Questar's MHA series of wells -- another nice one near the Parshall, #17940

Questar reported a nice well based on its IP on February 18, 2010: MHA 1-13-14H-150-91, #17940.

According to the press release this long lateral in the Fort Berthold Indian Reservation, in the Deep Water Creek Bay oil field, had an IP of 1,405 boepd. It produced 27,000 barrels of oil equivalent in the first 30 days of production. This particular well (and the field itself) is right up against the prolific Parshall oil field.

Another Questar well, the Federal 1-34-35H-150-91, has just been drilled and should be completed in April, 2010. A third Questar well, the MHA 1-06-31H-150-92 is being drilled (Feb 2010).

Bryce 31-5H in another hot area? #18177, McKenzie County, 5-152-96

A very nice Burlington Resources well, #18177, Bryce 31-5H, came off the confidential list today: 1,844 bopd, IP. Very, very nice. I'm not aware of BR being accused of using techniques to maximize their IPs. I don't know yet if this was a short or a long lateral. The few wells in this area have been short laterals, but there has been increased tendency toward 1280-acre spacing.

If you go to the GIS map server to see where this well is located you will note that there is not much past activity there, but there are about 22 wells currently on the confidential list in this area. The oil fields involved: the Sand Creek, the Keene, and the Westberg. Bryce 31-5H was in the Westberg field. These fields are south of the river just west of the Charlson, Elm Tree and Antelope which have had some nice wells recently.

Oldest Permit in My Reporting: Federal 32-4HBKCE -- Bicentennial Field -- Golden Valley County, North Dakota, USA

Updates

June 22, 2011: In the original post below I said that there was only one permit in the Bicentennial field at that time and that I would watch for more permits. Here they are:

• 17461:75, CLR, Bicentennial Federal 10-34H
• 18806: LOC, WLL, Wolski 44-23H
• 18845: LOC, WLL, ONeil Creek State 11-16TFH
• 18972: 3, Nadel and Gussman, State 1-36H
• 19084: DRL, WLL, Mosser 11-27TFH
• 19211: 294, Wesco, Federal 12-20 (Red River)
• 19217: Conf, Wesco, Federal 42-1
• 19228: 211, Wesco, Federal 43-12 (Red River)
• 19268: 125, CLR, Bicentennial Federal 1-28H
• 19330: LOC, WLL, Gorrell 11-34TFH
• 19557: LOC, WLL, Tescher Ranch 11-9TFH
• 20344: LOC, WLL, Gorrell 11-20TFH
• 20379: LOC, WLL, Smith 44-30TFH
• 20418: LOC, WLL, ONeil Creek Federal 11-11TFH
• 20420: LOC, WLL, ONeil Creek Federal 44-28TFH
• 20426: LOC, WLL, ONeil Creek Federal 12-5TFH

April 26, 2011: Birdbear formation related to this well.

Original Post

A few days ago I asked whether the Bakken was over-hyped. In that post, I noted that there is a backlog of 1,100 wells yet to be drilled -- just on permits that have been granted, and not yet drilled. [Based on permits granted so far this year, there should be at least 1,200 new permits granted in 2010, adding to that backlog. In the past I have opined that operators should be able to drill about 1,000 wells this calendar year (100 rigs x 10 wells/rig/year = 1000 wells).]

I have been posting for only a few months. I was curious to find out how long ago the "oldest" permit was granted for the wells that I have reported out in the past few months.

If you go to my "new wells reporting" page, you will see that file #15412 is the oldest permit of those I have reported on. That permit was granted to Equity Oil on March 28, 2003. Whiting eventually drilled the well, the Federal 32-4HBKCE and reported the results of that well on December 7, 2009 through a press release. That well targeted the Three Forks Sanish in the Bicentennial oil field. It was a huge well with an IP of 1,970 bopd. But can you imagine that: the permit was granted in early 2003 and it was not until six and a half (6.5) years later that the well was finally completed. Six and a half years later. You can see the Whiting press release here, December 7, 2009. Anything special about this well? It was a re-entry well; its vertical depth was 10,530 feet; it was a long lateral; and, it was fracture stimulated in 15 stages. Someone noted that this well actually produced oil from the Birdbear formation earlier that year.(The GIS map server shows three laterals.)

Oh, as long as I'm rambling, what else did the WLL press release say? WLL said it anticipated drilling at least nine Three Forks wells in this area during 2010. This is in Golden Valley County; remember, the most active counties are Mountrail, McKenzie, Williams, and Dunn. I often forget that Golden Valley is active. Currently, there are NO Whiting permits in this oil field, the Bicentennial so I will keep an eye open for new permits in the Bicentennial oil field this year.

WLL also said that its gross operated oil production in the Sanish and Parshall fields is 20,014 bopd (December 7, 2009), and by the end of March 2010, it expects all of its operated production to be transported by pipeline. WLL says it has a pipeline capacity of 65,000 bopd; its central gathering poing is north of Stanley, ND, where it connects to the Enbridge pipeline. Enbridge says it will complete its current expansion project by mid-2010, expanding its current capacity of 110,000 bopd to 161,000 bopd.

By the way, the nomenclature for this well, "HBKCE": H is for horizontal; BK is for the Bakken; and CE? I think I read somewhere that someone opined that CE stood for "casing extension" -- an addition horizontal from an existing well. I don't know.  Makes sense, except that this well targeted the TFS and not the Bakken. Whatever.

That's enough for this well. But again: the permit granted March 28, 2003, and not drilled until the  middle of 2009, and reported at the end of that calendar year. Yeah, I would say there's quite a backlog of wells to be drilled.


Stayin' Alive, Bee Gees

Cost of Air Transportation into the Bakken

Current flight (best price, Travelocity), round trip, Denver - Minot, $300.

Current flight price (best price, Travelocity), round trip, San Antonio - Minot, $400.

Current flight price (best price, Travelocity), round trip, Los Angeles - Minot, $400.

Current flight price (best price, Travelocity), round trip, New York City (JFK) - Minot, $460.

All prices within $10 of price noted. I rounded off to keep it simple. I assume taxes, fees, baggage, meals, blankets, pillows, parkas, mukluks, and other amenities, will be extra. (For summer travel, mosquito spray will probably be available for a nominal price. TSA only allows three ounces of any liquid in a single containter, and all liquid containers must fit in a one quart zip-lock bag.)

Price Paid for North Dakota Oil: Good News

Are you curious about the price paid for North Dakota oil compared to that paid for the "gold standard," west Texas crude? If you are curious, click here. It sounds like North Dakota oil is priced about the same as west Texas crude (see "spot price of oil" in the sidebar to the right); the only difference appears to be the cost to ship the oil to Cushing, Oklahoma.

The shipping cost for North Dakota oil should go down this year based on improved capacity, but I doubt this will last long if more pipelines are not put in. Production and transport capacity should balance out this year at about 400,000 barrels/day.

The New York Mercantile Exchange (NYMEX) contract for oil is based on the price of west Texas crude.