Saturday, September 8, 2018

ONEOK North Dakota Update -- September 8, 2018 -- Might ONEOK Have The Largest Natural Gas Processing Plant In North Dakota?

See this ONEOK post for background, back in February, 2018.

I can't recall if I posted this story, but it's starting to get some national attention. From The Williston Herald, March 2, 2018: suspended plant out of mothboalls -- ONEOK's Demicks Lake "large" gas processing plant is back on the table. Data points:
  • project suspended when oil prices collapsed -- that was back in 2015
  • since then, huge flaring problem in the Bakken
  • the "new" plant will be located in McKenzie County near Fort Berthold
  • this area has the highest amount of flaring in the state
    • as much as 30% of gas produced in Fort Berthold was flared in 2017; back to 20% now
  • statewide: 13 percent of production flared; 284 million cubic feet (50K boe) flared in December, 2017
  • the new plant raises total gas processing in the state to exceed that produced but due to regional differences, flaring won't end statewide
  • footprint: 160 acres; 13 miles northeast of Watford City
  • 400 million cubic feet/day; two separate cryogenic turboexpanders units ("trains")
  • original (2015) cost estimate: $321 million; now $400 million
  • in service by 4Q19
North Dakota natural gas processing plants are tracked here.

But note this: the link above still shows the Demicks Lake plant with a capacity of 200 mcfpd, whereas the linked story above says the plant is likely to go to 400 mcfpd.

Oasis has bragging rights with the largest natural gas processing plant (Wild Basin) at 345 mcfpd, but ONEOK could claim the title if it goes to 400 mcfpd.

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Meanwhile, Kinder Morgan ...

This story was posted earlier, but for those who missed it the first time, from August 8, 2018, The Bismarck Tribune:
  • to expand the Roosevelt Gas Plant in McKenzie County by 150 million cubic feet per day
  • increasing the capacity to process up to 200 million cubic feet per day
Besides the obvious -- more natural gas processing capacity -- but more importantly, it needs drillers can increased oil production.

For newbies, crude oil production in North Dakota is constrained by:
  • the price of oil; demand for light oil
  • takeaway capacity (not much of an issue now that the DAPL is flowing)
  • flaring (a big issue)
  • workforce: competition with the Permian
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Highway Change

When biking along a busy highway, I generally won't stop to pick up a single penny, but occasionally I hit the "mother lode."

The other day, on the frontage road along the highway this treasure trove.


The ratio was very unusual. Generally I don't find nickels. The ratio is usually about 25 pennies to every two dimes and to every one quarter. But seldom any nickels. But look at all those nickels on the left. No quarters.

Down the road a bit further, same day, same ride:


The mix was a bit more typical, although the two nickels were still surprising. Four quarters (on the right), two dimes, only five pennies; an unusual mix.

Great Scott! An Error On A Permit? -- September 8, 2018

It's unusual to find an error on a permit, so it's possible I'm misreading something, either on the permit or the NDIC map.  But this is what I'm seeing:

First, a screenshot of the permit:



Now, a screenshot of the map:


The wells:
  • 17437, 583, Lime Rock Resources, Scott 34-7H, Murphy Creek, t8/09; cum 183K 7/18; offline while neighboring well being drilled / fracked?
  • 35029, drl, Lime Rock Resources, Scott 3-7-6H-143-95, Murphy Creek, 
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Banking

Saturday, Labor Day weekend, I had to stop by the bank. Sophia was with me.

I knew the line would be long, so I made sure Sophia brought her own work along to keep her busy.

Wow, she's good. The wait was not that long, but she immediately got out her dry-erase sharpies and went to work.


Rig On Site Northeast Of The Bakken -- Target: The Madison -- September 8, 2018

The wells:
  • 35102, conf, Resonance Exploration, Resonance Lodoen 4-6H North, Sergis oil field; 
  • 35174, conf, Resonance Exploration, Resonance Lodoen 4-6H South, Sergis oil field;
By the way, note this well, about a mile to the northwest:

  • 10352, Resonance Exploration, Resonance Lodoen 1
  • Madison: 1/5/1984: dry; TD = 3,446 feet, a wildcat;
  • Madison: loc, 10/2/2017, drilling unit of 80 acres; permit dated 10/1/2017; "a planned vertical Midale re-entry completion," 

The graphic:


Permit Renewed For Another Year -- Now, Rig-On-Site; Two Three Forks/Pronghorn Wells On The Fringe -- September 8, 2018

Fortunate to have captured these two wells before they go confidential:
  • 28009, rig on site / drl, NP Resources, Roosevelt 23-29-1PH, Roosevelt, will cross a Whiting Birdbear well; 1280-acre spacing, Three Forks B1 (Pronghorn sands)
  • 28010, permit renewed / loc, NP Resources, Roosevelt 23-29-2PH,
In the southwest corner of the Bakken, both are Three Forks first bench well (Pronghorn):


Very few wells in the immediate area; one would almost think of these as wildcats. They are not wildcats because, technically, we know the Pronghorn/Three Forks is here.
  • 9534, sited 900 feet to the northeast of the two wells noted above; Whiting, COGC/Canterra 29-142-102 BN 1H, Roosevelt;
  • Three Forks, 52, t2/83; cum 2K -- PNA in 1984;
  • Birdbear, 500, t8/05; cum 178K 7/18; still producing about 500 bbls/month;
  • 16225, short lateral, 131, Foundation Energy, Kukowski 44-28H, Roosevelt, t1/07; cum 80K 7/18; a Birdbear (Nisku) well;
  • 16188, an interesting dual lateral; one lateral running to the northeast, ending section 20-142-102; the other lateral running to the southwest, ending in section 30-142-102; 242, Foundation Energy, Federal 41-30, Roosevelt, t6/07; cum 84K 7/18; a Birdbear (Nisku) well; 

Another EOG Well Hits The One-Million-Bbl Threshold On July 4, 2018 -- Keeping North Dakota Great!

Wow, I just posted another EOG well that just hit the one-million-bbl mark. Now, another one. Wow.

The well:
  • 25374, 1,414, EOG, Austin 39-3204H, Parshall, 60 stages, 14.6 million lbs, 1920 acres, t9/13; cum 1,004,672 bbls/ 7/18; according to FracFocus, fracked from 7/6/2013 to 8/8/2013
Data points:
  • 1,004,672 bbls at the end of July, 2018
    • produced 5,438 bbls in July = 175 bbls/day
    • 1,004,672-5,438 = 999,234 bbls at the end of June
    • 1,000,000 - 999,234 = 766 bbls / 175 bopd = 4 days
  • this well went over the one-million-bbl mark on July 4, 2018
  • it was drilled back in summer of 2013
  • a five-year well goes over the one-million-bbl mark on July 4, 2018 -- and no headline in the Williston Herald!?? -- keeping North Dakota great!
  • oh, by the way -- on a pump? NOPE! This well is still flowing on its own
  • according to an EOG sundry form, this well was fracked with 60 stages, 14.6 million lbs, tested August 7, 2013; took 16 days to drill; TD = 22,349 feet; vertical depth = 9,628 feet;
  • going down two miles deep, the geologist noted that the casing point was 1.28 feet = 15.36 inches BELOW the top of the middle Bakken dolomite; I can't even measure the size of my desk that accurately;
There is only one other actively producing well in this section:
  • 17122, 581, EOG, Austin 23-32H, Parshall, t8/09; cum 657K 7/18; 
Other permitted locations in this section, note the chronologic numbers:
  • 26516, loc, EOG, Austin 40-3204H, Parshall,
  • 26514, loc, EOG, Austin 41-3204H, Parshall,
  • 32261, loc, EOG, Austin 97-3204H, Parshall,
  • 32262, loc, EOG, Austin 98-3204H, Parshall,
  • 32263, loc, EOG, Austin 99-3204H, Parshall,