BEXP Setting New Records With Number of Frac Stages

BEXP is setting a new record with number of frac stages: BEXP successfully ran 38 swell packers in the Wright 4-33 #1H and anticipate completing the well with 38 frac stages, which would represent a new company record in the Williston Basin.

In addition, BEXP is experimenting with other techniques such as micro-seismic technology. 

In the press release linked above, BEXP also talked about going into Montana's Roosevelt County, which they call their Pale Rider prospect. Previously, I did not know the name of this prospect; I just called it "eastern Montana."  I don't follow activity in Montana (just too much to cover with North Dakota) but this will help keep folks abreast of what BEXP is doing in the big picture.

BEXP With Three New Wells

Again, I apologize: I am not posting very often because I am traveling.

I see BEXP has announced three new wells. As usual they had a very good 24-hour flowback.

• Ross-Alger 6-7 #1H, 3,070, Ross-Alger
• Owan 29-32 #1H, 2,302, Rough Rider
• Abe 30-31 #1H, 1847, Rough Rider

For those interested in a more detailed look at the three BEXP prospects in the North Dakota Bakken, click here.

Energy Independence

At this rate, "we're" never going to get to there.

The first US off-shore wind energy project has been in the works for over ten (10) years now.  Just when it appeared to be ready to begin building, just when it appeared all environmental impact statements had been filed, just when all permits had been issued, "we" now have another lawsuit from the .... environmentalists. Teddy Kennedy (RIP) would be proud.

Even in the far west, some have had it with transmission lines.  This story is about landowners in Montana against transmission lines going south to Utah. It would go against their "no-growth" policy.

The Bakken continues to be one great play while the rest of the US dithers.  Of course, the issue of the EPA and fracking is the 800-pound gorilla in our backyard.

A Policy Problem, Not An Energy Problem

More confirmation that we have a policy problem, not an energy problem.

This one "district" in Wyoming has about half the entire coal reserves in the US.

The Powder River Basin coal mining district in Wyoming is regarded as the most prolific coal mining model in the industry to date. Some 14 active coal mines extract more than 400 million tons annually, and two railroads deliver that coal to some 37 states.

The district is said to have a capacity upwards of 500 million tons annually, which would amount to half the United States coal supply.

News Summary, June 24, 2010

I will be posting a bit less often for the next few days. I am traveling for the next few days.

I see the market had another tough day but oil held its own. I haven't checked share prices of any of the energy companies, but for long term investors this could not be a better time to accumulate shares. It's possible (and likely) the market will go down some more, and it could drop significantly. But I am not a market timer. I mostly dollar cost average, but when the market is down, I try to find cash to accumulate more shares for the long term.

I see Anschutz was granted two new permits today; the wells will be in two different fields in Dunn County: Fayette oil field and Manning oil field. They will sit on the same pad; one long horizontal going north into Fayette and one long horizontal going south into Manning.

I also noted that the number of active rigs has dropped from a high of 130 (it was there for just one day) back to 122 today. Not sure what that's all about, except I assume it's just normal rotation of rigs. However, one has to keep in mind: a) backlog of fracking crews; b) shortage of manpower; and, c) significant drop in oil price from $80+ with indications that global economy isn't going to turn around any time soon.

I see the Federal government lost the first round with regard to the executive order to shut down new drilling in the gulf. In fact, the Federal government has lost several recent high visibility cases in front of the Supreme Court, including one favoring Enron today.

I see aviation folks are unhappy (on both sides of the issue) regarding wind power and interference with radar. This was a major concern with the Cape Wind project off the Massachusetts coast, also. It certainly appears wind power is not the panacea some make it out to be.

I reported yesterday (or was it the day before) about Hess building a oil loading railroad facility. I see a major North Dakota newspaper picked up on that story and is reporting it today. This is a big, big deal: $48 million project; 120,000 barrels a day on two 100-unit trains daily. Other news in that article:

North Dakota's pipeline, rail and refining capacity is about 400,000 barrels a day and more than double the volume two years ago, said Justin Kringstad, director of the North Dakota Pipeline Authority.

North Dakota surpassed Louisiana last year as the fourth-largest oil-producing U.S. state, with nearly 80 million barrels of oil. Hess was the fifth-biggest oil producer in North Dakota last year with about 6.6 million barrels, industry records show.

Hess announced in April that it also plans a $325 million expansion to its natural gas plant in Tioga. The company said it wants to increase capacity at the plant from 100 million cubic feet of natural gas daily to 250 million cubic feet.

And that's about it for now. But again, I apologize for few postings for the next few days. Thank goodness for the internet and particularly the Drudge Report. There are breaking stories on both the internet in general and the Drudge Report in particular that are very significant and not yet being reported by the major newspapers, such as the New York Times or the Los Angeles Times. We could have an interesting summer.