CLR With Permits for a 6-Well Pad in The Bull's Eye Of The Bakken -- Camp Oil Field -- McKenzie County -- Where Action Is Headed in 2012

In today's daily activity report, November 30, 2011, it appears CLR has permits for putting six wells on one pad. The wells will be only 45 feet apart from each other. It's very possible this is not the first six-well pad, but it's the first time I have noted it (a long time ago I blogged a 6-well pad and was told it was two 3-well pads very, very close to each other). So, as far as I am concerned this is the first "real" 6-well pad unless someone can point out others to me.

Last week, I blogged that BEXP had permits for a 5-well pad.

Regardless of whether these are the first 5- and 6-well pads, they clearly demonstrate we are in the manufacturing phase of drilling the Bakken.

Camp oil field is practically in the "bull's eye" of the Bakken, and where the activity is headed in 2012. Camp oil field is literally a stone's throw from the industrial parks west of Williston, just south across the river. Schlumberger, BHI, Cal-Frac, McCody Concrete, Hexom, Cudd, Statesline, and about 55 of their closest friends could not possibly be in a better location for drilling the "bull's eye" of the Bakken.

By the way, west of Williston, it appears another electrical substation is going in next to the large one that is already there. The infrastructure is there, but no wires, transformers, yet. 

CLR's 6-well pad will be about three miles from:

• 18437, Oasis, 2,887, Angell 5200 31-28H, tested 5/23/10;  Most recently (9/11) it is producing about 2,000 bbls/month and has produced a total of 122,000 bbls to date (9/11). s12/09; t5/10. 

It will be about a mile from:

• 20638, 591, CLR, Kuhn 1-12H, Camp, Bakken, s5/11; t8/11; 44K 10/11 -- almost 50K in first two months; producing 13K bbls monthly. Don't let that IP of 591 fool you. This is a great well.

It is about the same distance from another great well:

• 19578, 749, CLR, Missoula 1-21H, Camp, Bakken, s11/10; t3/11; 60K 10/11 and producing 8,000 bbls monthly; 

There are currently four rigs on site in Camp oil field (BEXP [2], Oasis, and SM).

Here are the permits for the six CLR wells going on one pad:

• 21977 - CONTINENTAL RESOURCES, INC., FLORIDA 3-11H, SWNE 14-152N-100W, MCKENZIE CO., 1560' FNL and 1408' FEL, DEVELOPMENT, CAMP, 'Tight Hole',
• 21979 - CONTINENTAL RESOURCES, INC., ALPHA 3-14H, SWNE 14-152N-100W, MCKENZIE CO., 1560' FNL and 1363' FEL, DEVELOPMENT, CAMP, 'Tight Hole',
• 21980 - CONTINENTAL RESOURCES, INC., FLORIDA 1-11H, SWNE 14-152N-100W, MCKENZIE CO., 1560' FNL and 1318' FEL, DEVELOPMENT, CAMP, 'Tight Hole', 21981 - CONTINENTAL RESOURCES, INC., ALPHA 1-14H, SENE 14-152N-100W, MCKENZIE CO., 1560' FNL and 1273' FEL, DEVELOPMENT, CAMP, 'Tight Hole',
• 21982 - CONTINENTAL RESOURCES, INC., FLORIDA 2-11H, SENE 14-152N-100W, MCKENZIE CO., 1560' FNL and 1228' FEL, DEVELOPMENT, CAMP, 'Tight Hole',
• 21983 - CONTINENTAL RESOURCES, INC., ALPHA 2-14H, SENE 14-152N-100W, MCKENZIE CO., 1560' FNL and 1183' FEL, DEVELOPMENT, CAMP, 'Tight Hole'

So, maybe next year when I return to the Bakken, I can drive down a few miles from Williston and see six flares on one pad. Exciting.

Fifteen (15) New Permits -- The Bakken, North Dakota, USA

Daily activity report, November 30, 2011 --

Operators: CLR (6), Whiting (3), Chesapeake (3), SM, Fidelity, Hunt

Fields: Camp, Parshall, New Hradec, Croff, Sanish.

Chesapeake has permits for three wildcats, all in Stark County.

It appears CLR has permits for six wells on one pad.

And not any surprise, Whiting has three permits for wells in their cash cow, the Sanish. It looks like these three wells will be filling in sections 8/18 in 154-91, but hard to say for sure. In this immediate area are the following five long horizontal wells:

• 18082, 858, Whiting, Carkuff 11-12H, s6/09; t8/09; 130K 10/11
• 18085, 1,370, Whiting, Jones 11-8H, s8/09; t10/09; 164K 10/11
• 19069, 2,320, Whiting, Strobeck 12-12H, s7/10; t10/10; 161K 10/11
• 19259, 2,746, Whiting, Jones 12-8H, s8/10; t10/10; 139K 10/11
• 19355, 3,159, Whiting, Sikes State 43-16H, s9/10; t1/11; 127K 10/11

Reported elsewhere, three wells came off the confidential list; two were completed. Fidelity reported a nice well:

• 20514, 1,145, Fidelity, Clifford 14-24H-5, Bakken, Mountrail County

Of five (5) wells on DRL status, all were Bakken and none were exciting. In fact the IPs were worrisome, but there may be explanations. The IPs were 353, 19, 60, 44, and 50 -- not good using just that single data point. But there may be more to follow. Respectively they were OXY USA, OXY USA, OXY USA, Prima Exploration, and OXY USA wells, all in Burke and Dunn counties.

The Hypocrisy Amazes Me -- BLM Fast Tracks Proven Golden Eagle / Whooping Crane Killers; Holds Up Any Project That Might Threaten A Sage Grouse; Oil Company Fined for Killing a Single Sandplover During Worse Spring Flood In Decades

The hypocrisy amazes me.

BLM fast-tracks proven golden eagle and whooping crane killers, but will hold up any project that threatens a sage grouse.

The U.S. Bureau of Land Management says it will fast-track three Wyoming wind energy projects in 2012, although representatives from the BLM’s state office say the projects were already considered priorities.

The BLM named the Sand Hills Ranch, Chokecherry/Sierra Madre and White Mountain projects among 17 renewable energy priority projects in four states due to receive increased focus next year.

The BLM’s 2012 priority list also includes solar, wind and hydropower projects in Arizona, Nevada and California.

The 1,000-turbine Chokecherry and Sierra Madre Wind Energy Project is proposed by Denver-based Anschutz Corp. subsidiary Power Co. of Wyoming for south of Rawlins. It is the largest wind farm on the BLM’s list.

Two words: Sierra Club.

Kiewit -- Buffett -- The Bakken -- Home Construction -- The Bakken, North Dakota, USA

Some dots to connect; random data points.

Kiewit Instructure Group is doing the earthwork of some of the residential subdivisions in Williston, including the largest subdivision, Harvest Hills, northwest of Williston; Kiewit is linked in with Granite Peak and Knife River (MDU subsidiary) on the projects (Granite Peak subdivision, Timbers subdivision, and Harvest Hills subdivision).

I was told by one of the construction foremen in Williston that Warren Buffett "owns" at least one of the construction companies building the houses which are brought to Williston, pre-assembled elsewhere, and then placed on basement foundations; the garages are built on site.

Today it is announced that Warren Buffett will be buying the Omaha World-Herald Company, publisher of Nebraska’s principal daily newspaper, The World-Herald, as well as six other daily papers.

In a statement, Mr. Kroeger said that Mr. Buffett’s offer to purchase the company “presented a unique opportunity to address our long-term capital needs and continue local ownership of the Omaha World-Herald, which is consistent with the legacy left to us by Mr. Kiewit.” Peter Kiewit, the owner of an Omaha-based construction and mining company, purchased the paper in 1962.

After Mr. Kiewit’s death in 1979, 80 percent of the paper became owned by employee shareholders and 20 percent by the Peter Kiewit Foundation. 

Warren Buffett, of course, owns the Burlington Northern Santa Fe railroad, which is the primary (only?) railroad serving the Bakken boom.

Cramer's Energy Picks -- Seeking Alpha.com

Link here.

• EOG: "one of the single ways to play the many large oil discoveries in the US." But wait for a pullback.
• CHK: "could trade around $40 (currently $23) in the next couple of years, but that would most likely depend on stronger natural gas prices and lower unemployment." Well, duh.
• ETP: strong dividend payout; yields over 8 percent; the company is about to sell the propane division which could be a positive move for the stock
• COP: solid yield, company will buy back shares, and plans for a stock split
• KMP: strong dividend yield of over 6 percent and a stable revenue source keeps this stock from large sell-offs
• ESV:  strong dividend with a yield of 3%; trades for 8 times 2012 earnings
• APA: growth potential attractive

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I was not impressed with this article. It looks like a grab bag of energy companies with an overweight in natural gas. The reason the writer suggested Cramer liked many of these is because Cramer thought the share price would appreciate. Okay.