EOG Fire And Some Impressive Production Figures

Apparently a fire injured seven men during completion activities on the EOG Zacker 1-24H location in Parshall Field, Mountrail County.
http://www.bismarcktribune.com/articles/2007/05/30/news/update/doc465da59a7132e853373647.txt

In other EOG news, their Patten 1-02H well, sec. 2, T152, R90, Mountrail Co., produced 13,500 bbls during the month of March. The company's Warberg 14-33H produced 10,664 bbls during the same month.

Ansbro had some serendipitous success in finding good Madision production in Willmen Field, Dunn Co., after finding encouraging shows during their Bakken drilling program in the area. Their Griggs 1-9, NW 1/4 sec 9, T142, R97, produced 8,600 bbls during March from the Madison. One of Ansbro's rigs has been dedicated to drilling Madison wells recently, and the company is currently drilling a Madison well to the west in Hungary Man Butte Field in Billings Co. The company has about a half dozen Madison wells staked in the area.

Marathon has added a third rig to their Bakken program. The company is drilling at the Nelson 14-33H, sec. 33, T155, R94 in Mountrail Co utilizing Patterson rig 183. Their two other rigs are drilling in the Bailey Field area of Dunn Co.

Encore/Kerr McKee Finds Good Well, Dunn Co.

Encore Operating, which recently purchased the Anadarko/Kerr McGee Williston Basin holdings, has completed a good Bakken well in Murphy Creek Field SW of Killdeer in Dunn Co. The Kulish 24-2H, sec. 2, T144, R96, was completed flowing just shy of 500 bbls/day on a 7/32 choke. The well has produced almost 10K bbls after two months of production. This well is a north offset to the company's other Kulish well in the section to the south (see map from 3/20/07 below). The company has also recently drilled a SW offset in sec. 11 and is currently finishing drilling another offset to the west in sec. 3. Marathon has three wells staked in the six sections to the west of these wells.

Kerr McGee has been using a dual lateral configuration on 640 acre spacing in the area, which is different from the usual configuration of one two mile long lateral extending over two sections. Encore may be considering switching to single lateral wells as the company stated that it has identified ways to reduce well costs, and single laterals may be the result, although nobody can argue based on the results of the latest Kulish well that their current configuration doesn't work.

This area is interesting geologically in that it is near the Heart River Fault, which is one of the major structural features in the basin. This same fault is thought to be the trap for the prolific Winnipeg gas wells discovered by Gulf in the Richardton and Taylor area in the 80's. Regarding the Bakken, major faults are considered very beneficial for fracture development since it is thought that they serve as a conduit for fluids to migrate and dissolve the salts and possibly some carbonates underlying the Bakken. This would then have led to overlying formations, including the Bakken, to have settled and created fractures. Where some settling occurred before or during the period when the Bakken was deposited, the Bakken formation would be thicker in such an area, since there would be a "low spot" that accumulated more sediment. It appears that an area like this is the adjoining township to the west in T144, R97, where geologists have mapped an anomalously thick middle Bakken section. As of yet, no Bakken wells have been permitted in that township.

An indication of the productive ability of the fracturing in the area occurred in 1981 when Adobe drilled the Federal-Killdeer in sec 4, T144, R96. When drilling through the lower Lodgepole, the formation immediately above the Bakken, the bit hit an apparent fracture and a gas kick almost caused a blowout. The well was brought under control and the hole was cased, but production tests proved negligible and the well was abandoned.

EOG Continues Its Massive Success At Parshall Field

EOG hit another monster producer in its Parshall Field in Mountrail County. The company completed its Warberg 1-25H, sec. 25, T153, R90, in January for 1,553 bbls/day and 816 MCF/day from the Bakken. This well is a north offset to its previously completed Parshall 1-36H and Bartelson 1-3H wells. EOG currently has three rigs dedicated to its drilling program in the area.

Encore Operating Planning New Development

Encore Operating, which recently closed on its deal to purchase the Anadarko/Kerr McGee Williston Basin holdings, is attempting to increase its holdings in the Bakken Play. The company states that it believes it can reduce its well costs from $5.1 to $4.5 million per well. The company is currently drilling a well in Murphy Creek Field SW of Killdeer in Dunn Co. That rig is expected to move to central Billings Co. for its next hole.

Marathon Bringing In The Rigs

After stating that they would bring five new build rigs into the Bakken play, Marathon has recently moved in two, Helmerich & Payne 255 and 256. Both these rigs are drilling in Bailey Field NE of Killdeer in Dunn Co.

In related news, the company's Stohler well in the same field, sec. 3, T146-R94, was likely the best producing Bakken well in the state during March. The well produced 15,200 bbls in 31 days and has a cumulative production of just over 30K bbls since beginning of production in Dec. of last year. The company has also requested spacing for a number of drilling units in the township immediately to the east of this area.