Watch for continuing news about horizontal wells in the Spearfish formation. EOG is apparently bringing horizontal experience in the Spearfish from across the border in Canada into North Dakota, specifically Bottineau County.
I first mentioned this in a February 16, 2010, posting, but it appears others are starting to notice the same thing.
Thursday, March 11, 2010
Big Day in the Bakken
It was a nice day in the Bakken.
NDIC did not report the results of any new wells today but several came off the confidential list, and you can see them at "New Wells Reporting." A quick summary follows:
In addition, it looks like the price of oil, back up today, will close above $82.
NDIC did not report the results of any new wells today but several came off the confidential list, and you can see them at "New Wells Reporting." A quick summary follows:
Eleven wells came off the confidential lists and Bakken Shale Discussion Blog posted them. The average IP was 719 bbls/day. Three of the wells were over 1,000 bbls/day: a Petro-Hunt well (1,323); an EOG well (1,153); and, an Anschutz well (1,084). These three were in three different fields: Eagle Nest, Parshall, and Murphy Creek. The EOG well was in Fertile township, inside the FBIR. Drilling in the FBIR was delayed about two years due to bureaucratic necessities, but is now on track to catch up with the rest of the Bakken.Also today, NDIC reports a new record: 103 active rigs in North Dakota.
In addition, it looks like the price of oil, back up today, will close above $82.
103
New record: 103 active rigs in North Dakota.
The Bismarck Tribune: "Rig count reflects oil in boom in North Dakota"
The Bismarck Tribune: "Rig count reflects oil in boom in North Dakota"
Wednesday, March 10, 2010
Playing With Numbers: Permits, Confidential Wells, Wells Reporting
There are 746 wells on the NDIC confidential well list, for those who are keeping track. This number has not changed much over the past few months.
Today, March 10, 2010, is the 69th day of the calendar year. NDIC has granted 224 permits this calendar year. That puts us on track for 1,185 permits for 2010.
For comparison, here are the numbers for the past four years. The number in red is the total number of permits issued that year. The number in parentheses is the number of permits that were executed (drilled) and have come off the confidential list -- many (most?) wells are not drilled the year of the permit.
2006: 422 (195)
2007: 497 (336)
2008: 953 (734)
2009: 626 (208).
Obviously the numbers inside the parentheses (wells drilled) will increase over time (as the wells are drilled and come off the confidential list).
A few of the permits have been canceled or expired, but it is (was) only a handful.
The rest is "back of the envelope calculations" and is subject to interpretation: From 2006, approximately 200 permits are yet to be drilled/reported; for 2007, about 160; for 2008, about 200; and for 2009, 400. Thus, from 2006, there is a backlog of about 960 wells yet to be reported, not counting those in 2010. And completed wells permitted in 2010 are still on the confidential list. Adding the 224 permits for 2010 and the 960 permits (2006 - 2009, inclusive), that makes about 1200 permits/wells. Minus the approximately 750 confidential wells, that makes 450 permits yet to be acted upon. Those 450 wells plus another 1000 new permits this year and "we" have almost 1500 permits that could be in play for 2010.
Today, there are 102 active rigs in North Dakota.
Today, March 10, 2010, is the 69th day of the calendar year. NDIC has granted 224 permits this calendar year. That puts us on track for 1,185 permits for 2010.
For comparison, here are the numbers for the past four years. The number in red is the total number of permits issued that year. The number in parentheses is the number of permits that were executed (drilled) and have come off the confidential list -- many (most?) wells are not drilled the year of the permit.
2006: 422 (195)
2007: 497 (336)
2008: 953 (734)
2009: 626 (208).
Obviously the numbers inside the parentheses (wells drilled) will increase over time (as the wells are drilled and come off the confidential list).
A few of the permits have been canceled or expired, but it is (was) only a handful.
The rest is "back of the envelope calculations" and is subject to interpretation: From 2006, approximately 200 permits are yet to be drilled/reported; for 2007, about 160; for 2008, about 200; and for 2009, 400. Thus, from 2006, there is a backlog of about 960 wells yet to be reported, not counting those in 2010. And completed wells permitted in 2010 are still on the confidential list. Adding the 224 permits for 2010 and the 960 permits (2006 - 2009, inclusive), that makes about 1200 permits/wells. Minus the approximately 750 confidential wells, that makes 450 permits yet to be acted upon. Those 450 wells plus another 1000 new permits this year and "we" have almost 1500 permits that could be in play for 2010.
Today, there are 102 active rigs in North Dakota.
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