Monday, March 3, 2008

February Scorecard For Mountrail Co.

Larry has provided his monthly update of activity in Mountrail County:

At month end there were 23 drilling rigs on location in Mountrail County. EOG 8 rigs; Hess 5 rigs; Whiting 4 rigs; Fidelity 2 rigs; Behm, Brigham, Hunt, Murex 1 rig each.

During February 17 wells were spudded. EOG 6; Hess 4; Whiting 3; Behm 1; Brigham 1; Hunt 1; and Murex 1.

During February NDIC issued 24 new permits to drill. EOG 4 permits in Wayzetta, Austin, and Burke Townships. Whiting 5 permits in Crane Creek, Van Hook, and Sikes Townships. Hess 7 permits in 154-94, Myrtle, Idaho, Clearwater, and Powers Lake Townships. Fidelity 5 permits in Brookbank, Cottonwood, and Powers Townships. Slawson 1 permit in Palermo; Murex 1 permit in Sikes; and Brigham 1 permit in Lostwood.

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"In the news" 2/13 post updated with article about record high oil prices in ND (thanks Roy).

17 comments:

Larry said...

Brigham has reported results on their Hallingstad well and updates on three other wells.

Hallingstad 27 1 flowing after frac @ early rate of
~ 450 Boepd up 4.5" casing

Bakke 23 #1H Bakken 93 % 76 % Producing ~ 310 Boepd on rod pump

Hynek 2 #1H Bakken 97 % 78 % Producing ~ 142 Boepd on rod pump

Bergstrom Bakken 56 % 43 % Producing ~ 119 Boepd on rod pump

Anonymous said...

Brigham list several wells that they are participating in as being drilled by the "Mountrail Co Consortium" Anyone know what companies make up this consortium?

David said...

The Brigham numbers are decent but they are not the barnburners that the EOG wells generally are.
The thought question for the day is:

Are the BEXP initial production numbers lower than for the EOG wells lower because a. BEXP wells tho close to EOG wells are outside the sweetest sweet spot that EOG happens have gotten really lucky to be drilling in or b. EOG knows something about completing these wells BEXP doesn't know or c. Some combination of a. and b.

My vote would be for c. but I leave you to ponder the question. Keep in mind that I have a little stock in both EOG and BEXP so I am not biased one way or the other :-) BEXP has been up in recent days tho by not as much as EOG. :-)

Anonymous said...

Since Brigham specifically mentions the system that appears to be new from Packers Plus On the Krejci well it makes you wonder if they have not been using it in the past.

Krejci Fed. Mowry 50 % 40 % Successfully drilled and swell
#1-32H packers installed, fracing
Mid-March, results early April

Larry said...

In EOG's Feb 28 presentation they had a chart showing EOG's greater success in Johnson County, TX relative to their competitors.

EOG had 30% of their wells exceed 3 MMcfd and 9% of their wells produce less than 1 MMcfd.

EOG's competitors only had 15% of their wells exceed 3MMcfd and 30% of their wells produce less than 1MMCFD.

See the chart on Page 5 of the presentation.

http://www.eogresources.com/media/slides/ac_intro0208.pdf

Whiting is currently going head to head with EOG with their well in Section 16 Austin Township. EOG has already drilled Section 9 and 15 Austin Township.

Hunt is drilling Section 17 Shell Township and EOG is drilling Section 20 Shell Township.

In six months we will have two examples to compare EOG to its competitors.

David said...

I'm trying to determine what Hunt plan is for Rod Frink's well on Section 17 153-89. The rig is in place and appears to be on the NE not NW corner of the section, as does the map. The lateral would have to run from the NW to the SE, opposite of all the other laterals in the field.
The Hunt land guy told me that they try to run their laterals more nearly N-S rather than the near 45 degree NW-SE direction EOG uses.

Meanwhile there are several sections in north Shell TWP over which EOG and Hunt appear to be squabbling over who gets to drill. Apparently these are some sections where EOG owns the lease on some of the quarters but Hunt has the leases on other quarters in the same 640 acre spacing.

Watch for a permit on Section 5 153-89 in the coming weeks and see if it shows up as a Hunt or as an EOG well. That well appears as an EOG well on the "current and future wells" map in the recent EOG presentation. Stay tuned. This is becoming wilder than the Barnes-Ewing feud on "Dallas".

Anonymous said...

I have an interesting possible conflict between continental and tracker. Check out cases 10007 and 10015. Pay special attention to section 18.

Larry said...

Wall Street was not impressed with BEXP's conference call this morning.

BEXP 12:24PM ET 6.75 -1.26 - 15.73%

The other drillers are down 5%.

David said...

Yes larry, I noticed that tho the stock had run up in anticipation and then came down as the management talked.

I am not quite sure what upset investors so much. The BEXP wells are decent but not EOG barnburners

Larry said...

GeoResources is the only North Dakota driller that is up today. Anyone know if they have found a gusher someplace? Seems strange for only one company to be in the plus column today when all the others are negative.


GEOI 2:44PM ET 11.73 +0.19 +1.65%

Anonymous said...

INFO.
Brigham at years end (2006) had less then 200 Shareholders.

I hope they will have good success.

QUESTION.
How much oil is being produced naturally (if any) underground in the Bakken?

Anonymous said...

Big concern in the conference call for Brigham seemed to be the fall in in production from the three Bakken wells from January to now.

Hynek 585BBL to 142, Bakke 380 bbl to 310, Bergstrom 202 to 119.

I got the feeling that this has taken some of the luster off of the Brigham Bakken acreage for the questioners

Larry said...

I agree in that Brigham seemed uncomfortable answering the questions from the analysts as to why the production had dropped so quickly.

I also noted in the transcript of the conference call that Brigham "now control over 240,000 net acres" and "Williston Basin, we expect to drill or participate in the drilling at least 17 gross wells or about six net wells".

Having control of 240,000 net acres means drilling 400 wells. One rig drilling 6 holes per year is not going to cut it.

Here is the transcript:
http://seekingalpha.com/article/67158-brigham-exploration-company-q4-2007-earnings-call-transcript?source=yahoo&page=-1

Anonymous said...

Brigham is going to have a great year,
just like the rest of them.
Don't Be Fooled !!!

Anonymous said...

I am hoping Brigham is a good investment. I have committed to them, unfortunately at $8.00 per share but I do not think it will take long to turn around.

In reading about the Bakken it appears it was common in the early days, ie 50s and 60s for the conventional wells to run out fairly quickly. Can anyone advise if what Brigham has seen on the fall off of two of their three wells is common on the current horizontal wells?

steve said...

What I've seen in Richland County MT is that usually there is a decline during the first 6 to 12 months of production and then a plateau thereafter. Some of the wells have produced from the Bakken since 2001/2002 and have stayed fairly steady after the initial decline. Some have been refracted also. Many of the wells there that intially had 3-500 bbls/day IPP settle in at 1-200 bbls/day within 18 months....But Richland County bakken is likely different than Mountrail, where the trends are just evolving...Anyway, in Richland County the vast majority of the 2001/2002 wells are still producing at a fairly steady rate (although at a rate much less than the IPP)....

dkwilk said...

Well the cost of all those leases on a potential of 400 wells and only 1 rig drilling this year, kinda indicated to me that they are interested in a bigger player to come in and assist them in the acreage.
If they drill 20 wells ayear it would still take then 20 years to complete, much less if they reduced to 32o spacing then it would double.
i will hang on to my shares and will even consider a few more as the take out price for this company is greater then the $8.00 it was the other day. JMHO