Twenty-One (21) Permits Renewed -- March 28, 2016; Possible Halo Effect On Neighboring Fracked Wells In Beaver Lodge

Active rigs:

	3/28/2016	03/28/2015	03/28/2014	03/28/2013	03/28/2012
Active Rigs	31	97	194	186	206

Wells coming off the confidential list Tuesday:

• 31477, SI/NC, Hess, BL-Davidson-156-96-3526H-8, Beaver Lodge, no production data; see below

No new permits.

Twenty-one (21) permits renewed:

• Lime Rock Resources (13), all in Dunn County
• Schneider (5) 
• Veverka (2)
• Stroh, Kenneth or Raphael (2)
• State (2)
• Kary (2)
• Oasis (5), five Domalakes permits, all in Burke County
• CLR (3), three Micahlucas permits, all in Dunn County

No producing wells completed.

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Halo Effect On Fracking Neighboring Wells

Updates

July 13, 2016: the neighboring wells have been fracked. See effects on two much older, neighboring wells. 

Original Post

Something to follow up on, a year or two from now:

The BL-Davidson wells six on a 6-well pad in Beaver Lodge oil field; they are all DUCs right now. It will be interesting to come back to look at other horizontals in the area (particularly #16804 and maybe #16803). The six DUCs will go south, paralleling those two wells. Most interesting is that the new BL-Davidson wells are sited at the toe-end of the existing horizontals, something we've talked about before. But don't hold your breath; it could be up to two years before we know anything.

In the graphic below, the index well is #16804, which runs south-to-north.

Quarterly Lease Sales Results -- February, 2016

Lease sales here (state site). I track them here.

Selected results from February 2, 2016, lease sales.

Billings County:

• mostly $1 to $5/acre; a few acres as high as $31

Bottineau County:

• $1 to $6

Bowman County:

• $1 to $4

Burke County:

• mostly in the $50/acre or lower, Paladin Resources did page $135/acre for one 40-acre bloc

Divide County:

• several blocs went for $110 to $130/acre; some blocks for $210/acre; one 80-acre bloc for $350/acre

Golden Valley:

• unremarkable

McHenry:

• three blocks, $2 and $4

McKenzie:

• four blocs for $2,100/acre (blocs ranged from 84 acres to 152 acres); look to be under the water

Slope:

• unremarkable

Stark:

• unremarkable

Williams:

• most remarkable county of the few sales
• one 20-acre bloc and one 80-acre bloc each went for $5,300/acre (Paladin Resources)

Update On DUCs From 1Q15 -- March 28, 2016

The Saudis opened the spigot in the last quarter of 2014.

We started seeing DUCs shortly after that.

I last updated the wells released from the confidential list in 1Q15 back on February 29, 2016. Of the approximately three dozen DUCs at that time, four of them were fracked.

I went through the list again today. One more DUC was fracked:

• 28431, 293, Zavanna, Tomahawk 10-3 2TFH, t11/15; cum 10K 1/16;

Of the earlier 1Q15 DUCs fracked they were mostly (all?) Zavanna wells.

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4Q14 DUCs

Reviewing the list of wells that came off the confidential list 4Q14 (the quarter that the Saudis opened the spigots) there are still about three (3) DUCs from 4Q14.


The following wells were DUCs but have been fracked since last reviewed:

• 28099, 174, Hess, EN-Dobrovolny A-155-94-2413H-7, Manitou, t1/16; cum --
• 26676, 630, Zavanna, Nelson 3-10 3TFH, Long Creek, t12/15; cum 29K after 48 days
• 26677, 695, Zavanna, Nelson 3-10 2TFH, Long Creek, t12/15; cum 34K after 47 days
• 27980, 462, Hess, BLSU E-406, Beaver Lodge, a Silurian well drilling unit, 9,760 acres; t5/15; cum 2K after about 40 days over 4 months; a vertical hole targeting H2S in the Interlake Formation (Silurian); a 180-foot core was also taken from the lower Stonewall Formation to the Red River Formation; 1-stage stimulation; 15% acid; no proppant; stimulated 6/20/2014; so it was drilled back in April, 2014; stimulated shortly thereafter, but not producing until a year later; spud April 12, 2014; drilling rig, May 26, 2014; cease drilling, June 16, 2014; TD, 13,000 feet; vertical; stratigraphic map of ND here; the pool is the Silurian pool; the bore went through the Interlake, the Stonewall, the Gunton member and the Stoughton member of the Stony Mtn formation, and landed in the Red River Formation which are in the Ordovician (below the Silurian) according to the stratigraphic map link. The target was the Interlake formation at 11,557 feet but core was taken all the way down to the Red River. This well will produce a fair amount of natural gas, I assume. If I recall, it was during this period that the Hess natural gas processing plant in Tioga was not at full capacity; maybe that was one reason why it was a year from spud to production. Just a thought.

New Restaurant Off To Fast Start In Williston, North Dakota -- March 28, 2016

Already rated #6 among best burger bars in / near Williston -- over at Yelp. Great location: up at the north end of The Million Dollar Way!

From The Williston Herald:

Quinn's Bar and Burgers is bringing back the old-school cool vibe with an exciting vintage transportation theme.

Outed by by the Facebook group 'New Williston Connections', their soft opening approximately two weeks ago saw scores of curious customers through. The owner and staff even reported a woman impersonating a Williston Herald food columnist, as though one existed.

"All of a sudden, the visitors were outside," said General Manager Donna Carig. "We just got slammed." Quinn's has yet to set a date for a grand opening, but they are functioning normally with regular business hours.

Many of the early customers also found out Quinn's is not a restaurant and anyone under 21 years of age is not allowed. It's a bar, and zoned as a bar, which serves food like hamburgers. But Quinn's is doing something a little different. Its menu doesn't consist of the usual frozen pizzas and deep-fried food. They serve large hamburgers made from locally produced Kota Meats.

By combining restaurant quality food with a bar atmosphere they have found that a diverse age group frequents Quinn's. "We do have a mixed crowd," Carig said. "We've got the Millennials, Generation X, and the middle-aged crowd."

When we were stationed in Turkey, one of the things I enjoyed was the restaurants staying open as long as folks were still coming in, and so it is with Quinn's:

Quinn's currently sports a custom cocktail list and is open from 11  a.m. to 11  p.m. on weeknights. On the weekend Quinn's stays open until midnight but, "The longer people stay, the longer we stay open," Esperum said.

March 28, 2016

Active rigs:

	3/28/2016	03/28/2015	03/28/2014	03/28/2013	03/28/2012
Active Rigs	32	97	194	186	206

RBN Energy: update on REX.

NDIC April dockets are posted. There is one case. The case will be heard on four successive days in each of four cities in North Dakota: Williston, Dickinson, Minot, and Bismarck. The case, number 24957, is on a motion of the Commission to consider adopting new rules and amendments to the "General Rules and Regulations for the Conservation of Crude Oil and Natural Gas" codified as Article 43-02 North Dakota Administrative Code.

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Wal-Mart, 1; Puerto Rico, 0

Court rules Puerto Rico tax on Walmart illegal. 

...the island's treasury secretary must immediately stop levying, collecting and enforcing the tax. He noted that Puerto Rico legislators had increased the tax by 325 percent in May 2015 during what he called a brisk approval process so they could capture revenues from Walmart. The 6.5 percent tax would have applied to every piece of inventory Walmart received from its stores even if it wasn't able to sell it, Fuste said.

He noted that if the tax were to remain in effect, it would generate more than $40 million in "unconstitutional taxes...to an insolvent government without any hope that the victimized taxpayers will be reimbursed in the foreseeable future. That is the very definition of an inadequate remedy," he wrote, adding that $10 million of that revenue would have been from Walmart alone.

The mistake Puerto Rico made was being too greedy. Walmart probably would have ignored a 0.65 percent take on inventory. LOL. Not.