Six New Permits -- August 23, 2016

Active rigs:

	8/23/2016	08/23/2015	08/23/2014	08/23/2013	08/23/2012
Active Rigs	31	76	192	182	190

Wells coming off the confidential list Wednesday: None.

Six new permits:

• Operators: Hess (4), Enerplus (2)
  Fields: Blue Buttes (McKenzie), Heart Butte (Dunn)
  Comments:

Wells coming off confidential status:

There were almost 30 wells that came off the confidential list. Other than the three reported earlier today, all the rest (excluding one SWD permit) were still listed as LOC. The state has given operators two years (instead of the usual one year) to spud/complete (I forget which) a well once a permit is granted.

Oasis renewed one permit, a Kapusta permit in Mountrail County.

Statoil canceled two permits, two Richard permits in McKenzie County. [Update: this was on the daily activity report, but was in fact wrong. These were two DUCs. Corrected report on the August 24, 2016, daily activity report.]

CLR: 2Q16 Presentation -- August 23, 2016

Technically, this is not the 2Q16 corporate presentation but it was a presentation for an investment conference based on 2Q16 data. At some point, this presentation will disappear from the CLR website.

BAKKEN

Net acreage: 985,000 net acres

Average EUR:

• 2015: 800,000 boe
• 2016: 900,000 boe

Enhanced CWC: $6.2 million

• Targeting $6.0 million by year-end 2016

DUCs

• Projecting 190 DUCs at year-end 2016
• average EUR: 850,000 boe
• $3.5 million incremental completion cost
• over 100% ROR for incremental completion cost for DUCs a $45 WTI and $2.50 gas

Enhanced completions (30-stage wells in Williams and McKenzie counties)

• 60% slickwater: 54 wells -- 100,000 boe at 180 days
• 45% hybrid: 72 wells -- 90,000 boe at 180 days
• Conventional completion in offsetting wells: 60,000 boe at 180 days

Takeaway

• It appears that even without the Dakota Access Pipeline, 85% of CLR Bakken bbls are shipped by pipeline

Costs

• $11.01 / bbl: production expense, cash G & A, tax, interest
• $15.35 / bbl: cash margin
• Total: $26.36 oil

Financial strength

• No near-term debt maturities; earliest is $500 million in 11/2018
• Average interest rate: 4.3%
• Current liquidity at $2.75 billion; ability to upsize to $4.0 billion

Goals

• $40 oil: pay down debt
• $50 oil: DUC completions
• $60 oil: add rigs

Breakeven for single wells in North American oil plays

• 30 NA plays listed (independent agency source)
• #1: SCOOP liquids ($35)
• #2: Bakken - 800,000 boe EUR ($40)
• #3:
• #4:
• #5:
• #6: STACK ($40)
• #7: SCOOP Springer ($40)
• #12: Bakken - 600,000 boe EUR ($50)  

CLR production expense and cash G&A

• Of 11 peers: CLR is #1 (lowest) in production cost, cash G&A
• "Select" peers include: EOG, OAS, WLL, WPX

OKLAHOMA

 
Oklahoma CLR net acreage:

• STACK Meramec/Osage: 183,000 net acres
• STACK Woodford: 168,000
• SCOOP Woodford: 413,000
• SCOOP Springer; 206,000 (EURs of 2 million boe)

CLR's Divestment Of 80,000 Net Acres In The Bakken -- Appears To Include Rainbow Oil Field -- August 23, 2016

It's pretty much impossible to tell exactly for sure, but it does appear that the Rainbow oil field is included in the $222 million sale of 80,000 non-core Bakken assets being sold by CLR. That question was asked by a reader a couple of days ago.

In the CLR presentation released today, slide 19 shows what areas were in the CLR sale. 

FAQ: How Much Oil Can One Reasonably Expect That A Bakken Well Will Produce Over The Lifetime Of That Well?

In shorthand, or in "oil jargon," one is asking what is the EUR of a typical Bakken well.

March 27, 2018: CLR presentation --

• 2011: 430 mboe
• 2014: 603 mboe
• 2015: 800 mboe
• 1H17: 980 mboe
• 2018: 1,100 mboe; payout period down to ten months

August 23, 2016: from the Whiting presentation at the Enercom Conference --

• Whiting's enhanced completions are tracking 900,000 boe EUR-type curves
• non-enhanced completions are tracking 700,000 boe EUR-type curves
• enhanced completions are defined as using over 5 million pounds of sand / well
• the 900,000 boe EUR-type curves are for enhanced wells drilled since January 1, 2015, with 200 days of production
• the data is from 48 enhanced wells across six counties: Billings, Dunn, McKenzie, Mountrail, Stark, and Williams

August 23, 2016: from CLR's corporate presentation released August 23, 2016 --

• 2015 average EUR: 800,000 boe EUR (normalized to 9,800-foot lateral)
• 2016 average EUR: 900,000 boe EUR(normalized to 9,800-foot lateral)
• enhanced: 30 stages
• 2016 DUCs: 850,000 boe EUR

Why Is This Not Surprising -- Vince Foster's Files Missing -- August 23, 2016

Reuters has this right: Saudi Arabia's "record production" is not about "flooding the market" in anticipation of "freeze" talks in September. This is all about seasonal, domestic consumption. Period. Dot.

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Humans Of New York

Perhaps the best "find" of the month. Humans of New York. 

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Vince Foster Goes Missing

From The [London] Daily Mail:

EXCLUSIVE:

• Missing: FBI files linking Hillary Clinton to the 'suicide' of White House counsel Vince Foster have vanished from the National Archives 
• Documents describing Hillary Clinton's role in the death of White House counsel Vince Foster have vanished, Daily Mail Online has learned after an extensive investigation 
• Foster is believed to have shot himself with a .38 caliber revolver at Fort Marcy Park along the Potomac River on July 20, 1993 
• Two former FBI agents involved in the investigation tell Daily Mail Online they issued reports linking Hillary's tirade to Foster's suicide 
•  Days before his death, then First Lady ridiculed him mercilessly in front of his peers, say former FBI agents and detailed it in their report 'You have failed us,' Hillary told Foster, former FBI Jim Clemente told Daily Mail Online 
• Archived material related to the case, housed at National Archives in College Park, MD, were examined by the author to no avail 
• After filing a Freedom of Information request, it was determined that the agents' reported have gone missing 

I'm sure Rush will talk about this today. I will miss it. I will be out biking.

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California's EV Program Running Out Of Gas

Link here at cleantechnica.com and LA Times.  I believe this story has been previously posted but it's currently trending in San Franscisco right now.