The Million Dollar Way (The Bakken Oil Blog)

Thursday, May 23, 2019

GEOI

For the archives. GEOI is no longer an operator in the Bakken.

Acquired by Halcon, 2Q12;
SeekingAlpha, January 27, 2012: 46,000 acres; takeover candidate?
Possibly sold some Bakken acreage: in July 6, 2011, operations update, GEOI reports 25,000 net acres in Williams County, North Dakota; and, 10,000 net acres in Montana = 35,000 net acres; compare with numbers below
Through its wholly-owned subsidiary, G3 Operating, LLC
45,000 net acres (2011, SeekingAlpha)(46,000 according to Filloon, June, 2011)
51,205 net acres (2009 data)
32,500 net operated acres; 12,500 net non-operated acres: total -- 45,000 acres (2011 corporate)
Mostly Bakken; some Madison
Analyst's number: 44,000 net acres (December 31, 2010)
Three rigs by early 2012; in July 6, 2011 (link above) reported recently adding a second dedicated drilling team

Halcon

For the archives. Halcon is no longer an operator in the Bakken. Prior data re: Halcon:

Halcon changed their name to Battalion Oil Corp, January 28, 2020.
big news, July 11, 2017: Bruin to buy all of Halcon's operated assets in the Williston Basin

104,000 net acres for $1.4 billion; about $13,500/acre

May 19, 2016: announces pre-packaged bankruptcy; business should go on as planned; shares prices drop almost 70%; from about $1/share to about $0.30/share.
1Q16 presentation; 120,000 net acres; 40,000 boepd at high end, 2016;
3/14: sold non-core assets in Bottineau/Renville counties; no press release; went from 142K to 131K net acres;
2/14, earnings: 131,000 net acres (Bakken); 42,055 boepd average production; same productivity with fewer rigs; will drop from 4 to 3 rigs; 171 middle Bakken wells producing or being drilled; 49 TF1 wells producing; 2 TF2 wells producing; avg cost/well, $11.5 million; total operating cost, $24.45/boe; downspacing, 660 to 880 feet between wells; Fort Berthold, 801K curves; Williams County, 477K curves;
1/14, conference: 142,000 net acres (Bakken); 803K EURs in Fort Berthold; 477K EURs in Williams County; will concentrate on Fort Berthold this year; Williams later
4Q13: 40K boepd; full year average: 33K boepd; cost: $27.69/boe; substantial increase in mineral acreage in the Tuscaloosa Marine Shale; Richard Zeits on Halcon;
July 15, 2013: 150,000 net Bakken acres; added 18,569 net acres from a non-operated working interest partner on its operated acreage in the New Home II area in Williams County, North Dakota for approximately $76 million.
July 14, 2013: Halcon transfers all active assets to HRC Operating.
June, 2013: 130,000 net acres in the Bakken; plans 6 - 8 rigs in 2013; about 13,000 boepd; focused on Fort Berthold wells
October 22, 2012: HK announces it will buy 81,000 net acres in North Dakota from Petro-Hunt, LLC; $1.45 billion cash-and-stock deal; $700 million cash; $750 million in stock; five operated rigs on acquired property
Acquires GEOI, 2Q12; transcript; recently discovered new NGL-rich field; earnings and operations update for 2Q12 here;

Sempra Energy Begins LNG Production At Cameron Export Facility -- May 23, 2019

Updates

May 24, 2019: a reader puts this into perspective -- see first comment --

1.7 Bcf/d is 14 times the volume of the New Orleans Superdome every day...

Original Post

From twitter today, link here:

The US LNG export terminal list is tracked here. Shortly after posting that list back in 2016 a reader wrote to tell me the obvious: just because "someone" plans on an LNG export terminal it doesn't necessarily mean that it will be built. Whatever. On the other hand, "they" keep plugging along, building these LNG export terminals.

Trump Gets A Big Win -- May 23, 2019

From twitter today: chipmakers Intel, Qualcomm and Broadcom halt supplying Huawei until further notice. Microsoft pulls Huawei from one of its "cloud" catalogs.

From twitter today:

Turkey says it no longer imports oil from Iran.
India says it quit importing oil from Iran and Venezuela as of May 3, 2019.

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

Update On Russian Corrosion

Occasional-Cortez says Vladimir Putin needs to be impeached over allegations of corrosion.

From twitter, May 24, 2019: a bigger mess than most realize --

From twitter today (May 24, 2019): a huge mess --

From twitter today (May 23, 2019):

As much as 5 million tonnes of contaminated Russian oil could have been shipped through pipeline to Europe.

Russia has removed 2 million tonnes of contaminated oil so far, using rail, storage tanks, and ships to store that contaminated oil.

It could be another six months before the system is "back to normal." If so, this takes "them" well into winter.

May 20, 2019: payments to Russia for this oil has been suspended; disruption to this pipeline said to be worse such out in Russia.

May 15, 2019: Russian corrosion much worse than previously reported.

May 2, 2019: Bloomberg calls it a logistical nightmare.

Kodiak Oil & Gas

For the archives. Kodiak is no longer an operator in North Dakota.

4Q14: KOG deal with Whiting closes. Whiting owns KOG. KOG ticker symbol no longer for Kodiak Oil and Gas.
2Q14: 38,271 boepd; sale of KOG to Whiting, pending; four rigs, but should be back to 7-rig program by end of 2014; transcript;
1Q14: average: 34,000 boepd;
4Q13 average: 36,100 boepd (18,200 boepd 4Q12); 183,000 net acres (173,000 in ND); sold 19,500 producing acres for $68 million (mostly in SW McKenzie County)
October 2, 2013, transcript: 195,000 acres; all in North Dakota; 7 rigs; guidance - 30K to 34K bopd production by end of the year
June 3, 2013: Buys Liberty Resources: 42,000 net acres; 6K boepd production; 1 rig; $660 million cash; 196,000 net acres after acquisition
1Q13: 21.7K boed (11K boed one year ago); crude oil, 88%. Beginning March, 2013, one full-time, 24-hr completion crew; will add a second crew in May, 2013; 7 operated rigs 9same); all in ND; continues with 12-well-test on a 1280-acre spacing unit in Polar/Smokey operating areas with two rigs operating in each area.
Update: July, 2012, corporate presentation: Production: 10,578 boepd (average -- 1Q12)
155,000 net acreage in the Bakken after January, 2012, closing on North Plains Energy, LLC, assets
7 operated rigs 2Q12, 1-2 non-operated rigs; expect to hold all leases by production by mid-2013; two 24-hour frack spreads (still true as of January 10, 2012, press release)
Decline rates based on long lateral EURs of 650 - 850K bbls
Exit 2011: 9,000 (est 3Q11) (was 11,000 boepd -- estimate as of October, 2011)
Mid-2012: 24,000 (est Nov 11; after North Plains acquisition); exit 2012, 30,000 boepd
will add 2nd dedicated frack crew in 2012; one dedicated HAL fracking crew as of 1Q12
JV partner with 2 rigs; 50% WI
Total Bakken net acres: 93,500 net acres (ND: 85,000 ; MT: 4,500 acres)
November, 2011 announcement, acquisition: Divide County, McKenzie County, 50,000 acres
Prior to the June 30, 2011, acquisition: Total Bakken net acres: 70,000 net acres (Dunn County: 35K; McKenzie County: 35K)

Koala -- McKenzie (Western Trend); 10,000 net acres; 7 wells/spacing unit

Koala Prospect: southeast of Williston, south of river, Williams Count (10,000 net acres); with current drilling program, all of Koala will BHP by 2012 end

Polar - Williams Country (North Flank Trend); 16,000 net acres; 7 wells/spacing unit

Polar Prospect: northern and southern Divide; just north of BEXP's Rough Rider;with current drilling program, all of Polar will BHP by 2013 end

Grizzly - McKenzie County (SW Bakken - TF Trend); 25,000 net acres; 7 wells/spacing unit

June 30, 2011 Acquisition -- East Grizzly Prospect: far southeast end of Elm Coulee on ND side (22,000 net acres); previously about 4,000 net acres in this area, the far southeast end of Elm Coulee on ND side

Dunn County (Eastern Trend), FBIR; 34,000 net acres; 7 wells/spacing unit

Dunn County Core area: northeast Dunn County, south of river (west of river), FBIR (34,000 net acres); 800 - 900K EURs; $10.5 million;

Smokey - McKenzie County, 16,000 net acres; 7 wells/spacing unit
Smokey Prospect: McKenzie County, old -- 11,742 net acres; between their acreage on the reservation and the newer Koala Prospect area and just to the west of the southern tip of the Nesson Anticline (16,000 net acres); with current drilling program, all of Smokey will BHP by 2012 end
Wildrose: 5 wells/spacing unit
Sheridan County, Montana: 4 wells/spacing unit

Jan 2012 Acq - Williams and McKenzie; 50,000 net acres

(Other Williston Basin: Montana, northwest of Williston, Sheridan County, 4,500 net acres)

Corporate presentation, December, 2011: 155,000 net acres
Analyst's number, December 31, 2010: 72,000 net acres