Random Update Of An Enerplus Mandan/Hidatsa Pad -- September 4, 2015

There really are some incredible wells being reported.

One example: this Enerplus two-well Mandan / Hidatsa pad, section 32-150-94; as of July, 2015, both were still flowing unassisted (no pump), according to the scout ticket.  [Enerplus has another two-well pad just to the east of this pad, a TAT well and an Arikara well, #21538 and #21539.]

The Mandan well: note the number of stages and the amount of proppant. Also note that this is a Three Forks well. Remember what Lynn Helms said about the Three Forks many, many years ago. Also note that the well was off-line for much of the past six months, so this well produced almost 130,000 bbls in less five months:

• 21536, 1,348, Enerplus, Mandan 150-94-32C-29H TF, Spotted Horn, 40 stages, 10 million lbs, t2/15; cum 129K 7/15;

Production profile:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2015	21	16470	16439	8699	23058	19395	1609
BAKKEN	6-2015	10	9383	8953	6507	13742	12615	0
BAKKEN	5-2015	29	27076	27454	12853	39204	35866	0
BAKKEN	4-2015	29	28803	29145	220	43483	40040	0
BAKKEN	3-2015	20	25825	25154	220	40454	37467	0
BAKKEN	2-2015	16	21508	20946	220	34412	23685	7753

The Hidasa well:

• 21537, 1,522, Enerplus, Hidatsa 150-94-32C-29H, Spotted Horn, 40 stages, 10 million lbs, t1/15; cum 149K 7/15;

Production profile:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	7-2015	20	14257	13878	6068	19959	16653	1521
BAKKEN	6-2015	17	12840	13597	4902	17976	16254	139
BAKKEN	5-2015	31	30673	30660	11427	42942	38499	839
BAKKEN	4-2015	29	28329	28308	11762	45014	41620	0
BAKKEN	3-2015	31	39821	39733	18077	64043	59366	0
BAKKEN	2-2015	16	22649	21827	15363	36239	26388	6990

Week 35: August 30, 2015 -- September 5, 2015

Operations
US rig counts down sharply; Bakken holds steady
Zavanna gas lift
Top ten oil producing counties in the US; and here
BR's 22-well proposal for a 2560-acre standup unit in Pershing oil field 

Refining
New refinery in North Dakota?

Fracking
Federal fracking rules implementation delayed

Bakken economy
The Williston Wire: Menards in Williston, Jamestown to open September 9

Investing
WPX monetizing some of its midstream assets in the Bakken 

Miscellaneous
Peak oi? What peak oil?
New soybean processing plant to open in Grafton, ND 

First US Tar Sands About To Open -- September 4, 2015

This is interesting. The AP is reporting:

On a remote Utah ridge covered in sagebrush, pines and wild grasses, a Canadian company is about to embark on something never before done commercially in the United States: digging sticky, black, tar-soaked sand from the ground and extracting the petroleum: Book Cliffs of eastern Utah, about 165 miles from Salt Lake City.

The impending opening of the nation's first tar sands mine has become another front in the battle across the West between preservationists and the energy industry.

U.S. Oil Sands has invested nearly $100 million over the last decade to acquire rights to about 50 square miles, obtain permits and develop what it says is a brand-new, non-toxic method of separating out the oil with the use of an orange-peel extract similar to what's in citrus-scented household soaps and detergents.

Protesters have tried to thwart the mine's construction for two summers in a row and have gotten arrested for chaining themselves to equipment. They argue that the project is an eyesore and that it could contaminate nearby springs and ruin habitat for deer, beaver and bears.

The mine sits on a cleared swath of land enclosed by barbed wire, with modular buildings, bulldozers, large metal posts and rails and a massive metal cylinder with a cone-shaped bottom where the tar sand mixing will be done.

Opponents also worry the mine will spur more projects in this pristine area that attracts hikers, campers and hunters. A 45-mile, $86 million highway as smooth as an autobahn has been built out to the mine. And the state has given approval for three other tar sands operations in the same corner of Utah.  (About $2 million/mile.)

Instead of relying on the usual industrial-strength hydrocarbon solvent, U.S. Oil Sands says it will employ the biodegradable citrus extract that is in grease-cutting household products.

Much more at the link.

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World-Class Cities

The other day I got off on a tangent, world-class cities.  I've been in Tokyo so I can talk first-hand of that experience, and Tokyo is a world-class city. Tonight I happened to watch James Bond Skyfall again and saw Shanghai. Both in the movie and in the "extras" one can see exactly what I mean by a "world-class" city."

From The Williston Wire -- September 4, 2015

Keeping a stiff upper lip:

Drilling is down and hotel vacancies are up, but participants at a conference Wednesday said there are still reasons to be optimistic about Williston's economy. Peter Elzi, a consultant whose firm has done more than 70 market studies on Williston, said low oil prices will make 2015 and 2016 challenging years for the city. But the area has a lot of other economic activity, he said, such as a new airport in the works and construction of new schools and government buildings, along with pipeline and gas plant expansions. "There's still people coming here and there's still activity," said Elzi, a principal with THK Associates in Denver. "People forget the most valuable oil that an oil company owns is still in the ground. It's a bank for them. It's there when prices recover."

Planning economic development:

The city of Williston is ramping up efforts to bring more retail to town. Williston Economic Development and the Williston Convention and Visitor Bureau are partnering with a retail recruitment firm to identify shops and restaurants that best match local customers' needs. Buxton, a Texas-based firm, has helped more than 700 communities open over 35 million square feet of new retail space since 2002. The key to Buxton's success is its information gathering system. 

Finally:

The new Menards Mega Store will open for business on Wednesday in Williston. Trevor Fisk, Williston Menards General Manager says, "The big day is finally here! We appreciate all the support and patience from everyone in town and can't wait to open the doors on Wednesday.  Menards in Jamestown is also opening at the same time.

Moose Sightings:

Moose sightings in Watford City are soon to spike with plans to open a Smiling Moose Rocky Mountain Deli in October 2015 located at 1005 Main St. South. This will be the second Smiling Moose Deli in western North Dakota and the fourth for the state. A group of close, mountain loving friends opened the first Smiling Moose in Edwards, Colorado in 2003, and over the years the fast casual restaurant concept has steadily grown to 18 locations in seven states. 

Up-Scale Luxury Apartment Complex Has Broken Ground:

Williston Apartments, LLC has broken ground on a new upscale apartment community, The Retreat, which will offer residents upscale amenities and a convenient location.  They are pre-leasing now with move in dates set for early winter! This is in a convenient location across from the new Menards.

Friday Night Notes -- September 4, 2015

I admit to being inappropriately exuberant, but I just can't help but get excited when I see these stories. Oil & Gas Journal is reporting:

Formosa Petrochemical Corp., a member of Taiwan’s Formosa Group, is evaluating the possibility of building a $9.4-billion ethane cracking and petrochemical complex along on the west bank of the Mississippi River in St. James Parish, LA.

In addition to ethylene, the complex, which FPC would develop in two phases, would include downstream plants for production of polyethylene as well as customized outputs of low and high-density polyethylene, ethylene glycol, polypropylene, and other derivatives.

A $10 billion project seems to be something other than trivial.

Also in the news, the AP is reporting: Canadian energy and services company Emera says it will buy Teco Energy, an electric and gas utility that does business in Florida and New Mexico, for about $6.48 billion. They said Emera will continue Teco's efforts to sell its coal business and plans to complete that sale by the time its acquisition of Teco closes.

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Rig Count

Also note that on a day that Platts tweeeted that after 6 weeks of climbing, Baker Hughes' US rig counts down sharply even as oil prices recovered from 6-year lows, but that the number of rigs in North Dakota held steady.

Another tweet along that same line: Texas led states in rig count losses (-11) due to Eagle Ford (-4), Permian (-2) and  Granite Wash (-2). You will note that the Bakken was not mention. Hoo-ah! For EagleFord, its rig count of 93 is its lowest since BHI began tracking activity in major US basins in Feb 2011.

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Other News

Meanwhile, Platts is also tweeting that US July ethanol exports were up 19% on the month, and 30% on the year.

Meanwhile, in the Bakken, several years ago these wells would have made the headlines in North Dakota; today, these IPs are expected. All four producing wells that were reported as completed today, had huge IPS; one Enerplus well and three QEP wells.

From yesterday's WSJ: private equity firms are jumping back into oil and gas. 

Private-equity firms are doubling down on energy, despite heavy damage from their last adventure in the oil patch.

These firms’ stakes in a dozen publicly traded energy exploration-and-production companies have lost more than $18 billion in value since last summer, when oil prices began their slide from more than $100 a barrel.

Yet with U.S. crude prices down to about $46.75 a barrel at Thursday’s close, private-equity firms are looking for opportunities to spend the hundreds of billions of dollars they have amassed to make new energy investments. They are hoping the commodity-price crash will open up opportunities to pick up assets and entire companies on the cheap.

“This is a temporary situation, and investments that are made in this low-price environment are going to look pretty good two or three years out,” said Mark Papa, who joined energy-focused firm Riverstone Holdings LLC earlier this year after retiring as chief executive at EOG Resources Inc., one of the largest U.S. energy producers.

This is not rocket science. We are being set up for $200 oil.

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Simply For The Archives

Survival Mode

I'm posting this link simply for the archives.

Texas-based oil giant Carson Energy may have figured out a means to completely scoff at even the lowest of oil prices.

The industry can’t remove its gaze away from Carson. This week, the company released new analysis that shows rich Texas oil fields can be profitable at just $15 a barrel.

“Many investors feel you have to be getting over $60 per barrel for oil to be profitable, but that’s only on expensive shale plays,” Michael Johnson of Carson Energy stated in a press release. “Carson operates in rich Texas blanket sands where it’s possible to make money when prices are as low as just $15 a barrel.”

Investors are nervous at best with all the variables intruding on crude oil prices.

However, many oil industry experts say this is often the best time to invest in new exploration and development. Wells and production are then in place when prices go back up, that is if a company can hold out that long. Experienced energy investors refer to this situation as one ripe for “double dipping.” An investor can benefit from very cheap drilling costs, and then have oil in production just as energy prices spike again.

Such a payoff is inevitable. Demand, although sluggish, is increasing worldwide.

I've heard from one long-time oil worker: he hopes the slide in prices lasts long enough to weed out the weak players.