Saturday, June 4, 2011

The Best Post of the Weekend or Why I Remain So Excited About the Bakken -- North Dakota, USA

Yesterday, Friday, June 3, 2011, I took my dad on a road trip east of Williston to visit New Town, the Four Bears Bridge over the Missouri River, and a bit of the Sanish oil field.

My dad feels that the Four Bears Bridge is one of the most beautiful bridges he has ever seen, and I have to agree. It is truly magnificent. Perhaps later a stand-alone posting on the Four Bears Bridge, but for now, a look at one of the wells we saw on our trip. This is why I remain so excited about the Bakken.

Just north of Sanish, or just north of the Four Bears Bridge, we passed a well that appeared to be relatively new. The pad was still huge and most likely the fracking equipment had just been trucked to the next job. There were ten tanks on the pad and it appeared to be a good well.

When you look at the photo, see if you can tell what excited me most about this well.



This is what got me most excited about this well: notice the permit number, 17935. That is a very, very old permit number. It turns out that permit was issued December 30, 2008. It was spud February 6, 2010, and wasn't completed and tested until April 24, 2010. This is the Curren 11-14H well and is a long horizontal.
#17935 - WHITING OIL AND GAS CORPORATION, CURREN 11-14H, NWNW 14-153N-93W, MOUNTRAIL CO., 500' FNL and 320' FWL, DEVELOPMENT, SANISH, 20331', 9-5/8 " - 2000', 2073' Ground, API #33-061-00969, (Approved: 12/29/2008).
And just how good was this well? The IP was an astounding 2,863 bbls of oil and 2,690 thousand cubic feet of natural gas (approximately another 500 bbls of equivalent oil) and by end of April, 2011, had produced a total of 112,616 bbls of oil. In April, 2011, it produced 6,104 bbls of oil over 30 days.

At $75/bbl, this well has paid for itself at the wellhead, --> $8.4 million.

The backlog in drilling in the Bakken is incredible. Also, take a look at the Sanish oil field and the Parshall oil on the NDIC GIS map server to see how densely worked the Sanish is compared to the Parshall. When I first started blogging about the Bakken, it was the huge EOG wells in the Parshall that caught my attention as well as the huge IPs that BEXP was reporting. It appears that Whiting has cracked the code on completing Bakken wells and/or has found some extremely good locations (probably both).

According to the file report for this well, the tank battery seen in the photograph will temporarily store commingled oil from three wells in section 14. All three wells are long horizontals, almost lying on a west-east line, beginning section 14 and ending in section 13:
  • 17935, 2,863, Curren 11-14H, Sanish, t24/10; cum 164K 6/12; 25-stage frac;
  • 19040, 1,695, Curren 12-14H, Sanish, t12/10; cum 100K 6/12;
  • 18536, 1,441, Olson 11-14TFH, Sanish, t6/10; cum 129K 6/12;
For newbies, I consider 100,000 bbls of total oil produced as an important milestone. All Bakken wells should get to 100,000 bbls within three years (yes, some won't); great wells will get there within 18 months, and there are a few that will get there within six months. Obviously, this particular well is a very, very good well.

Something else you might note on the second photograph is how beautiful North Dakota landscape is this year. So much rain has resulted in the countryside looking a bit like northern England (Yorkshire) or perhaps even some parts of Ireland.

The roads were not nearly as bad as I had been led to believe. One must be very, very alert when driving on paved state and county roads in this area. Some potholes are huge and driving the speed limit without watching for road hazards is extremely dangerous. The state or county does a good job placing warning flags where the road is bad, and if you follow traffic at a reasonable distance you can be forewarned how bad the road might be by watching the traffic ahead of you a) take evasive action; or, b) go airborne after hitting a pothole.

One of the nice things about digital photographs, you can click on the photo, it will open up in a new window and you can zoom in for better detail. None of my photographs are copyrighted.

Friday, June 3, 2011

Fracking Regulations: Texas Railroad Commission Looking at Fast Tracking Reporting Requirements

Link here.
Texas Railroad Commissioner (TRC) David Porter said would push the Railroad Commission (RRC) to complete the entire rule-making process requiring disclosure of chemicals used in hydraulic fracturing a year ahead of the deadline set in recent legislation.

The Texas Legislature on May 31 sent a bill to Governor Rick Perry on requiring the RRC to write disclosure rules for hazardous chemicals by July 1, 2012. The bill requires the RRC to complete rule-making for all other chemicals used in the process by July 1, 2013.
The Texas Railroad Commission (TRRC) regulates the state's oil and gas industry. The TRRC is similar to North Dakota's Industrial Commission (NDIC).

Based on past events, my hunch is that the rest of the states will follow the TRRC lead, and in fact will probably greatly influence the EPA on this subject.

Seeking Alpha: Three Bakken Stocks Highly Recommended -- For Investors Only

Link here.

Companies recommended: BEXP, OAS, and KOG. I agree 100 percent.

Update on Today's Unemployment Report -- May, 2011, Unemployment Report

I just updated my original post regarding today's unemployment report. The report is worse than originally reported. Link here.

This is what the LA Times had to say about the jobs report. Remember, the LA Times has traditionally supported the president. 

Five (5) New Permits -- More Evidence of Fracking Backlog -- Bakken, North Dakota, USA

Daily activity report, June 3, 2011 --

Drillers: Enerplus (2), CLR, Zenergy, and BEXP

Fields: Mandaree, Todd, Rosebud, and a wildcat.

The CLR permit is for a wildcat in Williams County.

It appears the two ERF wells will be on the same pad; need to confirm.

Four wells were released from confidential status. Of the four, three reported total depth only, suggesting a delay in fracking. The fourth well was shut in:
  • 19540, SI, Murex, Vanessa Abigail 33-28H, Williams
It was interesting to note that Oasis requested and was approved to place eight wells on confidential list today. All are in Williams County, except for two as designated:
  • 19418, Baffin 5601 12-18H, Williams
  • 19427, Montague 5501 13-3H, Williams
  • 19611, Hendricks 5602 42-36H, Williams
  • 19628, Paradisae 5892 11-30H, Mountrail
  • 19832, Traill 5502 31-4H, Williams
  • 19844, Hysted 5200 44-19H, McKenzie
  • 19952, Hensen 5501 4207H, Williams
  • 20018, Wales 5602 42-33H, Williams