Dimond Field

"Spooner" elsewhere asks whether this docket will affect any wells already in these sections?

Thre are NO wells in these sections. There was a dry well drilled some time ago (many, many years ago) in section 24 but that is irrelevant.

This is the docket to which "Spooner" was referring:

Case No. 15649: Application of OXY USA Inc. for an order extending the  outline of theDimond Field to include Sections 1, 12, 13, 24, 25, 26, 35 and 36, T.160N.,R.90W., and Sections 6, 7, 18 and 24, T.160N., R. 91W., Burke County,ND; amending the applicable field orders for the Dimond-Bakken Pool to establish sixteen 1280-acre spacing units described as Sections 1 and 12;Sections 2 and 11; Sections 3 and 4; Sections 5 and 8; Sections 10 and 15; sections 13 and 24; Sections 14 and 23; Sections 20 and 29; Sections 21and 28; Sections 22 and 27; Sections 25 and 36; Sections 26 and 35,T.160N., R.90W.; and Sections 1 and 2; Sections 5 and 6; Sections 7 and 18; and Sections 24 and 25, T.160N., R.91W., and allow a horizontal well to be drilled on each such spacing unit; and such other relief as is appropriate.

It's possible #20743, still on the confidential list could be affected, in section 8-160-91, depending which way it is going, but my hunch it is headed southeast based on the pattern of the other wells; it's an unsual spot to place a horizontal.

• 20743, CONF, OXY USA, Erickson 160-91-8-D-1H, Dimond, Bakken

I guess this would be a "dimond in the Bakken." Smile.

  

 

 

 

 

 

 

Four Wells Drilling -- 2560-Acre Spacing -- Pershing Oil Field -- Bakken, North Dakota, USA

In light of my last post and "dilemma," here are four more wells to watch:

• 19933, 495, CLR, Bailey 2-24H, Pershing oil field, goes north, t1/12; cum 75K 3/14;
• 19934, 877, CLR, Bailey 3-24H, Pershing oil field, goes north; t7/11; cum 112K 3/14;
• 19935, 309, CLR, Wiley 2-25H, Pershing oil field, goes south; t12/11; cum 120K 3/14;
• 19936, 724, CLR, Wiley 3-25H, Pershing oil field, goes south; t12/11; cum 125K 3/14;

These four wells, all long horizontals, are on the same pad, each 50 feet from its neighbor.  Two go north, and two go south. Spacing is 2560-acre/four sections.

First Well With 2560-Acre Spacing -- Bakken, North Dakota, USA

Well, this is very, very interesting.

Folks have been opining, wondering, speculating, arguing, elsewhere, how anyone is going to be able to drill a well on 2560-acre spacing.

Well (no pun intended), I think we got ourselves our first example. (Note: I'm sure someone will tell me it's been done a hundred times before and that this is no big deal. But it's the first time I've seen it, and the first time I've blogged about it, so for me -- and, perhaps, me alone -- it's a big, big deal.) But I don't quite understand what I'm seeing. First, here's the well:

• 19666, 1,028, MRO, Elk Creek USA 33-12H, Lost Bridge, Bakken (note spacing: 4 sections). The well is located in Lost Bridge oil field, west of the reservations, about 20 miles NNW of Killdeer, as the crow flies.

But this is what still needs to follow. There are two wells on this pad (the other is 19667, and that long horizontal goes south. The 19666 long horizontal goes north).

Each horizontal, as noted, is a long horizontal: 19666 goes north into sections 12/1 - 148-96, while 19667 goes south into sections 13/24 - 148-96.

The GIS map server confirms that this is 2560-acre spacing. This suggests to me that whoever owns any mineral rights in any of these four sections will collect royalties from both horizontals.

But I think this answers the question: just because it's "2560-acre spacing," doesn't mean the operator has to push the horizontal four miles or more.

See third comment below for explanation why "2560-acre spacing" is chosen: it has to do with the "500-foot setback rule."

One can go to the GIS map server and locate other 2560-acre spacing units. I checked out #19712, CLR, Ivan 1-29H: it's a long horizontal, but the scout ticket says it's only 2-section spacing. This is the same for its sister well, #19586, He 1-20H (one 2560-acre spacing, but yet being reported as "2-section spacing."  I wonder if there is an error, an inconsistency, a change in spacing rules, or most likely, I'm misreading/misunderstanding something. It wouldn't be the first time.

(Same with #17770/#17742: two long horizontals drilling on 2560-acre spacing, and the scout ticket for both shows 2-section spacing.)

Other wells coming off confidential list today: 

• 19471, 1,412, Fidelity, Behr 16-21H, Stanley, Bakken,
• 20323, DRL, BR, Midnight Run 11-1MBH, Union Center, Bakken,

Note: one of three wells reporting today was not fracked/completed.

For once, it looks like Fidelity has a good well. Which reminds me: the MRO well above is another in a string of good wells being reported by MRO. I remember about a year ago, an "expert"told me that MRO doesn't report wells with IPs greater than 500 bbls, and seldom about 300 bbls. MRO must have gotten the memo.

Busy, Busy, Busy in the Oil Patch -- Williston -- Bakken, North Dakota, USA

This morning on my way into work -- work: exploring the Bakken -- I stopped at Tim Herman's out on the bypass for gas (as in gasoline, not natural gas). I left early to beat the morning rush. After 7:00 a.m. one cannot make a left turn at any intersection that does not have signal/traffic lights.

For folks unfamiliar with Williston: in the "old days" -- four years ago, before the current boom, I would have been the only one in the store at that moment, or maybe one of two, possibly three.

This morning, all pumps were occupied. When I was ready to fill up and pay, there were two lines of folks in the store, each line about six people long. I was the only one not in coveralls or similar oilfield garb.

It appeared the chaos was self-organizing. One line was mostly folks who were passengers with others and stocking up on snacks and drinks for the day. The othe line was for those folks who were paying for gasoline or diesel. By their speech, or by their comments, I could tell that most were from outside North Dakota. Many had accounts at Herman Oil; kept the line moving quickly and efficiently.

It is a beautiful day in Williston. We are under a freeze warning until 9:00 a.m. (now passed) and it was a very, very pleasant 30 degrees; at least that's what I heard the temperature was, according to news radio. Not exactly short-sleeve weather, but certainly no sweater or windbreaker is/was needed. I good long-sleeve heavy western shirt is more than enough, and probably too much once one begins manual labor. I expect it will be quite warm this afternoon under these absolutely clear blue skies.

Leaving Herman Oil, one can cross four lanes of divided highway (no traffic signals yet) or turn right and go about a mile down the road to make a less busy left turn, which I did. The city contracted to have traffic lights up at the Herman Oil intersection by September 2, 2011. Deadline passed; contractor couldn't get supplies, which appeared to be the metal poles because on Setember 2 (or thereabouts) the contractor was putting up temporary wooden utility poles (probably on loan from MDU) with traffic lights. Let's see, it's now September 14, and the lights have been up for about two weeks, and not yet working. I'll keep you posted.

Oh, by the way. How long did I have to stand in line? By North Dakota standards it was "an eternity." Probably three minutes. How long did it take to get to my destination? Five minutes. Had we not had the oil boom, probably four minutes. Me? I love the traffic. Those folks are happy to have work. It sure beats 12.1 percent unemmployment enjoyed by California and Nevada.

By the way, for folks new to Williston or Herman Oil: Herman Oil provides coffee free of charge for anyone who purchases gasoline. At least I was told that one day. I didn't see any sign advertising as such. I think coffee at McDonald's is higher than what I paid in California McDonald's: about 85 cents in Williston. A tall draft beer -- wow, I am really starting to digress -- is $1.00 between 4:00 p.m. and 6:00 p.m. every day at one of the busier sports bars in town. Then, up to $2.50 or so after that. Maybe more. I don't remember. And a full meal for $3.50 between 4:00 and 6:00 p.m.

North Dakota Has Little Faith in United States Economy In the Long Run

Link here (regional links break early and break often).

The state will invest its "oil money" in "money market instruments" in the Bank of North Dakota currently earning about 1 percent.

This speaks volumes about how much the state of North Dakota trusts the US economy going forward.

The lede:

The board's chairman, state Sen. Randy Christmann, R-Hazen, said he's reluctant to put much of the revenue into the stock market, even though similar funds in other energy-producing states have significant investments in stocks.

"I think stocks would be pretty limited," Christmann said. "Preserving that principal is the priority."

North Dakota voters last year approved a state constitutional amendment to create the new "Legacy Fund," which will get regular deposits equaling 30 percent of North Dakota's oil tax collections.

The first $34.3 million infusion was deposited in the state-owned Bank of North Dakota last week. It will earn less than 1 percent interest there.

The amendment bars the Legislature from spending any of the fund's principal or earnings until July 1, 2017.

Afterward, lawmakers may spend money from the fund only with two-thirds approval of the North Dakota House and Senate, and they are barred from spending more than 15 percent of its principal during any two-year period.

Very, very sad commentary. [2012 was an incredible year for investors.]

For another view, click here: this story has been picked up and reprinted numerous places.