Chesapeake "Optimistic" About The Utica

This is about the Utica, not the Bakken, but somehow a couple of us got into a discussion about the merits of Chesapeake and the Utica vs Chesapeake and the Bakken.

Rigzone has an update with regard to Chesapeake and the company's "thoughts" about the Utica.

Some data points:

• Recoverable oil in the Bakken, USGS: 3 - 4 billion bbls; CLR/CEO says as much as 24 billion
• Recoverable oil in the Utica: 1.3 to 5.5 billion
• Chesapeake: number of rigs in North Dakota -- 1 active one today, I believe (if I'm wrong, someone will tell me)
• Chesapeake plans to have 20 rigs in Ohio by the end of the year (2012)
• Currently, Chesapeake has five Utica shale wells (operated by subsidiary Chesapeake Appalachia): these five produced 45,513 bbls of oil and 2.5 million cubic feet of gas in 2011 (an "average" Bakken well should be able to produce 50,000 bbls in first six months; just a rule of thumb for me; others will have their own "rule of thumb")

I don't have a dog in this fight one way or the other. I just wish all good luck whatever their endeavors in the oil patch.

Economart and Coborn's (St Cloud, Minnesota) Partner

Link here to the Williston Herald.

Wind Power: No Wind, No Electricity

Link here to the Las Vegas Sun.

In a startling example, the city of Reno’s wind turbines — for which the city received more than $150,000 in rate-payer funded rebates — produced dramatically less electricity than the manufacturers of its turbines promised.

As first reported by the Reno Gazette-Journal, one turbine that cost the city $21,000 to install saved the city $4 on its energy bill. Overall, $416,000 worth of turbines have netted the city $2,800 in energy savings.

Not all of the city’s turbines performed so poorly. But on average, the small wind turbines installed statewide through NV Energy’s program have yielded disappointing results.

And so it goes.

Lesson learned, as noted in the article:

“A generator can claim to put out 100 kilowatt hours, but that’s based on an assumption that there’s a certain amount of wind. If you don’t have the wind, you won’t have the output.”

Don't even get me started.

GMXR Reports a Nice Bakken Well -- North Daota, USA

Link to press release:

GMXR today announces that the Company has successfully drilled and completed its fourth operated horizontal Bakken well, the Lange 11-30-1H, 89% working interest, located in Sections 30-31 T147N-R 99W in McKenzie County, North Dakota. The Lange 11-30-1H was drilled to a measured depth of 20,519' with a lateral length of 9,348'. It was completed as a 32 stage frac Middle Bakken producer achieving a peak rate of 2,549 boepd @1,500 psi flowing casing pressure.

This well is pretty far south in McKenzie County, a fairly inactive area; the well was a wildcat. 

Six (6) New Permits -- The Williston Basin, North Dakota, USA

Daily activity report, April 3, 2012 --

Operators: SM Energy, EOG, Silver Oak Energy, and American Eagle

Fields: Colgan (Divide), Charlson (McKenzie), Cedar Hills (Slope), Parshall (Mountrail)

After just posting a fairly long note regarding American Eagle yesterday, it is with some pleasure to see another American Eagle permit.

Four wells were released from "tight hole" status; two were completed/fracked, including:

• 21084, 1,497, Denbury, Satter 24-35SEH, McKenzie

Seven wells on DRL status reported IPs, including:

• 16882, 59, Denbury, TRMU 13X-22H, Billings, a Madison well
• 19981, 1,003, Zavanna, Gust 2-11 1H, Williams