Chilean Mine Rescue (Not a Bakken Story)

This is absolutely incredible to be watching this live on the Internet.

The first trapped miner came up out of the "shaft" -- actually a 24-inch diameter pipe --  at about 10:12 p.m. central standard time -- I forgot to check the time, I was so mesmerized by the live video.  The link will probably be there as long as the rescue goes on, which could take as long as 36 hours, well into Wednesday morning. There were 33 miners trapped; now there are 32.

Press reports say that the rescuers expect to bring up one miner every hour. It takes the capsule about twenty minutes to bring a man up from the bottom of the mine where the miners are trapped to the surface.


Big John, Jimmy Dean

Investor Day: CLR Presentation -- This Is Worth Studying

I post 3 to 5 stand-alone postings per day as well as sometimes a dozen updates of previous postings every day, as well as posting comments. 

Occasionally there are some very, very interesting postings, but this posting may be one of the most incredible I have ever posted. CLR is suggesting it may be sitting on as much as 3.0 billion recoverable barrels of oil equivalent in the North Dakota and Montana Bakken.


In addition, CLR is suggesting that there may be as much as 24 billion boe recoverable in the Bakken. It is hard to tell from the slides alone (without the audio or Q&A) but the slides as shown suggest CLR is separating the Bakken formation from the Three Forks formation. If so, this presentation is even more incredible.

Investor Day: CLR Presentation (slide presentation)

Continental Resources Investors Day 2010: "Drilling Down in the Anadarko Woodford"
October 12, 2010
Skirvin Hilton, Oklahoma City, OK

Slide 12:  (slide 12 of overview)
In addition to 130 million barrels of oil (boe) equivalent proved reserves at mid-2010:

• 2.3 billion boe in unbooked, unrisked reserve potential (= 7.5 x mid-2010 proved reserves)
• With 320-acre spacing in the Bakken, unbooked, unrisked reserve potential would total 3 billion boe

(Yesterday, before seeing this presentation, someone estimated CLR might be sitting on 3.6 billion recoverable boe, which I posted as "back-of-the-envelope" calculations; uncanny)




Wurlitzer Prize, Norah Jones, piano; Willie Nelson, strumming.


Slide 32 (slide one of the Bakken presentation)
CLR suggests there may be as much as 24 billion barrels of oil recoverable (=5 times 2008 USGS estimate) in the Bakken
More than 2,750 horizontal wells completed since January, 2000
Industry adding 1,800 wells/year

NOG Increases 2010 Drilling Guidance and Provides Operational Update

Press release: October 12, 2010.
October Presentation.

NOG expects to spud approximately 24 net wells by the end of 2010, increased from previous guidance of 18 net wells.

The increase in number of net wells is probably due to increased number of drilling rigs.

NOG has acquired a total of 38,864 net acres year-to-date in the core of the Williston Basin Bakken and Three Forks play at a total cost of approximately $42.2 million. This represents an average cost of $1,086/acre.

The press release then lists 60 completed wells that NOG has participated in.
By operator (approx):

• EOG: 19
• Slawson: 11
• CLR: 6
• XTO: 4
• Others: the rest

NOG had a high of 49.5% working interest in a Hess well, and a low of 1.8% in an EOG well and almost every amount of working interest in between.

The press release then lists 90 wells that NOG is currently participating in.
By operator (by approx):

• Slawson: 17
• EOG: 12
• CLR: 7

NOG has a high of 60.9% working interest in a Slawson well (Vagabond 1-27H), and a low of 0.52% in a Petro-Hunt well (Fort Berthold 152-94-13B-24-1H) l and almost every amount of working interest in between.

NOG's open commodity derivative contracts as of September 30, 2010:

• 2010: 288,000 barrels at $80.41 (weighted average price)
• 2011: 720,000 barrels at $80.89 (weighted average price)
• 2012: 339,000 barrels at $80.62 (weighted average price)

MDU Subsidiary, Knife River, Knifes $34 Million in New Work

Find story at Knife River website.

Midwest (Sioux City) and Central Texas (Bryan, TX) were successful bidders on six new projects totaling more than $34 million.

South Dakota Department of Transportation

• Concrete paving, I-29, Roberts County, $12.9 million
• Concrete paving, I-29, Union County, $11.4 million
• Nebraska Department of Roads
• Asphalt overlay, Stanton County, $1.825 million

Waco, Texas

• Highway 6, $4 million
• Highway 6, $0.9 million
• I-35, $3.5 million

Earnings Season Has Begun

This is a reminder that during earnings week I will be updating my earnings post.

CSX, the railroad: earnings jumped 43% year-over-year.