Lease Sales -- Apparently No ND Quarterly Lease Sale In May, 2020

Link here.

A Peregrine Petroleum Partners Larson Well In Covered Bridge Oil Field; Outside Of Tier 1 -- June 29, 2020

The well:

• 36558, 301, Peregrine Petroleum Partners, LTD, Larson 15-10 1H, Covered Bridge, t9/19; cum 111K 4/20;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	4-2020	0	0	0	0	0	0	0
BAKKEN	3-2020	7	2697	4028	2906	7494	5081	2413
BAKKEN	2-2020	29	14699	13951	16179	36012	23472	12540
BAKKEN	1-2020	30	17245	17158	16639	28774	24179	4595
BAKKEN	12-2019	28	17232	19188	20222	18272	5911	12361
BAKKEN	11-2019	30	23707	22967	27524	38872	0	38872
BAKKEN	10-2019	31	21599	21938	32451	37048	0	37048
BAKKEN	9-2019	16	13374	11116	26329	21898	0	21898

The graphic:

From the file report:

• December 3, 2019: switched over from flowing to ESP pump. 
• August 18, 2019: stimulated; 25 stages; 4.98 million lbs proppant;
• 30 miles south of Arnegard, ND, southern McKenzie County
• a single middle Bakken lateral;
• spud July 22, 2018
• vertical hole completed with three assemblies
• about 64 hours down time
• KOP reached on August 2, 2019 
• completed with one assembly
• curve successfully landed at 11,048; MD and 10,520' TVD, appox 10' below the upper Bakken shale on August 2, 2019
• lateral completed using four assemblies
• during the second trip, the lower Bakken shale was contacted at a depth of 17,128'. Since the lower Bakken shale is relatively thin in this portion of the Basin, the directional team was able to safely slide out of the shale; no adverse effects noted;
• third and fourth trips unremarkable
• gases: middle Bakken, ranged from 5,900 (sic) to 1300 units while several shows exceeded 700 units (sic)
• trips were accompanied by 15' to 30' bright orange flares
• background gas in the lateral ranged fro 300 to 5500 units;
• ideal drilling zone was 8' thick, beginning 8.5' into the middle Bakken and ending 4.5' above the lower Bakken shale
• the lateral was drilled in 7.5 days from casing exit to total depth
• surface casing to TD; 23 days
• 84% of the lateral was within target; opening 9,960' of potentially productive reservoir rock

At the sidebar at the right, click on "heat map of the Bakken":
area 8: west McKenzie; does not appear to be Tier 1; maybe not even Tier 2.

This "Covered Wagon" well took awhile to drill but not out of the ordinary

• note the "small" frack: 25 stages; 5 million lbs proppant
• big flares; moderate background gas

Two other wells in immediate area of interest:

• 27970: an older well; "dry" for all intents and purposes
• 32701, 443, Peregrine Petroleum Partners, Burlington Fee 9-16-1H, Hay Draw, t7/18; cum 192K 4/20; off line 4/20; stimulated July 16, 2018, 25 stages; 4.87 million lbs;  

My two cents worth: there's a lot of work left to be done in the Bakken; at the right price, this area could be Tier 1, and with improved completion strategies, more experience, and even at these prices, this area might be a pretty good area -- which, if accurate -- speaks volumes about the Bakken.

Updating Some 1Q20 Wells That Came Off Confidential List But Reported No Production At The Time, Part 2 -- June 28, 2029

These are wells that were released from the confidential list during the 1Q20 but did not report production or an IP at the time they came off the confidential list. Tonight --the second consecutive night that I am doing this -- I'm running through the list and will post those that have not previously been posted. [Note: I have only gotten through a small part of the list; I may or may not complete this exercise later.] 

These wells are simply incredible. 

The wells:

• 34826, drl, Hess, HA-Nelson A-152-95-3427-9, Hawkeye, t--; cum 70K 4/20;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2020	31	25670	25615	11993	0	0	0
BAKKEN	4-2020	30	26953	27019	12291	45494	41793	3701
BAKKEN	3-2020	18	17509	17298	8300	31900	13813	18087

• 36200, drl/A, WPX, Pheasant 33-28HZ, Spotted Horn, t--; cum 145K 4/20;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	4-2020	30	27367	27585	14300	33716	21455	8870
BAKKEN	3-2020	31	43650	43493	25483	56026	50877	0
BAKKEN	2-2020	29	42783	42801	29237	53852	48820	0
BAKKEN	1-2020	19	31363	31156	30664	38691	24951	9922
BAKKEN	12-2019	0	0	0	0	0	0	0

• 36397, SI/NC, Rimrock, Two Shields Butte 4-24-11-1HU, Mandaree, t--; cum 120K 4/20;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2020	1	487	0	577	711	702	9
BAKKEN	4-2020	30	21773	21584	27219	19389	18130	1259
BAKKEN	3-2020	31	31677	31735	24821	27496	25456	2040
BAKKEN	2-2020	28	25044	24802	22234	19610	19207	403
BAKKEN	1-2020	31	38840	38922	39084	28265	14222	14043
BAKKEN	12-2019	31	2405	1910	3133	1310	0	1310

• 36199, drl/A, WPX, Pheasant 33-28HD, Spotted Horn, t--; cum 150K 4/20;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	4-2020	30	27643	27815	10548	34056	18164	12474
BAKKEN	3-2020	31	40033	40100	13422	51705	46944	0
BAKKEN	2-2020	29	47395	47172	20750	58392	40502	12368
BAKKEN	1-2020	19	34900	34751	21761	43034	29156	9686
BAKKEN	12-2019	0	0	0	0	0	0	0

• 36272, drl, WPX, Pheasant 33-28HTL, Spotted Horn, t--; cum 119K 4/20;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	4-2020	30	22517	22675	12793	27741	1995	22873
BAKKEN	3-2020	31	32337	32191	20856	39840	34339	1562
BAKKEN	2-2020	29	36252	36221	25300	50226	45893	0
BAKKEN	1-2020	19	27762	27654	12773	34236	27648	3157
BAKKEN	12-2019	0	0	0	0	0	0	0

• 33155, SI/A, BR, Mathistad 7-8-35 MBH, Croff, t--; cum 34K after 30 days;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	4-2020	30	33840	33453	7532	54497	54359	0
BAKKEN	3-2020	28	867	867	15397	2207	51	2156

• 36288, drl/drl, Rimrock Two Shields Butte 3-24-12-3HA, Mandaree, t--; cum 80K 4/20;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2020	0	0	92	0	0	0	0
BAKKEN	4-2020	30	20950	20991	26704	20552	16467	1935
BAKKEN	3-2020	31	24112	24035	36697	22342	16935	3225
BAKKEN	2-2020	29	19430	19293	33295	17655	15262	843
BAKKEN	1-2020	22	15319	15037	38172	11004	4796	5719

• 36290, drl/drl, Rimrock, Two Shields Butte 3-24-12-2H, Mandaree, t--; cum 100K 4/20;

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	5-2020	0	0	93	0	0	0	0
BAKKEN	4-2020	30	21059	21189	22286	19936	15973	1877
BAKKEN	3-2020	31	28574	28493	29584	26755	20280	3862
BAKKEN	2-2020	28	23455	23442	32269	20470	17694	978
BAKKEN	1-2020	26	26787	26293	57625	20430	8905	10617

• 36463, drl/A, WPX, Mandaree Warrior 14-11HUL, Mandaree, t--; cum 87K 4/20; 55K month; 3/20 extrapolates to 63,630 bbls over 30 days:

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	4-2020	30	55147	55112	30865	61654	41365	14049
BAKKEN	3-2020	15	31815	31571	11290	35569	0	32165
BAKKEN	2-2020	0	0	0	0	0	0	0

A Good Day For Oil Bulls -- June 29, 2020

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

COP: for bedtime reading, later tonight -- a contributor over at SeekingAlpha writes about COP.

• oil continues to be slammed by the price war and COVID-19
• any big oil producer makes for a fine long-term investment
• however, ConocoPhillips is presently the best positioned
• Selling puts against it is a great way to generate income and potentially buy it at a value price
• a word search of the article: does not mention "Bakken"; huge oversight

WLL: a contributor at SeekingAlpha. 

Oil: had a good day for bulls --

• WTI: up 2.6%; trading just under $40 again
• OPEC basket: up 2.2%; trading well under $40, at $37.99, link here. 

Harold Hamm: with his most recent purchase, Harold Hamm now owns almost 80% of the total common CLR shares outstanding as of April 30, 2020

• in addition, IAW with SEC rules, he has announced he intends to acquire shares of CLR common stock "with certain timing, volume and price limitations"
• the trading plan was entered into on June 25, 2020
• some years ago, during a conference call, Harold Hamm was asked point blank, why didn't he take his company private
• it should be noted that a very, very successful Bakken operator, Slawson, is privately held; there are a few others, but probably not as well known
• market cap, for CLR: $5.92 billion but for this discussion, let's call it $6 billion
• 20% of $6 billion = $1.2 billion

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

Back to the Bakken

Active rigs:

$39.50	6/29/2020	06/29/2019	06/29/2018	06/29/2017	06/29/2016
Active Rigs	10	61	67	59	30

Three new permits, #37670 - #37672, inclusive --

• Operators: Whiting, Enerplus, Minnkota Power Coop
• Fields: Sanish (Mountrail); Squaw Creek (Dunn); and, wildcat, Oliver County
• Comments:
• Whiting has a new Lacey permit, SWNW 10-152-92, Sanish oil field;
• Enerplus has a Kudu permit in SWNE 3-148-94, Squaw Creek oil field;
• Minnkota Power has a J-ROC1 permit in section 4-141-83, Oliver County

Notes From All Over -- The Wall Street Edition -- June 29, 2020

The wall: US Supreme Court declines to hear border wall challenge. Story and links should be everywhere.

The Supreme Court is leaving in place a decision that rejected environmental groups’ challenge to sections of wall the Trump administration is building along the U.S. border with Mexico.

The high court on Monday declined to hear an appeal involving construction of 145 miles (233 kilometers) of steel-bollard walls along the border in Arizona, California, New Mexico and Texas.

The Center for Biological Diversity, the Animal Legal Defense Fund, Defenders of Wildlife, and the Southwest Environmental Center had challenged a federal law that allows the secretary of Homeland Security to waive any laws necessary to allow the quick construction of border fencing. The groups had argued that violates the Constitution’s separation of powers. But a lower court dismissed the case.

Focus on Fracking: has been posted, dated June 29, 2020 -- natural gas prices hit 25-year low; crude supplies and oil +  oil product supplies again at new all-time highs. Link here. 

Amazon: will pay one-half billion dollars in one-time bonus to front-line workers.  On that news, AMZN drops about a percent. Wow, talk about greedy Wall Street investors. Hey, share the wealth.

Boeing: gets FAA okay to start certification test flights of its 737 Max jet. Wow. So, let's see. Maybe by the end of the year we start seeing them fly again?

Facebook pummeled -- ZeroHedge: Facebook shares down 16.3% from last week's high; boycott widens. Coca-Cola halts social media advertising; the list grows. The market is surging today and FB is down about a percent. From IBD:

Facebook dipped 0.8% Monday, after plunging 8% Friday as Unilever joined a growing number of companies that say they will stop advertising on Facebook and Instagram as the "Stop Hate for Profit" boycott picks up steam. Over the weekend PepsiCo reportedly followed suit. 

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

APPL: stores closing? What stores closing? AAPL up over a percent today; back over $357/share.

IMUX: down 6%.

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

Cytokine Storm / Cytokine Release

For background, see wiki entry.

The Verge had a story on Decadron and Covid-19 back in March, 2020. The first textbook on Cytokine Storm Syndrome was published last November, 2019, before Covid-19 was even a glimmer in the eye of Wuhan biowarfare researchers.

With regard to Covid-19, the press is making a big deal out of something that's been known by physicians since at least the 1990s.

It makes sense that in certain patients a steroid would work, in this case dexamethasone, or Decadron, wiki entry.

When I was first introduced to Decadron, in the late 1970s / early 1980s I thought it was a miracle drug, just as penicillin was considered a miracle drug back in the day.

Decadron was first made in 1957 by Philip Showalter Hench, of Mayo Clinic fame, and was approved for medical use in 1961. Hench was one of three physician-researchers to be awarded the Nobel Prize for Physiology or Medicine in 1950 for the discovery of the hormone cortisone, and its application for the treatment of rheumatoid arthritis.

The bottom line for me: technology is speeding the spread of information for everyone, including physicians, and physicians practicing medicine, still an art, will tailor their treatment for each of their patients. But this is really, really cool -- physicians have another tool in their toolkit to fight corona virus.

By the way, learning that Dr Hench was from Mayo, as was one of the other two physicians awarded the 1950 Nobel Prize for Medicine, connected several dots for me. It's a long story and I won't go into now, and probably never will, but, again, the blog "forced" me to do a little "research" and in the process, I closed a few loops, connected a few dots.