Number Of Active Rigs In North Dakota Drops Below 60 -- June 27, 2019

Active rigs;

$59.28	6/27/2019	06/27/2018	06/27/2017	06/27/2016	06/27/2015
Active Rigs	59	65	59	30	75

Three new permits:

• Operator: Kraken Operating
• Field: Lone Tree Lake (Williams)
• Comments: Kraken has permits for a 3-well Redfield South pad in lot 2 / section 4-156-99

Three permits renewed:

• Enerplus: an Aldabra, a Lodggerhead, and a Ridley permit, all three in McKenzie County

Four producing wells (DUCs) reported as completed:

• 35297, 3,224, WPX, Minot Grady 26-35HZ, Squaw Creek, t6/19; cum --;
• 35301, 2,864, WPX, Minot Grady 26-35HY, Squaw Creek, t6/19; cum --;
• 35457, 2,461, WPX, Minot Grady 26-35HWL, Squaw Creek, t6/19; cum --;
• 35296, 4,304, WPX, Minot Grady 26-35HF, Squaw Creek, t6/19; cum --;

Sophia In A Kayak -- June 27, 2019

On-shore training: thirty seconds.

Beach training -- thirty seconds. 

 Shallow water training -- thirty seconds.

On her own.

NDIC Hearing Dockets -- July, 2019

Link here.

Wednesday, July 24, 2019 -- Eight pages -- Highlights

• Mostly pooling cases
• 27700, MRO, Reunion Bay-Bakken, 1600-acre unit, E/2 of section 12-151-94 and sections 7/8-151-93; 8 wells; McKenzie, Mountrail counties
• 27701, MRO, Chimney Butte-Bakken, 1280-acre unit; sections 15/22-146-95, 9 wells; Dunn County
• 27704, Nine Point Energy, Eightmile-Bakken, 1600-acre unit; sections 10/11, and E/2 of section 9-152-103; 7 wells; McKenzie, Williams counties

Thursday, July 25, 2019 -- Eleven pages -- Highlights

• 27708, WPX, Moccasin Creek and/or Wolf Bay-Bakken, i) create a 2560-acre unit, sections 29/30/31/32-147-92, 17 wells; ii) created two overlapping 2560-acre units section 25/36-147-93; and, section 30/31-147-92; one well; Dunn County
• 27713, Kraken, Sanish-Bakken, i) create an overlapping 640-acre unit, one well; ii)  create an overlappng 1280-acre unit; 9 wells;  Mountrail County
• 27721, CLR, Elm Tree-Bakken, i) 18 wells on an existing 2560-acre unit, sections 4/9/16/21-153-94; ii) two wells on near the section line; McKenzie County
• 27728, Nine Point Energy, Williston-Bakken, 16 wells on an existing 2560-acre unit, sections 6/7-154-100; and, section 1/12-154-101; Williams County
• 27729, Kraken, Sanish-Bakken, i) 12 wells on an existing 640-acre unit, section 36-153-92; ii) 6 wells on an existing 1280-acre unit, sections 13/24-154-91; iii) twelve wells on an existing 1280-acre unit, sections 15/22-154-92; Mountrail County

Supplement to Thursday, July 25, 2019 -- seven cases -- Full Summary

• all seven cases, risk penalty legalese; PetroShale, 
• Bear Chase pad; Spotted Horn-Bakken (McKenzie County)
• Thunder Cloud; McGregory Buttes-Bakken (Dunn County)

*********************************

Full Summary

Wednesday, July 24, 2019 -- Eight pages

• 27663, Oasis, Banks and/or Twin Valley-Bakken, establish an overlapping 2560-acre unit; one well; McKenzie County
• 27664, Whiting, Dore and/or Nohly Lake-Bakken, establish three overlapping 2560-acre units; one well each; McKenzie
• 27665, Whiting, Glass Bluff-Bakken, establish an overlapping 2560-acre unit; one well; McKenzie
• 27666, Kraken Operating, pooling
• 27667, Kraken, pooling
• 27668, Kraken, pooling
• 27669, Kraken, pooling
• 27670, Kraken, pooling
• 27671, Kraken, pooling
• 27672, Oasis, pooling
• 27673, Oasis, pooling
• 27674, Whiting, pooling
• 27675, Whiting, pooling
• 27676, Whiting, pooling
• 27677, Whiting, pooling
• 27678, Whiting, pooling
• 27679, Whiting, pooling
• 27680, Whiting, pooling
• 27681, Whiting, pooling
• 27682, Whiting, pooling
• 27683, Whiting, pooling
• 27684, Whiting, pooling
• 27685, Whiting, pooling
• 27686, Whiting, pooling
• 27687, Whiting, pooling
• 27688, Whiting, pooling
• 27689, Whiting, pooling
• 27690, Whiting, pooling
• 27691, Whiting, pooling
• 27692, Whiting, pooling
• 27693, Whiting, pooling
• 27694, Whiting, pooling
• 27695, Whiting, pooling
• 27696, Whiting, pooling
• 27697, Whiting, pooling
• 27698, BR, commingling
• 27699, Petro-Hunt, pooling
• 27700, MRO, Reunion Bay-Bakken, 8 wells on a 1600-acre unit, E/2 of section 12-151-94 and sections 7/8-151-93, McKenzie, Mountrail
• 27701, MRO, Chimney Butte-Bakken, 9 wells on a 1280-acre unit, section 15/22-146-95, Dunn County
• 27702, MRO, commingling
• 27703, Hess, Cherry Creek-Bakken, 2 wells on an overlapping 2560-acre unit, McKenzie
• 27704, Nine Point Energy, Eightmile-Bakken, 7 wells on an existing 1600-acre unit; section 10/11and E/2 of section 9-152-103; McKenzie, Williams

Thursday, July 25, 2019 -- Eleven pages

• 27705, Slawson, temporary spacing for Condor well, #19742, SWSE 36-149-103; McKenzie
• 27706, Enerplus, Heart Butte-Bakken; establish an overlapping 2560-acre unit, one well; Dunn
• 27707, Wave Petroleum Operating, LLC, completing the Hudson 1-32 well, near section of section 32-138-100, Billings County
• 27708, WPX, Moccasin Creek and/or Wolf Bay-Bakken, i) create a 2560-acre unit, sections 29/30/31/32-147-92, 17 wells; ii) created two overlapping 2560-acre units section 25/36-147-93; and, section 30/31-147-92; one well; Dunn County
• 27709, Nine Point Energy, Squires-Bakken, establish an overlapping 2560-acre unit; one well; Williams County
• 27710. SHD Oil & Gas, Van Hook-Bakken; establish an overlapping 1920-acre unit; seven wells, McLean County;  
• 27711, SHD Oil & Gas, Van Hook-Bakken, establish i) an overlapping 640-acre unit; 3 wells; ii) an overlapping 960-acre unit, 3 wells; iii) an overlapping 1280-acre unit; one well; iv) an overlapping 1920-acre unit, one well; McLean and Dunn counties
• 27712, SHD Oil & Gas, Deep Water Creek Bay-Bakken, i) establish two 960-acre units, 5 ells on each; ii) one well between the two units; iii) establish two overlapping 1920-acre units; 3 wells on each; McLean and Dunn Counties
• 27713, Kraken, Sanish-Bakken, i) create an overlapping 640-acre unit, one well; ii)  create an overlappng 1280-acre unit; 9 wells;  Mountrail County
• 27714, CLR, Bounty School-Bakken, establish i) two overlapping 1920-acre units; 6 wells on each; ii) an overlapping 3840-acre unit, one well; Divide County
• 27715, CLR, Elm Tree-Bakken, establish a 640-acre unit, one well; McKenzie County
• 27716, CLR, Big Gulch-Bakken, establish an overlapping 2560-acre unit; two wells, Dunn County 
• 27717, CLR, Cedar Coulee-Bakken, establish an overlapping 2560-acre unit; two wells; Dunn
• 27718, Enerplus, revoke a RimRock permit; Dunn County
• 27719, CLR, amend order 19094 regarding pooling
• 27720, CLR, pooling
• 27721, CLR, Elm Tree-Bakken, i) 18 wells on an existing 2560-acre unit, sections 4/9/16/21-153-94; ii) two wells on near the section line; McKenzie County
• 27722, CLR, pooling, 
• 27723, CLR, pooling, 
• 27724, CLR, pooling, 
• 27725, CLR, pooling, 
• 27726, CLR, pooling, 
• 27727, CLR, St Demetrius-Bakken; 8 wells on an existing 1280-acre unit, Billings County
• 27728, Nine Point Energy, Williston-Bakken, 16 wells on an existing 2560-acre unit, sections 6/7-154-100; and, section 1/12-154-101; Williams County
• 27729, Kraken, Sanish-Bakken, i) 12 wells on an existing 640-acre unit, section 36-153-92; ii) 6 wells on an existing 1280-acre unit, sections 13/24-154-91; iii) twelve wells on an existing 1280-acre unit, sections 15/22-154-92; Mountrail County
• 27730, Ballantyne Oil, commingling
• 27731, EOG, commigling
• 27732, SWD
• 27733, SWD
• 27734, SWD
• 27735, SWD
• 27736, PetroShale, pooling
• 27737, PetroShale, risk penalty legalese
• 27738, PetroShale, pooling
• 27739, PetroShale, risk penalty legalese
• 27740, PetroShale, commingling

Notes From All Over -- Part 4 -- June 27, 2019

Jobless claims (link here):

• prior: 216K
• prior revised: 217K
• forecast: 218K
• actual: 227K

GDP (link here), 1Q19:

• real GDP
• forecast: 3.1%
• actual: 3.1%

Natural gas fill rate (link here):

Notes From All Over -- Part 3 -- June 27, 2019

From Bloomberg:

The U.S. will account for almost a quarter of global oil and gas production by the early 2030s as the shale boom keeps on booming, according to the head of Rystad Energy.

Output from shale including crude oil, condensate and natural gas liquids could climb to as high as 25 million barrels a day, Jarand Rystad, chief executive officer of the research and intelligence company, said in an interview in Kuala Lumpur. The U.S. will likely make up about 23% of global liquids production and pump 27% of the world’s gas by then, he said.

Part of the reason for the expected growth is that companies are getting better at hydraulic fracturing, the process of pumping a mixture of water and sand into a horizontal well to create millions of tiny cracks in the shale rock that allow oil and gas to flow to the surface. Frackers are using more sand, creating more cracks and boosting the productivity of each well, Rystad said.

And then this:

“It’s about sand, horsepower and water injection,” he said at the Asia Oil & Gas Conference. “Those three parameters are what’s driving activity levels, and those are three times higher today than they were back in 2014.”

Perhaps.

But I think there's more to it than sand, horsepower, and water injection.

Wow, wow, wow -- look at this, the parent-child interference issue or as I call it, the "halo effect."

Looking ahead, Rystad’s optimism is also based on a recent study he’s done on the so-called parent-child interference issue, a concern that drilling a new well too close to an older one will reduce pressure in the original and cut output. While the results were mixed, overall the study showed that companies can stack wells more densely, creating enough drilling locations to support 10 to 15 more years of output growth, he said.

So much more at the link.