The week in bakken

In the past week or so, we had the following news regarding the bakken region

  • American Oil & Gas Inc. (NYSE Amex: AEZ) announced that drilling commenced on the Tong Trust 1-20H well, in Williams County, North Dakota.   The Tong Trust well is spaced on 1,280 acres and is designed for an approximate 9,000′ horizontal lateral to be drilled in the Bakken formation.  Drilling operations are estimated to take approximately 30 to 45 days and completion, including fracture stimulation, is expected to follow within two to four weeks of drilling rig release, depending on weather.  AEZ is currently in the $3.80 range and good results could propel the stock to $5 in the next 2 months.
  • Hess said it has budgeted $2.4 billion for production, $850 million for exploration and $600 million for developments. Nearly 45% of its 2010 capital budget will spent in the U.S., including in Bakken Shale development in North Dakota.   It is significant that a company of Hess stature is putting such a large portion of its exploration budget in one area.   This bodes well for further M&A in the area.
  • Brigham Exploration Company (NASDAQ: BEXP) announced that its operated Williston 25-36 #1H produced approximately 3,394 barrels of oil equivalent per day (2,769 Bopd and 3.75 MMcf/d) from the Bakken formation during an early 24 hour flow back period. Brigham’s nine Bakken and Three Forks wells have averaged an early peak production rate of approximately 2,066 barrels of oil equivalent per day.
  • Exxon Mobil Corporation (NYSE: XOM)  announced an all-stock transaction valued at $41 billion to acquire XTO Energy Inc  . The agreement, which is subject to XTO stockholder approval and regulatory clearance, will enhance ExxonMobil’s position in the development of unconventional natural gas and oil resources.   Digging a bit deeper, the move will also give XOM exposure to XTO’s array of assets in the bakken region.

It looks like the land grab is heating up for the larger players to start laying claim to their piece of the bakken pie.   Expect further M&A from the larger players to get in on the action.

Active Drilling Rig Report – Dec 15th

The active drilling rigs seems to have increased since the Nov report.  We see an almost 10% jump in active rigs with 74 total.    EOG leads the pack with 7 and Continental Resources and Whiting are close behind with 6.   It seems exploration is on the mend and long term oil forecasts have oil above $65 for the forseeable future.

Rig Operator Well Name and Number Current Location
CYCLONE 25 ANSCHUTZ EXPL CORP KADRMAS 11-27H NWNW 27-141N-95W
BRONCO 16 ANSCHUTZ EXPL CORP NEAL 1-33-28H-144-95 LOT2 4-143N-95W
H & P 255 ANSCHUTZ EXPL CORP KARY 1-24-13H-144-97 SWSE 24-144N-97W
ENSIGN 123 BAYTEX ENERGY USA LTD FURHMAN 36-162-99H NWNW 36-162N-99W
ENSIGN 67 BAYTEX ENERGY USA LTD SPARKS 8-162-98-2H NWNW 8-162N-98W
NABORS 52 BRIGHAM OIL & GAS LP LIFFRIG 29-20 1-H SWSE 29-156N-93W
NABORS 49 BRIGHAM OIL & GAS LP OWAN-NEHRING 27-34 1-H NENW 27-154N-103W
NABORS 266 BRIGHAM OIL & GAS LP JACKSON 35-34 1-H SESE 35-154N-102W
NABORS 350 BRIGHAM OIL & GAS LP KALIL 25-36 1561-H NWNE 25-156N-103W
PIONEER 44 BTA OIL PRODUCERS LLC NORTH COUNTRY, 9210 JV-P 31-8 NWNE 8-142N-102W
PRECISION 602 BURLINGTON RES O&G CO CHSU 12A-9NHR 05 SWNW 9-130N-105W
NABORS 59 BURLINGTON RES O&G CO ARCHES 24-35H SESW 35-153N-96W
PRECISION 825 BURLINGTON RES O&G CO BULLRUSH 24-10H SESW 10-151N-97W
NABORS 165 CIRQUE RESOURCES LC TRUE BLONDE 16-15H SWSE 16-160N-91W
CYCLONE 9 CONTINENTAL RESOURCES LOWE 42-9SH SENE 9-130N-106W
TRINIDAD 36 CONTINENTAL RESOURCES MILTON 1-23H SESW 23-160N-96W
CYCLONE 20 CONTINENTAL RESOURCES FORTIER 1-17H NWNE 17-160N-96W
CYCLONE 22 CONTINENTAL RESOURCES HAWKINSON 1-22H NENW 22-147N-96W
CYCLONE 28 CONTINENTAL RESOURCES CLOVER 1-3H LOT 3 3-145N-95W
PATTERSON 180 CONTINENTAL RESOURCES KUMMER 1-31H SESW 31-150N-95W
PATTERSON 305 ENCORE OPERATING LP BECKERT 24-7H SESW 7-145N-94W
PRECISION 289 ENCORE OPERATING LP PORCUPINE RIDGE 14-35H SWSW 35-148N-96W
BRONCO 28 EOG RESOURCES INC WESTGARD 1-28H SWSE 28-153N-89W
NABORS 527 EOG RESOURCES INC FERTILE 30-28H SWSE 28-151N-90W
DHS 12 EOG RESOURCES INC ROSS 21-04H LOT1 4-156N-92W
NABORS 161 EOG RESOURCES INC WAYZETTA 101-21H SWSW 21-153N-90W
NABORS 148 EOG RESOURCES INC VAN HOOK 11-02H SESE 2-152N-91W
TRUE 28 EOG RESOURCES INC CLEARWATER 17-01H SESW 1-157N-90W
MAJOR 42 EOG RESOURCES INC SIDONIA 7-25H NWNW 25-158N-90W
NABORS 108 FIDELITY EXPL & PROD CO FLADELAND 12-15H-22 SWNW 15-154N-92W
NABORS 460 HESS CORPORATION BB-FEDERAL A-151-95- 0910H-1 SWNW 9-151N-95W
H & P 179 HESS CORPORATION EN-DAVIS-156-94- 0805H-1 NWNE 17-156N-94W
H & P 241 HESS CORPORATION EN-DOBROVOLNY-155-93- 2128H-1 NWNE 21-155N-93W
BRONCO 20 HUNT OIL COMPANY LEE 8-5H 1 SWSW 8-154N-89W
UNIT 117 KODIAK OIL & GAS (USA) INC MOCCASIN CREEK 16-3H SESE 3-147N-93W
H & P 259 MARATHON OIL CO DARVEY KLATT 44-22H SESE 22-146N-95W
H & P 257 MARATHON OIL CO ROHDE USA 14-20H SWSW 20-146N-92W
H & P 258 MARATHON OIL CO HUNTS ALONG USA 12-1H LOT1 2-151N-94W
H & P 256 MARATHON OIL CO WOLDING 14-24H SWSW 24-151N-93W
PRECISION 645 MUREX PETROLEUM CORP JOY 26-35H NWNW 26-155N-91W
NABORS 272 NEWFIELD PROD CO ARKADIOS 1-18H SWSE 18-148N-97W
NABORS 419 NEWFIELD PROD CO MANTA RAY 1-12H SESW 12-150N-100W
WHITE MT. 750 NEWFIELD PROD CO PITTSBURGH 1-3H NWNW 10-153N-96W
NABORS 688 OASIS PETRO NO AMER EDWARDS 5992 44-10H SESE 10-159N-92W
NABORS 177 OASIS PETRO NO AMER ANGELL 5200 31-28H NWSW 28-152N-100W
NABORS 149 OASIS PETRO NO AMER VAN BERKOM 5793 11-14H NWNW 14-157N-93W
ENSIGN 46 PETRO HUNT LLC MM WOLD 160-94-31B-6-6H NENW 31-160N-94W
ENSIGN 93 PETRO HUNT LLC FORT BERTHOLD 148-94-17D-08-1H SESE 17-148N-94W
UNIT 329 QUESTAR E & P CO FED 1-34-35H-152-92 NWNW 34-152N-92W
KEY NRG 370 SAGEBRUSH RESOURCES LLC GLESSING 7-16 SESE 7-161N-82W
ENSIGN 71 SAGEBRUSH RESOURCES LLC KALLBERG 1 H LOT 1 18-159N-90W
PIONEER 57 SHD OIL & GAS, LLC SIMBA 24-30H SESW 30-150N-90W
PRECISION 512 SIMRAY GP LLC J.M. HALL 1-19H LOT 1 19-148N-93W
PATTERSON 167 SINCLAIR OIL & GAS CO HIGHLAND 1-9H NENW 9-153N-93W
MAJOR 26 SLAWSON EXPLORATION JUGHEAD 1-26H NENW 35-152N-93W
ENSIGN 125 SLAWSON EXPLORATION COUGAR FEDERAL 1-30H NENW 30-152N-92W
NABORS 687 SLAWSON EXPLORATION ZEPHYR 1-36H NWNE 1-151N-93W
RED HAWK 558 SLAWSON EXPLORATION RIPPER 1-22H SWSW 22-152N-92W
NABORS 152 ST MARY LAND & EXPLORATION CO TORGESON 14-19H SESW 19-163N-99W
NABORS 742 ST MARY LAND & EXPLORATION CO MONDAK FEDERAL 11X-14 NWNW 14-148N-105W
PRECISION 517 STEPHENS ENERGY COMPANY LLC VAN HOOK – R/S 16-4H SESE 4-150N-92W
NABORS 182 TRACKER RES DEVMNT LARSEN 13-1H NENW 13-144N-95W
NABORS 44 TRACKER RES DEVMNT DANIELLE 12-1H SESE 12-145N-97W
PRECISION 51 WHITING OIL AND GAS CORP SORENSON 11-3H LOT 4 3-152N-91W
PIONEER 67 WHITING OIL AND GAS CORP TTT RANCH 43-4H NESE 4-154N-91W
PIONEER 56 WHITING OIL AND GAS CORP NESS 44-21H SESE 21-154N-91W
NABORS 686 WHITING OIL AND GAS CORP ANDERSON 11-7TFH LOT 1 7-154N-92W
PIONEER 66 WHITING OIL AND GAS CORP FLADELAND 11-10H NWNW 10-154N-92W
PRECISION 106 WHITING OIL AND GAS CORP FLADELAND 44-9H SESE 9-154N-92W
NABORS 265 XTO ENERGY INC LOIS FEDERAL 24X-6 SESW 6-148N-96W
NABORS 417 XTO ENERGY INC EDWARD 21X-28 NENW 28-149N-104W
H & P 180 XTO ENERGY INC BJARNE 34X-13 SWSE 13-154N-95W
NABORS 681 XTO ENERGY INC BARSTAD 32X-13 SWNE 13-154N-96W
PRECISION 96 ZENERGY OPERATING CO LLC DAKOTA-3 TAT 15-1H SWSE 1-149N-93W

Bakken Review

The following bakken tidbits surfaced in the last week

  • Brigham Exploration Company (NASDAQ: BEXP) announced that its operated Strand 16-9 #1H produced approximately 2,264 barrels of oil equivalent per day from the Bakken formation during an early 24 hour flow back period.  Brigham maintains an approximate 21% working interest in the Strand, which is the fourth well completed under the drilling participation agreement with U.S. Energy Corp. (NASDAQ: USEG)
  • Junior Bakken player, AEZ has been looking for a partner on its Bakken/Three Forks acreage position (76,000 net acres) in order to ramp activity and lower its initial drilling costs in return for about 50% of the working interest in the play.”
  • BASIC EARTH SCIENCE SYSTEMS, INC. (OTCBB:BSIC) reported that drilling operations have begun on its newest Bakken well in North Dakota. The Mondak Federal #4-14H well in Section 14, T148N-R105W, a new area of interest for Basic Earth in McKenzie County, is being drilled by XTO Energy Inc., Ft. Worth, TX. This well has a single long lateral borehole spanning Sections 14 and 23. Basic Earth has an approximate 8.4% working interest and expects to spend approximately $400k for its share of drilling and completion costs on this well.
  • Junior oil and gas explorer Painted Pony Petroleum Ltd. is increasing its activity in the Saskatchewan Bakken tight oil play as it almost doubles its capital spending plan for 2010 to $90 million.  The company, whose share price has gone up 400% from the start of the year to $5.90, noted Thursday that production in the third quarter grew to 1,600 barrels of oil equivalent per day, up 26 per cent over the second quarter and 79 per cent from the same period of 2008.
  • Reliable Energy Ltd. (the “Company” or “Reliable”) (TSX VENTURE:REL) has recently completed its development drilling program having drilled four wells (gross), 3.9 wells net, into its South Kirkella Bakken oil pool. Of the four wells, one is completed, fracture stimulated and on production at 85 bbls per day (net) of oil. Two wells were perforated and placed on production and have each averaged 37 bbls per day (net) of oil with no produced water.

The news definitely indicates that a number of smaller players in the region (including Canada) are making progress towards their production targets.