Sunday, June 2, 2013

Necessity Is The Mother Of "Invention" -- Small Town Of Arnegard, ND, Will Outsource Its Waste Disposal

The Bismarck Tribune is reporting:
This small city out on U.S. Highway 85, halfway between Watford City and Alexander, is about to go where no town in North Dakota has gone before.
It is set to become the first municipality in the state to send its raw sewage to a private company for treatment and disposal.
Under the agreement — tentatively approved at a special meeting Wednesday night — a company called Arnegard Holdings will build lifts and pipelines to transport the small town’s sewage wastewater to the company’s man camp a mile south of town. It will be mixed and treated with the 100-unit man camp waste and waste from other facilities.
Interesting, to say the least.  Something tells me this is a huge win-win for both parties. Good for them.

For newbies: Arnegard is a small town between two of the metropolitan centers in northern McKenzie County: Watford City and Alexander. Watford City may have the best little bank-restaurant in the United States, and Alexander may have the best Chicago hot dogs. 

Global Warming Hits Minnesota

Quick: name two states whose residents are most concerned about global warming! Or at least their legislatures.  California and Minnesota. They apparently have not gotten the memo that global warming ended 16 17 years ago.

Any evidence of the latter?

Let's see, June 2. Sort of a summer date, I suppose for most. And Fargo Forum is reporting:
It's June now, but residents in Minnesota's Northland area were waking up to sub-freezing temperatures.
A Duluth News Tribune report says the mercury dipped below 30 degrees in some areas Sunday morning. 
And so it goes. Even the Fargo Forum folks have noted it was June.

It's All About Sand -- EOG; Eagle Ford Completion Techniques Moving To The Bakken -- Filloon

Part I was published earlier:
EOG has moved this design to the Bakken. As a result, it is reporting triple digit rates of return on its new wells. EOG already has one very successful Parshall Field well. This well models in the top ten. This is more impressive given it was in a developed location and should produce 10% less than a single well. EOG is using between 1,500 and 2,400 pounds of sand per foot. This compares to just 300 pounds by current Bakken operators. It is important to note that it isn't just the initial production that is affected, but we are seeing the depletion curve flatten. This technique not only opens up more surface area of the source rock, it keeps these open. In part two, I will show how EOG is using this completion style to garner returns as good as in the Eagle Ford.
Part II, today:
In part one of this article, I compiled data on EOG's well design in the Eagle Ford. The reason was to show its outperformance with respect to the competition. I assert that EOG's results have just as much to do with well design as geology. The acreage in Gonzales County could be the best in the United States. The difference in results from one operator to the next does prove EOG is doing a better job drilling and completing. Its frac design is the most important. EOG now concentrates on stimulating the source rock close to the well bore, as opposed to long fractures. This is producing very strong IP rates while using a very tight choke. It has began using this in the Bakken with great success.
EOG's proclamation that its Bakken/Three Forks wells now have a comparable rate of return with the Eagle Ford further supports its completion technology as the reason for higher production/foot. Some say EOG has outperformed the competition for years, which would be true. 
The difference is its recent change in using more than twice the proppant. I also believe its acreage in northeast McKenzie County is better than the Parshall Field.
It helps that EOG has its own sand pits in Minnesota/Michigan/Wisconsin area. And, of course, Warren loves this just as much as EOG does.

For more on sand, click here.

Last year, thhe MDW noted that northeast McKenzie County was going to be huge. Not only could it be better/acre than the  Parshall, it will encompass a larger area.

Elsewhere an enquiring mind was asking where the sweet spots in the Bakken were. I don't think he/she was asking for a technical definition; this post should be a help: three sweet spots in the Bakken: the Parshall oil field; the Sanish oil field; and, northeast McKenzie County.

Wells Coming Off Confidential List Monday; KOG, CLR Each With A Nice Well; 9/16 Wells To DRL Status

Truax field has been updated

Monday, June 3, 2013
22526, drl, Statoil, Roger Sorenson 8-5 4TFH, Alger, no production data,
23494, drl, CLR, Angus Federal 5-9H, Elm Tree, no production data,
23827, 587, American Eagle, Christianson Brothers 15-33-164-101, Colgan, t3/13; cum 22K 4/13;
23836, 2,984, BR, Waterton 11-29TFH, producing, t4/13; cum 4K 4/13;
23955, drl, Hess, EN-D Cvancara S-154-93-0904H-3, Robinson Lake, no data
24406, 2,076, KOG, P. Thomas 153-98-5-3-2-8H, Truax, t4/13; cum 12K 4/13;
24410, drl, Hess, BB-Budahn a 150-95-0403H-5, Blue Buttes, no data,

Sunday, June 2, 2013
23243, drl, CLR, Addyson 3-23H, Brooklyn, 
23496, drl, CLR, Angus Federal 4-9H, Elm Tree, no data,
23610, drl, CLR, Akron 2-27AH, Banks, no data,
23835, 1,967, XTO, Lundin 44X-11D, Siverston, t5/12; cum --
23839, A, XTO, Leiseth 24X-22E, North Tobacco Garden, no data,
24250, WI, Enduro Operating, MRPSU 30-33, Mouse River Park, no data,
24473, 598, CLR, Angus 2-9H2, Elm Tree, t2/13; cum 54K 3/13;

Saturday, June 1, 2013
23888, drl, Statoil, Gyda 31-6 1H, Briar Creek, no data,
23954, drl, Hess, EN-D Cvancara S-154-93-0904H-2, Robinson Lake, no data,
24379, 335, MRO, Charging USA 42-35H, Wolf Bay, t2/13; cum 16K 413;

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

23827, see above, American Eagle, Christianson Brothers 15-33-164-101, Colgan,

DateOil RunsMCF Sold
4-201374580
3-2013104720
2-201320640
1-201314200

24406, see above, KOG, P. Thomas 153-98-5-3-2-8H, Truax,

DateOil RunsMCF Sold
4-20131157011355

23243, see below, CLR, Addyson 3-23H, Brooklyn, 

DateOil RunsMCF Sold
4-2013611710571

 24473, see above, CLR, Angus 2-9H2, Elm Tree,

DateOil RunsMCF Sold
4-20132338133749
3-20132581535748
2-20134627745

 24379, see above, MRO, Charging USA 42-35H, Wolf Bay,

DateOil RunsMCF Sold
4-201321420
3-201346610
2-201387110
1-20132910

June, 2013, Dockets: Marathon's Tyler Formation Locations, Slope County

Updates

January 28, 2014: update on a Williston Exploration Tyler well in southwest North Dakota.

January 10, 2014: MRO has a rig-on-site, wildcat, northeast Slope County, about ten miles east of Amidon:
  • 26335, conf/ros, MRO, Powell 31-27TFH, wildcat, NWNE 27-135-99,
October 23, 2013: a second Tyler well permit in same section, on same pad as #26223 below.
  • 26794, conf, MRO, Rundle Trust 21-29TH, wildcat, NWNW 29-136-99,
September 26, 2013: rig on site in section 29/32-136-99 (see below)
  • 26223, ros, MRO, Rundle Trust 11-29TH, wildcat, southwest corner of state, on edge of Rocky Ridge oil field; NWNW 29-136-99
Original Post

June 26, 2013, NDIC hearing dockets.
Case No. 20428: Application of Marathon Oil Co. for an order creating four 1280-acre
drilling units consisting of sections 3 and 10; sections 27 and 34; sections 30 and 31, T135N-R99W.; and sections 29 and 32, T136N-R99W.; Slope County, ND, and allowing a horizontal well to be drilled in the Tyler Formation in each such drilling, and such other relief as is appropriate.
In T135N-R99W: three 1280-spacing units -- 3/10; 27/34; and, 30/31.

In T136N-R99W: one 1280-acre spacing unit -- 29/32.



You can see that the new MRO 1280-acre standups are really an extension of the Rocky Ridge oil field which is a Tyler field with vertical wells. [Two of the new stand-ups are outlined; the other two are just to the south, at the bottom of the image.]

Vertical wells into the Tyler are typical "hit or miss."

Many Tyler vertical wells are very, very poor wells, but some are very, very, good. In section 2-136-100, there are two solid black circles with no line(s) running through them. These two wells are still active:
  • 4971, 422, Charger Resources, LLC, Howie 11X2, Rocky Ridge, t12/71, cum 780,771 bbls 7/13; and still producing 150 bbls/month (in a good month)
  • 6015, 70, Charger Resources, LLC, Howie 2, Rocky Ridge, t3/77; cum 323,851 bbls 7/13, and still producing 250 bbls/month (in a good month)
It will be interesting to see how horizontal Tyler wells will do compared to vertical wells. 

Williston Exploration is drilling a well in this same field, at the northwest end of the field:
  • 25347, 5, Williston Exploration, Rocky Ridge-Fritz 1, a vertical well, about 8K feet deep; Heath/Tyler; t2/14; cum 300 bbls 2/14; one stimulation stage, HCL, no proppants;
That's all interesting, but if one is reading the tea leaves, this is the most interesting bit of trivia. Near this Rocky Ridge-Fritz 1 well, they are also drilling a SWD well which is also on the confidential list. The arrow in the image points to the SWD (on confidential list). It's my impression after following the Bakken boom for the past several years, they don't drill SWD wells just anywhere; this to me suggests they think they will be doing a lot of drilling in this area.

Recent ND DMR presentation, undated, but 2012 or later. [a pdf file]