For Investors: Mike Filloon on Mid-Caps -- KOG, Triangle, BEXP, DNR, WLL-- Bakken, North Dakota, USA

Update

It turns out this was Part I of a 3-part series. So, here for easy linking, the three parts:

• Part I
• Part II
• Part III

Original Post

Link here.

Another very good article for investors. From what I can tell, Mike Filloon has hit the high points from the recent conference calls.

There is more and more discussion regarding the high costs of these wells and how folks are trying to manage the costs. In the "old" days the wells cost $3 to $6 million. Today they can cost $8 to $9 million. Sounds like quite a jump. "Don" pointed out to me, that others seem to be forgetting,... drum roll ... in the "old days" they were drilling short laterals (one section); they now drill twice as long (long laterals, two sections) and well more than three or four times as many fracture stimulation stages.

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

Daily activity report, September 1, 2011 --

Operators: Continental Resources (2), MRO, Triangle USA, Slawson, BR, Petro Harvester

Fields: Wildrose, Reunion Bay, Upland, Pronghorn, Van Hook, Little Knife, Columbus

Other information. Among several reporting, these were two very nice wells:

• 19444, 3,106, Whiting, Hecker 21-18TFH, Stark County
• 19861, 2,693, BEXP, Scha 33-34 1H, Alger, Bakken, Mountrail County

Hess and Whiting: Opportunities for Investors -- SeekingAlpha -- Bakken, North Dakota, USA

Link here.

Two Bakken leaseholders have been knocked down by market and oil prices recently. However, their fundamentals have not changed. Both Whiting Petroleum Corp (WLL) and Hess Corp (HES) are set to deliver gains of 50%+ within a year. Hess missed on earnings, but some of that may be attributed to the loss of production from Libya. Recent developments there indicate that the rebels are very close to taking over the government. The most likely scenario now is that HES will soon get its properties and infrastructure back. I have no doubt the infrastructure will need repairs after a war. However, getting back a few percent of its production capacity should ultimately help Hess Corp. Plus it is light sweet crude near European refineries (effectively Brent crude).

Cudd Coming To the Bakken -- Bakken, North Dakota, USA

Updates

See comments below. Apparently Cudd has been in Williston for over a year, but not yet fracking.

I spoke with a man who was pretty high up in the food chain of one of the local operators; he mentioned he cannot keep up with all the companies coming into Williston. That made me feel much better.

Here are a couple of photos regarding Cudd in Williston:

The blue pipeline is water pipe for the new Western Area Water Supply (WAWS) project. This was a shovel-ready job. I believe it was approved by the North Dakota state legislature in the winter/spring of 2011, and was already being laid by the summer, 2011. 

Original Post

If you go over to my "Top Ten" lists on the sidebar at the right, and click on top ten fracking companies in the Bakken, you will note that "Cudd is not in North Dakota yet."

Tonight, I noticed a sign west of Williston (about a mile west of Williston) that said: Future Home of Cudd.

GMX Resources Announces A 21,151-Foot Horizontal Three Forks Well Ready For Completion; Plan: Sliding Sleeve, 41 Stages

Update

January 19, 2012: 

• 21002, 384, GMX Resources, Wock 21-2-1H, New Hradec, Bakken Pool, s7/11; t10/11; cum 14K 12/11; 15 stages, 2.8 million lbs; Three Forks Formation

November 29, 2011: See the Wock below. Was that a typo? There is no "Wock 21-1-1H" at this time in North Dakota; it is the Wock 21-2-1H" and still on the confidential list.

Original Post

Link here.

A big "thank you" to "anon 1" for alerting me to this.

More from their press release:

The Company has completed the drilling of its first Three Forks horizontal well. The Wock 21-1-1H (#21002, Wock 21-2-1H, according to NDIC) in Stark County, North Dakota reached total depth of 21,151’ with a horizontal lateral length of 10,281’, which included drilling a vertical pilot hole and performing additional testing. Oil shows were predominant in the vertical and horizontal lateral while drilling in the Three Forks formation.

The Halliburton Rapid Frac™ sliding sleeve system has been installed with stimulation expected the week of September 26th. The Wock 21-1-1H well is scheduled for a 41-stage completion with oil production expected by October 1, 2011. 

The Company expects to spud its second Three Forks horizontal well, the Frank 34-4-1H, in Stark County, North Dakota on or about September 1, 2011. Permits are pending for the next two Bakken/Three Fork wells: the Evoniuk 21-2-1H in Billings County, a Three Forks horizontal well that is expected to spud in October 2011; and the Akovenko 24-34-1H, in McKenzie County, North Dakota, the company’s first horizontal Bakken well that is scheduled to spud in November 2011.

The company has twelve additional permits in process for wells located in Billings, McKenzie and Stark counties in North Dakota.

Little company. Huge story.

*******************

For newbies, this might be the longest Three Forks horizontal well. EOG has drilled a 22,385-foot well, file # 19721, Liberty LR 19-23H.

• 19721, 1,063, EOG, Liberty LR 19-23H, Van Hook, Bakken, s10/10; t3/11; cum 129K 11/11, 31 stages, 5 million lbs

BEXP has talked of frack stages as high as 60 but I think 41 stages is about as many as I've seen.

There was a story awhile back on a record setting frack by Whiting and Baker Hughes:

[Note: Slawson was the first to accomplish 40-stage fracturing in the Bakken, but a different method.]

19866, 1,805, Whiting, Smith 14-29XH, Sanish, Middle Bakken; s1/11; t4/11; cum 75K 11/11 -- off-line about half the time since completed

Baker Hughes has successfully installed a 40-stage openhole completion system in the Williston Basin for Whiting Petroleum Corporation. This achievement marks the most number of stages ever performed in a single lateral frac sleeve / packer completion system. The Baker Hughes FracPoint™ EX-C multistage fracturing system was deployed in the Whiting Petroleum Smith 14 29XH horizontal well.