Case Study -- In Real Time -- BEXP -- West Of Williston -- Bakken, North Dakota, USA

Start with the discussion here.

Two BEXP three-well pads, with a rig-on-site in the middle well for both of the following configurations. In Todd oil field (Williston).

Here's the first:

• 21005, 2,436, Statoil/BEXP, Borsheim Trust 33-28 1H, section 33-155-101, t3/12; cum 239K 5/17;
• 21006, 3,001, Statoil/BEXP, Orville 4-9 2H, section 33-155-101, t3/12; cum 274K 5/17;
• 21007, 2,788, Statoil/BEXP, Orville 4-9 1H, section 33-155-101, t3/12; cum 232K 5/17;

These three wells sit on one pad, or are very, very close to each other. I will have to take a drive out there sometime this month.

Of the three wells, two will go south (ala the Olson wells -- 19085 and 19086) and one will run north. Both will be long laterals.

And what makes this really cool, BEXP will do the same thing again, 0.36 miles to the southeast in section 3-154-101:

• 20997, 2,823, Charles 3-10 1H, section 33-155-101; t5/12; cum 238K 5/17;
• 20098, 2,315, Charles 3-10 2H, section 33-155-101, t3/12; cum 252K 5/17;
• 20099, 1,080, Cherrey 34-27 1H, section 33-155-101, t11/11; cum 340K 5/17;

Again, these three wells sit on one pad, or are very, very close to each other. I will have to take a drive out there sometime this month.

Of the three wells, two will go south (ala the Olson wells) and one will run north. Both will be long laterals.

Since I mentioned the Olson twins, here's an update:

NDIC File No: 19085 API No: 33-105-01857-00-00 County: WILLIAMS CTB No: 119085

Well Type: OG Well Status: A Status Date: 4/21/2011 Wellbore type: HORIZONTAL
Location: NENW 9-154-102
Lateral 1 Start Coordinates 102 S 131 W From Wellhead, End Coordinates 10105 S 573 W From Wellhead
Current Operator: BRIGHAM OIL & GAS, L.P.
Current Well Name: BRAD OLSON 9-16 3H
Spud Date(s): 8/16/2010
Completion Data
Pool: BAKKEN Perfs: 10993-20440 Comp: 4/21/2011 Status: F Date: 4/24/2011 Spacing: 2SEC
Cumulative Production Data
Pool: BAKKEN Cum Oil: 39154 Cum MCF Gas: 22707 Cum Water: 39709
Production Test Data
IP Test Date: 4/24/2011 Pool: BAKKEN IP Oil: 2172 IP MCF: 1218 IP Water: 5733

Cum 163K 8/14;

NDIC File No: 19086 API No: 33-105-01858-00-00 County: WILLIAMS CTB No: 119086

Well Type: OG Well Status: A Status Date: 11/1/2010 Wellbore type: HORIZONTAL
Location: NENW 9-154-102
Current Operator: BRIGHAM OIL & GAS, L.P.
Current Well Name: BRAD OLSON 9-16 2H
Spud Date(s): 7/13/2010
Completion Data
Pool: BAKKEN Perfs: 10830-20580 Comp: 11/1/2010 Status: F Date: 11/2/2010 Spacing: 2SEC
Cumulative Production Data
Pool: BAKKEN Cum Oil: 64723 Cum MCF Gas: 42895 Cum Water: 64793
Production Test Data
IP Test Date: 11/2/2010 Pool: BAKKEN IP Oil: 2472 IP MCF: 1470 IP Water: 3107

Cum 171K 8/14;

The two laterals start out within feet of each other, diverge, and end up less than 1,500 feet apart as long horizontals. Fracking effectiveness goes out 500 feet from a horizontal, so there is still 500 lateral distance between these two horizontals that is being missed. If these end up being great Bakken wells, BEXP will put a third Olson horizontal in the same formation between these two legs. There are  three horizontals in this spacing unit and the general consensus is that there will eventually be at least 7 horizontals in each "good" Bakken spacing unit. We're not even halfway there in an area with intense activity already.

For Investors Only: Sell BHI -- Seeking Alpha.com Contributor

The contributor to SeekingAlpha.com may be correct.

It is only a mat­ter of time before oil and gas stocks stop mov­ing with the price of oil and start reflect­ing their under­ly­ing economics.

When this hap­pens, Baker Hughes (BHI – “very dan­ger­ous” rat­ing) will be among the stocks that fall the hardest.

But I would have more "faith" in his analysis if he actually came out to North Dakota to see the new industrial sites BHI is building in Dickinson, Minot, and Williston.

As for me, I hope the oil and gas stocks stop moving with price of oil, and start moving based on "growth" parameters and not "value" parameters. But then, that's just me with a very, very long horizon.

Florida Has No State Income Tax, Will End Its Business Tax, and Has No Oil Industry

Rick Scott, governor of Florida, said they had a record summer, one year after the oil spill in the Gulf -- oh, by the way, no oil on Florida beaches.  He reminded folks that Florida created more jobs in the US than any other state, except for Texas. He reminded folks that Florida has no state income tax. And he will eliminate state business taxes in Florida.

Without doing the research, my hunch is that the North Dakota budget is in better shape than Florida's by a long shot and that the oil money is going to "overwhelm" even the politicians in Bismarck.

And yet, I don't see any broad-reaching tax-less initiatives in North Dakota. And yes, I know there has been some nibbling on the margins, but even in Williston, they will vote (again) to raise a sales tax / bond issue for city park improvement. Some developers are putting in their own water and sewer, relieving Williston of that cost in some areas. House appraisals in Williston are probably doubling over what they were four years ago, and I have not heard of any property tax relief like Proposition 13 in California, but again I could be wrong -- I have not followed tax policy in North Dakota, so a very superficial understanding. But I certainly haven't seen any headlines on tax reduction that would get one excited.

Don't Hold Your Breath

Link here. 

The Center for Liquefied Natural Gas (CLNG) has sent a letter to congressional energy leaders urging them to support the congressionally-established regulatory process for considering LNG export applications.

"DOE has the tools in place to manage the flow of natural gas supplies in and out of the U.S. and has made it clear that they will address concerns regarding domestic needs without harming the economy," said Bill Cooper, president of the Center for Liquefied Natural Gas.

"Unless DOE finds that an export application is not consistent with the public interest, then the burden is on those opposed to LNG exports to provide evidence beyond mere conjecture and innuendo."

In the letter, Cooper urges Congress not to allow opponents of LNG export applications to seek redress in order to prematurely circumvent the administrative permitting process. This process was established by Congress whereby the federal agency can gather evidence, hear public comments, hold hearings, and make a determination based upon the guidance provided to it by the statute.

Don't get your hopes up. The US won't be exporting LNG under this administration.

First Gas-To-Liquids Plant to Be Built in Louisiana -- Eventually A Bakken Story

Link here.

South African oil and gas company Sasol  has chosen southwest Louisiana as the location of its planned gas-to-liquids (GTL) facility. The first GTL plant in the United States, the Sasol facility would produce GTL transportation fuels and other products.


Unlike other clean fuel alternatives, GTL fuel can be used in existing vehicles and fuel delivery infrastructure without any modifications. 

I am reminded of the CRYO plants west of Williston.