Wednesday, February 9, 2011

Dimond Field Update -- Bakken, North Dakota, USA

Locator: 10010DIMOND.
 
Permits

2015

2014
None in 2014
2013
None in 2013

2012
  • 22593, loc, OXY USA,
  • 22592, loc, OXY USA,
  • 22534, loc, OXY USA,
  • 22529, loc, OXY USA,
  • 22528, loc, OXY USA,
  • 22527, loc, OXY USA,
  • 22519, 10, OXY USA, Ward Lake 1-5-6H-160-91, t6/12; cum 57K 12/14;
  • 22262, 352, OXY USA, Little Butte 1-21-28H-160-90, t5/12; cum 93K 12/14;
  • 22183, 196, OXY USA, Big Spring 1-22-27H-160-90, t5/12; cum 124K 12/14;
  • 22177, 23, OXY USA, Split Ridge 1-2-1H-160-91, t9/12; cum 24K 12/14;
Updates



 February 18, 2013:
  • 22519, 10 (no typo), OXY USA, Ward Lake 1-5-6H-160-91, Dimond,  an extension of the Dimond field; Three Forks well; 21 stages; 2.1 million lbs;  t6/12; cum 8K 12/12;
September 5, 2012:
  • 21619, 62, OXY USA, Sorlie 160-90-7-P16-1H, Dimond oil field; 
September 4, 2012:
  • 21531, 412, OXY USA, Nordloef 160-90-30P-1H, Dimond, < 10k in first four months; cum 11K 7/12
July 18, 2012
  • 22183, 196, OXY USA, Big Spring 1-22-27H-160-90, Dimond, t5/12; cum 5K 5/12;
January 20, 2012: not all impressed with OXY USA wells in Dimond oil field.

July 16, 2011: I was asked up to update this field, which I did this date. Not much has changed with regard to new IPs. The individual asked if I was concerned about "canceled" permits. No, I am not. OXY bought out Anschutz, and OXY most likely re-surveyed and/or looked at the siting and decided to cancel a few permits and re-submit in nearby areas. See status of the field at bottom of this page. Of the 26 permits on file for this field, three have been permanently canceled.

Original Posting (February 9, 2011)
IPs / production will be updated
 
The Dimond field is now "owned" by OXY USA. The permits used to be those of Cirque but somewhere along the line (between 2009 and 2010) it appears OXY bought all of Cirque's assets in the Bakken.

This is a small field in Burke County, only 44 sections, and is on the northeastern side of the Williston Basin in North Dakota. It is not all that far from the Canadian border, and is just east of the Cottonwood field. I have never been very impressed with the Cottonwood field, and the Dimond is even farther away from the Bakken core. But maybe OXY can make it pay.

The field is about eight miles west of Kenmare, North Dakota; and, about seven miles southwest of Bowbells, North Dakota. State highway #8 pretty much cuts the field in half, a west side field, and an east side field.

On February, 2011, there were two rigs on site, both on the east side of the field:
  • 20196, OXY, Sorlie 160-90-18-P-1H (rig off site, April, 2011)
  • 20032, OXY, Kannegieter 160-90-17-P-1H (rig off site, April, 2011)
On July 16, 2011, there were two rigs on site, both on the west side of the field:
  • 20865 (20389 on same pad), ROS, OXY, OXY 160-91-10-4-P-2H
  • 20779, ROS, OXY, Haroldson 160-91-14-D-1H
    There are six producing wells in the field, all short laterals (at initial posting). Most, if not all, were all originally CIRQUE wells but are now OXY's. Most of them, I assume, were fractured with single-digit number of stages.
    • 18476, 101, OXY, Feast of Fools 12-16H, 33K in 9 months
    • 18389, 278, OXY, True Blonde 16-15H, 22K in 7 months
    • 18299, 63, OXY, Red Lady 36-4H, 18K in 9 months
    • 18219, 197, OXY, Honkers 9-16H, 43K in 12 months
    • 18394, 351, OXY, Mad Hatter 16-4H, 25K in 5 months
    • 17699, 614, OXY, Trippell 32-16H, 95K in 16 months
    The following are all confidential (as of April, 2011):
    • 20364, OXY, Jacobson 160-90-6-P-1H
    • 20369, OXY, Sorlie 160-90-7-P-1H
    • 19349, OXY, Pick Axe 19-4H
    • 20235, OXY, Olson 160-90-10-P-1H
    • 20350, OXY, Ankenbauer 160-90-34-D-1H
    • 19440, OXY, Sunshine 31-16H
    • 19067, 137, OXY, Easy Street 3-4H
    • 20389, OXY, Swenson 160-91-4-P-1H
    • 20313, OXY, Haroldson 160-91-10-P-1H
    • 19363, 200, OXY, Moose Drool 9-16H, 3K in one month
    • 20237, OXY, Swenson 160-91-15-D-1H, rig on site, April, 2011
    • 20317, OXY, Swenson 160-19-11-P-1H
    • 20352, OXY, Reistad 160-91-13-D-1H -- permit canceled
    • 20657, OXY, OXY Swenson 160-91-13-11-P-2H, rig on site, April, 2011
    • 20570, OXY, Swenson 160-91-11-P-1H,
    • 20722, OXY, Ankenbauer 160-90-34-D-1H
    Status of the Dimond Field on July 16, 2011 -- Source: NDIC

    File NoAPI NoWell TypeWell StatusStatus DateDTDLocationOperatorWell NameField
    203643301301550ConfidentialSESE 6-160-90OXY USA INC.JACOBSON 160-90-6-P-1HDIMOND
    203693301301551ConfidentialSESE 7-160-90OXY USA INC.SORLIE 160-90-7-P-1HDIMOND
    182193301301463OGA12/5/200913770SESE 9-160-90OXY USA INC.HONKERS 9-16HDIMOND
    202353301301542ConfidentialSESE 10-160-90OXY USA INC.OLSON 160-90-10-P-1HDIMOND
    183943301301472OGA7/3/201013800NWNW 16-160-90OXY USA INC.MAD HATTER 16-4HDIMOND
    200323301301536OGDRL12/24/2010SESE 17-160-90OXY USA INC.KANNEGIETER 160-90-17 P-1HDIMOND
    201963301301541OGDRL1/14/2011SESE 18-160-90OXY USA INC.SORLIE 160-90-18-P-1HDIMOND
    193493301301512OGDRL9/6/2010NWNW 19-160-90OXY USA INC.PICK AXE 19-4HDIMOND
    194403301301516OGDRL11/9/2010SESE 31-160-90OXY USA INC.SUNSHINE 31-16HDIMOND
    176993301301444OGA8/15/200913507SESE 32-160-90OXY USA INC.TRIPPELL 32-16HDIMOND
    210893301301583OGLOC6/28/2011NWNW 33-160-90OXY USA INC.STAAEL 160-90-33-D-1HDIMOND
    203503301301548OGPNC4/7/2011NWNW 34-160-90OXY USA INC.ANKENBAUER 160-90-34-D-1HDIMOND
    207223301301566ConfidentialSESE 34-160-90OXY USA INC.ANKENBAUER 160-90-34-P-1HDIMOND
    190673301301502OGA2/10/201114287NWNW 3-160-91OXY USA INC.EASY STREET 3-4HDIMOND
    203893301301553ConfidentialSESE 4-160-91OXY USA INC.SWENSON 160-91-4-P-1HDIMOND
    208653301301574ConfidentialSESE 4-160-91OXY USA INC.OXY 160-91-10-4-P-2HDIMOND
    205703301301559ConfidentialSESE 5-160-91OXY USA INC.BEARD 160-91-5-P-1HDIMOND
    207433301301571ConfidentialNWNW 8-160-91OXY USA INC.ERICKSON 160-91-8-D-1HDIMOND
    193633301301513OGA1/17/201114673SESE 9-160-91OXY USA INC.MOOSE DROOL 9-16HDIMOND
    203133301301546OGPNC5/4/2011SESE 10-160-91OXY USA INC.HAROLDSON 160-91-10-P-1HDIMOND
    203173301301547ConfidentialSESE 11-160-91OXY USA INC.SWENSON 160-91-11-P-1HDIMOND
    206573301301561ConfidentialSESE 11-160-91OXY USA INC.OXY SWENSON 160-91-13-11-P-2HDIMOND
    184763301301475OGA3/10/201014143SESE 12-160-91OXY USA INC.FEAST OF FOOLS 12-16HDIMOND
    203523301301549OGPNC3/24/2011NWNW 13-160-91OXY USA INC.REISTAD 160-91-13-D-1HDIMOND
    207793301301572ConfidentialNWNW 14-160-91OXY USA INC.HAROLDSON 160-91-14-D-1HDIMOND
    202373301301543ConfidentialNWNW 15-160-91OXY USA INC.SWENSON 160-91-15-D-1HDIMOND
    183893301301471OGA5/11/201013575SWSE 16-160-91OXY USA INC.TRUE BLONDE 16-15HDIMOND
    182993301301468OGA3/5/201014141NWNW 36-160-91OXY USA INC.RED LADY 36-4HDIMOND

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      Great Review -- Update of Oil Exploration and Production in the US -- Led by the Bakken, North Dakota, USA

      This is a great review / update for both newbies and those very familiar with the Bakken.

      Because of the reference to Credit Suisse analysts early (and also later) in the story, the journalist most likely put this story together while attending the Credit Suisse Group Energy Conference in Vail, Colorado, this week.

      Note that a contributing AP reporter was reporting from Stanley, North Dakota.
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      The Lost Decade --> Decade of Tectonic Shifts

      I have often referred to 2000 - 2010 as the "lost decade" and I will continue to do so.  [There is a "lost decade" in the tags at the bottom of the blog for more links.]

      I was thinking that 2011 - 2020 will be the decade of energy, but that may be too limited. With the news today that German investors may buy the New York Stock Exchange; with the Chinese buying more and more of the fossil fuel assets in the US; and with commodity inflation (e.g., wheat), leading to such events as the revolution in Egypt, I will now refer to 2011 - 2020 as the "decade of tectonic shifts." I don't particularly like that appellation, but, for now it will have to do.

      Some tectonic shifts are smooth and manageable; other tectonic shifts result in such events as the 1906 San Francisco earthquake.
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      BEXP Presentation at Vail, Colorado, Today -- Now Available -- All Bakken (ND/MT), USA

      Link here.

      When you get to the link, click on the "webcast" and proceed from there.

      It is a very, very interesting presentation.

      About 30 minutes.

      I assume the webcast will be available on a limited time basis.

      Six key points (numbers may be rounded):
      • BEXP has de-risked 205,600 net core acres; right now -- 571 net locations; but could grow to 571 net locations based on Rough Rider Three Forks potential
      • NPV/well about $11 million; undiscounted payback period of about 1.3 years
      • Growing from 7 to 8 rigs by May, 2011; ~ 88 gross well annual run rate; converts majority of core acreage to HBP status over ~ 3 years
      • Almost doubled their proved reserves, year-over-year; 80% of it is oil; $10/bbl finding --> production costs
      • Very strong liquidity position
      • Four additional catalysts
      a. Completed initial Rough Rider Three Forks well with IP of 2,356; begins to de-risk 362 net locations
      b. Completed initial Rough Rider Bakken well with IP of 2,710; begins to give idea of max wells / unit
      c. Completed initial Montana Bakken well with IP of 909; two additional wells completing
      d. Increased Williston asin total and core net acreage by  ~86K and ~64K acres since December, 2009
      And that's just the first slide. That is just the beginning.

      Yes, after listening to the presentation, I am, once again, restored to my inappropriately exuberant state.
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      Eight (8) New Permits in North Dakota -- Whiting Gets Three

      Producers: Whiting (3), EOG (2), Petro-Hunt, and MRO.

      Fields: Sanish, Clear Water, Haystack Butte, Dutch Henry Butte, Killdeer and one wildcat.

      The Petro-Hunt wildcat is just inside the western border of the reservation, situated somewhat between several active areas, including Mandaree to the northeast, Heart Butte (very active) to the west, Moccasin Creek to the southeast, and Haystack Butte to the west.

      But Whiting is the one that does it again. Three permits: two in the Sanish, both targeting the Three Forks, one with the "X" designation; the third WLL permit is in Dutch Henry Butte. I have not recalled hearing DHB before (turns out I had forgotten; there are two recent permits there) but I guessed it was going to be in the southwest, and yes, indeed, it is. The field is just a few miles northwest of Dickinson, in the southwestern area of the state and the Basin. Whiting continues to get a permit in its cash cow, the Sanish, and one in the southwest. As noted yesterday, it's almost as if Whiting is two different companies, or organized into two divisions in the Bakken, one in the north, one in the south.

      Both EOG permits are in the Clear Water field, but not on the same pad (not even in the same section).

      Not much of interest in the rest of the daily activity report.

      North Dakota is on track to issue 1,880 permits this calendar year.
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