Nine (9) New Permits -- Bakken, North Dakota, USA

Daily activity report, September 13, 2011 --

Operators: Samson Resources (2), MRO (2), XTO, Zenergy, Hess, BEXP, and Legacy

Fields: Dollar Joe, Rosebud, Fotthills, Black Slough, Reunion Bay and two wildcats.

Legacy and Zenergy each have one wildcat.

MRO has two permits for a 2-well pad.

A few good wells were reported today:

• 19666, 1,028, MRO, Elk Creek USA 33-12H, Dunn County
• 19693, 722, ERF, Danks 17-44H, McKenzie (Sanish)
• 19820, 843, Whiting, Dietz 21-17TFH, Stark

Comments:

• MRO continues its string of very good wells; a big difference from some months ago
• Whiting has a very nice TFH well in Stark

Ten (?) New Posts Late Last Night -- Probably Not Much Posting During the Day -- Bakken, North Dakota, USA

It's difficult to find time to post during the day right now; I'll do the best I can.

However, I did post about ten new posts last night, and updated older posts.

I'm watching the daily active rigs: we're at the all-time high of 201, and a) the weather is great; and, b) the 3-day weekend is behind us.

I also wouldn't be surprised to see a nice daily activity report out of NDIC yesterday. A lot of new permits yesterday were reported, but no new wells.

Someone asked why they would be laying track for crude-by-rail oil loading facilities an an oval/circle like they are doing just outside of Trenton. Last night I drove by both that facility and the one at Dore. The Dore facility is a linear layout and the length of the train was huge, and, of course, blocking a lot of railraod crossings used by local farmers. One more reason for the oval layouts.

By the way, did you all note this line in the most recent "Director's Cut"?

The idle well count dropped significantly to 816 wells in July, but normal is 450, indicating a continuing backlog of over 350 wells waiting to be fracked. 

He also mentioned that with pipeline, truck, and rail, takeaway capacity easily meets production.

New Director's Cut -- September 12, 2011 -- Bakken, North Dakota, USA

Link here.

Production hits all-time high in North Dakota:

• Jul, 2011, oil: 423,550 bopd (all time high)
• Jun, 2011, oil: 384,809
• July producing wells: 5,756 (all-time high)
• June producing wells: 5,558

Permitting

• July, 2011: 136 (all time high: 245, 2 Nov 10)
• June, 2011: 138

Pricing

• July, 2011: sweet crude, $103.91
• June, 2011: sweet crude, $94.69
• Back of envelope calculations: July, 423,550 x 90.60 = $38.373 million; June 384,809 x 91.69 =$35.283 million.

Director's comments:

The idle well count dropped significantly to 816 wells in July, but normal is 450, indicating a continuing backlog of over 350 wells waiting to be fracked. Crude takeaway capacity is more than adequate. The number of wells drilling on federal surface in the Dakota Prairie Grasslands is down to 4. For the first time that I can recall, the director did not mention the EPA and fracking guidelines/regulations.

Rigs

• 20,000-foot capable rigs: over 90% utilization rates
• 7,000 or less-capable rigs: less than 50% utilization rates

For the Truckers -- and For Those Who Pull Over to the Side of the Road to Let Them Pass

Looking At the World Through a Windshield, Bill Kirchen

White Line Fever, Merle Haggard

Williston City Commission Meets Tomorrow - September 13

Watch for a request for another hotel.

Does anyone have any firm update regarding that huge plot of land that is being developed just north of Mercy Hospital, north of where they are building the new Hampton Inn and Suites? I can tell you what the city is being told but it sounds vague. I'm curious what Willistonites are hearing before I print what little I know. It's zone for commercial property.