Wednesday, June 13, 2007

Hess Continues Aggressive Drilling Program; Helis Joins Play; Encore Steps Out In Murphy Creek Field

Hess continues to be the most active Bakken operator in the state with its five rig Bakken Drilling program in Williams and McKenzie counties on the Nesson Anticline. Part of the company's appeal here has to be that most of its wells are being drilled on sixty-year-old held by production leases with 1/8 royalty clauses. For those who may be unaware, Amerada Hess was the company who discovered oil in ND in 1951 on the Nesson Anticline.

New player Helis Oil & Gas from New Orleans has spudded a Bakken test just south of Blue Buttes Field on the Nesson Anticline in McKenzie County. The company is utilizing Nabors rig 558 at the Levang 3-22H in sec. 22, T.150, R.95.

Encore Operating has permitted its first Bakken well (it has been drilling on permits issued to its predecessor, Kerr-McGee) as a stepout to Murphy Creek Field in Dunn Co. just SW of Killdeer. The company received a permit for the Truchan 11X-33H, sec. 33, T.145, R.95. This planned test is in the adjoining section to the NE of the company's second Kulish well that was completed for almost 500 bbls/day (see 5/21 post).

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