3-10 1H, following the Olson
• All three wells should be completed in the second quarter
• All long lateral
• Generally about 30 fracture stages

Zavanna and its partners (including USEG) are continuing efforts to acquire a full time drilling rig in the second quarter (2011) to drill 6 - 8 additional gross wells in 2011.

USEG's total in the Williston Basin: 22,400 net acres (includes Montana) with potential for 276 gross drilling locations (both the BEXP and the Zavanna partnership programs).

World Energy Consumption by Fuel

For all the stories about renewable energy these past few years (the "lost decade"), and then all the stories about coal-powered cars this past year, one would get the impression that ten years' worth of subsidies, grants, and tax breaks for the renewable energy business (wind and solar) has resulted in great strides.

For a look at the raw data compiled for the years 1965 - 2009, click on statistical review of world energy, 2010.

Near the top, on the left side is a downloadable Excel spreadsheet that breaks out energy consumption for those years by type of energy.

The amount of energy generated worldwide, including the US, was so low that it was either unmeasurable or it was a rounding error. The sources of energy measured were: oil, natural gas, coal, nuclear energy and hydroelectric power.

For the most recent year in which data is available, 2009, the amount of energy used, in million tonnes of oil equivalent, this is the breakdown (figures rounded):

• Oil: 843 (39 percent)
• Natural gas: 589 (27 percent)
• Coal: 498 (23 percent)
• Nuclear energy: 190 (9 percent)
• Hydroelectric: 62 (3 percent)
• Total: 2,182 million tonnes of oil equivalent

On other spreadsheets at that site, data on renewable energy is provided, but it is only a percentage of each country's contribution to worldwide use. For example, Germany has 44 percent of the world's installed wind capacity.

But 44 percent of zero is still zero.

Again, don't confuse facts with investing. Wall Street and individual investors can still make a lot of money by investing in renewable energy companies. It's just that it will be a very long time before renewable energy makes a statistical difference in energy consumption/production around the world.

[Note: that last paragraph is an opinion, not advice. I am not advising readers to invest or not invest in renewable energy.]

And, of course we've all seen how the "green energy" revolution helped Spain.

The Syrian-Lebanese in North Dakota

Some years ago I was fortunate enough to run across a hardback copy of The Syrian-Lebanese in North Dakota, by William C. Sherman, Paul L. Whitney, and John Guerrero, c. 2002.

It  has always been one of my most treasured books and sits in an prominent place on my living room bookshelves.

I have always enjoyed it.

But now, returning to the book this past week (before the Egyptian protests broke out), I have found a new pleasure going through this book: looking for the names in the book associated with the names of oil wells in the Bakken.

The authors included the names of those who donated money to assist in the publication of this book.

One of the names was "Dan Kalil - Kalil Farms." The Kalil family lived across the street from us in Williston; all those years I never knew their heritage. They were great friends, and every so often we would see a huge grain truck in front of their house.

Two other donors were "Vernon Owan - Owan Family Members" and Charles and Rose Owan - Owan Family Members." You will find several wells northwest of Williston with the Owan name. Through serendipity, I happened to have a nice long discussion with Charles Owan (at least, if I remember correctly, it was Charles) when I last visited Williston (at the local McDonald's). He spoke very highly of his brother; it was a very long conversation. I wish it could have been longer.

Another donor was Darlain Atol, in memory of Raymond Atol, her husband. Raymond Atol, for as long as I remember was the Chief of Police of Williston. I don't recall ever meeting him in person, but I certainly had great respect for him. I remember him best as a motorcycle cop and riding huge motorcycles. Most teenagers probably tried to stay "below the radar" with regard to the police and highway patrol.

In a law enforcement career spanning over 50 years in North Dakota, Ray Atol didn't take a lot of guff. But he always said there were two sides to an  argument ... Dan Kalil, himself of Lebanese ancestry, said that Ray 'made things go and got things done.'

The book includes several appendices including:

• The names of all Syrian-Lebanese in North Dakota at the time of the 1900-, 1910- and 1920-census. 
• Naturalization records of the Syrian-Lebanese in North Dakota.
• The land acquisition (homesteading) records of the Syrian-Lebanese in North Dakota.
• North Dakota Syrian-Lebanese veterans of North Dakota.
• Name changes and patterns among the Syrian-Lebanese in North Dakota.
• A list of WPA Interviewees, as part of the Federal Writers Project established by President Roosevelt during the depression.

It is absolutely fascinating to see the names of my school friends, teachers, Williston businessmen, and farmers who I knew while growing up in Williston.

My wife visited Williston numerous times back in the late 70's and early 80's, and she has very fond memories of visiting Joseph's Department store on Main Street, and yes, Mr Joseph is listed many times in the book. 

I have very fond memories of my years in Williston, and to see the names of those I knew at that time in print is truly priceless.

I know I am going out on a limb, but I am convinced the grain farming skills these folks brought from their home country probably accounted for the leadership position North Dakota has in such areas as wheat farming, particularly "durum" wheat farming. It should be remembered that hard spring wheat had its origin in that part of the world that is now known as Lebanon.

I bought my copy of The Syrian-Lebanese in North Dakota from Books on Broadway, Williston, ND, some years ago, as previously noted. It is not in stock at Amazon, and something tells me the book is now "priceless" in more ways than one.

February, 2011, Dockets -- Personal Use -- Abbreviated -- North Dakota, USA

This list is for my personal use. It is an abbreviated list of the February, 2011, hearing dockets coming before the NDIC in February.

Note: Hess Bakken Investments II, LLC, is not (yet) listed as a producer at the NDIC "Well Search" page. 

February, 23, 2011

14059: Anschutz, temporary spacing, Dunn County
14060: G3, temporary spacing, Williams County
14061: Fidelity: temporary spacing, Stark County
14062: CLR, temporary spacing, McKenzie County
14063: CLR, request to extend Wildrose-Bakken field; Divide, establish 2 1280-acre units; 1 well each
13814, cont'd: CLR, proper spacing for Edge-Bakken pool, McKenzie County
13447, cont'd: CLR, request to amend rules for Stoneview-Bakken; 2 320 acre units; 1 well each
13815, cont'd: CLR, XTO, spacing for Lindahl-Bakken, Williams

14064: Baytex, to establish a 1280-acre unit in Ambrose-Bakken; 1 well

14065: Baytex, to create 3 1280-acre units in Ambrose-Bakken; 3 wells on each unit = 9 wells

14066: Baytex, create 12 1280-acre units in West Ambrose-Bakken; 1 well on each = 12 wells

14067: Baytex, to create 6 1280-acre units in Whiteaker -Bakken; 3 wells each = 18 wells

14068: BEXP, temporary spacing, McKenzie
14069: BEXP, complete a Lodgepole well
13818, cont'd: BEXP, proper spacing for Stony Creek-Bakken
14070: EOG, to create a 1920-acre unit, Clarks Creek, McKenzie; 4 wells on this one unit
14071: Enerplus, to create 2 1280-acre units, McGregory Buttes-Bakken, 1 well on each unit
13813, cont'd: Enerplus, temporary spacing, Dunn County
13594, cont'd: Peak, proper spacing for South Fork-Bakken pool
14072: Newfield, establish a 1280-acre unit, Williams County, 4 wells on this unit
14073: Newfield, create a 1280-acre unit, Williams County, 4 wells on this unit
14074: Newfield, create a 1280-acre unit, Williams County, 6 wells on this unit
14075: Newfield, create a 1280-acre unit, Williams County, 5 wells on this unit
14076: Newfield, create a 1280-acre unit, Williams Country, 1 well on this unit
14077: Newfield, create 3 1280-units, Divide and Williams, 1 well in each

14078: Samson Resources, to create 15 1280-acre units, 1 well on each, Bluffton-Bakken

14079: Samson, create 1 1280-acre unit, Ambrose-Bakken, 1 well
14080: Samson, permission to plug a well inadvertently drilled in location to close to spacing lines
14081: Sinclair, temporary spacing, Dunn County
14082: Slawson, create 2 1280-acre units; 1 well each, Van Hook
14083: Slawson, create 2 1280-acre units; 1 wells each, Big Bend
14015, cont'd: Slawson, temporary spacing, McKenzie
14084: Ward-Williston, confirming surveying of a field, Bottineau

14085: Zenergy, create a 3840-acre unit, 9 wells in that unit, Van Hook, McLean

13435, cont'd: Summit Resources, develop Beaver Creek-Stonewall Pool, Billings/Golden Valley
13436, cont'd: Summit Resources, develop South Boxcar-Bakken, McKenzie
14086: Zavanna, create a 1280-acre unit; 1 well, McKenzie
14087: Sinclair, pooling in Mary-Bakken Pool, Dunn
14088: Slawson, pooling in Saxon-Bakken, Dunn
14089: Slawson, 4 wells on a 2180-acre unit in Painted Woods, Williams
14044, cont'd: Slawson, pooling in Arnegard-Bakken, McKenzie
14090: Denbury, pooling in Charlson-Bakken, McKenzie/Williams
14091: Denbury, pooling in Charlson-Bakken, McKenzie/Williams
14092: XTO, pooling in MonDak-Bakken, McKenzie
14093: XTO, pooling in MonDak-Bakken, McKenzie
14094: XTO, pooling in MonDak-Bakken, McKenzie
14095: XTO, pooling in MonDak-Bakken, McKenzie
14096: XTO, risk penalty legalese
14097: XTO, risk penalty legalese
14098: XTO, risk penalty legalese
14099: XTO, 3 wells on a 1280-acre unit, West Bank-Bakken, Williams
14100: XTO, 3 wells on a 1280-acre unit, Lost Bridge-Bakken, Dunn
14101: XTO, 3 wells on a 1280-acre unit, West Capa-Bakken, Williams
14102: XTO, 3 wells on a 1280-acre unit, Midway-Bakken, Williams
14103: XTO, 3 wells on a 1280-acre unit, Grinnell-Bakken, Dunn
14104: XTO, 3 wells on a 1280-acre unit, Haystack Butte-Bakken
14105 XTO, 3 wells on a 1280-acre unit, McGregor-Bakken, Williams
14106: Anschutz, pooling in Willmen-Bakken, Dunn
14107: Anschutz, pooling in Willmen-Bakken, Dunn
14108: Anschutz, pooling in Manning-Bakken, Dunn
14109: Anschutz, pooling in Manning-Bakken, Dunn
14110: Anschutz, pooling in Manning-Bakken, Dunn
14111: Anschutz, pooling in Murphy Creek-Bakken, Dunn
14112: CLR, pooling in Upland-Bakken, Divide
14113: CLR, pooling in Squires-Bakken, Williams
14114: CLR, pooling in Dollar Joe-Bakken, Williams
14115: CLR, pooling in Ranch Creek-Bakken, McKenzie
14116: CLR, pooling in Little Knife, Dunn
14117: CLR, pooling in Jim Creek-Bakken, Dunn
14118: CLR, pooling in Jim Creek-Bakken, Dunn
14119: CLR, pooling in Jim Creek-Bakken, Dunn
14120: CLR, permission for oil in Medicine Pole Hills-Red River "B" to be produced into battery

14121: CLR, 7 wells on one 640-ace unit, Antelope-Sanish Pool, McKenzie

14122: CLR, 7 wells on a 1280-acre unit, Alkali Creek-Bakken, Mountrail/McKenzie
14123: Newfield, pooling in Westberg-Bakken, McKenzie
14124: Newfield, pooling in Westberg-Bakken, McKenzie
14125: Newfield, pooling in Sandrocks-Bakken, McKenzie
14126: Newfield, pooling in South Tobacco Garden-Bakken
14127: Newfield, pooling in South Tobacco Garden-Bakken
14128: Newfield, pooling in Siverston-Bakken, McKenzie
14129: Newfield, pooling in Siverston-Bakken, McKenzie
14130: Newfield, pooling in Haystack Butte-Bakken, Dunn
14131: Newfield, pooling in Haystack Butte-Bakken, Dunn
14132: BEXP, pooling in Kittleson Slough-Bakken, Mountrail
14133: BEXP, pooling in Bull Butte-Bakken, Williams
14134: BEXP, pooling in Bull Butte-Bakken, Williams
14135: BEXP, pooling in Alger-Bakken, Mountrail
14136: BEXP, pooling in Alger-Bakken, Mountrail
14137: BEXP, pooling in Alger-Bakken, Mountrail
14138: BEXP, pooling in Alger-Bakken, Mountrail
14139: BEXP, pooling in Cow Creek-Bakken, Williams
14140: BEXP, pooling in Cow Creek-Bakken, Williams
14141: BEXP, pooling in Painted Woods-Bakken, Williams
14142: BEXP, pooling in Williston-Bakken, Williams
14143: BEXP, pooling in Briar Creek-Bakken, McKenzie
14144: BEXP, pooling in Camp-Bakken, McKenzie
14145: BEXP, pooling in Sandrocks-Bakken, McKenzie
14146: BEXP, pooling in Sandrocks-Bakken, McKenzie
14147, BEXP, salt water disposal well
14148: GeoResources, pooling in Bull Butte, Williams
14149: GeoResources, pooling in Bull Butte, Williams
14150: GeoResources, pooling in Bull Butte, Williams
14151: GeoResources, pooling in Bull Butte, Williams
14152: GeoResources, pooling in Bull Butte, Williams
14153: Baytex, 2 wells each on 2 1280-acre units, Whiteaker-Bakken, Divide
14154 - 14206: EOG, all these cases for are pooling in various fields (53 cases)
14207: Enerplus, permission to flare and unrestricted production
14208: Slawson/Zenergy, permission to maximize production in Eagle Nest-Bakken, McKenzie/Dunn
14209: Enerplus, permission to flare and unrestricted production
14210: Enerplus, permission to flare and unrestricted production
14211: Enerplus, permission to flare and unrestricted production
14212: Enerplus, permission to flare and unrestricted production
14213: EOG, permission to flare and unrestricted production
14214: Samson, permission to flare and unrestricted production
14215: Newfield, permission to flare and unrestricted production
14216: BEXP, EOG, Hunt, Slawson, permission to maximize production in Ross-Bakken, Mountrail
14217: Slawson, Fidelity, Sinclair, permission to flare and unrestricted production
14218: BEXP, EOG, Zenergy, CLR, permission to flare and unrestricted production
14219: EOG, Sinclair, Fidelity, permission to flare and unrestricted production
14220: XTO, permission to flare and unrestricted production

February, 24, 2011

14221: Murex, temporary spacing, McKenzie
14222: Murex, underground injection, unitized formation of Elmore-Madison, Renville
14223 - 14228: Murex, pooling in various fields
14229: SM Energy, temporary spacing, McKenzie
14230: SM, extend Cartwright-Bakken, 1 1280-acre unit, unspecified number of wells
14231: SM, revoke a CLR permit
14232: SM, pooling in Camp or Indian Hill-Bakken, McKenzie
14233: Hess, 6 1280-acre units, Ray or Dollar Joe field extensions; number of wells unspecified
14234 - 14240: Hess, pooling in various fields
14241: Hess, 4 wells per 1280-acre unit, McKenzie
14242: Hess, 2 wells per 1280-acre unit, McKenzie
14243: Hess, 2 wells per 1280-acre unit, McKenzie
14244: Hess, pooling in Baskin-Bakken, Mountrail

14245: Hess Bakken Investments II LLC, revoke a Sinclair permit

14246: Hess Bakken Invtmts II LLC, 1280-acre unit Little Knife/Lone Butte-Bakken, 1 well

14247 - 14254: Hess Bakken Investments II LLC, pooling in various fields

13997, cont'd: temporary spacing in Billings County
14255: WLL, request to drill up to 2 additional wells on 3 spacing units in Mountrail County
14256: WLL, create a 1280-acre unit, 1 well
14257: WLL, create 2 1280-acre units, 1 well each
14258: WLL, create a 1280-acre unit in Bicentennial-Bakken, 1 well
14259: WLL, pooling in Bicentennial-Bakken
14260: WLL, create 9 more 1280-acre units; 1 well each
14261: WLL, pooling in Bicentennial-Bakken, McKenzie
13564, cont'd: WLL, 1 1280-acre unit, unspecified number of wells
14262: WLL, 4 1280-acre units, unspecified number of wells
14263 - 14264: WLL, pooling in various fields
14265: WLL, 1 1280-acre unit; 1 well
14266: WLL, 1 1280-acre unit; 1 well
14267: WLL, pooling in Ash Coulee-Bakken, Billings
14268: Helis, 1 1280-acre unit, McKenzie County
14269: Helis, pooling in Spotted Horn-Bakken, McKenzie
13986, cont'd: MRO, temporary spacing in McLean
14270: MRO, 2 wells in Deep Water Creek Bay -- Bakken, a 1280-acre unit
14271: MRO, 2 1280-acre units, 2 wells each; a 640-acre unit, 1 well

13987, cont'd: MRO, to establish a 5120-acre unit with up to 8 wells, McGregory Buttes, Dunn

13988, cont'd: MRO, a 3840-acre unit, 5 wells, Bailey-Bakken, Dunn

14272: MRO, a 2560-acre unit, 5 wells, Moccasin Creek-Bakken, Dunn

14273: MRO, up to 4 wells on one 1280-acre unit, Chimney Butte-Bakken, Dunn

14274: MRO, pooling in Antelope-Bakken, McKenzie
13990 - 13991, cont'd: MRO, pooling in Reunion Bay-Bakken, McKenzie/Mountrail
14275 - 114278: MRO, pooling in various fields
13765, cont'd: Oasis, temporary spacing in Williams County
14279: Oasis, 2 1600-acre units, 1 wells each, Williams County
14280: Oasis, permission to flare and unrestricted production
14281: Oasis, 1 1280-acre unit, MonDak-Bakken, McKenzie
14282: Oasis, permission to flare
14283: Oasis, permission to flare
14284: Oasis, permission to flare
14285: Oasis, salt water disposal
14286: Oasis, salt water disposal
14287: Evertson, pooling in Ray-Red River, Williams
14288: BR, 1 1280-acre unit, 2 wells, McKenzie
14289: BR, 3 wells on a 1280-acre unit, McKenzie
14290: BR, 3 wells on each spacing unit in Zone II, Camel Butte-Bakken, McKenzie

14291: BR, 7 wells on one 1280-acre unit in Murphy Creek-Bakken, Dunn

14292: Ursa, 1 1280-acre unit, unspecified number of wells, MonDak-Bakken, McKenzie
14293: KOG, revoke a Newfield permit
14294: KOG, pooling in Mandaree-Bakken, Dunn
14295: Tracker, temporary spacing in McKenzie
14296: North Plains, salt water disposal
14297: North Plains, convert Dollar Joe 41-16 H6, Truax field in salt water disposal
14298: Open Range, Inc, a 800-acre unit, 1 well, Burke County
14299: Open Range, Inc, a 800-acre unit, 1 well, Burke County
14300: Open Range, Inc, a 800-acre unit, 1 well, Burke County
14303, cont'd: Prairie Disposal, convert Mendenhall Unit 1 into salt water disposal

Supplement, Thursday, February 24, 2011

14301: BR, up to 7 horizontal wells on each 1280-acre unit, Keene-Bakken, McKenzie

The Egyptian SItuation -- January, 2011

April 19, 2011: Well, this has worked out just fine. Saudi Arabia saw the US throw a 30-year ally under the bus; Saudi Arabia now dissing the US and cozying up to Russia and China; and, now, Iran and Egypt appear ready to link arms in friendship. 

February 9, 2011: we learn that Saudi Arabia read the riot act to Obama; Saudi will support Mubarak and Egypt.  Obama is in over his head; does not know history of the Middle East or the importance of relationships

February 6, 2011: It looks like Mubarak has survived ... for the time being

January 31, 2011: Obama administration tells world Mubarak must leave; throws Mubarak under the bus

January 29, 2011 -- when it all began


Fox News:

Reports that oil fields in an OPEC country, Nigeria, could come under attack, taking advantage of the general unrest in the Muslim world.  10:00 a.m., January 29, 2011.

Boone Pickens:

Monday: oil prices up.  Won't predict a short-term rise in oil prices. Back to his talking points on American independence using our own resources.  He thinks "this" (the situation in Egypt) will "push America over the edge" -- finally get its action together and use our resources.  "Cheaper, abundant, and ours" -- obviously referring to natural gas.  10:05 a.m. January 29, 2011.

Al Jazeera link.