Montana Update: Four Bakken Completions, All In Richland County

In Richland County, Continental Resources Inc. reported the completion of four Bakken Formation wells.

The Fairfield SunTimes is reporting:

• The Constance-Linnea HSU, TD: 20,195 feet; the IP was 240 bopd.
• The Earl-Rita HSU, TD:  20,620 feet; the IP was 177 bopd.
  The Larry 1-28H, TD:  13,928 feet; the IP was 474 bopd. 
• The Lucille 3-27H; with three laterals; TDs of: 11,759 feet; 15,392 feet; and, 20,028 feet. No IP was provided, or if it was, I missed it. 

Don provided the link, thank you.

Richland County is west of McKenzie County in North Dakota.

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A Note to the Granddaughters

Regular readers know that my wife and I provide 24/7 care for our two granddaughters. I started this back in 2007 and except for a couple weeks during the Christmas holidays and a couple of weeks in the summer when they are with their other grandparents or vacationing with their parents, we are involved 24/7. Since 2007 we have pretty much lived in the same house as the granddaughters. This past year was the first time in six years that we had an apartment separate from theirs.

Some days are more exhausting than others; today was one of those days. My wife is still out in California and I had to have the two granddaughters in two different places at the same time: swimming for one (6:30 - 7: 30) and soccer for the other 6:00 - 7:30). Swimming was in South Lake, Texas; soccer was in Grapevine, TX.

Everything worked out. I won't provide the details.

We got home at 8:00 p.m. and I cooked Omaha Steaks, and invited their mother to come over; she was getting off work at 8:00 p.m. and would be getting home about 8:30 p.m. She joined us. A very nice evening. I had made Ghiradelli double chocolate brownies during the day so they had a fresh dessert. I think the brownie mix was $1.67 with my loyalty card and coupon; otherwise $2.50 with the loyalty card alone. One egg and an inconsequential amount of vegetable oil and that was the total cost for dessert that will last several days.

My daughter drove home (just a couple of blocks) but the granddaughters wanted me to walk them home, which I did. They loved discussing their plans for the evening; my only purpose was to be their escort, I guess, and carry their art work.

They are incredible sisters, ages 7 and 10. As I reflect back on their conversation, this is all that came to mind:

Stand By Me, Ben E. King
This is another song, another singer that convinces me/reminds me that there is a God. Evolved humans do not come up with these songs, these melodies on their own. Seriously, listen to the lyrics, and/or listen to the strings in the instrumentals portions and think that this was done without the help of angels. Probably not. G. K. Chesterton would agree.

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Isn't YouTube wonderful? Matched with Ben E. King above, one gets Otis Redding:

Sitting on the Dock of the Bay, Otis Redding
I assume I've listened to this song a thousand times, but for the first time tonight, I heard the emotion in his voice...."wastin' time... I left my home in Georgia ... headed for the Frisco Bay .. I had nothing to live for .. nothing's gonna change... I can't do what 10 people tell me to do so I guess I will remain the same ... "

I can't do what 10 people tell me to do so I guess I will remain the same ... I think of the newly hired, minimum wage workers on the assembly line with a dozen supervisors / managers / quality improvement gurus with clipboards ... if they survive the union, the corporate management, human resources, their spouse, their kids ...

One more for the road:

Right Down The Road, Gerry Rafferty A Mother's Day Song

How Big Might The Bakken Be?

I wasn't going to post this story. I didn't care all that much. And I was exhausted.

But, look at the numbers in this article. No, before you do that look at these numbers: the population of Norway is 5 million. The population of North Dakota is 700,000.

Every Norwegian is a millionaire.

Now look at the numbers in this story. Reuters is reporting via Rigzone:

Norway cuts its 2014 oil production forecasts on Wednesday, and warned that investment growth will soon stop, but also sharply raised its undiscovered resource estimate on more Arctic riches.

The world's seventh biggest oil exporter and Western Europe's top gas supplier sees oil production at about 1.46 million barrels a day this year.

Even as investment growth slows, Norway increased its total undiscovered resource estimate to 18.5 billion barrels of oil equivalents (boe) from a previous estimate for 16.3 billion boe.

Okay, did you see those numbers? Norway is producing about 1.5 million bopd. North Dakota: soon to hit the 1 million bopd milestone and estimates are that North Dakota will produce 2 million bopd (barring any geopolitical disruption). Norway is slowing down production because of increased challenges in deep-sea drilling in the Arctic. Sort of makes the Bakken look like a cakewalk, huh?

So, Norway:

• 1.5 million bopd
• 5 million Norwegians
• every Norwegian is a millionaire
• reserves of 20 billion bbls
• Norway's "Legacy Fund" invested in equities and property around the world

Compare with North North Dakota:

• 1 million bopd
• less than a million North Dakotans
• CLR suggests Bakken reserves are significantly greater than 20 billion bbls
• North Dakota's "Legacy Fund" invested in cash at 0.02%

Disclaimer: all numbers are the opinions of me and me alone based on various sources. I would not swear on a Bible that any or all of statistics stated are accurate, but that's my worldview. 

From Sweden, close enough to Norway: 



SOS, ABBA       Waterloo, ABBA

"Let Them Eat Cake" -- If They Want More Dangerous CBR Terminals, Then We'll Build More Dangerous CBR Terminals

The AP is reporting via Rigzone:

The chief executive of TransCanada said Wednesday if the Obama administration doesn't approve the controversial Keystone XL pipeline his company will look to the more dangerous alternative of building build rail terminals in Alberta and Oklahoma.

President Barack Obama is expected to decide early this year on Keystone XL, which is under review at the State Department. The long-delayed pipeline would carry oil from Canada to the Gulf Coast. TransCanada CEO Russ Girling said pipelines are "by far a safer alternative" to oil trains but said if customers want him to build rail terminals he will. He said he's in discussions with oil and rail companies. Concerns have been raised about the increasing use of rail to transport oil throughout North America.

A number of recent derailments have worried both officials and residents close to rail lines. In July, 47 people were killed in Lac-Megantic, Quebec, when a train with 72 oil tankers derailed and exploded in the small community. On Dec. 30, an oil train derailed and exploded in North Dakota, causing the evacuation of a nearby town but no injuries. Earlier this month, a train carrying oil and gas exploded in New Brunswick, also causing evacuations.

Girling said they'll consider building a rail terminal in Hardisty, Alberta where the pipeline would have started. He said he will also consider building an import terminal in Cushing, Oklahoma, site of the biggest U.S. oil storage hub. The southern leg of Keystone XL from Cushing to refineries in the Gulf Coast is set to come online next week.

RBN Energy has posted a number of excellent articles on Canadian CBR.

CBR Rules

Reuters is reporting via Rigzone:

Safety standards for tank cars carrying crude oil and other hazardous material that have been involved in several recent derailments are not likely to come before next year, the U.S. Department of Transportation said on Wednesday.

A spate of explosive derailments, including one in Quebec last July which killed 47 people, another last month in North Dakota and as recently as last week in New Brunswick, Canada, has led to concerns over the safety of shipping crude oil by rail.

Officials have asked the shipping industry for input on how to make tank cars more safe, particularly in light of fiery incidents involving crude shipments that jumped the tracks. A prolonged process for writing new rules has begun but many months are needed to digest the views of stakeholders and clear bureaucratic hurdles, officials have said.

The rules will likely not be finished before January next year, the DOT said in a notice of major initiatives released this week. For many producers, moving crude oil on railcars has been the preferred means of bringing the product to refineries. Some 71 percent of all oil produced in North Dakota was transported by rail in November, or around 800,000 barrels per day, according to the state's Pipeline Authority.

Wednesday Evening: Statoil Reports Two "High IP" Wells

I will be tied up this evening (lots of granddaughter-related activity) but will update as I find time. Readers have sent me links to a number of stories that need to be posted.

This is a long, long article. I've been waiting for this one, the second part of his 2-part series on the Bakken, an update as we go into 2014. I will read it later. I've been told that it is very, very long and could have been easily broken into three articles. Michael Filloon's part 2 of a 2-part series on the Bakken, going into 2014. It will be interesting to see if he addresses the #1 and the #2 issue on everyone's mind regarding the Bakken.

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or anything you think you might have read here. 

Active rigs:

	1/15/2014	01/15/2013	01/15/2012	01/15/2011	01/15/2010
Active Rigs	187	185	200	163	80

Five (5) new permits:

• Operators: Petro-Hunt (3), Crescent Point, Hess
• Fields: North Tioga (Burke), Church (Williams), Hawkeye (McKenzie)
• Comments:

Wells coming off the confidential list were reported earlier; see sidebar at the right.

Seven (7) producing wells completed:

• 23208, 240, BR, CCU Boxcar 44-22PH, Corral Creek, unitized, t10/13; cum --
• 23860, 3,358, Statoil, Hovde 33-4 2H, Sandrocks, t12/13; cum --
• 24361, 3,099, Statoil, Knight 35-26 3TFH, Banks, t12/13; cum --
• 24836, 416, CLR Bice Federal 4-32H1, Chimney Butte, t12/13; cum --
• 25630, 194, Samson Resources, Bel Air 2314-2H, Ambrose, t1/14; cum --
• 25664, 480, Mountain Divide, Heckman 7-6-1H, Fortuna, t9/13; cum --
• 25668, 456, Mountain Divide, Olson 2-11S-1H, Fortuna, t10/13; cum --

Wells coming off confidential list Thursday:

• 25304, 2,257, QEP, Paul 2-26035TH, the Helis Grail, t12/13; cum --
• 25576, 447, Hess, EN-Riersgard 156-93-1718H-6, Alger, t12/13; cum --