How Much Does It Cost to Drill/Complete a Well in the Williston Basin?

From Yahoo!InPlay; no link. The link would be dynamic and not there tomorrow.

Earthstone Energy reported that it has concluded drilling operations on its horizontal Ratcliffe well, the Federal #1-5H, in Sheridan County, Montana: The well horizontally penetrated ~ 5,000 ft of Ratcliffe with encouraging results before drilling operations were concluded. The co expects to begin completion operations within the next two weeks.

The Company estimates that its 7.5% share of drilling and completion costs for the two wells will be ~ $1.0 mln. Co plans to fund all the above efforts with existing cash, its cash flow from operations, and/or proceeds from its recent sale of Colorado properties. 

By my calculations, 7.5% of $13 million is about $1 million.  So about $6.5 million/well. If I did the calculations correctly. 5,000-ft lateral would suggest a short lateral. I don't follow Montana activity so I could be wrong on some of this. I believe the Ratcliffe formation is part of the Madison group, not the Bakken. 

Credo Provides Bakken Update

Long, long story here at Rigzone. com. 

Maybe some data points from this article later.

Meanwhile:

No link; from Yahoo!InPlay which is dynamic and the link will be gone tomorrow.

Credo Petroleum updates Bakken and Three Forks activity; co stated 'We will build further momentum in fiscal 2012 by setting new drilling records, with 85 gross (37 net) oil wells currently on our drilling schedule. 

The Petro-Hunt 148-94-17D-08-2H located in Dunn County, North Dakota, was completed in the Three Forks formation and produced at a 24 hour flowing rate of 1,700 BOEPD. The well is operated by Petro-Hunt and Credo owns a 10% working interest in both the well and the 1,280 acre spacing unit.

To date, the Company has completed 12 Bakken and Three Forks wells, all high rate producers, with cumulative gross production from the wells nearing 1.2 million BOE. The Company's average working interest in the wells is 7.5%. Drilling activity is escalating on the Reservation, and the Company currently projects that it will drill at least 20 Bakken and Three Forks wells in fiscal 2012, with an average working interest of 10%. Seven of the 20 wells are currently in various stages of being drilled or completed. Three of the wells target the Three Forks formation and four target the Bakken formation.

KOG Reports Sixth Rig in North Dakota -- To Eliminate Lease Expiring Issues

No link; this is from Yahoo!InPlay which is dynamic and will be gone by tomorrow. This is the totality of the announcement, a press release from the company:

Kodiak Oil & Gas reported that the co assumed its sixth operated rig; All of KOG's operated drilling rigs are presently drilling ahead on wells in North Dakota: All of co's operated drilling rigs are presently drilling ahead on wells in North Dakota, with one rig in Dunn County, two rigs in southern Williams County and three rigs in McKenzie County.

Furthermore, the co has an approximate 50% working interest in lands being drilled by two non-operated drilling rigs as part of its Dunn County Area of Mutual Interest.

Co has entered into a contract for a seventh operated rig, a new build rig, which is scheduled for second quarter 2012 delivery.  As the year progresses, Kodiak  plans to operate one to three rigs in Dunn County, two to three rigs in McKenzie County and three to four rigs in Williams County.

The 2012 to 2013 drilling program is designed so that Kodiak is positioned to have nearly all of its acreage held by production by mid-2013, eliminating leasehold expiry across much of its 155,000 net acre position in the Williston Basin.

Must Watch TV

9:00 p.m. EST tonight. It may be on at 8:00 p.m. CST. I don't know. But don't miss it.

9: 10 p.m.: the show lives up to its billing! Wow, I have fear of heights; I could never do this. Great respect for all involved. Great to see that North Dakota was the 50th state of 50 featured. Wow.

9:39: now a rainstorm approaching when they are at the top of the tower. Great photography.

9:46: I don't know who this guy reminds me of, but he is good. Very, very good. Great video; great story.

Demand Destruction of Gasoline -- Graph Worth 10,000 Words --

Don sent me this. I have not followed US gasoline consumption in quite some time.

This graph (linked) blows me away.

With all the good news about the economy, the unemployment rate dropping, and the price of oil, I never would have expected this.

When you get to the link, scroll to the bottom of the page to see gasoline consumption in the US since March, 2010.

This is a very troubling graphic. This is not indicative of a recovering economy. It is not indicative of an improving employment picture. The drop-off is not due to all those Volts being sold.

If this is due at all to the price of gasoline going up another 20 cents or so, I hate to think what the graph will look like when gasoline goes up another 60 cents this spring as predicted by some pundits. It will be interesting to see if CarpeDiem.com comments on this graph.