Finally, An Impressive Daily Activity Report -- July 9, 2010

Finally, NDIC releases an impressive daily activity report (July 9, 2010). With all the activity in the Bakken, I have been perplexed by the relatively small number of wells being reported by the NDIC on a daily basis, but this report is a start.

In addition to wells being released from confidential status, there are eleven (11) new permits. First glance doesn't suggest anything novel about these eleven permits, but it's a jump in activity. Generally I see about 4 - 7 new permits/day.

Update on GeoResources and the Bakken

This is another very interesting story on the Bakken and GeoResources.

EIA Hikes Production Loss for the Gulf Spill

This is just the production loss from the spill itself. It does not address all the first, second, and third derivatives that will follow from this spill.

Highlights of the July, 2010, Whiting Presentation, Part I

I mentioned earlier that I would eventually get back to the new Whiting presentation. Again, Whiting "knocks it out of the park" with an informative presentation. Fifty-eight slides with great information including several FAQ slides. For long term investors who have never read the Whiting FAQs, I strongly recommend doing so. Of course, newbies will definitely want to read those slides.

Slide 23/58 (24/59):

Here are the results of some selected wells in the Sanish that WLL has working interests in, either as the operator or as a non-operator:

Anderson 11-7TFS: 1,262
Ogden 11-3TFH: 1,479
Maki 11-27H: 4,761
Hansen 12-20H, infill: 4,144
Foreman 11-4TFH: 1,447
Sanish Bay 42-12H: 2,638
Curren 11-14H: 3,311
Olson 11-14TFH: 1,640

Each one of these wells is a long lateral; all of them are in different sections and eventually all sections in the Sanish will have four, five, or even possibly six horizontal legs running through them.

That "infill" well is very, very interesting; it will be just as interesting to watch for results of other "infill" wells. 

And just for fun:

The Behr 11-34H was completed in June, 2008. Cumulative oil production from that one well as of June, 2010, exactly two years, is 578,000 barrles. At $50/bbl, that is $29 million. Wells cost about $5 million in the Sanish, maybe $6 million. This well will produce for many more years, and has probably stabilized at current production for awhile (with gradual depletion). The Behr well had a 24-hour flow back rate of 3,245 barrels.

Not all wells will be this good (some will be better) but it doesn't take many, and the $50/bbl is a conservative wellhead price going forward.

For Some, The Niobrara is the New Bakken

Interest in the Niobrara is pretty much outside of North Dakota so I won't be posting often about the Niobrara, but since some of the Bakken companies are also in the Niobrara, it might be of interest to some.

This is an update on the Niobrara in Colorado (US).