By Michael Filloon – BakkenStocks Contributor
- Samson Oil and Gas (SSN: 0.50 -5.30%)
- Statoil (STO: 16.69 +0.72%)
- EOG Resources (EOG: 89.02 +1.16%)
- Whiting (WL: N/A N/A)
- Continental (CLR: 30.55 -0.78%)
There have been several producing wells in this area:
- Swindle 16-10: IP rate of 1065 Boe/d
- Rogney 17-8: IP rate of 909 Boe/d
- Charley 10-15: IP rate of 1069 Boe/d
- Tolksdorf 1-1H: IP rate of 642 Boe/d
- Rognas 2-22H: IP rate of 1013 Boe/d
- Gobbs 17-81H: IP rate of 909 Boe/d
Whiting’s Starbuck Prospect is in this area of Montana. It has over 88000 net acres, which proves Whiting’s confidence in the play. Continental is running a two rig program here, and completed 6.9 net wells in 2011. Brigham had estimated its acreage in eastern Montana would produce seven wells/location. Kodiak (KOG: N/A +0%) is currently estimating two middle Bakken and two Three Forks wells in its Sheridan County leasehold. Station Prospect has very good thickness of the middle Bakken. Thickness in this play varies from 50 to 70 feet. The upper Three Forks is just beginning to be worked. I will be real interested in the upcoming production from this pay zone. Triangle has 54500 net acres in Station Prospect. It estimates three middle Bakken and three upper Three Forks wells per pad.
- Dwyer 150-101-21-16-1H
- Larson 149-101-9-4-1H through 4H
- Gullickson Trust 150-101-36-25-1H through 4H
- Fredrick James 149-101-3-10-1H
Whiting calls this area Hidden Beach. It has had very good results. Whiting has completed five wells in this prospect. The average IP rate as been 2669 Boe/d, with a high of 3092 Boe/d and a low of 2216 Boe/d. This area has a very good upper Three Forks payzone. To the north, Brigham (STO: 16.69 +0.72%) and Kodiak (KOG: N/A +0%) have had excellent results. Kodiak’s Koala middle Bakken wells could produce 1000 Mboe and 800Mboe in the upper Three Forks. Brigham also had good middle Bakken production to the north of Triangle’s acreage, which includes two wells with IP rates over 4000 Boe/d. Other oil production companies have already de-risked this area. At this point Triangle will just need to execute.
- Holm 150-99-13-24-1H: 2370 Boe/d and 23.44% WI
- Staal 150-99-23-14-1H: 3034 Boe/d and 12.84% WI
- Lawlar 151-98-31-30-1H: 2789 Boe/d and 6.33% WI
The biggest problem is valuating Triangle’s acreage. Its North Dakota acreage has been purchased for an average cost of $2500/acre. Its current TEV/acres is $2618. There are reasons for this as much of its acreage has not been developed so a valuation at this point is just a guess. But the acreage to the southeast has some upside. Its Montana acreage could very well produce numbers comparable to southeast Divide County. The Station Prospect is inside the thermally mature middle Bakken, it is to the west of the Brockton-Froid Zone. The difference in TEV/acre seems extreme between Triangle and other Bakken players. This number ranges from $8000/acre to over $12000/acre.