A Disappointing EOG Well in the Parshall Oil Field -- Bakken, North Dakota, USA

In today's daily activity report, EOG reported a very disappointing well (based on IP):

• 19391, 42, EOG, Austin 117-08H, Parshall oil field, 8-154-90, Three Forks; t12/10; cum 20K 6/12;

Having said that, EOG has the well up 2,500 bbls/day. It was a 15-stage frac (short lateral) with water, sand, gel, but no mention of acid.

Compare to:

• 17346, 1,835, EOG, Austin 13-08H, Parshall oil field, 8-154-90, upper Bakken, tested 10/08; cumulative 380K, still producing at 6,000 bbls/day; I was unable to determine number of frac stages; report mentions only sand and water used in the frac; t10/08; cum 467K 6/12;

In that same section, EOG has another well, confidential:

• 19392, PNC, EOG, Austin 103-08H, Parshall oil field

Note the nomenclature of these three wells. Months ago folks were speculating on what the naming of EOG wells signified; it is becoming clearer.

Seven (7) New Permits -- Bakken, North Dakota, USA

Operators: EOG (4), Zenergy (2), and BTA.

Fields: Thompson Lake, Stockyard Creek, Banks, and Siverston.

The four EOG wells will be on one pad, two horizontals going north, two going south -- may look a lot like an Eco-Pad.

For such a small field, Stockyard Creek oil field certainly gets a lot of attention; this time its BTA.

Ten wells came off the confidential list, to be reported elsewhere (one was a salt water disposal well). One of the wells coming off the confidential list was Fidelity's Kostelecky well in Stark County. This is where Whiting is very, very active in the Three Forks formation. The Kostelecky was a very respectful well, especially considering it's a Fidelity; it had an IP of 595.

On the other hand, a Three Forks well in its very prolific Parshall oil field, EOG's Austin 117-08H, was very disappointing (based on its IP); it had an IP of 42. This well was drilled just feet away from another well in that same section, a middle Bakken formation well that had an IP of over 1,800.

The following permits were canceled:

• 16892, Helis, Jones 16-15H 
• 17546, Slawson, Probe 1-19-30H 
• 17548, Slawson, Menace 1-17H 
• 17588, Slawson, Scout 1-18H 
• 17860, Lario, Johnson 1-26H 
• 19998, Tracker, Regeth 22-1H 
• 20385, Samson, Pelican 26-35-162-96H

Almost three pages of wells changing operators. There were a handful of PDC Corp wells being acquired by Cornerstone Natural Resources. There were about 75 Tracker Resource Development II, LLC, wells, that were acquired by Hess, including some very nice producers. By the way, we now know that TRZ acquisition by Hess referred to Tracker Resource Development II, LLC.

Frac Spreads in the Williston Basin -- Bakken, North Dakota, USA

Back on November 16, 2010, I had a post on the companies fracking in the Williston Basin.

Someone sent in a comment asking how many frac spreads Schlumberger and Sanjel have in the Williston Basin. In company presentations, I have seen the phrase "frack teams" used, and I assume this is the same thing.

For example, some operators say they have two or three dedicated frac teams, this question is: how many frac teams or frac spreads does Schlumberger, Halliburton, and Sanjel have in the Williston Basin, and are their plans to increase that number?

Posting Later Tonight

Sorry about the delay in any significant posts today. I am traveling and posting is more difficult. I might be able to post around midnight EST tonight.

Lots of stuff to explore in the sidebar at the right.

Only a few wells came off the confidential list today; nothing remarkable. Will post them later.

What's Happening Up North? Drop in Rigs and Delay in Keystone XL -- Connecting the Dots

Update

Someone noted that the drop in rigs is a seasonal phenomenon. That appears to be the case. I was wrong below with regard to the impact of the Keystone XL delay. The decrease in Canadian rigs is apparently all due to seasonal issues (muddy roads due to spring thaws that limit movement of heavy equipment). I appreciate the feedback.

Original Post

Last week it was reported that the number of rigs dropped a third -- a third -- in Canada. Today it is being reported that the rig count continues to drop: 94 rigs less this week; now down to 191 in Canada. 94/285 --> 33 percent. So, two weeks in a row, the number of rigs in Canada has dropped a third each week.

To put this in perspective, think what this would do to North Dakota if there was a similar cut. The drop in rigs is across the entire country of Canada, so perhaps the comparison is unfair.

The question is why? What's the reason for the drop? My hunch is that the delay in TransCanada's Keystone XL is part of the reason.

In a separate article, same source (PennEnergy) it is being reported that President Obama is putting continued pressure on the TransCanada Keystone XL.

U.S. President Barack Obama on Wednesday said concerns in the United States about the potentially "destructive" nature of the Canadian oilsands need to be answered before his administration decides whether to approve the construction of Calgary-based TransCanada's controversial Keystone XL pipeline.

Like all of the infrastructure in the United States, the oil pipeline system is aging. A new pipeline such as the Keystone would incorporate newer technology and would take pressure off other aging systems. The delay (or outright cancellation) of the Keystone XL is not about safety. It's geo-political, and there's someone behind the scenes, in addition to the environmentalists, trying to put the kabosh on this project.

I assume there are no tears of sadness over at Enbridge.

My hunch: TransCanada will make a public announcement killing the Keystone XL and then quietly start building new pipeline spurs from Cushing to the Gulf.