Monday, December 2, 2019

New Operator In North Dakota: An Ethanol Producer, Red Trail Energy, LLC, Has An Oil And Gas Permit -- December 2, 2019

Updates

December 11, 2019: what is Red Trail up to? From April 20, 2019, US News, a carbon capture project. Data points:
  • this is being done to meet West Coast fuel standards
  • the company recently completed a geophysical survey of eight square miles around the plant
  • company's goal is to produce ethanol that will meet the low carbon fuel standards of California and/or the Pacific Northwest
  • the company and the EERC are targeting the Broom Creek formation, about 6,400 feet below ground that area
  • proposal: to inject about 160,000 metric tons of CO2 per year into the well
  • leaks? can anyone say Aliso Canyon gas leak?
December 7, 2019: from a reader, regarding the Red Trail Energy permit, see first comment:
The permit Red Trail is requesting for drilling could likely be related to research for a carbon sequestration project. Ive heard they have interest in a potential CO2 capture project. There will likely be permits requested for a well or wells in Oliver County in the near future as well which are related to Project Tundra, another potential CO2 capture project.
Original Post

Active rigs:

455.9812/2/201912/02/201812/02/201712/02/201612/02/2015
Active Rigs5666533964

One permit renewed:
  • Bruin: an FB Leviathan permit in McKenzie County
Four new permits, #37229 - #37232, inclusive
  • Operator: WPX (3); Red Trail Energy, LLC
  • Fields: Spotted Horn (McKenzie County); Wildcat (RTE 10, Stark County)
    • WPX has permits for a 3-well Patricia Kelly pad in section 3-150-94, Spotted Horn oil field;
    • Red Trail Energy, LLC, has a permit for a wildcat in SENE 10-139-92;
Over at the NDIC well search site, this is the first and only permit (so far) for Red Trail Energy, LLC.  The website for Red Trail Energy greets visitors with huge "Ethanol" banner.
From the website:
Red Trail Energy, LLC (RTE) is a North Dakota-based investor group formed to finance, construct and operate a corn-based ethanol production facility located near Richardton, North Dakota. This vision became a reality when the $99 million, state-of-the-art plant began producing ethanol, in January of 2007. RTE now employs 47 personnel with an annual payroll of $2.9 million.
As one of the first coal-fired ethanol plants in the nation, RTE produces 50 million gallons of ethanol, using 18-20 million bushels of corn and ~100,000 tons of coal, annually. The plant will generate 2.8 gallons of ethanol from every bushel of corn. Coproducts produced by RTE include 125,000 tons of dried distillers grain and 80,000 tons of modified-wetcake annually.
The Richardton plant’s physical layout is composed of eleven structures, totaling 100,000 square feet of buildings, including administration, maintenance, processing, grain receiving, dried distillers grains storage, coal island, dryers and a pump house. The second-generation plant incorporates all the latest advances in ethanol processing, including equipment and technologies proven to boost efficiency and return on investment.
No mention of oil and gas operations.  The wildcat will be drilled on/near RTE property north of Richardton, ND. Richardton is east of Dickinson and about 100 miles west of Sterling, ND, where one turns south to Linton, ND. Linton is the county seat for Emmons County. Folks may remember Linton, ND: that's where the recent NDIC hearing on the DAPL expansion was held. Emmons County is the location of the fabled "Sleeping Giant" natural gas field.

From a reader, alerting me to RTE, which could end up being quite a story:



****************************************
Hope Springs Eternal

Area under discussion:


Schwab Move To Ft Worth Update -- December 2, 2019

I still think this will be one of the bigger 2019 business stories -- Top national non-energy story, from week #47:
Now an update from DallasBizJournal, said with a straight face, "finances were not a big driver in decision to move HQ to north Texas."
The Charles Schwab Corp. may be moving from San Francisco to North Texas, but a key executive doesn’t want you to think it’s all about saving money. [He said with a straight face. Perhaps it also has to do with quality of live.]

The discount brokerage announced last week plans to move its headquarters from California to Westlake, northwest of Dallas, after it closes its planned acquisition of TD Ameritrade Holding Corp. Both companies [each] already have more than 4,000 employees locally.

During a call following the announcement, an analyst asked how Schwab thinks about relocation and its connection to cost savings and tax rates – factors that are cited as advantages for Texas businesses. The planned deal is set to bolster earnings.

“I wouldn’t think of the eventual headquarters move to Texas as being a big driver from a financial standpoint,” Chief Financial Officer Peter Crawford said. “It’s really more a reflection of the reality today, which is that we have a large campus in the Westlake area. TD Ameritrade has a large campus in the Southlake area. We have opportunity for expansion there.” [He said with a straight face.]

He said the company will continue to have a large presence in San Francisco, consistent with where it’s at today.

Yet more folks should be coming to the North Texas locale in the future.

“As we look over the next four or five-plus years, that is a location where we will be likely adding a significant number and certainly ... a more significant percentage of our staff,” Crawford said.

Schwab is joining other companies that are relocating to – or expanding in – North Texas as more companies look for ways to save money and find more talent.

Some 660 companies moved 765 facilities out of California in the past two years, and Dallas-Fort Worth has been the beneficiary of many of the relocations -- previously reported/posted.

Earlier this year, McKesson, a pharmaceuticals and health care supplies provider, moved its headquarters from San Francisco to Irving. At the time of the announcement last year, John H. Hammergren, McKesson’s then-CEO, pointed to reasons that included spending in a prepared statement.
My hunch: Schwab was having trouble competing for talent, competing with the likes of Apple and dozens of other tech companies.

Two Staggering CLR Whitman Wells -- December 2, 2019

This page will not be updated; this well is tracked here

This well is back on line:
  • 20210, 803, CLR, Whitman 2-34H, API - 33-025-01259, 34-147-96, Oakdale, 4 sections, t9/11; cum 1.697381 million bbls 10/19; this well went off-line 10/17; FracFocus reveals no re-frack;
Recent production:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN10-20193169207579172571356341397
BAKKEN9-201925398433311494351432510
BAKKEN8-201924497951421486631760870
BAKKEN7-201931863487722411102939473414
BAKKEN6-201930746074112064738469830
BAKKEN5-2019311035810178311892298075751
BAKKEN4-20193093299560312589088352165
BAKKEN3-201930101319975580498429299159
BAKKEN2-201924599758434104563253450
BAKKEN1-20190000000
BAKKEN12-20181400000
BAKKEN11-201820664269221753725058741133
BAKKEN10-2018311215812190398713439118871133
BAKKEN9-2018301399914197683515432140361011

From the same pad, this well has been re-fracked:
  • 20212, 482, CLR, Whitman 3-34H, API-33-025-01261, 34-147-96, Oakdale, 4 sections, t9/11; cum 135K 11/17; this well was re-fracked 9/23/2017 - 10/5/2017; FracFocus, 9.8 million gallons of water; but note that was in 2017; look at what happened in late 2018; FracFocus shows no re-frack:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN10-201925196151931767822010519254574
BAKKEN9-201927194581975859322095620086592
BAKKEN8-201931279222778010332296982921665
BAKKEN7-2019312575226021127962886328109349
BAKKEN6-20193027902279081290329790293890
BAKKEN5-20193027570276701120328086255222193
BAKKEN4-2019302842728258124863008629312382
BAKKEN3-201931286282868614764312543081923
BAKKEN2-20192825683253191420226821264500
BAKKEN1-20191613734136011012813831136280
BAKKEN12-2018221621616649926018218165941334
BAKKEN11-2018293205032060798233651307742503
BAKKEN10-20183137074369921081339302356113272
BAKKEN9-20183036826366251433138670340104265
BAKKEN8-2018447314441237846213785786
BAKKEN7-20181676784403
BAKKEN6-2018111380000
BAKKEN5-2018004030000
BAKKEN4-20181632393127473246523760
BAKKEN3-201819548656317564317413950
BAKKEN2-20182553105088595444542610
BAKKEN1-201831105131072518698937864150
BAKKEN12-2017312190321790484124087238390
BAKKEN11-201730194521980953791966718479968
BAKKEN10-201721121501140168471354971916268
BAKKEN9-20170000000
BAKKEN8-20170000000
BAKKEN7-20170000000
BAKKEN6-20170000000
BAKKEN5-20171002000
BAKKEN4-20175380363981151140
BAKKEN3-201761573200108990
BAKKEN2-2017416217001740158
BAKKEN1-201731582840154015

Four More Wells That Have Each Gone Over 500,000 Bbls Cumulative --

This page will not be updated; these wells are tracked here.

More wells reporting greater than 500,000 bbls crude oil cumulative:

The wells:
  • 31774, 5,058, Bruin E&P, Fort Berthold 151-94-27A-34-16H, Antelope-Sanish, t7/18; cum 516K 10/19;
  • 30541, 4,871, Bruin E&P, Fort Berthold 151-94-26A-35-4H, Antelope-Sanish, t6/18; cum 598K 10/19;
  • 20328, 1,647, Bruin E&P, Fort Berthold 151-94-26B-35-1H, Antelope, t3/12; cum 570K 10/19; offline since 1/18; back on line 9/18;
  • 22707, 1,959, Bruin E&P, Fort Berthold 151-94-26B-35-3H, Antelope, t4/14; cum 588K 10/19; offline since 1/18; back on line 9/18;
It should be noted that #30541 produced in excess of 150,000 bbls in two months. 

It should be noted that #31774 hit the 500,000 bbls cumulative in one year.
 

Section 2-151-93 -- Reunion Bay -- MRO Continues To Report Huge Wells In The Bakken -- December 2, 2019

Section 2-151-93.
  • 1280-acre drilling unit, sections 2/11-151-93.
Reported December 2, 2019: link here

The wells:
  • 35331, 6,028, MRO, Dietrich USA 11-2TFH, Reunion Bay, t9/19; cum 114K 58 days; cum 212K 1/20;
  • 35330, 4,401, MRO, Holmgren 41-3H, Reunion Bay, t9/19; cum 61K 41 days; cum 152K 1/20;
  • 35332, 5,530, MRO, Tommerdahl USA 11-2H, Reunion Bay, t9/19; cum 94K 58 days; cum 201K 1/20;
Although these are not record IPs, they are certainly among wells that need to be considered. Wells with record IPs are tracked here

35330:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN10-20192834590343382538239567037156
BAKKEN9-20191326703265212255232007030195

35331:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN10-20192940345403373876941276038492
BAKKEN9-20192973230727328994477085072153

35332:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN10-20193035605357972926738291035775
BAKKEN9-20192858158576274867659165055184