Bakken Activity Highlights: October 2015

The North Dakota Industrial Commission (NDIC) reported oil and gas production in the state continues to break records despite the low commodity price environment.

The NDIC said monthly gas production hit a new all-time high in July of 51.37 billion cubic feet (Bcf). This is an increase from the June total of 49.55 Bcf. July data showed the third highest all-time monthly oil production figure of 37.26 million barrels (MMbbl)—an increase from June’s 36.34 MMbbl.

About 95% of the state’s production is from Bakken and Three Forks, while the remaining 5% is from legacy conventional pools.

According to IHS, operators are now committed to running fewer rigs than their planned 2015 minimum as drilling efficiencies improve and oil prices fall.

Current active drilling rig count is 10 to 15 rigs below what operators indicated would be their 2015 average. Utilization rate for rigs capable of 20,000 feet or more is about 45%. For shallow well rigs—7,000 feet or less—it’s about 25%.

Completions fell in July to 119 from 149 in June. At the end of July, an estimated 914 wells were waiting on completion services, which is 70 more than at the end of June.

June-July drilling permit activity increased but the July-August permitting fell as operators positioned themselves for low 2016 price scenarios. Operators already have a significant permit inventory should a return to the drilling price point occur in the next 12 months.

1. Whiting: 10/12/15

In McKenzie County, N.D., a Middle Bakken producer by Denver-based Whiting Petroleum Corp. (WLL) initially flowed 5.002 Mbbl of 44.7-degree-gravity oil, 12.706 MMcf of gas and 2.67 Mbbl of water per day.

The #11-4HR Flatland-Federal is in Section 4-152n-97w. Production is from a horizontal lateral extending from 10,956 feet southward to 20,435 feet at a bottomhole location in Section 9-152n-97w. The true vertical depth is 10,621 feet. It was tested on a 48/64-inch choke following a 94-stage fracturing between 11,039- and 20,329 feet. The flowing casing pressure was 2,824 pounds per square inch (psi).

Whiting also completed a Three Forks well from the same pad, #11-4TFHU Flatland-Federal, which flowed 4.207 Mbbl of 44.7-degree-gravity oil, 10.34 MMcf of gas and 1.32 Mbbl of water per day.

2. Crescent Point: 8/5/15

Two horizontal Bakken discoveries in Williams County, N.D., were announced by Calgary, Alberta-based Crescent Point Energy Corp. (CPG), in Section 8-158-100w, in Winner Field.

The #17-20-158N-100W CPEUSC Ruby initially flowed 342 bbl of oil, 514 Mcf of gas and 325 bbl of water per day. Production is from a south trending horizontal Middle Bakken lateral extending from 10,025- to 19,817 feet.

The well bottomed in Section 20-158n-100w and the true vertical depth is 9,732 feet. It was tested on a 20/64-inch choke following 70 stages of fracture stimulation at 10,160- to 19,607 feet.

The #8-5-158N-100W CPEUSC Holmes initially flowed 128 bbl of oil, 738 Mcf of gas and 115 bbl of water per day. Production is from a horizontal Middle Bakken lateral extending from 10,049 ft northward to 19,842 feet.

It bottomed in Section 5-158n-100w and the true vertical depth is 9,484 ft. It was tested after 70-stage fracturing at 10,144- to 19,689 feet.

3. Anadarko: 7/23/15

A wildcat Bakken oil discovery was announced by Anadarko Petroleum Corp. (APC) on the Sweetgrass Arch in Toole County, Mont.

The #3702-08-05-11H Horgus-Fee is in Section 8-37n-2w. The horizontal well was drilled to the north to 8,972 feet, 3,562 feet true vertical, and it bottomed in Section 5-37n-2w. The well’s vertical pilot hole was drilled to 3,990 feet.

Additional completion details were not released by the Houston-based company, but it applied to the Montana Board of Oil and Gas Conservation to create a permanent spacing unit for production from Bakken at the discovery.

4. Continental: 4/22/15

A Williston Basin horizontal exploratory was completed by Oklahoma City-based Continental Resources Inc. (CLR).

The #1-36H Dodger initially flowed 441 bbl of oil, 649 Mcf of gas and 1.29 Mbbl of water per day. The new discovery is in Section 36-27n-52e of Richland County, Mont. Production is from a two-section Middle Bakken horizontal lateral extending from 9,077 feet northward to total depth of 18,511 feet.

The well bottomed in Section 25-27n-52e and the true vertical depth is 8,676 feet. It was tested after fracturing through 29 swell packers set between 9,401- and 18,237 feet.

5. Whiting: 1/12/15

Whiting Oil & Gas completed a record-setting 93-stage fracture stimulation of a Sanish Field well.

The #14-4-3XH Waldock-Federal is in Section 4-153n-91w of Mountrail County, N.D. It initially pumped 365 bbl of oil, 119 Mcf of gas and 34 bbl of water per day. Production is from a horizontal Middle Bakken lateral extending from 10,461 feet east-southeastward to 19,783 feet.

The lateral extends across the south half of sections 3 and 4 and the north half of sections 9 and 10 to a bottomhole location in Section 10. The true vertical depth is 10,025 feet.

The well was tested on a 26/64-inch choke. All 93 stages were fractured in a single, continuous operation without tripping the frack-isolation assembly out of the hole.

The #14-4-3XH Waldock-Federal is a northeast offset to Whiting’s #11-9H Richardson, which was completed in October 2008 initially flowing 4.184 Mbbl of oil, 2.316 MMcf of gas and 1.82 Mbbl of water per day.

6. Kraken Operating: 11/5/14

Two horizontal Bakken discoveries on the western flank of the Williston Basin were announced by Houston-based Kraken Operating LLC.

The #1H George 29 is in Section 32-26n-51e of Richland County, Mont. It produced 4.402 bbl of oil, 2.8 MMcf of gas and 25.88 Mbbl of water from Bakken in its first three months of reported production (April to June).

The discovery was horizontally drilled northward to 13,261 feet, 8,051 feet true vertical, and bottomed in Section 29-26n-51e. It is on a 640-acre drilling and spacing unit comprising all of Section 29-26n-51e.

In Section 4-26n-53e, in Richland County, a horizontal Middle Bakken discovery, #4-1H Bert, initially flowed 280 bbl of oil, 147 Mcf of gas and 335 bbl of water per day from 8,257- to 11,984 feet. It was tested following fracture stimulation through swell packers in 21 stages between 8,340- and 11,974 feet. The true vertical depth is 7,975 feet.

7. American Eagle Energy: 10/2/14

Denver-based American Eagle Energy Corp. (AMZGQ) announced results from five Three Forks/Bakken producers in its Spyglass project area in Divide County, N.D.

• The #4-15-163-102 Ella is a Three Forks completion in Section 15-163n-102w. It produced 343 bbl of oil equivalent per day (boe/d) in its first 30 days online from a 9,716-foot lateral drilled on a 1,280-acre spacing unit comprising sections 15 and 22 in Skjermo Field.
• The #16-1E-163-102 Murielle, Section 1-163n-102w, produced an average of 401 boe/d during the first 10 days of production. The well is flowing from a 9,950-foot Three Forks lateral drilled on a 1,280-acre spacing unit.
• The #4-2-163-101 Warren, Section 2-163n-101w, produced an average of 178 boe/d from a 9,534-foot Bakken lateral during the first 30 days of production.
• The #2-13N-163-101 Richard is in Section 13-163n-101w. It produced an average of 195 boe/d during its first 10 days of production from a 10,158-foot Three Forks lateral.
• The #2-2N-163-101 Braelynne, Section 2-163n-101w, flowed 68 boe/d from a 6,012-foot Middle Bakken lateral.