Thursday, March 13, 2008

Austin 1-02H Production

The official completion info has been released on EOG's Austin discovery well in the "north" Parshall Field area. The IP was 781 bbls/day (mid Dec) and it has produced about 102K bbls for the period of Oct. to Jan.

The approved Parshall Field outline after incorporating the Austin 1-02H, and a now outdated projected decline curve for that well submitted last December.

20 comments:

Anonymous said...

Just curious, does BWPD mean water produced? If so it appears that these well have a fair amount of water associated with them.Particularly the EOG Risan

https://www.dmr.nd.gov/oilgas/daily/2008/dr031308.pdf

Is this normal? what effect does it have on the operational cost of the wells?

david said...

What I have heard is that if the water is clean they can recover it and potentially use it in their fracing operations. Fracing uses a lot of water and its been a problem to get a consistent supply.

But if the water is brackish (salty) which it can be, it must be disposed of in an environmentally safe manner, and the best method is probably to send it back down a dry oil well hole. That's a problem in a field if all the wells are producers.

I have been anxious to see exactly how all of this looks and works up close. The operators seem to take the large amounts of water in stride, and there are certainly not big pools of water beside the wells. I understand how the pumps work, but I am not that clear on exactly how all the water gets separated from the oil as easily as it does. (let's see, for starters the oil should be lighter than the water and thus be on top)

Ideally, when there are drilling, they try their best to not hit water veins in part because this could mean the lateral isn't going quite where it should be, but this is sometimes very difficult if not impossible to do, and the water veins are in close proximity to the oil bearing shale. This is tricky drilling work for sure.

Anonymous said...

Thank you David

I appreciate your input

Jim

Anonymous said...

ND Oil hits record price of over $100.00 per Barrel

Mar 15, 2008 - 04:06:25 CDT
By JAMES MacPHERSON
Associated Press Writer
North Dakota crude has climbed above $100 a barrel for the first time in history.

Lynn Helms, the director of the state Department of Mineral Resources, said prices for North Dakota sweet crude hit $100 a barrel on Tuesday, and $101.83 a barrel on Friday. The prices compared with $52.28 a year ago.

"It is a major oil boom, that's for sure," Helms said. "The activity is only being constrained by equipment and people - there would be more activity if we just had more people and more rigs."

The state's oil patch currently is short about 150 workers, he said.

There are 3,870 operating wells, compared with 3,648 a year ago. Sixty-one drill rigs are working the state's oil patch this week, the highest number since 1983, Helms said. Only 33 drill rigs were working at this time last year, he said.

Some 70 drill rigs are slated to be working within a few months, Helms said.

Light, sweet crude for April delivery fell 12 cents to settle at $110.21 on the Nymex Friday - it's first decline in a week. Earlier in the day, it had risen to within pennies of its latest trading record of $111, set Thursday.

Helms said prices for North Dakota crude generally lag about 10 percent behind because of the increased distance to market.

North Dakota's oil production hit 137,000 barrels a day in January, the latest figures available. Helms and other industry officials believe the state's record production of 148,500 barrels a day, set in 1984, will be surpassed this year.

Sixteen of the state's 53 counties are producing oil.

Anonymous said...

What kind of lease terms are being offered by the operators in Williams County, North Dakota? What's a typical primary term, signing bonus and royalty look like?

Anonymous said...

To anon. 5:33, depends on your acre location... give the land discript. and I could give you a good idea what you could do on it.

Anonymous said...

Scattered acreage...Townships 162 & 163 North Range 97 West in Divide County
Township 158 North Range 88-92 in Mountrail County
Townships 157-159 North Range 102 West in Williams County

Anonymous said...

to Anon. 12:48 most of the acres would be in the $75.00-$100.00 area, 1/6th royalty, 5 year term, except the Mountrail stuff. That could be 400.00 with a 3/16th.

Larry said...

Another EOG well is off confidential status today.

HERBERT 1-26H produced 32132 barrels in December 2007 and 26842 barrels in January 2008.

EOG operated wells that are off confidential status produced 242073
barrels in December 2007. There are several EOG wells still on confidential status that were producing in December 2007.

EOG had a good year in 2007.

In December 2006 EOG operated wells produced 28596 barrels.

In December 2007 EOG operated wells probably produced 310,000 barrels

Anonymous said...

How much should a oil company be paying the land owner for the oil well site?

david said...

EOG had been paying $6,000, but this number seems to have risen recently to $10,000, at least for some copanies--this on crop land not pasture. Plus maybe $10,000 more if and when the well goes into production.

Ken said...

Happy First Birthday, Bakken Shale Blog!!! Thanks, Teegue, for providing all of us this valuable resource.

Anonymous said...

From Kiplinger Letter:

By Jim Ostroff, Associate Editor, The Kiplinger Letter

March 17, 2008

A new black gold rush is under way, this time in North Dakota. The potential payoff is huge -- up to 100 billion barrels of oil. That’s twice the size of Alaska’s reserves and potentially enough to meet all U.S. oil needs for two decades.
Until now, the obstacles to production seemed overwhelming. The crude oil is locked away in rocks that are buried miles underground in the Bakken Play, a field that stretches into Montana and Saskatchewan, Canada.
But times have changed. High oil prices and new technology make it worth the effort. Computer analysis and remote sensing systems, plus smart drills that can probe horizontally or snake left and right, vastly improve the odds of locating new pools and putting them into production. And though oil is unlikely to remain priced at current stratospheric levels, prices won’t drop to much lower levels, which happened several times since the 1970s, and cause new exploration to dry up. Even if prices fell by half, many barrels of oil could still be produced -- profitably -- from the region.
An official government survey of the Bakken region's oil treasure trove is due out next month. The report is expected to play it very conservatively, because it will confine estimates to the amount of oil that likely can be produced profitably based on last year’s oil prices. It will also not take into account any further technological advances that might make it even easier to extract more oil.
"The Bakken is much like the enormous natural gas field that sat for many years under and around Dallas until people figured out the geology and how to drill it out economically," says Lucian Pugliaresi, president of the Energy Policy Research Foundation.
There's at least a smell of the "Old West" as petroleum companies rush to stake their claims in the Bakken Play. Marathon Oil recently acquired about 200,000 acres in the area and will drill about 300 oil wells within five years. Brigham Exploration and Crescent Point Energy Trust are also interested in some of the action. EOG Resources alone figures it can produce 80 million barrels of oil from its Bakken field.
Figure on at least five years before the oil starts flowing in large volumes. A lot of work will need to be done first. In addition to installing drilling gear, firms must build supporting infrastructure, including roads, pipelines as well as new water, sewage and sanitation systems to meet the needs of workers and other area residents.
Note that the Bakken Play region is not an environmentally sensitive area similar to Alaskan tundra that has stymied much oil field development because of concerns about damage to the fragile environment. Still, some environmental protests are sure to emerge and may gum up development for a while, but they’re unlikely to stop oil production from the Bakken fields

Teegue said...

Thanks Ken. That year sure went fast. Larry, David, Roy and others deserve much credit for keeping this thing going recently.

Regarding Kiplinger: some of that info seems several years old, but regardless, I'm waiting for just one of these articles to speak current day reality and mention that despite sky high estimates of all the oil in the ground, the combined projected EUR of all the current activity is only about a half a billion bbls. I guess that doesn't sound spectacular enough if you are tying to promote certain securities.

Larry said...

I note with much interest that EOG received a permit on March 18 for a well in Section 2 of Clearwater Township.

EOG has leased most of the lands in Northwest Clearwater Township, Northern Redmond Township and all of Crowfoot and Sidonia Township.

This permit indicates EOG will soon do a wildcat to determine if their leases are worthwhile.

As a mineral rights owner in this area, I wish EOG the best.

I also noted Hess spudded their well in Section 36 of Clearwater Township on March 18.

PS: Thanks for doing this blog.

Anonymous said...

We have oil rights interest in Williams County N.C. that has recently been leased for $100.00 per acre .

What are the chances of actual drilling taking place on this land ?

Anonymous said...

Whoops that should have been Williams County N.D.

Mark said...

I have 139 acres in Williams county T155N R100W Sect 20, 21 and 22. Does anyone know what would the market is for this area on an oil lease? Got a call out of the blue and have not received an offer yet just trying to figure out what it is worth. Thanks.

Anonymous said...

Recently received a lease offer for $150/acre 3yr term and 3/16% interest. Intend to counter for 1/4% and may try for $200/acre. Acreage is a little SW of Mark's in Williams County

Anonymous said...

Curious as to what 200 acres is worth in t28n r57e sections 27 28..
roosevelt county. what kind of lease terms could be offered to me.