Monday, December 9, 2024

Devon -- Grayson Mill -- December 9, 2024

L

Devon in the Bakken: A reader writes that he/she received his/her first check from Devon since the deal with Grayson Mill closed. A quick look by the reader says everything looks correct. 


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Sharks and Fish: Evolution
 
 
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Montana: Paleontology

Those following the Bakken are very, very aware of the formations mentioned below. 

In the United States, in Montana:

If you want to study dinosaurs, you go to Hell Creek, eastern Montana.

If you want to study the evolution of fish / sharks, you go to Bear Gulch, Fergus County, near Lewistown, Montana.

The Bear Gulch Limestone is commonly considered to be part of the Heath Formation, the youngest formation in the Big Snowy Group of central Montana. 

Some authors instead consider the Bear Gulch Limestone to be an early member of the Tyler Formation, a patchy but widespread unit of Carboniferous limestone and terrestrial sediments.

Most of the Heath Formation is represented by black shales and marls, indicative of brackish and salty littoral environments. It developed along a transgressive sequence in a narrow saltwater seaway, known as the Central Montana Trough  or Big Snowy Trough. This seaway flowed into the Williston Basin, a shallow inland sea further east. The Central Montana Trough would have also been linked to fully marine basins on the western coastline of Laurussia, but this connection may have been broken by the time of the Bear Gulch Limestone's deposition.

Many distinct limestone lenses (localized sediment packages) are developed in the Heath Formation. They overlap each other in an east-to-west sequence which extends over a distance of 160 km in the Central Montana Trough. The only exposed portions of the sequence are found at Potter Creek Dome, a small uplifted area northeast of the Big Snowy Mountains. The last few limestone lenses form a large portion of the Upper Heath Formation, which is sometimes termed the Bear Gulch Member in recognition of the most well-exposed and fossiliferous lens in the sequence. This lens, the Bear Gulch Limestone, was also one of the last in the sequence, only succeeded by the Surenough Beds immediately west of it.  The Bear Gulch Limestone can be observed in numerous outcrops, spread out over an area of more than 20 square miles in Fergus County, Montana.

The creation of limestone lenses in the Heath Formation has been linked to tectonic activity extending the seaway by excavating bays out of the surrounding land. As old bays are filled in and buried by sediment, faulting and seismic events form new bays in a long eastward to westward succession.  It may have taken a mere 1000 years for the bay responsible for the Bear Gulch Limestone lens to fill in completely, after only 25,000 years for the entire bay formation sequence to run its course across Montana

The final limestone deposits in the area were succeeded by freshwater lake sediments of the Cameron Creek Formation, the oldest unit of the early Pennsylvanian-age Amsden Group.

 

Friday, November 22, 2024

Chord Energy -- Oasis Dahl Federal -- Five Well Pad With Parent Well Off-Line -- November 22, 2024

The well of interest:

  • 21266, 494, A/AL, Oasis, Dahl E Federal 15-11H, Baker, t5/23; cum 251K 9/24; recent production, nothing in the file report to explain the reason for only one day of production in September, 2024, maps provide no obvious answer:
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN9-20241961257295869
BAKKEN8-2024313252324522963166314818
BAKKEN7-2024291984197617031598152672
BAKKEN6-20242926152670206519561664292
BAKKEN5-2024313960394827193105305253
BAKKEN4-20242827472774209037433044
BAKKEN3-20243131353110249260159
BAKKEN2-202429281827992737187201872
BAKKEN1-20243126022603264015393941145
BAKKEN12-20233131393144304321831360823
BAKKEN11-20233041514149498138003388412
BAKKEN10-2023315875587662155737563899

The five-well pad:

  • 38770, F/A, Oasis, Dahl E Federal 5301 13-14 2B, Baker, t1/12; cum 223K 9/24;
  • 21266, 494, Oasis, Dahl E Federal 15-11H, Baker, t5/23; cum 251K 9/24; off line, September, 2024
  • 38771, F/A, Oasis, Dahl E Federal 5301 13-14 3B, Baker, t5/23; cum 268K 9/24;
  • 38772, F/A, Oasis, Dahl E Federal 5301 13-14 4B, Baker, t5/23; cum 270K 9/24;
  • 38773, F/A, Oasis, Dahl E Federal 5301 13-14 5B, Baker, t5/23; cum 251K 9/24;

The maps:


Friday, October 25, 2024

Petro-Hunt Reports Zabolotny Well, #42325, Has Been Completed -- October 25, 2024

The well:
  • 40325, 549, Petro-Hunt, Zabolotny 144098-9C-4-3H, Billings County; at the NDIC, no production data; the well file provides no additional relevant information.

Monday, October 7, 2024

Dishon And Andrews Federal -- Ft Buford -- Chord Energy -- Oasis -- October 7, 2024

Note: in a long note like this, there will be typographical and content errors.

The reader has interests in this location: section 31-153-103. A screenshot of part of the deed:

The reader has been receiving royalties from this well for quite some time:

  • 22475, 761, Oasis/SM Energy, Dishon 1-30H, Ft Buford t3/13; cum 269K 8/24;
  • the Dishon well is  sited in section 30 with bottom hole in section 31; 1280-acre spacing, sections 30 / 31 - 153 - 103

Recently the reader noted that she was receiving royalties from a new well:

  • 39910, F/A, Oasis, Andrews Federal 5301 12-24 4 BX, Ft Buford, t4/24, cum 90K 8/24.  
  • This well is on a six-well pad, three horizontals running north and three Andrews Federal horizontals running south. These are extended long-lateral horizontals, three-section laterals or three-mile long horizontals; two of these south-running horizontals are three-section spacing (1920-acre spacing) but it just so happens that the Andrews Federal ... 4BX well (#39910) is a section line well and the spacing unit is six sections:

Note that one of the six sections, 31-153-103 is the section in which the reader has minerals, and is also the section in which is located the bottom hole of the Dishon well.

Production from this section-line well, #39910:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
BAKKEN8-2024312301422893513431744016888552
BAKKEN7-2024261875018757433471389213401491
BAKKEN6-20243023330233215084916586134983088
BAKKEN5-2024312259322512509631621715785432
BAKKEN4-202430212620802174142994087212

So, again, #39910, the Andrews Federal well is sited almost a mile away from the Dishon well, in section 24, with the bottom hole in section 31 (two different townships); the horizontal runs south along the section section line; the spacing unit is a six-section spacing unit, encompassing sections 19 / 24 / 30 / 29 / 31 / 36.

The Dishon well is a two-section, two-mile extended lateral (two-section spacing).

The Andrews Federal well is a three-section, three-mile extended lateral (six-section spacing).

See maps below.





The typical spacing unit in the Bakken, is two sections, or 1280 acres. 

If one owns 40 acres in a 1280-acre spacing unit, and the lease is for 20% of the oil sold, the "decimal" would be:

  • (40/1280) x 0.2 = 0.00625

However, in a 3840-acre spacing unit, (six-section spacing unit), the "decimal" would be

  • (40/3840) x 0.2 = 40 = 0.00208

The reader says her decimal is 0.00004566, according to her production statement.

Some folks own as little as one acre in any given spacing unit. What would be the decimal point for owning one acre in a 1280-acre spacing unit compared to a 3840-acre spacing unit, each unit with the same 20% royalty rate:

  • (1/1280) x 0.2 =  0.00015625
  • (1/3840) x 0.2 = 0.00005208

At 18%?

  • (1/1280) x 0.18 =  0.000140625
  • (1/3840) x 0.18 = 0.000046875

Going one step further: if the well produced 10,000 bbls in that month and the selling price was $75, then:

  • $75 / bbl x 0.00015625 x 10,000  bbls = $117 vs
  • $75 / bbl x 0.00005208 x 10,000 bbls = $39.

The reader says she was paid about $66 the oil from that well recently (in a monthly statement) and the price of oil sold was $74.03. So, everything sort of adds up -- at least in the "ballpark" as they say. 

Disclaimer: I often make simple arithmetic errors, and much of the above was based on conjecture, assumptions, and estimates

Saturday, October 5, 2024

Petro-Hunt Wells Updated For Reader -- Production Statement Dated September 25, 2024

October 24, 2024: 

The well:

  • 40325, 549, Petro-Hunt, Zabolotny 144098-9C-4-3H, Billings County; at the NDIC, no production data; the well file provides no additional relevant information.

Original Post

Petro-Hunt production and wells update.

Reader's monthly production statement, dated September 25, 2024: all wells accounted for; all wells still producing with exception of one:

  • 32165, 1,090, Petro-Hunt, USA 153-95-34C-14-4H, Charlson, t5/18; cum 523K 7/24; off line 8/24. No production in August, 2024.

This well is off line because the neighboring well is being completed:

  • 38359, conf, Petro-Hunt, Sherven Trust 153-95-27A-26-1HS, Charlson, 

In addition to this well which is yet to begin production, the reader is watching these two Petro-Hnt wells. According to the well files, both wells have been drilled to depth and are waiting completion.

  • 40203, conf/drl, Petro-Hunt, Zabolotny 144-98-9C-4-2H, Little Knife, 1280-acre spacing, sections 4 / 9 - 144-98.
  • 40325, conf/drl, Petro-Hunt, Zabolotny 144-98-9C-4-3H, Little Knife, 1280-acre spacing, sections 4 / 9 - 144-98.

Thursday, October 3, 2024

Petro-Hunt -- Production Statements -- Price Paid For Oil, Natural Gas, Plant Products

Dated: 9/30/2024

Only one well (date / product / price) --

Guadalupe 11-23H

  • 1/22  Price change correction minus

 

COP -- Production Statements -- Price Paid For Oil, Natural Gas, Plant Products

Dated: 9/30/2024

Only one well (date / product / price) --

Guadalupe 11-23H

  • 1/22  Price change correction minus
  • 8/23  MCF    1.990
  • 9/23 MCF 1.4799
  • 10/23
  • 11/23
  • 12/23
  • 1/24
  • 2/24
  • 3/24
  • 4/24
  • 5/24
  • 6/24
  • 7/24 MCF 1.9972

 

  • 1/22 Price change correction positive
  • 4/22 gallons 0.6760
  • 8/23 gallons 0.3585
  • 10/23 gallons 0.3604
  • 11/23 gallons 0.3372
  • 12/23
  • 1/24
  • 2/24
  • 3/24
  • 4/24
  • 5/24
  • 6/24
  • 7/24 0.4219

 

  • 1/22 price change correction negative
  • 8/23 gallons 1.8006
  • 9/23 gallons 1.9802
  • 10/23 gallons 1.8836
  • 11/23 gallons 0.6786
  • 12/23
  • 1/24
  • 2/24
  • 3/24
  • 4/24
  • 5/24
  • 6/24 gallons 1.660
  • 7/24 gallons 1.7074

 

  • 8/22 Price change slight positive 
  • 1/23. bbls 0.00
  • 9/23 bbls $89.8292
  • 10/23 bbls. $85.2174
  • 11/23 bbls $76.6545
  • 12/23
  • 1/24
  • 2/24
  • 3/24
  • 4/24
  • 5/24
  • 6/24 bbls $73.0328