Friday, October 3, 2014

Week 40: September 28, 2014 -- October 4, 2014

Big Story Of The Month?
New Madison field in the Williston Basin, North Dakota?

Operations
Petro-Hunt reports a nice TF2 well
Random update of a very busy section of Baker oil field
Magnum Hunts sells non-core assets in Divide County
Update on Zavanna wells east of Williston
Update on SHD
SHD reports a huge well in Clarks Creek
Number of active rigs down to 186 from recent high of 200
Wells on confidential status, by operator
Random update of a Whiting re-entry well, Red River, Henry oil field
Random update of a relatively recent Madison well
Random update on three CLR using high proppant volume, increased number of stages, the Bonney wells
CLR's Bakken enhanced completion tests

Hearing Dockets
October, 2014, agenda, highlights
October, 2014, agenda

Flaring
North Dakota oil production likely to fall with new flaring rules

Pipeline
Enbridge eyes mainline expansion

CBR
Update on BNSF in Montana

Bakken 101
The meaning of "LL"
Why are not all Bakken wells put on confidential list?

Miscellaneous
WTI may drop below $90/bbl

Random Update On CLR's Lawrence Wells In North Tioga Oil Field, October 3, 2014

Over at the discussion board, a reader asked about these wells:
  • 26873, A, CLR, Lawrence 7-24H2, North Tioga, s12/13; 3 days of production in August, 2014: 552 bbls
  • 26874, drl, CLR, Lawrence 11-24H1, North Tioga, s11/13; 0 days in August, 2014
  • 26875, drl, CLR, Lawrence 10-24H2, North Tioga, s11/13; 0 days in August, 2014
  • 26876, 292, CLR, Lawrence 9-24H, North Tioga, s11/13; 1 day of production in August, 2014: 160 bbls
  • 26877, A, CLR, Lawrence 8-24H3, North Tioga, s11/13; 1 day of production in August, 2014: 123 bbls;
  • 26880, A, CLR, Lawrence 6-24H1, North Tioga, s12/13;; 4 days of production in August, 2014: 1,084 bbls
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New Apple Product Announcements

Macrumors reports:
Apple is planning to hold its next fall event on Thursday, October 16, where it is expected to introduce new iPads, reports Re/code. The company is also expected to introduce new Retina iMacs and release OS X Yosemite to the public.

According to Re/code, Apple's iPad event will be more low-key than its September iPhone event, and it will be held at the company's Town Hall Auditorium. The company's iPhone event, which saw the introduction of the iPhone 6, 6 Plus, Apple Watch, and Apple Pay, was held at the Flint Center, where the original Mac was unveiled 30 years ago. 

Charbonneau Oil Field -- Williston Basin, North Dakota

Updates

Permits

2014 (list is complete)
  • 29595, conf, Emerald Oil, Mongoose 3-8-5H,
  • 29594, conf, Emerald Oil, Arsenal Federal 4-17-20H,
  • 29593, conf, Emerald Oil, Mongoose 4-8-5H,
  • 29592, conf, Emerald Oil, Mongoose 5-8-5H,
  • 29591, conf, Emerald Oil, Arsenal Federal 5-17-20H,
  • 28832, loc, Emerald  Oil, Mongoose 6-8-5H,
  • 28831, loc, Emerald  Oil, Arsenal Federal 6-17-20H,
  • 28830, loc, Emerald  Oil, Mongoose 7-8-5H,
  • 28829, loc, Emerald  Oil, Arsenal Federal 7-17-20H,
  • 27363, 844, Emerald  Oil, Talon 6-9-4H, t1/15; cum --
  • 27362, 661, Emerald  Oil, Slugger 6-16-21H, t12/14; cum 4K 12/14;
  • 27361, 855, Emerald  Oil, Talon 7-9-4H, t12/14; cum 2K 12/14;
  • 27360, 1,114, Emerald  Oil, Slugger 7-16-21H, t12/14; cum 10K 12/14;
2013
  • 27266, conf, Emerald Oil, Talon 3-9-4H, producing as of 9/14;
  • 27265, conf, Emerald Oil, Slugger 3-16-21H, producing as of 9/14;
  • 27264, loc, Emerald  Oil, Talon 4-9-4H,
  • 27263, loc, Emerald  Oil, Slugger 4-16-21H,
  • 27262, 1,421, Emerald  Oil, Talon 5-9-4H, t12/14; cum 16K 12/14;
  • 27261, 1,204, Emerald  Oil, Slugger 5-16-21H, t12/14; cum 11K 12/14;
2012
None

2011
None

2010
  • 19869, 878, Slawson, Crossbow 10706H, t12/11; cum 84K 12/14;
  • 19863, 1,190, Emerald Oil/Slawson, Mongoose 1-8-5H; gas ranged from 800 to 1200 units; 34 stages; 3.91 million lbs sand, t6/13; Slawson had the original permit; drilled by Emerald Oil; cum 121K 12/14; off line November/December, 2014; possibly some commingling work;
Trivia

Slawson took their names from "League of Nations."

Original Post

Charbonneau oil field is a non-descript little field in McKenzie county, on the far west side, away from the sweet spots around Watford City. It's a rectangular field, twelve sections, 3 x 4; its western border is less than twelve (12) miles from the Montana state line. It's about five miles southwest of the curve in US 85 on the south side of Alexander.

Nineteen (19) New Permits -- October 3, 2014

Active rigs:


10/3/201410/03/201310/03/201210/03/201110/03/2010
Active Rigs189185188199143


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

Nineteen (19) new permits --
  • Operators: Emerald Oil (5), EOG (3), XTO (3), Marathon (2),  Hess (2), BR, OXY USA, Crescent Point, Mountain Divide
    Fields: Charbonneau (McKenzie), Parshall (Mountrail), Manitou (Mountrail), Siverston (McKenzie), Bailey (Dunn), Manning (Dunn), Haystack Butte (McKenzie), Reunion Bay (Mountrail), Little Muddy (Williams), West Ambrose (Divide)
  • Comments:
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The Real "Boomtown"

Yahoo!Finance is reporting these two families saved by the Bakken:
Mitzi Bestall and her husband Bill Murphy are realtors who made the move to North Dakota in 2010 thanks to a struggling housing market in Colorado.
“We only did eight homes that year, came back the next year as 'Bakken Realty' and we did approximately $10 million in sales that year,” Mitzi told Yahoo Finance when we visited Bakken Realty’s offices in Williston, North Dakota.
For the first year in their adopted hometown, Mitzi and Bill lived in an RV park. Mitzi was the only woman in the complex, and the one bathroom that everyone in the park shared was a port-o-potty.
“The first year, we made about $8,000 up here,” Bill says. “But it was a great education and it’s more than we would have made in Colorado.”
It's rewarding to read that story. You have no idea how many folks write me, telling me that the Bakken was a "once-in-a-lifetime" opportunity. 

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The Real Entrepreneurs

Mark Wald and his wife Maria formed Blaise Energy in 2008.

They became the first company in North America to generate electricity from recycled natural gas using generators like this one.

But there was still natural gas being flared.

So Mark began to experiment with transportation.

"There is a lot of discussion and it all makes sense between rail and pipeline, lets get all these resources out of state into the market.  We tried to focus on how do we use it right here?  How do we put it to use right here in North Dakota"

Using a carbon fiber tank, he found a way for his truck to run on Compressed Natural Gas.

Gas that otherwise would be flared into the atmosphere.

When running on CNG, this truck runs cleaner...
Blaise Energy corporate office is in Bismarck, North Dakota. Their website: http://www.blaiseenergy.com/company.html

California Energy

This is simply some housekeeping.

Updates

January 2, 2015: look west; long review; if there is a future for Bakken CBR to California

October 7, 2014:  only 1% of California's crude oil supply moves by rail; there are no crude oil pipelines running into the state; and, Alaskan supplies are dwindling.

At the end of the day, adult leadership will be needed. If not, California is in a world of hurt.

October 4, 2014: something to return to in 2018 --
Compounding the loss of SONGS is the impending closure of up to 5,068 megawatts of gas-fired plants in the local area that rely on once-through cooling using seawater. These plants must comply with water regulations that practically eliminate the use of seawater for cooling by 2017 to 2020.
Original Post
 
I originally posted this October 22, 2013:

RBN Energy: California natural gas demand in the state's post-nuclear era.
The June 2013 decision by Southern California Edison (SCE) to permanently shut down its San Onofre Nuclear Generation Station (SONGS)—the largest power generator in the region—got the attention of the natural gas industry, and for good reason.  Natural gas interests view gas-fired generation as the logical replacement for the now-gone 2,200 MW nuclear capacity, but many other forces are at work. In this two-part series we examine southern California’s electricity cunundrum, and how big a part natural gas is likely to play in keeping the lights and air conditioning on and the pool pumps pumping.
The two-unit, 2,200-MW SONGS facility for years was a linchpin in the region’s electric grid. A relatively low-cost, around-the-clock generator at a pivotal location, San Onofre provided critical voltage support—an electrical engineer’s way of saying it kept the grid on an even keel. Natural gas interests expect SONGS capacity to be replaced by gas fired generation. And gas will surely have a significant role in the electricity future of the Los Angeles Basin, San Diego, and California as a whole. But because of state policies and Federal rules, among other things, utilities and merchant power companies may well end up consuming less gas than they do now, and commercial and industrial firms may use more.