Wells Coming Off The Confidential List Friday; Statoil With Permits For Seven More Wells In One Section Just East Of Williston

Active rigs: 187

Coming off the confidential list:

• 21059, DRY, Petro-Hunt, State 150-104-3A-10-1HA, Nelson Bridge, no production data;

Today's daily activity report (May 23, 2013)

Ten (10) new permits --

• Operators: Oasis (4), Hess (4), CLR, Corinthian
  Fields: North Souris (Bottineau), Alger (Mountrail), Robinson Lake), Cherry Creek (McKenzie), Juno (Divide)
• Comments:

Wells coming off confidential list were reported earlier; see sidebar at the right.

From yesterday's daily activity report (May 22, 2013):

Statoil has permits for seven more wells to be sited in one section east of Williston. There are already two wells sited in that section and producing. The Lucy Hanson and Larsen wells will be sited in NENW 15-154-100. These wells impressed me enough the first time I saw them I posted a photograph of the original Lucy Hanson/Larsen wells.

• 20842, 2,743, BEXP, Larsen 3-10 2H, Catwalk, Bakken; s5/11; t7/11; F; cum 147K 3/13; on the same pad as 20013; runs north;
• 20013, 3,771, BEXP, Lucy Hanson 15-22 1H, Catwalk, Bakken, middle Bakken, it looks like it was a 36-stage frack; 1.3 million pounds sand; 2.7 million pounds ceramic. Lucy Hanson is about 3.5 miles east on 1804 out of Williston, and one mile north of the highway; s4/11; t8/11; cum 172K 3/13; runs south;

Grim Report For Canada's Oil And Gas Sector

This note is worthy of a stand-alone post. I posted it earlier with other links, but it needs to be highlighted. 

News from Canada -- for Canada -- does not look good (a PDF file -- you might get a dialog box asking you to link to another website; if you do, that's fine, no problem, but of no use either. I would just cancel that link.)

It's going to be a long haul for those in the oil and gas sector in the North (Canada) with the Conference Board of Canada predicting continued decline in the industry.

A four-and-a-half per cent decrease in the sector every year until 2025 is the grim forecast and the reason is a lack of wells moving into production in the foreseeable future.

And that begs the question, "why?"

I didn't have time to do the math, but from Don:

At an annual 4% decrease for 12 yrs: assume 100% at end of 2013, then with a 4% compounded  yearly decrease, one arrives at 61% at the end of 2025.

The word "grim" might be an understatement. 

Bakken Residence Suites Up For Sale: Owner Selling To Focus On Other Properties In The Bakken -- May 23, 2013

Property for sale in the Bakken.

This is a pretty big deal. I have no interest in this. I am simply providing the information.

Bakken Residence Suites is up for sale. The owner is selling in order to concentrate on other property in the Bakken. 

This property is located near Watford City, probably the most active area in the Bakken right now and literally in the sweets spots of the Bakken.

ONEOK has just announced that it will be building Garden Creek III in the Watford City area. My hunch is that the decision to sell this property was made before it was known that ONEOK would be building yet another natural gas processing plant in the area. It should also be noted that a huge North Dakota highway spending bill has been passed and most of the spending will be done in the oil patch.

The sale will be by auction. The auction is being held on July 17th. The auctioneer's website and phone number are www.Bakken.SheldonGood.com and 800-962-0930.

According to the owner:

The auction presents investors with the opportunity to acquire a high-end stabilized employee housing facility and future development land in the heart of the Bakken. The property generates substantial income, $2,453,957 NOI (2012) and $2,617,992 projected NOI (2013).

In addition to the revenue generated by Bakken Residence Suites, the auction provides an opportunity to acquire two different parcels. The first parcel is a total of 30+ acres, which includes: the employee housing facility on approximately 15-acres, a 5-acre commercial development site with highway 85 frontage and a 10.9-acre development site for additional employee housing. Parcel two is an additional contiguous 44-acres that will be available to the winning bidder for $968,000 ($22,000 per acre).

Fracking WITH Natural Gas

Oil & Gas Journal is reporting:

Cabot Oil & Gas Corp. said it is using natural gas from the Marcellus shale in Susquehanna County, Pa., to fracture wells via dual-fuel technology in a process that can displace as much as 70% of the diesel fuel traditionally used to operate hydraulic fracturing equipment.

The dual-fuel technology involves engines operating on a mixture of natural gas and diesel. The effort was a partnership with FTS International (FTSI) and Caterpillar Global Petroleum, Cabot said.

Benefits are said to include:

• Reduced air emissions for a cleaner environment, due to a reduction in diesel usage.
• Reduced truck traffic when field gas at or near the well site is used due to a reduction in the transportation of diesel fuel to site.
• Reduced costs, as natural gas can be a less expensive fuel option than diesel, providing potential cost savings for industry and consumers.

PetroBakken Renamed Lightstream Resources

Oil & Gas Journal reporting. PetroBakken renamed Lightstream Resources.

The company’s main interests are light-oil properties in the Bakken play of Saskatchewan and Cardium play of Alberta.

The company was spun off last year from Petrobank Energy Resources Ltd., of which it had been a 56%-owned subsidiary.