More Information On The Giant Shale Oil Field Discovered in Canada, Montana and North Dakota
Bakken Shale Oil Formation - Largest Oil Pool Found - Parshall Field in Bakken Shale & Three Forks Zone
The Bakken Shale Oil field, which stretches down from Canada into North Dakota and Montana, could hold 3.65 billion barrels in oil reserves which would be the largest finding in U.S history next to the Oil fields in Alaska. This oil shale formation is located in the Williston Basin according to the U.S. Geological Survey. Bakken formation is a rich deposit that the U.S. Geological Survey calls the largest continuous oil accumulation it has ever assessed. On top of this, landowners are striking it rich as they sell their drilling rights ( mineral rights ) to drilling companies. Looking for an Oil field Job in Bakken Formation? Check out my Bakken Jobs Section.
In 1995, the USGS surveyed the Bakken area in which they found roughly 151 million barrels of recoverable oil. Since then, there have been many technological advances causing the big spike to 3.65 billion barrels of recoverable oil. The biggest oil field, which is located at the Arctic National Wildlife Refuge in Alaska ( ANWAR ), could potentially hold up to 10 billion barrels of oil.
The Bakken Shale Formation Play, also referred to as the North Dakota Shale, was deposited in the more central and deeper portion of the Williston Basin. In addition to North Dakota, Montana, and Saskatchewan, a small part of Manitoba is involved in Canada. The Williston Basin extends down into South Dakota as well but is not considered part of the Bakken Oil Shale Play.
Where is Oil in Bakken Shale Formation being drilled the most? There have been a record number of oil drilling rigs grinding away at the land. There are now over 4,000 active oil wells in North Dakota and that estimate is forecast to rise as more and more oil is extracted. Some of the sweet spots in Baken Shale Oil Field by city are: Beluh, Hazen, Parshall, Garison, Washburn. Bakken Shale Oil Field Counties: Mountrail County, Dunn County, Mercer County. If you have land in these areas, you have probably been approached by some of the companies below in regard to selling your mineral rights. Some of you might even work on an oil rig in the bakken formation.
Oil companies are using Horizontal Drilling under the town of Parshall, which is home to less then 1,000 in population. Another area is benethe Lake Sakakawea. This reservoir extends over 180 miles and joins the Missouri River. A big hot spot in the Bakken Shale right now is an area called the Three Forks - Sanish area. A company called Brigham Exploration Co. (BEXP) actually has one of the best wells drilled in the Sanish/Three Forks that has been a producing over 3,000 BOEPD. The Sanish Three Forks area has been very exciting for companies such as XTO Energy and Continental Resources also. See Below! The Sanish - Three Forks regionis located in Montrail, McKenzie, and Dunn County in North Dakota as well as several other nearby counties. The three forks area is located below the upper Bakken Shale zone and could potentially be a whole new oil reservoir. This would open up a whole new opportunity for companies that have a position in the Sanish/Three Forks region in the Bakken Shale. The ( TFS ) Three Forks Region has the potential to add significant oil reserves. Only time will tell!
Natural Gas is also found deep down in Bakken Shale Field. The USGS estimated that there could be 1.85 Trillion cubic feet in this area as well as nearly 148 million barrels of Natural Gas Liquids.
New Technology - Horizontal Drilling, has made all of this possible because before the year 2000 almost no oil or gas was extracted from Bakken Shale, which extends nearly 2 miles below the earths surface vertically. Now, after they drill vertically, the drill horizontally! They is very expensive but affordable if you can get great results!
Bakken Shale Formation 2010: Due to the current economic crisis in 2009, oil prices have dropped by 50% from the price during the summer of 2008. This economic recession has caused banks to tighten lending as well. Both of these factors are causing the companies below to scale back on their drilling operations. The prospects for the Bakken Shale look bright in 2010. I am expecting oil to hit the $90-100 zone again at some point. As the price of oil rises in the second half of 2010, companies will be back exploring the Bakken Shale like never before! Considering a job in the Bakken Formation? Click Here
- Brigham Exploration BEXP - In addition to its ongoing organic leasing efforts, Brigham completed four separate acreage acquisition transactions, expanding its Williston Basin acreage position by approximately 52,800 net acres since late April to an estimated 358,200 net acres. Approximately 23,800 net acres were added to its Rough Rider project area in Williams and McKenzie County, North Dakota. In addition, approximately 9,900 net acres were added in far eastern Richland County, Montana, very proximate to Brigham's Sedlacek Trust well, which had an early 24-hour peak rate of 2,695 barrels of oil equivalent. As a result, Brigham's core acreage position west of the Nesson Anticline in Rough Rider and in far Eastern Montana has grown by approximately 27% to an estimated 156,700 net acres. An additional 300 net acres were added east of the Nesson Anticline in the Ross project area in Mountrail County, North Dakota. Together, this represents an increase of 34,000 net acres in its core acreage in the Williston Basin to approximately 198,400 total net core acres. As a result of these acreage additions, Brigham has increased its core acreage drilling locations by an estimated 81 net locations to approximately 574 total net locations. Separate from the aforementioned core acreage additions in far eastern Richland County, Montana, Brigham added approximately 17,300 additional acres in its Eastern Montana project area further west from the Sedlacek Trust well in Richland County. The remaining 1,500 net acres acquired in Eastern Montana are located in Roosevelt County.
Initial Brigham Operated and Non-Operated Montana Bakken Discoveries
Brigham announced the completion of its operated Rogney 17-8 #1H in its Eastern Montana project area in Roosevelt County at an early 24-hour peak rate of approximately 909 barrels of oil equivalent. Given that this was Brigham's initial test in the area, the initial nine frac stages, or approximately 30% of the horizontal wellbore, were stimulated at lower frac pump rates. However, as a consequence the well produced at low initial flow rates. Brigham subsequently treated the remaining 21 frac intervals at higher frac pump rates and, when commingled with the initial nine intervals, the well produced 909 barrels of oil equivalent in an early 24 hour period. Currently the Rogney is flowing at a rate of approximately 400 barrels of oil equivalent per day.
Also in Montana and approximately 17 miles southeast of the Rogney, Brigham participated with a small working interest in the Zenergy Luke Sweetman, which was completed with 23 frac stages. The Luke Sweetman commenced production in late April at an early 24-hour peak rate of approximately 1,201 barrels of oil equivalent per day, after 100 days had produced roughly 30,000 barrels of oil and was recently producing approximately 320 barrels of oil equivalent per day. Brigham will continue to monitor the performance of the Rogney and other surrounding wells, and plans on spudding its next Montana operated well, the Gobbs 17-8, approximately five miles east of the Rogney in November.
Update on Accelerating North Dakota Bakken and Three Forks Operational Activity
Brigham announced the completion of its operated Michael Owan and Sedlacek Trust wells at early 24 hour peak flow back rates of 2,931 (2,640 Bopd and 1.75 MMcf/d) and 2,695 (2,413 Bopd and 1.69 MMcf/d) barrels of oil equivalent, respectively. Both wells are located in Brigham's Rough Rider project area. Notably, the Sedlacek Trust represents the southwestern most well to date of Brigham's acreage in its Rough Rider project area. The Michael Owan and Sedlacek Trust were treated with 33 and 30 frac stages, respectively. Brigham maintains an approximate 87% interest in the Michael Owan and an approximate 48% working interest in the Sedlacek Trust. The Sedlacek Trust was completed with U.S. Energy Corp. (NASDAQ: USEG) as well #10 under the terms of the 15 well Drilling Participation Agreement entered into last year. Brigham's interest in the wells drilled with U.S. Energy Corp. will increase after payout.
- Continental Resources CLR - Continental CLR is the largest leaseholders in the Bakken Shale. Continental Resources has 816,852 net acres with 589,937 acres in North Dakota which have the potential for the Middle Bakken and Three Forks - Sanish zone to produce independently. Production growth in the Bakken continued to trend higher in the second quarter of 2010, accounting for 43 percent of the Company's total production. Bakken production was 18,242 Boepd in the second quarter of 2010, an increase of 37 percent over the second quarter of 2009. Continental reported a 93 percent increase in its North Dakota production, compared to the second quarter of 2009. The Company participated in completing 49 gross wells (13.0 net) in North Dakota in the second quarter of 2010. Initial production rates averaged 1,265 Boepd during single-day test periods. All initial well results in this press release are 24-hour tests. In terms of Company-operated wells, Continental completed 22 gross operated wells during the quarter, including 14 wells that targeted the Three Forks formation and eight wells targeting the Middle Bakken zone. Notable Company-operated wells that targeted the Three Forks zone, with initial test results, included:
Meldahl 1-23H (35% WI) in McKenzie Co. - 2,489 Boe;
Ole 1-29H (36% WI) in McKenzie Co. - 1,864 Boe;
Bang 2-33H (45% WI) in Dunn Co. - 1,860 Boe;
Roger 1-18H (22% WI) in Dunn Co. - 1,486 Boe;
The Company has 816,852 net acres leased in the Bakken Shale play, with 589,937 net acres in North Dakota and 226,915 net acres in Montana portion. Red River Units (Montana, North Dakota and South Dakota) Red River Units' production was 15,080 Boepd in the second quarter, or 36 percent of total production. Continental has two operated drilling rigs in the Units and is drilling wells to complete its increased density
- Hess HES - Hess ( HES ) is really adding Bakken Shale acreage in the Williston Basin North Dakota. Hess is now the 2nd largest operator in the Bakken Shale oil field. In the Williston Basin of North Dakota, we have increased our net acreage position in the Bakken Play to approximately 500,000 acres. In North Dakota, net production from the Bakken reached 13,000 barrels of oil equivalent per day in March. We currently have five rigs dedicated to drilling Bakken wells and we plan to add five additional rigs over the next 12 months. - XTO Energy XTOXTO buys Headington Oil company for 1.85 billion.Next was the Bakken Shale from Headington. In late May, early June, we just closed that one, a $1.85 billion acquisition that made us one of the largest acreage holders in the Bakken Shale play, one of the best oil plays in the U.S. That was a 350,000 net acre position and we'veadded 100,000, so that make us one of the top two or three acreage holders in the Bakken Shale. Update - In the 3rd quarter, XTO Energy had 450,000 acres in the Williston Basin's Bakken Shale Formation. They have seen positive results in a well drilled in the Three Forks / Sanish zone with one of their oil wells hitting 1,750 barrels of oil per day.
2009 Update: If you look at Bakken Shale, we currently have four rigs running. We will drop to three in May. Bakken is actually running at 700 barrels a day, net above our forecast. That’s one of the reasons our oil forecast has been upped as our Bakken wells are doing very well. In fact, we brought in the best Bakken well we’ve drilled so far, the Boucher 41X-21. It was 2,000 barrel a day plus Three Forks/Sanish well. Actually, it’s better than the two, the Angelus and Crater that we’ve announced over the last couple of quarters. We are actually choking that well back and making probably 800 barrels a day of oil at this moment. No reason to pound it at current prices.
And then we completed a couple of wells at over 400 barrels a day equivalent. One of the things that’s kind of exciting for us, we’ve had a rig sitting on a super pad. And what that is, is a large pad we have built in South basinarea that has four wells drilled off of it and that all will be completed here in the second quarter. Two Three Forks/Sanish and two Middle Bakken, the wells in that particular area are very good; some of our offset guys had 1,000 barrel a day plus Three Forks wells, as well as Middle Bakken. So, we should see a nice bump in oil out of the Bakken in the second quarter here.
- Northern Oil & Gas NOG - Northern Oil is currently participating in the drilling or completion of an additional 63 gross Bakken or Three Forks wells and one gross Red River well, for an aggregate of 7.24 net wells currently drilling or awaiting completion.
As of August 9, 2010, Northern Oil has spud approximately 13.85 net wells in 2010. Management reaffirms its previously announced guidance to spud approximately 18 net wells throughout 2010 and expects to increase production volumes by 30 to 35% in the third quarter of 2010 compared to previous guidance of 20 to 30% in the second quarter of 2010.
- Marathon Oil Corp MRO - In the North Dakota Bakken Shale play, the Company added a fifth operated rig during the second quarter, with plans to add a sixth by the end of 2010. Current net production amounts to approximately 12,700 boepd, compared to 9,300 boepd at the end of the second quarter of 2009.
- EOG Resources Inc EOG - Production increases were greatest from the North Dakota Williston Basin where drilling and production results have proven consistent. In the Bakken Core, the Van-Hook 7-23H and Fertile 37-07H came on-line at 2,525 and 1,654 barrels of crude oil per day (Bopd), respectively. EOG has 99 and 81 percent working interest, respectively in these Mountrail County wells. EOG is drilling development prospects in the Bakken Core, Bakken Lite and Three Forks Formations with a 12-rig program.
Newfield Exploration NFX - Newfield is drilling for Oil in the Bakken Shale formation - Our acreage position has prospective targets that include the Bakken Shale, as well as the Madison, Red River and Three Forks/Sanish.The Jorgenson 1-15H, was our first Sanish/Three Forks horizontal well. Newfield has approximately 400,000 net acres in the Williston Basin. The total includes approximately 160,000 net acres in development and appraisal areas (Nesson Anticline and west of the Nesson) and approximately 240,000 net exploratory acres.
Southern Alberta Basin - Newfield this week spud its first well in the Southern Alberta Basin where the Company has an operated interest in approximately 224,000 net acres in Glacier County, Montana. Prospective geologic formations included the Lodgepole, Middle Bakken, Three Forks and Nisku. Newfield plans to drill eight exploratory assessment wells in 2010.
Following recent continued drilling successes in the Williston Basin, Newfield expects 2010 oil production from the area will increase approximately 60% (previous guidance was for 40% growth). Current net oil production is more than 4,000 BOEPD, which represents a 60% increase since the beginning of the year. Newfield expects net production at year-end 2010 will be approximately 6,500 BOEPD. Newfield last week added a fourth operated drilling rig in the Williston Basin. Year-to-date, the Company has drilled 13 wells and expects to drill about 18 additional wells in the second half of 2010.
The Company's recent Garvey Federal 1-29H, drilled along the Nesson Anticline in the Westberg development area, had a production rate of more than 3,800 BOEPD. In one of the Company's new assessment areas west of the Nesson, the Aquarium/Watford area, the Bluefin 1-13H well had an initial flow rate of approximately 2,500 BOEPD. This is Newfield's first Bakken completion in the area. Both of the recent wells above had lateral lengths of approximately 4,000'. In the second half of 2010, Newfield will begin drilling longer lateral wells and expects that more than half of the planned wells will have lateral lengths of approximately 9,000'. Recent drill and complete costs for Williston wells range from $6 - $8 million (gross). The wells have estimated ultimate recoveries of 500,000 to 750,000 barrels.
Denbury Resources DNR -I will give a quick update on our activity within the Bakken and Haynesville areas during the first quarter of 2010. In the Bakken, we continue to manage two drilling rigs in the Bakken. A third rig is contracted and should be moving into the area within the next several weeks. We are just waiting on the [North Dakota Frost Law] to allow that rig to move into the area.Our plans for 2010 are to generally drill in the various areas operating throughout our Bakken acreage, but the third rig is planned to be located primarily in the Cherry, Camp, and Indian Hills areas. Our production during the first quarter of 2010 within the Bakken averaged approximately about 3,560 BOEs per day, with a preliminary estimate for April's production averaging approximately 4,200 BOEs per day. The increase in production from the first quarter to April is primarily due to the three wells that we had fracd in the Bakken during the first quarter in which now we have 30 day average gross production rates. The [Wayor] Trust 4434, which was a 19 stage frac on a 1,280 acre unit, had initial production of 2,532 BOEs per day. That well has first 30 day average of 768 BOEs per day
- Questar STR - Questar STR has been drillling in Bakken Shale Formation - The other thing facing us is just the delineation of our leasehold. By that time we should have a couple of three more wells down, which will help us understand two things: One is the distribution of the middle Bakken fairway which we believe covers most of our acreage although the eastern edge of our acreage still remains to be tested and you can see on our latest investor update or operations on slide nine, the Bakken and you can see, some wells overrun the extreme eastern portion, to the east of our actual leasehold block that are colored blue. Those wells are 500 barrels a day or less, so they’re starting to define the eastern limit of the fairway. we’re seeing our wells close to a 1000 barrels a day, the first several wells and so, we know that the fairway sort of threads along the eastern edge of our block to the middle Bakken.
Right now, we are currently drilling our Three Forks test and we believe that a portion of our acreage maybe up to half of it is prospective for the Three Forks. We need to sort of understand the distribution of the Three Forks and the middle Bakken fairways so that when we go in for full field development, we basically set up a rig on a pad. We build a horizontal lateral in the middle Bakken and then we skid the rig over just like we do at Pinedale and drill a basically parallel, but deeper Three Forks well- Kodiak Oil & Gas CorpKOG - Bakken/Three Forks Development: Dunn County, N.D. (55,775 gross and 34,635 net acres) In late July 2010, the Company completed the Moccasin Creek (MC) #13-34-28-2H (Kodiak-operated 59% working interest (WI) / 48% net revenue interest (NRI)) well. The well was completed in 15 stages through a 6,200-foot horizontal wellbore. The well has been flow tested for three days and has not stabilized sufficiently to report a 24-hour initial production rate. Over the last 12 hours prior to this news release, the well flow tested at rates between 70 and 80 barrels of oil per hour and 900 to 1,200 thousand cubic feet of natural gas (Mcf) per day through a 24/64th inch choke with 2,850 psi flowing surface pressure. During the 12-hour period, the well had cumulative oil production of 871 barrels of oil and 540 Mcf. Presently, the well is flowing back approximately 60% frac fluid and 40% oil. Kodiak continues to flow test the well and will turn in to permanent production facilities when testing is completed. Well information will be updated in Kodiak's future operational updates.
The MC # 13-34-28-1H (Kodiak-operated 59% WI / 48% NRI), a 9,800-foot horizontal lateral directly offsetting the MC#13-34-28-2H discussed above is awaiting completion operations with 22 stages in its design. The Two Shields Butte (TSB) #14-21-4H (Kodiak-operated 50% WI / 41% NRI), which is a 4,500-foot horizontal lateral and the TSB 14-21-16-33H3 (Kodiak-operated 50% WI / 41% NRI), a 9,300-foot horizontal lateral drilled in the Three Forks Formation are also awaiting completion as part of the current four-well pad and are projected to be completed in the fourth quarter 2010. The TSB 14-21-16-33H3 is Kodiak's first operated well to test the productive potential of the Three Forks Formation underlying the Bakken pay horizon. McKenzie County, N.D. (13,430 gross and 9,565 net acres)
In the Grizzly project area, located in the Mondak Field of the southeastern Elm Coulee trend in western North Dakota, the Grizzly #13-6-H (Kodiak-operated - 68% WI / 56% NRI) was re-entered during June 2010 and a 3,700-foot lateral was drilled horizontally in the Middle Bakken Formation and is awaiting completion operations.
Kodiak is currently drilling the Grizzly Federal #1-27H-R well (Kodiak-operated 74% WI / 60% NRI), a proposed 9,600-foot horizontal lateral test of the Middle Bakken Formation.
- Encore Acquisition Company EAC- Encore EAC recently finished drilling and completing its first well in the Sanish Formation of the Bakken Shale Trend, the Charlson 11-16H, in Williams County, North Dakota. The well was brought online on July 23 at an initial production rate of 1,106 BOE per day flowing up 7" casing. The Company has a 96 percent working interest in the well, which also contains very favorable pay in the Bakken Formation. The well is approximately four miles northwest of the best Sanish well drilled to date in North Dakota, the USA 2D-3-1H, which has produced over 560,000 BOE in 19 months. Encore EAC owns 10,400 net acres in the Charlson area and can drill or participate in an additional 28 wells on its current acreage position in this area of the Sanish. The Company is currently drilling a second Sanish well in the Charlson Field, which it plans to complete in the third quarter. Encore plans to drill a total of six wells in the Sanish in the Charlson Field in 2008. Additionally, two other Sanish wells will be drilled in the Charlson area offsetting the USA 2D-3-1H well. This area is prospective for both the Sanish and Bakken Formations, which could significantly add to the total recoverable reserves under the Company's leases.Encore has recently expanded its acreage position in the Bakken and Sanish Shale Play to over 240,000 net acres. Encore plans to add a third rig to drill Bakken and Sanish wells in August 2008. Upon arrival of the additional rig, Encore plans to drill a Sanish well in its Cherry Creek Prospect, where the Company owns a significant lease position of approximately 70,000 net acres. Encore believes its Cherry Creek Prospect is in the Sanish fairway. The Company also plans to commence drilling in August in the Company's Almond Prospect, in Mountrail and Ward Counties, North Dakota, in which the Company currently holds an acreage position of approximately 53,000 net acres. The Almond Prospect is prospective for both the Sanish and Bakken Formations. The Company expects to drill and complete five-to-six Bakken and Sanish wells in the third quarter of 2008, as well as re-frac several current Bakken producers.
- Whiting Petroleum Corporation WLL - Whiting's net production from the Middle Bakken and Three Forks formations in the Sanish and Parshall fields of Mountrail County, North Dakota averaged 27,380 BOE per day in June 2010, up 17% from the 23,365 BOE average daily rate in March 2010 and up 77% from the 15,448 BOE average daily rate in June 2009. Sanish Field. Whiting's net production from the Sanish field in the second quarter of 2010 averaged 20,045 BOE per day, an increase of 86% over the second quarter 2009 average rate of 10,765 BOE per day. Our net production from the Sanish field averaged 21,775 BOE per day in June 2010, a 31% increase from 16,640 BOE per day in March 2010 and a 114% increase from 10,179 BOE per day in June 2009. Whiting plans to continue with its current nine operated drilling rig count in the Sanish field through 2012.
From April 20, 2010 through July 20, 2010, Whiting completed 21 operated wells in the Sanish field, bringing to 40 the number of Whiting-operated wells completed in 2010. The total number of Whiting-operated wells in the Sanish field now stands at 108. These 40 wells were comprised of 36 Bakken wells, 26 of which were infill wells, and four wells that were completed in the Three Forks formation. The average initial production rate for these 40 wells came to 2,478 BOE per day, which represents a 20% increase over the 2,057 BOE average initial production rate for wells completed prior to January 1, 2010.
Whiting recently completed two high-volume Bakken wells in the Sanish field. On July 17, 2010, the Fladeland 12-10H flowed at a daily rate of 4,126 barrels of oil and 1.8 million cubic feet (MMcf) of gas (4,431 BOE) during a 24-hour test of the Middle Bakken. The infill well, the second well drilled on this 1,280-acre spacing unit, was tested on a 52/64-inch choke with a flowing casing pressure of 830 pounds per square inch (psi). The well, which is located in the northwest portion of the Sanish field, was fracture stimulated in 30 stages, 22 stages using sliding sleeve technology and eight stages using the "plug and perf" method. Whiting holds a 70% working interest and a 56% net revenue interest in the Fladeland well.
The Fladeland 12-10H recorded the third highest initial production rate for a Whiting-operated Bakken well drilled to date in the Sanish field. The Maki 11-27 was tested on October 24, 2009 flowing 4,761 BOE per day, while the Richardson Federal 11-9H flowed 4,570 BOE per day during a 24-hour test on October 22, 2008. Both of these wells, which were drilled in the east-central part of the Sanish field, were the initial wells drilled in their respective 1,280-acre spacing units.
During a 24-hour test of the Middle Bakken formation on June 18, 2010, the Hansen 12-20H flowed at a daily rate of 3,863 barrels of oil and 1.7 MMcf of gas, or 4,144 BOE per day. The initial 24-hour production rate was gauged on a 40/64-inch choke with a flowing casing pressure of 1,120 psi. The well was fracture stimulated in a total of 18 stages, all using sliding sleeves. Whiting, the operator of the well, holds a 99% working interest and an 80% net revenue interest in the new producer.
As of July 20, 2010, 11 operated wells were being completed or awaiting completion and nine operated wells were being drilled in the Sanish field. In 2010, Whiting intends to drill a total of 90 operated wells and participate in a total of eight non-operated wells in the field for a total of 98 wells (52 net wells). Of the 98 total gross wells, 88 are planned Bakken wells and 10 are planned Three Forks wells. As of July 20, 2010, Whiting estimates that at least 57 Bakken wells and 128 Three Forks wells remain to be drilled in the Sanish field.
Whiting estimates that the total completed well costs for its most recently completed wells in the Sanish field will come in below $5.0 million per well. The wells that we drilled in the second quarter of 2010 reached a total measured depth of approximately 20,000 feet, including 10,000 feet of lateral, in an average of 20 days, with two wells taking 15 days from spud date to total depth. The reduction in drilling time and associated costs is primarily the result of our "Drill Wells On Paper" (DWOP) program, which applies the best practices and best logistical planning of all our drilling and completion contractors to produce drilling and completion efficiencies. Prior to the implementation of our DWOP program, it took an average of 39 days from spud date to total depth. With an average of 19 fewer days on location, we are saving approximately $900,000 per well in drilling costs.
Whiting's 17-mile oil line connecting the Sanish field to the Enbridge pipeline in Stanley, North Dakota is currently transporting between 17,000 barrels and 21,000 barrels per day. This 8-inch diameter line has a daily capacity of approximately 65,000 barrels of oil per day. Whiting expects to have between 23,000 barrels and 25,000 barrels per day of its operated oil production in the pipeline by the end of September 2010. The Company is currently saving between $1.00 and $2.00 per barrel in transportation costs for each barrel that is being transported through its pipeline rather than being transported by truck.
Enbridge Inc. expects to add 30,000 barrels per day of take-away capacity to its pipeline in the first quarter of 2011, which will bring the pipeline's total take-away capacity to 191,000 barrels per day. Enbridge anticipates adding an incremental 85,000 barrels per day in the second quarter of 2013 for a total of 276,000 barrels per day of take-away capacity.
Whiting's Robinson Lake gas plant is currently processing 29.1 MMcf of gas per day (gross). Whiting expects capacity to be expanded to 45 MMcf per day in September 2010, 60 MMcf per day in January 2011 and 90 MMcf per day in July 2011. Whiting owns a 50% interest in the plant. The plant receives 25% of the net proceeds from natural gas and NGL sales in the area. As of July 20, 2010, sales from the plant were 21.3 MMcf of gas and 3,471 barrels of NGLs per day, from which Whiting was netting 2.7 MMcf of gas and 434 barrels of NGLs per day due to its plant ownership. As of July 20, 2010, there were 93 Whiting-operated wells and 86 third-party wells connected to the gas gathering system. Parshall Field. Immediately east of the Sanish field is the Parshall field, where we own interests in 73,242 gross acres (18,188 net acres). The Company's net production from its interests in the Parshall field during the second quarter of 2010 averaged 5,850 BOE per day, a 15% increase from the 5,085 BOE per day average in the second quarter of 2009. Our net production from the Parshall field averaged 5,605 BOE per day in June 2010, a 17% decrease from 6,725 BOE per day in March 2010 and a 6% increase from the 5,268 BOE average daily rate in June 2009. The operator of the Parshall field has drilled almost all of its Bakken locations and is currently pursuing a moderate pace of development of the Three Forks formation with a one rig program. As of July 20, 2010, we had participated in 120 wells at Parshall, of which 116 are producing, three are awaiting completion and one is being drilled. More........
ConocoPhillips COP - In the Bakken shale play, three wells were spud during March, bringing the total current year well count to six. Three wells were placed on production during March with initial rates of approximately 2,000 barrels of oil per day each.
- SM Energy SM - WILLISTON BASIN (BAKKEN & THREE FORKS) - SM Energy had two operated rigs running in the Williston Basin during the second quarter of 2010. The focus of this operated program has been on Bakken and Three Forks wells. Following are some recent well results from this program:
Johnson 16-34H (SM 58% WI)- this is the first operated well in the Company's Raven prospect area, which is located in central McKenzie County, North Dakota, west of the Nesson Anticline. This Bakken well was drilled with a 9,500 ft lateral and was completed using a 10-stage completion. The completed well cost was approximately $5.6 million. The 7- and 30-day average production rates were roughly 680 BOE/d and 700 BOE/d, respectively.
Radenic 14-20H (SM 85% WI)- this well is the most recent completion in the Company's Gooseneck prospect area in Divide County, North Dakota and targeted the Three Forks interval. The well was the fastest 18,000 ft well drilled to date in the Gooseneck program with a spud to rig release time of 20 days. The 7- and 30-day average production rates were approximately 670 BOE/d and 420 BOE/d.
SM Energy plans to continue operating two drilling rigs in the play for the remainder of the year and is increasing the number of gross wells it will drill from 17 to 19. Funding is also being increased for continued participation in partner operated wells.
Samson Oil & Gas SSN - Samson Oil & Gas has a small amount of acreage in the Bakken Shale and has announced some positive drilling results in 2010.The Gene #1-22H well in Williams County, North Dakota produced around 40 Mbo and 50 MMcfg in less than three months. The average daily production rate was 475 Bopd and 590 Mcfg/d. The well is now in the process of being put on rod pump.
Samson’s third Bakken well, the Gary #1-24H well, spudded on May 24th and drilled in a record time of 17 days. The well is tentatively scheduled to be fraced either the week of August 16th or the week of August 23rd. Samson’s fourth Bakken well, the Rodney #1-14H, spudded on July 22nd while the fifth Bakken well, the Earl 1-13H, is expected to spud in late September.
North Dakota – Williston Basin – North Stockyard Project (Williams County) - Bakken oil Samson 31% Average Working Interest in 6 sections The Gary #1-24H well, an approximate 17,000 foot measured depth Bakken test, was drilled in the second quarter of 2010. The Gary #1-24H well will be fraced in August. Samson has a 37% working interest in the Gary #1-24H well. Samson’s fourth Bakken well in the North Stockyard Project area, the Rodney #1-14H well, was spudded in late July. The total cost to drill and complete the Rodney well is US$6.2M, Samson’s net cost will be 27% or US$1.6M. The Earl #1-13H well will follow the Rodney #1-14H well and is expected to spud in late September. Samson will have a 32% working interest in the Earl #1-13H well.
GeoResources GEOI - BAKKEN SHALE GeoResources’ Bakken shale project in Williams County, North Dakota has acquired approximately 49,000 net leasehold acres and will be developing the acreage with two industry partners. The Company retained a 47.5% working interest (“WI”), representing approximately 23,300 net acres and is the operator of the project. At present, the Company controls thirty-eight 1,280 acre Bakken units, with material working interests in another forty-nine Bakken 1,280 acre units. We plan to commence drilling of at least three horizontal wells in the Middle Bakken Formation in September, 2010. Recent activity in Williams County has confirmed commercial production in the Middle Bakken formation, which is a primary objective for the joint venture. Secondary objectives include the Three Forks, Madison and the Red River formations. To date, in our non-operated joint venture located in Mountrail and adjacent counties, the Company has participated in 58 wells drilled by its joint venture operator and has realized a 100% success rate. In addition, the Company owns minor working interests in more than 185 wells within the Bakken/Three Forks play. Our joint venture is currently running six drilling rigs and we acquire additional acreage and well interests, when available. Further, our first Bakken well in Montana is expected to begin drilling before the end of July. The Renegade #1-10H is located on our 2,920 gross acre RipRap prospect in Roosevelt County, Montana. We have a 25% working interest in the well and prospect. The Renegade well has uphole Ratcliff potential in addition to the Bakken main objective.
Rosetta Resources ROSE - Alberta Basin Bakken Oil Program - During the second quarter, the Company perforated several intervals and conducted vertical tests in two of the 2009 wells that confirmed the presence of oil-saturated Banff, Bakken, Three Forks and Nisku intervals. The Company also added acreage during the quarter and now holds 291,000 net acres in the play, an increase of about 50,000 acres from year-end 2009. The recent vertical tests confirmed the presence of movable high quality oil. Based on the results of these tests from zones of interest, Rosetta now intends to move a rig to the field to begin an eight well vertical program focused on testing the play across its large acreage position. The Company believes these vertical wells represent the most cost-effective and technically prudent approach to assessing the commerciality of the play. As this exploratory program is carried out, the Company will retain the discretion to conduct incremental operations that will serve to optimize future drilling and completion activities, including drilling and completing horizontal wells.
In commenting on the Alberta Basin Bakken play, Limbacher noted, "We think it makes sense to continue funding our efforts to establish commerciality in this unique play. Our stated plan is the most cost-effective and prudent way to test this play and it is consistent with our overall approach to the business. Like the early days of the analog play in the Williston Basin, we are committed to doing the essential science that these plays require, which takes time."
American Oil & Gas AEZ - American Oil & Gas Inc. (NYSE Amex: AEZ) announces that the Bergstrom 15-23H well, located in T156N-R98W Sections 14 and 23 in Williams County, ND produced 3,049 barrels of oil equivalent (2,395 barrels of oil and 3.9 MMCF of natural gas) from the Bakken formation during an early 24 hour flow back period. The approximate 9,410 foot lateral in the Bakken formation was fracture stimulated with 36 stages. American owns a 95% working interest in this well. Unit Corp UNT -In the Bakken play in North Dakota, Unit owns a 25% working interest in the Marty #1-20 which is currently flowing back after fracture stimulation at rates of approximately 1,500 barrels of oil per day and 1.6 MMcf per day. The well was drilled with a 5,736’ lateral and fracture stimulated in 15 stages. This is the second high volume oil well in the Williams County, ND Stockyard Creek Prospect where Unit owns approximately 11,500 gross (2,700 net) acres and expects to have one drilling rig operating during the remainder of 2010. In McKenzie County, ND, Unit owns a 16% working interest in the Dodge #4-6/7 HR which was recently completed at rates of approximately 2,465 barrels of oil per day and 1.6 MMcf per day. The well was drilled with an 8,846’ lateral and fracture stimulated in 24 stages. Unit owns approximately 27,000 gross (5,400 net) acres in the Antelope Prospect and anticipates one rig drilling for the rest of this year. US Energy Corp USEG - U.S. Energy Corp. (Nasdaq:USEG) ("USE" or the "Company"), a natural resources exploration and development company with interests in molybdenum, oil and gas, geothermal, and real estate assets, today announced that it has entered into a Drilling Participation Agreement (DPA) with Brigham Exploration Company (Nasdaq:BEXP) ("Brigham") to earn working interests in up to fifteen 1,280 acre spacing units in Brigham's Rough Rider project area located in Williams and McKenzie Counties of North Dakota. The terms of the DPA call for the drilling of up to 15 initial Bakken wells in 15 separate 1,280 acre spacing units. The ultimate number of wells to be drilled in the units could reach 90. Concho Resources CXO - In addition, the Company participated in ten Bakken wells during the second quarter of 2010. As of June 30, 2010, the Company had participated as a non-operator in 69 Bakken wells in total. In the second quarter of 2010, production from the Bakken, net to the Company's interest, averaged approximately 1,700 Boepd.
Continental Resources Photo CLR
Bakken Shale Map
Talisman Energy TLM - In the Bakken core, Talisman drilled 43 gross (36 net) wells, achieving top tier performance in drilling costs and production rates. However, the Company has decided to exit southeast Saskatchewan to focus on more material assets in North America. Yesterday, Talisman entered into an agreement to sell these assets for proceeds of approximately $720 million. Current production is approximately 8,500 boe/d (net).
- Tetron Energy - TEC -Tetron Energy is drilling in the Bakken Shale - Williston Basin. Teton holds a non-operated interest in eight wells, including seven Bakken wells and one Red River well. The Company has received a permit to drill a Red River well in its Goliath project in Williams County, North Dakota. The location is built, a rig has been acquired and the well is expected to spud in November, 2008.
Stone Energy SGY - Two wells in northern Montana (35% W.I. – Newfield operated) targeting the Bakken formation have been drilled and a third is currently drilling, with completion operations and results on all three wells expected in the fourth quarter.
- Grey Wolf GW - We're pleased to announce that we have recently signed a term contract for a rig that has mobilized and is drilling in the Bakken shale play in North Dakota. Grey Wolf targeted this significant resource play in 2007 as a priority for expanding our geographic footprint in the Lower 48. We expect additional demand for rigs in this resource play in the near term.
- Penn Virginia PVA - ( seeking alpha ) PVA announces that it has established a postion in the Bakken Shale - Penn Virginia drilled or participated in three Horizontal Bakken Wells in Dunn County in North Dakota. Those wells have – two of the three have performed very well, the first one is only making about 50 barrels a day of oil. That really is not commercial, but it’s a data point. And importantly, the second operated well is making about a little over 650 barrels a day, which is a very good well and we got another one in which we have very small working interest, but again data – this is making 545 barrels a day - We’ve got about 57,000 acres in the Bakken
- MDU Resources MDU - MDU is active in the Bakken Shale, mostly in the Three Forks area zone. Early this year, we added approximately 40,000 net acres of North Dakota’s Bakken area. This brings our total 56,000 net acres in this area. Our expanded acreage is targeting the three Forks/Sanish formations, the terms here are between three and five years with an option to extend the three-year leases in other couple of years. We do intend to drill a couple of wells on this acreage just this year.
We drilled the test well within our existing acreage in the middle Bakken formation, 500 feet from and parallel to an existing three Forks horizontal well. It was drilled in 2008. That was mask in 1,129 well. Our middle Bakken well spaced on 648 acres drilled to a depth of 10,528 feet. It has a horizontal/lateral of 4,792 feet. We are waiting for completion on this.
We expect to use the nine stage frac for completion. We’re looking to gather and analyze critical data as we complete the well. Can you believe, it will provide the input information about whether there is communication between the three corps and the Bakken reserve.
In February, we completed our first infill well in the middle Bakken. This was completed in a 12 stage frac. Our 30 day production rate was 547 barrels of oil as this was the higher rate in the two offset wells, very encouraged by these results. We are optimistic about our infill drilling program in the Bakken.
Petroleum Development PETD - We currently own an interest in 13 gross, 3.7 net oil and natural gas wells. Our leasehold encompasses two project areas in Burke County of approximately 75,100 gross acres with approximately 46,300 net undeveloped acres remaining for development as of December 31, 2008. The eastern area acreage is prospective for development of oil and gas reserves in the Nesson Formation. Nesson development wells are approximately 6,000 feet in depth with single or multiple horizontal legs to 4,000 feet or more in length for a measured length of 10,000 feet or more per leg. The westernmost acreage block is undeveloped and includes approximately 23,600 gross, 16,200 net acres. The western project targets exploratory horizontal drilling to the Midale/Nesson/Bakken Formation at depths of approximately 6,800 feet with a lateral leg component of up to 6,100 feet. In 2009, pursuant to a third party arrangement, we plan to drill up to four exploratory Bakken wells on our acreage with minimal capital obligation on our part in exchange for an interest in the acreage position.
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