Whiting Plans Significant Three Forks Wildcats, NW Stark Co.

After recently receiving approval for establishing numerous drilling units in the area, Whiting Pet. has wasted little time announcing exploration plans targeting the Three Forks Formation ("TF") in NW Stark Co., near the town of Belfield. In the past week, Whiting has permitted two TF wildcats, one in a standup 1280 in secs. 13 & 24, T140, R99, about four miles NE of Belfield. Another test is apparently planned six miles directly west in the same township.

The second permit is in a laydown 1280 about a mile south of Belfield in secs. 8 & 9, T139, R99. This is the only laydown configured unit in the area, apparently established in this manner because the city of Belield lies in the two adjoining sections to the north. Both wells are configured with a NW/SE trending lateral.

These significant tests are about twenty miles SE of where Whiting has had good success in exploiting the TF in their Lewis and Clark Prospect in the limited number of wells drilled, of which the current projects appear to be an extension. This area is near the southern depositional edge of the Bakken shales, where the lower shale is virtually nonexistent and the upper shale is very thin. Whiting plans to set the lateral about 20 ft. below the top of the TF, and the top of the TF lies appx. 15 below the top of the upper Bakken Shale.

Though Continential and others had marginal success developing the Mid-Bakken in the area to the north in southern Billings Co. in the 2005-06 era, this area has largely been dormant since that time. The closest TF production is from the Whiting Lewis and Clark Prospect wells to the NW. As shown in the slide from Whiting's corp. presentation, the company plans to have three rigs running in the L&C prospect area by year end.

Given that Whiting has not requested tight hole status with the drilling permits, and will likely request such status later before the wells begin producing, it may be quite awhile before actual production info is released (assuming the company does not issue a press release soon after production is established -- assuming it is established). It probably goes without saying, but any Whiting success here has the potential to open a large untested area on the southern limit of the Bakken to extensive development in the TF where mid-Bakken potential appears highly speculative at best.

What In The World Has Anschutz Found?

9/24/09 UPDATE: Anschutz confirmed today at the NDIC hearing that this is mid-Bakken development, and that indeed they did not cross the section line and drilled only a 640 because of pressure (blowout) concerns. Thus, it looks like some type of local geologic anomaly at play here that greatly enhanced the fracture system, and possibly a "collapse feature" caused by the nearby fault.

That seems to be the question in the Cabernet Field area about seven miles west of Manning, Dunn Co. Up until now this field has been a four section Madison pool, which has in recent times been surrounded by the expanding Little Knife, Fayette, and Murphy Creek Bakken field boundaries.

Several weeks ago, Anschutz Expl. finished drilling its first well in this immediate area at the Stroh 11-1H, sec. 1, T143-R97. What is intriguing is the unconfirmed reports indicating that strong hydrocarbon shows encountered during the horizontal portion that prevented the company from drilling the last mile of the planned two-mile lateral, and that a 110 ft. flare was observed, most likely during a connection or a trip.

These observations seem to be confirmed somewhat by reports that it appears to be an excellent well after being frac'ed, and that a strong drilling flare exists at the company’s offset currently drilling to the east. This is uncharacteristic for this area. Therefore, the question is posed regarding what formation may have been targeted. Besides the Bakken, the Three Forks is a possibility, as potentially is the lower Lodgepole, given the well is about six miles south of Marathon’s Lodgepole discovery in sec. 35, T145-R96.

Nothing from nearby Bakken wells, including Marathon’s a few miles to the NE, or Anschutz’s own wells several miles to the SW indicate that a well in that zone here would have such high potential (absent some localized extreme natural fracture system). But it is unlikely that the company would try some unconventional formation other than the Bakken for it’s initial test in the area. The Lodgepole is a possibility, but seems just too far-fetched at this early stage in that game. A more likely scenario is that they went into the TF, which would indicate that the TF has much better reservoir properties here than the mid-Bakken. If so, it could have a much broader impact as the nearest TF well is about 20 miles to the north.

Anschutz has a number of wells permitted in this area along with about a dozen drilling or spacing units approved or planned. Burlington recently received approval for four 1280 units to the area immediate east and SE of Anschutz’s well. While most everything indicates that the Anschutz well is a mid-Bakken well, a number of things suggest it may not be. If I had to make a guess, I’d say it is in the TF (thereby all but ensuring that it will actually be in any formation but the TF). Time will tell.

Marathon Unlocks The Lower Lodgepole -- The Third Productive "Bakken Zone," Dunn Co.

I am content now that I didn't write about the Lodgepole/Bakken fracture system in North Murphy Creek Field here last year for nothing. As previously noted, this area has been of interest for almost 30 years since a wildcat almost blew out in this area when encountering the fracture system in the lower Lodgepole.

There have been rumors for the past few months that one of Marathon's wells southwest of Killdeer had targeted the lower Lodgepole, just above the upper Bakken Shale. This was confirmed recently when tighthole status ended for the Darwin 14-35H, sec. 35, T145N, R96W, Dunn Co., indicating that production was established with an IP of 160 bbls/day from a limestone porosity streak approx. 50 ft. above the mid-Bakken member. The well was drilled on 640 acre spacing with an approx. 5,500 ft lateral transecting the section from SW to NE. This is an open-hole completion without any type of fracture stimulation being employed.

Notably, this limestone section has good fracturing, porosity and permeability. I'll let the Sunburst Consulting geological report speak for itself regarding the oil shows while drilling:







And the pictures can speak for themselves also:


While the productive capability of this zone may well be confined to a localized area, it can't be overstated that this represents the third possible productive zone (in this area at least) in the "Bakken System," consisting of the mid-Bakken, Three Forks/Sanish, and now the lower Lodgepole formations. Equally notable is the excellent reservoir properties present here in this zone. This may result in some competitive top leasing for any remaining undrilled tracts left in the area, and results of future drilling in the Lodgepole should be interesting.

Larry's March Scorecard For Mountrail Co.

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

During March 22 wells were spudded. EOG 10; Hess 4; Whiting 2; Fidelity 1; Brigham 0; Hunt 1; Marathon 1; Murex 1; Slawson 1; Sinclair 1; St Mary 0; Oasis 0; and Windsor 0.

During March NDIC issued 15 new permits to drill. EOG 7 permits in Fertile, Burke, Liberty, Sidonia, and Ross Townships. Whiting 3 permits in Brookbank and Crane Creek Townships. Hess 1 permit in Idaho Township. Fidelity 0 permits. Marathon 0 permits. Slawson 1 permit in James Hill Township. Hunt 1 permit in Oakland Township. Murex 0 permits. KGX 2 permits in Liberty Township. Brigham 0 permits. Sinclair 0 permits. St Mary 0 permits. Windsor 0 permits. Lario 0 permits. Oasis 0 permits. Encore 0 permits. Cirque 0 permits. Duncan 0 permits. Stephens 0 permits. Windsor 0 permits.

The RMOJ's 2008 ND Recap

The Rocky Mountain Oil Journal has allowed re-publication of its excellent summary of the 2008 production statistics for ND:

North Dakota Breaks All Time Oil Production Record For 2008

Bakken Output Increases 269%

North Dakota’s produced more oil in 2008 than in any year since commercial production was established in the state in 1951. The state reported production of 62,776,123 bo, up an impressive 39% compared to the 45,121,983 bo extracted a year earlier. 2008 shatters the previous record, which was set in 1984, when the state produced 52,658,396 bo. It appears that North Dakota will be the top oil producer for the first time in the Rocky Mountain Region beating out Wyoming, who has perennially claimed that #1 spot.

This 17.65 mmbo increase compared to the previous year is attributed to the increased drilling and completion activities in the horizontal Bakken that was spurred on by record oil prices. In 2008, the Bakken produced 27,233,329 bo from 881 wells, an increase of 269% as opposed to the 7,382,025 bo from 457 wells that the state recorded in 2007. Mountrail County accounted for 59% of the Bakken produced in the state with the vast majority of it coming from Parshall and Sanish Fields. It’s interesting to point out that in 2008, total spuds for the year was 720, of which 517 of those were for the horizontal Bakken. With official data is still being compiled, according to the RMOJ’s database, Mountrail and Dunn County accounted for about 63% of the Bakken drilling in the state. Although an estimate, and factoring in 640 spacing vs. 1,280 spacing, total horizontal hole drilled (not including vertical) in these two counties for the year is in the neighborhood of around 485 miles.

In another first, the Bakken was the top oil producing formation in the state since 1951, accounting for 43% of the states total. In previous years, the Ordovician Red River was the top producing formation. Now in second place, the Red River produced 17,239,458 bo or about 27% of the states total in 2008.

The top producing company in 2008 continues to be Burlington Resources (BR), who reported production totals of 12,106,151 bo from 163 active wells. 92% of this production is coming from the Ordovician Red River, primarily from the Cedar Creek Anticline in Bowman County where the company is exploiting the horizontal Red River. BR is also active in the Bakken play where they produced just over a million barrels of oil from 33 wells. A year earlier, BR was credited with a yearly total of 12,690,287 bo.

The second largest producer in the state is EOG Resources (EOG), the current king of the Bakken. Jumping up six places from 2007, EOG extracted 8,613,534 bo, and increase of 493% or 7,160,745 bo compared to the 1,452,789 bo produced in 2007. All of EOG’s production is coming from the horizontal Bakken, primarily from Parshall Field in Mountrail County. Latest production figures for this field, which locates in the overall area of 151-155n, 89-91w; reveal that in December, this field yielded 1,398,352 bo from 108 active wells (including confidential wells). The majority of these wells are operated by EOG, which discovered this field in 2006.

Continental Resources (CR) dropped from 2^nd place to third place even though their production increased by over 26%. In 2008, CR produced 6,505,653 bo, an increase of 1,358,939 bo as opposed to the 5,146,714 bo produced in 2007. Like BR, 71% of CR’s production is coming from the Red River, while 25% of it is being produced from both the Bakken and to a lesser degree, the Three Forks.

Coming in at #4 is Hess Corp. (Hess). The company extracted 5,490,629 bo for the year, up 1,300,759 bo compared to 2007. For the first time since the company drilled the discovery well in the Williston Basin 58 years ago, Hess produced more oil from the Bakken than the Madison. 2,428,465 bo or 44% of the Hess production came from the Bakken with the remaining coming from the Madison, Devonian, Duperow, Heath, Ordovician, Red River, Sanish, Silurian, Spearfish/Charles, Stonewall, and Deadwood. The bulk of Hess’s production is still coming from Nesson Anticline in Williams and McKenzie counties as opposed to their horizontal Bakken activity in Mountrail, Mclean, Burke and Ward counties.

Remaining in fifth place is for the year is Whiting Oil and Gas (WOG). For 2008, WOG saw its production jump an impressive 69% to 3,895,134 bo compared to the 2,298,580 bo produced a year earlier. 53% or 2,072,973 bo of this total was from the horizontal Bakken, with the majority of it coming from the company’s operations at Sanish Field in Mountrail County.

A quick look at drilling statistics for the state in 2008 show that a total of 720 wells were spud for the year, up from the 407 that spud in 2007. Total permits applied for in 2008 was 946 an increase of about 92% compared to a year earlier. 85% of these permits were for the Bakken.

The following list ranks the top oil producers in the state of North Dakota for the year 2008. We have also included a list showing the top gas producers in the state however it should be noted that the vast majority of the gas produced within North Dakota is casing head gas produced in association with oil production. Also included is a 2008 list showing the rankings of those operators that produced Bakken oil only and a compilation of producing oil and gas formations within the state for the year. Please note that the company rankings for oil and gas and the Bakken do not include confidential wells, skimmed oil, drip gas or other liquids extracted during gas processing.

We would also like to thank the staff at the North Dakota Oil and Gas Commission for their patience in putting up with our somewhat picayunish questions and getting us the data that we asked for.

Below is the list of the 2008 top 30 oil producers in ND. The remaining top oil producers as well as lists of the 2008 top gas and Bakken producers in ND are available in the February 27, 2009, edition of The RMOJ.

Operator-2008-Oil	Oil (BBLS)	Gas (MCF)	Water (BBLS)	# Wells
1. BURLINGTON RES. OIL & GAS CO. LP	12106151	3526433	17743237	164
2. EOG RESOURCES, INC.	8613534	3670224	969659	66
3. CONTINENTAL RESOURCES, INC.	6505653	18827325	6365514	296
4. HESS CORP.	5490629	25116362	20663012	389
5. WHITING OIL AND GAS CORP.	3895134	5394685	9268943	244
6. ENCORE OPERATING, L.P.	3311878	5001679	26187592	300
7. MARATHON OIL CO.	2395410	901776	606949	80
8. ST MARY LAND & EXPLORATION CO.	1817305	2917923	6452989	257
9. PETRO-HUNT, L.L.C.	1557445	3133156	4313784	157
10. MUREX PETROLEUM CORP.	1129486	571471	873595	110
11. XTO ENERGY INC.	1047661	1470244	618282	83
12. ZENERGY, INC	937186	791865	3608014	96
13. BTA OIL PRODUCERS, LLC	746427	2390704	1733888	175
14. HUNT OIL CO.	634417	206460	174607	8
15. SLAWSON EXPLORATION CO. INC.	515647	124196	376038	25
16. SAGEBRUSH RESOURCES, LLC	515346	98596	3797665	103
17. CITATION OIL & GAS CORP.	503106	501832	6108233	115
18. FIDELITY EXPLORATION & PROD. CO.	496632	2057472	229472	77
19. LUFF EXPLORATION CO.	447171	191783	1139549	28
2O. EAGLE OPERATING, INC.	348914	299754	4370002	178
21. ZARGON OIL (ND) INC.	317825	10990	3626496	67
22. PRIMA EXPLORATION, INC.	301879	639027	573010	23
23. BRIGHAM OIL & GAS, L.P.	300969	222663	282518	12
24. TRUE OIL LLC	295902	1215392	144044	25
25. SAMSON RESOURCES CO.	289067	385844	248687	25
26. SUMMIT RESOURCES, INC.	288398	236805	2439499	37
27. CONOCOPHILLIPS CO.	270285	173845	1248060	5
28. ANSCHUTZ EXPLORATION CORP.	252384	117861	114462	23
29. WARD-WILLISTON CO.	235758	97111	1894419	131
30. WINDSOR ENERGY GROUP, L.L.C.	211142	80173	20565	2

Content courtesy and copyright The Rocky Mountain Oil Journal

Larry's February Scorecard For Mountrail Co.

At month end there were 26 drilling rigs on location in Mountrail County. EOG 10 rigs; Hess 5 rigs; Whiting 6 rigs; Fidelity, Slawson, Murex, Sinclair, and Marathon 1 rig each. .

During February 20 wells were spudded. EOG 8; Hess 5; Whiting 4; Fidelity 0; Brigham 0; Hunt 0; Marathon 1; Murex 1; Slawson 1; Sinclair 0; St Mary 0; Oasis 0; and Windsor 0.

During February NDIC issued 12 new permits to drill. EOG 4 permits in Austin, Cottonwood, Liberty, and Ross Townships. Whiting 0 permits. Hess 1 permit in Clearwater Township. Fidelity 0 permits. Windsor 0 permits. Slawson 0 permits. Hunt 1 permit in McAlmond Township. Murex 0 permits. Brigham 0 permits. Sinclair 1 permit in Rat Lake Township. St Mary 0 permits. Windsor 0 permits. Lario 0 permits. Oasis 0 permits. Encore 0 permits. Marathon 2 permits in Big Bend and 150-92 Townships. Cirque 0 permits. Duncan 0 permits. Stephens 3 permits in 150-92 Township.

Larry's January Scorecard For Mountrail Co.

At month end there were 30 drilling rigs on location in Mountrail County. EOG 10 rigs; Hess 4 rigs; Whiting 6 rigs; Fidelity 3 rigs; Slawson, Hunt, Murex, Oasis, Windsor, Sinclair, and Marathon 1 rig each.

During January 19 wells were spudded. EOG 9; Hess 0; Whiting 2; Fidelity 2; Brigham 0; Hunt 1; Marathon 1; Murex 0; Slawson 1; Sinclair 1; St Mary 0; Oasis 1; and Windsor 1.

During January NDIC issued 22 new permits to drill. EOG 9 permits in Burke, Parshall, Liberty, Model, Oakland, and Ross Townships. Whiting 6 permits in Knife River, 152-93, 153-93, Sikes, and Brookbank Township. Hess 5 permits in Myrtle, Manitou, Robinson. and Idaho Townships. Fidelity 0 permits. Windsor 1 permits in Osborn township. Slawson 0 permits. Hunt 0 permits. Murex 0 permits. Brigham 0 permits. Sinclair 0 permits. St Mary 0 permits. Windsor 0 permits. Lario 0 permits. Oasis 0 permits. Encore 0 permits. Marathon 1 permit in Big Bend Township. Cirque 0 permits. Duncan 0 permits.

Larry's December Scorecard For Mountrail Co.

At month end there were 29 drilling rigs on location in Mountrail County. EOG 8 rigs; Hess 6 rigs; Whiting 6 rigs; Fidelity 3 rigs; Slawson, Hunt , Brigham, Murex, Windsor, and Marathon 1 rig each. .

During December 22 wells were spudded. EOG 7; Hess 5; Whiting 4; Fidelity 2; Brigham 0; Hunt 1; Marathon 1; Murex 1; Slawson 1; Sinclair 0; St Mary 0; Oasis 0; and Windsor 0.

During December NDIC issued 35 new permits to drill. EOG 11 permits in Burke, Parshall, Cottonwood, Fertile, Model, and Van Hook Townships. Whiting 9 permits in Knife River, 153-3, Sikes, Van Hook, and Crane Creek Township. Hess 6 permits in Sorkness, Myrtle and White Earth Townships. Fidelity 3 permits in Brookbank and Purcell Townships. Windsor 2 permits in Howie and 153-93 townships. Slawson 0 permits. Hunt 0 permits. Murex 0 permits. Brigham 0 permits. Sinclair 2 permits in Rat Lake and Knife River Townships. St Mary 0 permits. Windsor 0 permits. Lario 1 permit in Clearwater Township. Oasis 0 permits. Encore 0 permits. Marathon 0 permits. Cirque 0 permits. Duncan 1 permit Clearwater Townships.

2008 was a busy year for the Mountrail County Bakken drillers. The number of wells drilled rose significantly over the past two years as shown in the table below.

EOG OTHERS TOTAL

2006 4 8 12

2007 30 27 57

2008 81 152 233

TOTAL 115 187 302

Larry's November Scorecard For Mountrail Co.

At month end there were 33 drilling rigs on location in Mountrail County. EOG 8 rigs; Hess 7 rigs; Whiting 4 rigs; Fidelity 3 rigs; Slawson 2 rigs, Hunt 2 rigs, Oasis 2 rigs, Brigham 2 rigs, Murex, Windsor, and Marathon 1 rig each. .

During November 25 wells were spudded. EOG 8; Hess 5; Whiting 4; Fidelity 2; Brigham 2; Hunt 1; Marathon 0; Murex 0; Slawson 1; Sinclair 0; St Mary 0; Oasis 1; and Windsor 1.

During November NDIC issued 26 new permits to drill. EOG 6 permits in Crowfoot, Burke, Ross, Cottonwood, Parshall, and Wayzetta Townships. Whiting 3 permits in Knife River and Crane Creek Township. Hess 6 permits in 154-94, Purcell, Ross, Myrtle and White Earth Townships. Fidelity 2 permit in Knife River and Purcell Township. Slawson 1 permit in Crane Creek Township. Hunt 2 permits in Oakland Township. Murex 1 permit in Sikes Township. Brigham 0 permits. Sinclair 0 permits. St Mary 0 permits. Windsor 0 permits. Lario 0 permits. Oasis 2 permits in Cottonwood and Sorkness Township. Encore 0 permits. Marathon 0 permits. Cirque 0 permits. Duncan 3 permits in Clearwater, Sidonia, and James Hill Townships.

Larry's October Scorecard For Mountrail Co.

At month end there were 29 drilling rigs on location in Mountrail County. EOG 8 rigs; Hess 5 rigs; Whiting 3 rigs; Fidelity 3 rigs; Slawson 2 rigs, Hunt 2 rigs, Oasis 2 rigs, Murex, Windsor, Sinclair, and Marathon 1 rig each.

During October 25 wells were spudded. EOG 8; Hess 5; Whiting 0; Fidelity 3; Brigham 0; Hunt 2; Marathon 1; Murex 1; Slawson 2; Sinclair 1; St Mary 0; Oasis 2; and Windsor 0.

During October NDIC issued 21 new permits to drill. EOG 5 permits in Fertile, Burke, and Wayzetta Townships. Whiting 1 permit in Crane Creek Township. Hess 4 permits in Rat Lake, Idaho, Ross, and Powers Lake Townships. Fidelity 1 permit in Knife River Township. Slawson 0 permits. Hunt 2 permits in Oakland and Clearwater Townships. Murex 1 permit in Purcell Township. Brigham 1 permit in Alger Township. Sinclair 1 permit in Rat Lake Township. St Mary 0 permits. Windsor 1 permit in Osborn Township. Lario 0 permits. Oasis 1 permit in Sorkness Township. Encore 0 permits. Marathon 1 permit in Big Bend Township. Cirque 1 permit in Fertile Township. Duncan 1 permit in Idaho Township.

The Hammer Falls

It seems that some companies just don't want to pony up the big bucks for leases anymore.

Fort Worth Star-Telegram

Larry's September Scorecard For Mountrail Co.

At month end there were 28 drilling rigs on location in Mountrail County. EOG 8 rigs; Hess 4 rigs; Whiting 5 rigs; Fidelity 3 rigs; Slawson 2 rigs, Hunt 2 rigs, Murex, Windsor, Oasis, and Marathon 1 rig each. .

During September 20 wells were spudded. EOG 6; Hess 4; Whiting 3; Fidelity 1; Brigham 0; Hunt 1; Marathon 1; Murex 1; Slawson 1; Sinclair 0; St Mary 0; Oasis 1; and Windsor 1.

During September NDIC issued 29 new permits to drill. EOG 8 permits in Parshall, Austin, Van Hook, Burke, and Sidonia Townships. Whiting 5 permits in Crane Creek, Knife River, and Sikes Townships. Hess 4 permits in 153-93, Ross, James Hill, and Sorkness Townships. Fidelity 3 permits in Brookbank, Purcell, and Powers Townships. Slawson 3 permits in Parshall and James Hill Townships. Hunt 2 permits in Oakland Township. Murex 0 permits. Brigham 1 permit in Oakland Township. Sinclair 0 permits. St Mary 0 permits. Windsor 0 permits. Lario 0 permits. Oasis 3 permits in 153-93, 153-94, and Rat Lake Townships. Encore 0 permits. Marathon 0 permits.

TX Supreme Court Says No Actionable Trespass For Frac

As a followup to a previous post on July 15th, the Texas Supreme Court has held "that an oil and gas driller who follows regulations set aside by the Texas Railroad Commission is not liable for committing a trespass when the driller’s hydraulic frac from a legally located well accidentally reaches an adjoining tract of land."

The law of capture rules, and remedy for adjoining owner is to drill their own well.

Dallas Business Journal

Larry's August Scorecard For Mountrail Co.

At month end there were 28 drilling rigs on location in Mountrail County. EOG 7 rigs; Hess 4 rigs; Whiting 5 rigs; Fidelity 2 rigs; Slawson 2 rigs, Hunt 2 rigs, Brigham, Murex, Windsor, Sinclair, Oasis, and Marathon 1 rig each.

During August 22 wells were spudded. EOG 7; Hess 3; Whiting 3; Fidelity 2; Brigham 1; Hunt 2; Marathon 1; Murex 0; Slawson 2; Sinclair 1; St Mary 0; Oasis 0; and Windsor 0.

During August NDIC issued 29 new permits to drill. EOG 7 permits in Parshall, Austin, Wayzetta, Oakland, Ross, and Purcell Townships. Whiting 2 permits in Crane Creek and Osborn Townships. Hess 5 permits in Rat Lake, 154-94, Alger, and Powers Lake Townships. Fidelity 0 permits. Slawson 6 permits in Van Hook, Lostwood, and James Hill Townships. Hunt 0 permits. Murex 0 permits. Brigham 0 permits. Sinclair 1 permit in Burke Township. St Mary 0 permits. Windsor 1 permit in Wayzetta Township. Lario 1 permit in Burke Township. Oasis 2 permits in Ross and Cottonwood Townships. Encore 3 permits in Stave and Lowland Townships. Marathon 1 permit in Big Bend Township.

The UK Finds Killdeer

And they give us an article and a video.

Telegraph.co.uk

And for anyone who may still be unaware, there is a documentary currently in the editing stage pertaining to the Parshall/Stanley area by Couple 3 Films.

Couple3.com Trailer

EOG Milestones

The following was provided courtesy of Larry:

June was a milestone month for EOG on two fronts.

EOG operated wells in Mountrail County produced their 5 millionth barrel in June. From the first well that came on production in May 2006 through June 2008, EOG operated wells have produced 5,060,448 barrels.

EOG set another enviable milestone in June. Those 5 million barrels have generated a gross revenue of $485 million. After substracting 25% for taxes, royalties, and operating expenses, the EOG operated wells generated a net $363 million dollars.

Through June 2008 EOG has drilled 72 wells at an average cost of $5 million or $360 million for all the wells.

Thus, at the end of June EOG has paid off all its drilling costs on the wells drilled to date so all net revenue on those 72 wells goes directly to their bank account. By comparison the other drillers in Mountrail County have about $300 million in unrecovered drilling costs. It does make a difference when the sweet spot is under your lands.

EOG's Initial Austin Wells Improving

Larry put together an analysis of the production of the initial Austin wells:

EOG’s initial Bakken wells in Austin are beginning to look like the PetroHunt well in the Charlson field. Production keeps increasing.

	Austin 2-03H		AUSTIN 4-09H
	9/15/2007		10/19/2007
IP Date	11/10/2007		12/19/2007
Jun-08	29199		32605
May-08	31854		30861
Apr-08	16331		20416
Mar-08	19615		26008
Feb-08	18401		24427
Jan-08	25535		37507
Dec-07	32262		23726
Nov-07	39114
BBLS to date	212311		195550

Anschutz Surpasses Tracker Request

On the heals of Tracker Resource's request last month to add 80 sections to Little Knife Field (later reduced by about a half-dozen sections, and which was approved last Friday), this month Anschutz Expl. of Denver has requested that 84 sections be spaced at 1280 acres and be included in either Russian Creek or St. Anthony Fields in extreme southern Dunn Co., from R95 to 97W, all in T141N.

Previously operating in the area under the Ansbro moniker, Anschutz was one of the earliest drillers in the mid-Bakken in 2005, and had three rigs drilling in this area at one time. After encountering some disappointing results, the company suspended their Bakken drilling over a year ago, and hasn't drilled a Bakken well since. The company has recently permitted several Bakken wells on the south side of Murphy Creek Field about a dozen miles north, but hasn't spudded there yet.

My guess as to how many of these 42 proposed wells that will actually be drilled before the leases expire in the area in about two years or less: probably about a dozen.

Larry's July Scorecard for Mountrail County

At month end there were 28 drilling rigs on location in Mountrail County. EOG 8 rigs; Hess 5 rigs; Whiting 5 rigs; Fidelity 2 rigs; Slawson, Brigham, Hunt, Murex, Windsor, Sinclair, Oasis, and Marathon 1 rig each.

During July 21 wells were spudded. EOG 7; Hess 3; Whiting 4; Fidelity 1; Brigham 0; Hunt 1; Marathon 1; Murex 1; Slawson 0; Sinclair 1; St Mary 0; Oasis 1; and Windsor 1.

During July NDIC issued 28 new permits to drill. EOG 9 permits in Shell, Austin, Wayzetta, and Burke Townships. Whiting 1 permit in Crane Creek Township. Hess 3 permits in James Hill, Ross, and Idaho Townships. Fidelity 0 permits. Slawson 3 permits in Van Hook and James Hill Townships. Hunt 1 permit in Shell Township. Murex 2 permits in Purcell Township. Brigham 2 permits in Lostwood and Alger Townships. Sinclair 0 permits. St Mary 0 permits. Windsor 2 permits in Osborn and Howie Townships. Lario 0 permits. Oasis 3 permits in Manitou and Sorkness Township. Encore 1 permit in Lowland Township. Marathon 1 permit in Big Bend Township

Since January 2006 the NDIC has issued 325 permits to drill in Mountrail County. Since January 2006 EOG has drilled/is drilling 79 wells. The other oil companies have drilled/are drilling 109 wells.

Seismic Slated For Montrail And Burke Counties

The Rocky Mountain Oil Journal has permitted republication of this article and the following Huff and Puff article.

Huge Seismic Program Slated For Mountrail and Burke Counties North Dakota

The Bakken play in North Dakota keeps heating up. With oil prices at near record levels, rig counts increasing, permits to drill on the rise, large Bakken completions reported, record setting lease bonus’s, the only aspect of the Industry that seemed to be lagging was seismic. That will now change as Houston based CGGVeritas Land (CVL) is planning on conducting that what may be the largest seismic program that the state of North Dakota has ever seen. Called the “Big Bakken 3D” shoot, this huge program will encompass some 646 square miles or 413,440 acres. Overall coverage of this shoot will be in 153-163n, 91-94w in both Mountrail and Burke Counties, right in the gut of the hottest oil play occurring onshore. This shoot will cover a swath of land that is about 24 miles wild and 60 miles long trending along a north south axis. The southern extent of this doodlebug work will be about 20 miles south of Stanley with the northern reach of the program almost to the Canadian border.

Within the parameters of this shoot, Industry has already staked 172 Bakken tests, of which 24 have been completed as Bakken producers, 46 have been drilled or are drilling with the remaining 102 waiting on a rig.

Energy source for this shoot will be vibroseis trucks with 145 source points per square mile. This program is expected to commence sometime in September of this year and is expected to conclude in December of 2010. For any of you who have ever worked on a geophysical crew, to be stationed in one area for two years is unusual.

Although no client has been revealed, it appears that this seismic program will be a spec shoot, meaning that industry will be offered the opportunity to purchase this data once the raw data has been compiled. Companies who might be likely candidates to buy this seismic include Brigham O&G, Burlington Res., Continental Res., EOG Res., Fidelity E&P, Hess Corp., Lario O&G, Marathon Oil, Murex Pet., Oasis Pet., Petro-Hunt, Prima Expl., Samson Res., Sinclair O&G, Slawson Expl., St. Mary Land & Expl., and Whiting O&G.

Content courtesy of The Rocky Mountain Oil Journal