Twelve (12) More QEP State Wells In Spotted Horn In One Drilling Unit -- March 13, 2015

The first QEP State well in this section was spaced on a single section:

• 17260, 471, QEP, State 4-36H, Spotted Horn, about 5 stages; 400K lbs proppant, t10/08; cum 233K 4/20;

The twelve new QEP State wells will be sited on the same lot, almost the very same location as that first QEP (Helis) State well. See first comment below -- these wells will be drilling a 2560-acre unit approved for 48 wells including all four benches of the Three Forks: 25/36-150-94 and 1/12-149-94.

The State wells, all in Spotted Horn:

• 30909, 1,036, QEP, State 7-36-1BH, running south, t3/16; cum 283K 4/20;
• 30908, 564, QEP, State 4-36-1TH, running south, t3/16; cum 152K 4/20;
• 30907, IA/648, QEP, State 8-36-1BH, running south, t3/16; cum 124K 9/19; off line 9/19;
• 30906, 1,110, QEP, State 4-36-1T2H, running south, t3/16; cum 166K 4/20;
• 30905, 2,385, QEP, State 9-36-1BH, running south, t3/16; cum 191K 4/20;
• 30904, 2.024, QEP, State 5-36-1TH, running south, t2/16; cum 168K 4/20;
• 30712, 817, QEP, State 5-25-24TH, running north, t2/16; cum 211K 4/20;
• 30711, 670, QEP, State 9-25-24BH, running north, t2/16; cum 249K 4/20;
• 30710, 139, QEP, State 4-25-24T2H, running north, t2/16; cum 94K 4/20;
• 30709, 991, QEP, State 8-25-24BH, running north, t2/16; cum 256K 4/20;
• 30708, 375, QEP, State 4-25-24TH, running north, t3/16; cum 157K 4/20;
• 30707, 595, QEP, State 7-25-24BH, running north, t3/16; cum 243K 4/20;

Federal Government Makes Money On Oil Trade -- March 13, 2015

FuelFix is reporting:

The Department of Energy is planning to buy up to 5 million barrels of oil to replenish the Strategic Petroleum Reserve after a test sale last year.

The planned purchase of sweet crude between June 1 and July 31 is required by federal laws forcing the Department of Energy to buy back petroleum products within one year, using the proceeds from a test sale.

In this case, the recent collapse in crude prices means the government is set to make money on the two transactions — effectively buying low now after selling high last year.

Pretty cool.

I was going to make a joke about "trapping wind in a bottle" so environmentalists could sell wind at "high" prices and buy wind at "low" prices, but it turns out they are already working on that. Bloomberg has the story from 2007.

Update On Halcon -- SeekingAlpha -- Richard Zeits

Over at SeekingAlpha, update on Halcon in the Eagle Ford, not the Bakken:

• Based on my (Richard Zeits) well-by-well aggregation analysis, Halcón’s January 2015 Eagle Ford production remained essentially in line with the average for Q4 2014 (slight decline).
• Wells that were added in the past six months are outperforming the average for the preceding wells.
• HK's Eagle Ford production may decline in 2015 as the drilling program is scaled down to one rig. 

Also:

Halcón Resources' January 2015 daily gross oil production in El Halcón (Eagle Ford) in East Texas declined 1% from the previous month (and ~3.5% from the average production volume for Q4 2014). Two new wells were turned to sales in January, compared to the average monthly new completion pace of 3.8 wells in the second half of 2014.

Disclaimer: this is not an investment site. Do make any investment, financial, or relationship decisions based on what you read here or what you think you may have read here even if what you think you read here was really, really cool. It probably wasn't. It was just my irrational exuberance. If this stuff is important to you, go to the source.

Let's Start Another Rumor: Statoil Eyes EOG -- March 13, 2015

Houston Business Journal is reporting:

Norway-based Statoil ASA may be pursuing a megadeal to acquire Houston-based EOG Resources Inc. 

Industry chatter online and off picked up in late February that Statoil was targeting EOG in a merger or acquisition that could exceed $50 billion — more than the $35 billion for which Houston-based Halliburton Co.  is buying Baker Hughes Inc. 

Analysts said the deal would make sense for Statoil, which is growing its Houston presence, and seeking to expand in U.S. shale, as EOG is the unofficial king of Texas shale. For EOG, though, it's more a matter of whether the company could be up for sale at all during the ongoing oil slump.

Active rigs in North Dakota:

	3/13/2015	03/13/2014	03/13/2013	03/13/2012	03/13/2011
Active Rigs	112	191	186	203	173

Nine (9) new permits --

• Operators: QEP (6), EOG (3)
• Fields: Spotted Horn (McKenzie), Parshall (Mountrail)
• Comments:

Permits renewal:

• CLR renewed fourteen (14) Jersey permits but I don't think it changes anything; I track the Jersey permits here
• Oasis renewed one permit, the Ellsberry Federal, in Williams County

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90-Day Flaring Rule 

The Dickinson Press is reporting that conversation groups want the 90-day flaring rule re-instated.

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Not Surprising

Through the grapevine: trucks not hauling much fracking sand from Minnesota, Wisconson. Still some moving by rail.

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Why Does This Not Surprise Me?

Chariots-On-Fire Back In The News

You just can't win. Chevy finally has a car that emits less CO2 but instead emits CO, a much more poisonous colorless, odorless, gas.

Zacks is reporting:

GM is recalling 64,000 Chevrolet Volt hybrid electric cars, per media reports. The automaker is issuing the recall due to the problem of carbon monoxide creation when the vehicle is not shut down by the driver. The company plans to update the software to solve this issue.

I guess that would be just about all the Volts ever sold. 

Correction: only model years 2011 to 2013.

Williston Wire -- March 13, 2015

Headlines only; it is easy to subscribe to the Williston Wire.

New study puts Williston's population at 31,143 for calendar year 2014. "Normal" / "healthy" growth rates are generally around 2% -- Williston's grew 20% from 2012 to 2014.

United Airlines began daily service from Williston to Houston, Texas, on August 19, 2015. United added its fifth daily departure to Denver; Delta added its fifth daily departure to Minneapolis/St Paul.

Architects reveal plans for new Tioga city hall.

Graduate student from the University of Pennsylvania - Philadelphia are studying Bakken growth: the students are visiting Minot, Williston, Dickinson and small communities in the area.