20
l MOVING HYDROCARBONS l INDUSTRY PERSPECTIVE l LEGAL COLUMN Vol. 2, No. 41 • www.PetroleumNewsBakken.com Publication of record for the Bakken oil and gas industry Week of January 26, 2014 • $2.50 page 9 Whiting moves to ND’s No. 2 ND oil producer as Statoil tops the IP list A biannual supplement AKKE B N OIL & GAS DIRECTORY Vol. 2, No. 2 Released January 2014 Latest Bakken O&G Directory The latest Bakken Oil & Gas Directory is included in this weekly issue of Petroleum News Bakken. The semi-annual, full-color magazine is designed as both a marketing tool for Petroleum News Bakken’s contracted advertisers and as a basic source of information about the E&P companies that operate Bakken wells in North Dakota and Montana (500 barrels of oil per day mini- mum). The daily average production numbers are extrapolated from figures released by the state governments of North Dakota and Montana. Although the provincial governments over the U.S./Canada border do not release Bakken-specific information, the largest Bakken producer in Saskatchewan is included in the directory, along with other Canada-based operators active in North Dakota and Montana. For more information on the direc- tory contact special publications director Marti Reeve at [email protected]. Tensions boil over Canada-US strains over future of Keystone put government leaders at odds By GARY PARK For Petroleum News Bakken T he United States and Canadian governments have apparently decided there is no more room for diplomatic niceties when it comes to Keystone XL. In a series of terse exchanges, U.S. Secretary of State John Kerry and Canadian Foreign Affairs Minister John Baird in Washington, D.C., forced the issue into its darkest corner yet. Baird fired the opening salvo by demanding an early answer — even if it’s a “no” — from the Obama administration and Kerry quickly responded that the U.S. will not be forced into short-circuiting its decisions on the pipeline. Kerry, known for his deep concerns about the impact of greenhouse gas emissions on climate change, told a news conference — with Baird standing alongside him — that the U.S. public has raised lots of ques- tions and concerns about XL’s plan to deliver crude from the Alberta oil sands to Gulf Coast refineries. JOHN BAIRD JOHN KERRY see KEYSTONE TENSIONS page 20 How much is too much? Montana hopes future federal regulations won’t be a heavy burden to bear By MAXINE HERR For Petroleum News Bakken T he future of oil and gas develop- ment in Montana hangs in the bal- ance, due in large part to how much weight the federal government will place on the scale. Dave Galt, Executive Director of the Montana Petroleum Association, MPA, told Petroleum News Bakken that he sees 2014 bringing challenges that involve taxes, the environment and access to land. Feds have dibs on most of the pie The federal government owns approximately one-third of all land surface in Montana, and with stringent federal regulations on that land, Galt said it’s becoming “exceed- ingly more difficult” to explore for oil and gas in the state. “If you look at what’s going on in Montana production, you’re seeing less and less development occur, with more and more restrictions, on federal lands,” Galt said. What lies on the horizon also has Galt concerned. For instance, the U.S. Bureau of Land Management, BLM, drafted resource management plans in 2013 that have not been finalized. “They cover all the oil and gas producing areas in Montana, and they’re very restrictive,” he said. DAVE GALT see MONTANA REGS page 19 Endangered butterfly? USFWS seeks comments on proposed threatened species with habitat in ND By JANNELLE STEGER COMBS For Petroleum News Bakken T he United States Fish and Wildlife Service, USFWS, has asked for comments on designating the Dakota skipper as a threatened species under the Endangered Species Act of 1973, as well as designating its habit as critical. The Dakota skipper is a small butterfly with only a single annual flight. They emerge in June and can live up to three weeks in captivity but much less in the wild. The eggs left behind hatch in July and caterpillar lar- vae winter close to ground. According to the Department of Natural Resources of Minnesota, the skipper his- torically ranged from southern Saskatchewan and Manitoba, across the Dakotas, Minnesota, Iowa and east to Chicago. However, because the Dakota skipper lives in prairie grassland, the skipper has disappeared south and east of Minnesota. In the notice to find the Dakota skip- per as threatened, it is noted that “soils unsuitable for agriculture and steep topography” allow the skippers to live. The survey results for the Dakota skipper in the materials are quite old, many relying on a 1996 survey and a selected study from 2002. USFWS JANNELLE STEGER COMBS see DAKOTA SKIPPER page 17 Tesoro’s proposed Vancouver rail terminal remains on track A court ruling in Washington state will allow Tesoro and its partner Savage Cos. to press on with an environmental review of their plans for a $110 million oil terminal at the Port of Vancouver. Judge David E. Gregerson of the Clark County Superior Court gave a partial victory to the port by rejecting allega- tions from a number of environmental organizations that the port violated state rules when it approved a 42-acre lease for the project to handle up to 380,000 barrels per day of crude. The ruling allows the lease for the planned terminal to remain in place pending a detailed review by Washington see PUBLIC COMMENT page 18 see TESORO TERMINAL page 17 Public to have a voice in North Dakota’s ‘extraordinary places’ The North Dakota Industrial Commission held a special meeting on Jan. 22 to discuss a draft proposal by Attorney General Wayne Stenehjem that would allow public comment fol- lowing a well permit application, and submission of an impact mitigation plan, from operators wanting to develop oil and gas resources within designated “extraordinary places” in the state. Stenehjem formulated the list of places from criteria he deems important, but understands oil WAYNE STENEHJEM

l Tensions boil over - Homepage for Petroleum Newsl MOVING HYDROCARBONSl INDUSTRY PERSPECTIVEl LEGAL COLUMNVol. 2, No. 41 † Publication of record for the Bakken oil and gas industry

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  • l M O V I N G H Y D R O C A R B O N S

    l I N D U S T R Y P E R S P E C T I V E

    l L E G A L C O L U M N

    Vol. 2, No. 41 • www.PetroleumNewsBakken.com Publication of record for the Bakken oil and gas industry Week of January 26, 2014 • $2.50

    page9

    Whiting moves to ND’s No. 2 ND oilproducer as Statoil tops the IP list

    A biannual supplement

    AKKEB NOIL & GAS DIRECTORYVol. 2, No. 2 Released January 2014

    Latest Bakken O&G Directory

    The latest Bakken Oil & Gas Directory is included in this weeklyissue of Petroleum News Bakken. The semi-annual, full-colormagazine is designed as both a marketing tool for PetroleumNews Bakken’s contracted advertisers and as a basic source ofinformation about the E&P companies that operate Bakken wellsin North Dakota and Montana (500 barrels of oil per day mini-mum). The daily average production numbers are extrapolatedfrom figures released by the state governments of North Dakotaand Montana. Although the provincial governments over theU.S./Canada border do not release Bakken-specific information,the largest Bakken producer in Saskatchewan is included in thedirectory, along with other Canada-based operators active inNorth Dakota and Montana. For more information on the direc-tory contact special publications director Marti Reeve [email protected].

    Tensions boil overCanada-US strains over future of Keystone put government leaders at odds

    By GARY PARKFor Petroleum News Bakken

    The United States andCanadian governmentshave apparently decidedthere is no more room fordiplomatic niceties when itcomes to Keystone XL.

    In a series of terseexchanges, U.S. Secretary ofState John Kerry and Canadian Foreign AffairsMinister John Baird in Washington, D.C., forcedthe issue into its darkest corner yet.

    Baird fired the opening salvo by demanding anearly answer — even if it’s a “no” — from the

    Obama administration andKerry quickly respondedthat the U.S. will not beforced into short-circuitingits decisions on the pipeline.

    Kerry, known for his deepconcerns about the impact ofgreenhouse gas emissionson climate change, told anews conference — withBaird standing alongside

    him — that the U.S. public has raised lots of ques-tions and concerns about XL’s plan to delivercrude from the Alberta oil sands to Gulf Coastrefineries.

    JOHN BAIRD JOHN KERRY

    see KEYSTONE TENSIONS page 20

    How much is too much?Montana hopes future federal regulations won’t be a heavy burden to bear

    By MAXINE HERRFor Petroleum News Bakken

    The future of oil and gas develop-ment in Montana hangs in the bal-ance, due in large part to how muchweight the federal government willplace on the scale.

    Dave Galt, Executive Director of theMontana Petroleum Association, MPA,told Petroleum News Bakken that hesees 2014 bringing challenges that involve taxes,the environment and access to land.

    Feds have dibs on most of the pieThe federal government owns approximately

    one-third of all land surface in Montana, and with

    stringent federal regulations on thatland, Galt said it’s becoming “exceed-ingly more difficult” to explore for oiland gas in the state.

    “If you look at what’s going on inMontana production, you’re seeing lessand less development occur, with moreand more restrictions, on federal lands,”Galt said.

    What lies on the horizon also hasGalt concerned. For instance, the U.S.

    Bureau of Land Management, BLM, draftedresource management plans in 2013 that have notbeen finalized.

    “They cover all the oil and gas producing areasin Montana, and they’re very restrictive,” he said.

    DAVE GALT

    see MONTANA REGS page 19

    Endangered butterfly?USFWS seeks comments on proposed threatened species with habitat in ND

    By JANNELLE STEGER COMBSFor Petroleum News Bakken

    The United States Fish and WildlifeService, USFWS, has asked forcomments on designating the Dakotaskipper as a threatened species underthe Endangered Species Act of 1973, aswell as designating its habit as critical.The Dakota skipper is a small butterflywith only a single annual flight. Theyemerge in June and can live up to threeweeks in captivity but much less in the wild. Theeggs left behind hatch in July and caterpillar lar-vae winter close to ground.

    According to the Department of Natural

    Resources of Minnesota, the skipper his-torically ranged from southernSaskatchewan and Manitoba, across theDakotas, Minnesota, Iowa and east toChicago. However, because the Dakotaskipper lives in prairie grassland, theskipper has disappeared south and eastof Minnesota.

    In the notice to find the Dakota skip-per as threatened, it is noted that “soilsunsuitable for agriculture and steeptopography” allow the skippers to live.

    The survey results for the Dakota skipper in thematerials are quite old, many relying on a 1996survey and a selected study from 2002. USFWS

    JANNELLE STEGERCOMBS

    see DAKOTA SKIPPER page 17

    Tesoro’s proposed Vancouverrail terminal remains on track

    A court ruling in Washington state will allow Tesoro andits partner Savage Cos. to press on with an environmentalreview of their plans for a $110 million oil terminal at thePort of Vancouver.

    Judge David E. Gregerson of the Clark County SuperiorCourt gave a partial victory to the port by rejecting allega-tions from a number of environmental organizations that theport violated state rules when it approved a 42-acre lease forthe project to handle up to 380,000 barrels per day of crude.

    The ruling allows the lease for the planned terminal toremain in place pending a detailed review by Washington

    see PUBLIC COMMENT page 18

    see TESORO TERMINAL page 17

    Public to have a voice in NorthDakota’s ‘extraordinary places’

    The North Dakota IndustrialCommission held a special meeting onJan. 22 to discuss a draft proposal byAttorney General Wayne Stenehjemthat would allow public comment fol-lowing a well permit application, andsubmission of an impact mitigationplan, from operators wanting to developoil and gas resources within designated“extraordinary places” in the state.

    Stenehjem formulated the list ofplaces from criteria he deems important, but understands oil

    WAYNE STENEHJEM

    http://www.petroleumnewsbakken.comhttp://www.futaris.com

  • 2 PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014

    Petroleum News Bakkencontents

    9 Commentary: Whiting No. 2 producer; Statoil tops IP9 Montana well permits and completions, Jan. 10-169 North Dakota well operator transfers, Jan. 11-179 Bakken producers’ stock prices

    BAKKEN STATS

    18 XL southern leg begins Gulf Coast deliveries

    10 Montana Bakken oil production by company, November

    10 North Dakota oil permit activity, Jan. 14-2011 IPs for ND Bakken wells, Jan. 14-20

    12 ND Bakken oil production by company, November13 Top 50 North Dakota Bakken oil producers, November

    SIDEBAR, Page 10: Top 5 Mont. Bakken oil producers, November

    SIDEBAR, Page 11: Top 10 Bakken wells by IP rate

    SIDEBAR, Page 17: Legal services provider files for Chapter 11

    7 Mountain Divide adding 2 more ND wells

    8 Magnolia adds interest in 4 Kodiak wells

    DRILLING & COMPLETION

    PEOPLE TALK

    3 Mixed views on ND O&G development

    North Dakota Petroleum Council’s annual statewide poll finds North Dakotans strongly support oil, gas but also see room for improvements

    6 Overcapacity of fracking horsepower

    Prices for many fracking and completion servicesexpected to remain stable or even fall in 2014; market equilibrium elusive

    LAND & LEASING

    MERGERS & ACQUISITIONS

    4 WellStar picks up non-op Bakken interests

    Assets include the two tracts offered in ND Trust Lands’recent online lease auction along with acreage in Sheridan County, Montana

    COMMUNITY ISSUES

    COMPANY UPDATE

    4 Alberta Clipper restarted after spill

    7 Marathon Oil picks Jones to lead HR

    5 Concerns rise for northwest rail hot spot6 6 Bakken crude cars derail in Philadelphia8 Koch scraps Dakota Express pipeline

    MOVING HYDROCARBONS

    Public to have a voice in North Dakota’s ‘extraordinary places’

    Tesoro’s proposed Vancouver rail terminal remains on track

    ON THE COVERTensions boil over

    Canada-US strains over future of Keystone put government leaders at odds

    How much is too much?

    Montana hopes future federal regulations won’t be a heavy burden to bear

    Endangered butterfly?

    USFWS seeks comments on proposed threatened species with habitat in ND

    http://www.tremcar.com

  • By MIKE ELLERDPetroleum News Bakken

    An annual poll commissioned by theNorth Dakota Petroleum Councilfound that at 83 percent, North Dakotansoverwhelmingly support oil and gas devel-opment in their state, but the poll alsofound less consensus when it comes to suchissues as the collection and spending ofproduction taxes, state regulation of theindustry and flaring.

    The Petroleum Council commissionsthe annual poll in order to “better gauge”the way that North Dakotans view oil andgas development, and to identify key issuesand challenges facing the state that couldbe addressed by the industry.

    “The survey helps us focus on the issuesof greatest concern, and we remain com-mitted to helping western North Dakotadeal with these impacts, whether it isthrough working on solutions to each newchallenge, charitable support for and con-tributions to communities or pushing formore of the tax dollars generated in west-ern North Dakota to be directed back tothose counties and communities to meettheir needs or adding to the infrastructurethat helps reduce truck movements andimproves safety,” said council PresidentRon Ness in a Jan. 21 press release.

    The poll, conducted by the opinionresearch firm Moore Information Inc.between Nov. 21 and 25, interviewed 600representative voters statewide and an addi-tional 194 were interviewed in 19 oil-pro-ducing counties, for a total 794 partici-pants.

    Industry supportPoll results indicate that on a statewide

    basis, 83 percent of North Dakotans inter-viewed support oil development in thestate, 73 percent believe that the benefits ofoil development outweigh the risks. In theoil counties, 72 percent polled believe ben-efits outweigh risks and 82 percent believeoil development should either increase orremain steady.

    When asked if oil production in the stateshould increase, decrease or remain at thecurrent level, 30 percent of those polledstatewide support more production, 50 per-cent believe production should remainsteady at current levels, and 12 percentbelieve there should be less productionwith 5 percent undecided.

    In the oil counties, those numbers arenearly identical with 32 percent favoringmore production, 14 percent favoring lessproduction, 50 percent comfortable withcurrent production, and 4 percent undecid-ed.

    TaxesNorth Dakotans, however, are less unit-

    ed when it comes to taxes. When askedabout the level to which the oil and gasindustry is taxed in North Dakota, 48 per-cent of those polled statewide believe thatlevel is “about right,” with 12 percentbelieving taxes are too high and 19 percentagreeing that taxes are too low. In the oilcounties those numbers are similar: 52 per-cent believe the industry is taxed aboutright; 14 percent believe taxes are too high;and 16 percent believe they are too low.Statewide, 16 percent are undecided on taxrates while 13 percent are undecided in oilcounties.

    Responding to two views on oil produc-tion taxes, North Dakotans are split as towhether oil and gas tax revenues are being

    spent in a way thatbenefits residents ofthe state. The pollfound that 48 percentof those agree thatthe $240 million permonth generated byoil and gas taxes “ishelping people in thestate by funding ourschools, reducing ourproperty taxes and providing flood relief.”Another 39 percent agree that the $240million per month “isn’t being spent in away that helps the average North Dakotan.”

    The split is even closer in oil countieswith 43 percent agreeing that the way thattax revenues are spent helps the averageNorth Dakotan, and 44 percent disagreeingwith that premise. Twelve percent are unde-cided on the issue statewide while 13 per-cent in the oil counties are undecided.

    There is still more division between the

    statewide opinion and the oil county opin-ion about how the tax money should bespent. When given the choice amongschools and education, road and highwayimprovements, and reducing propertytaxes, 29 percent in the statewide poll sup-port education with 21 supporting educa-tion in the oil counties. Statewide, 26 per-cent support road improvement in thestatewide poll compared to 37 percent inthe oil counties supporting road improve-ments. Also statewide, 20 percent supporttax reduction while that number is 16 per-cent in the oil counties.

    The results were very close on the otheroptions: law enforcement (6 percentstatewide, 7 percent in oil counties), hous-ing (5 percent each), wildlife conservationand parks (3 and 2 percent), and flood pro-tection (2 and 1 percent).

    Government regulationAnd there is more division on oil and

    gas regulations. When asked if state regula-tions on oil and gas development are “tooharsh,” “too lax” or “about right,”statewide, 55 percent say the regulationsare “about right,” but 28 percent say theregulations are too lax, and 3 percentbelieve regulations are too harsh. In the oilcounties more people believe regulationsare about right at 59 percent, fewer believeregulations are too lax at 25 percent, and 4percent believe regulations are too harsh.Statewide, 14 percent are undecided on the

    l C O M M U N I T Y I S S U E S

    Mixed views on ND O&G developmentNorth Dakota Petroleum Council’s annual statewide poll finds North Dakotans strongly support oil, gas but also see room for improvements

    PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014 3

    Responding to two views on oilproduction taxes, North Dakotansare split as to whether oil and gastax revenues are being spent in away that benefits residents of the

    state.

    RON NESS

    see MIXED VIEWS page 8

    http://www.lynden.com

  • By MIKE ELLERDPetroleum News Bakken

    New Bakken non-operatorVancouver-based WellStar Energyrecently picked up a total of 1,164 netacres in Williston Basin interests throughtwo separate transactions, one in NorthDakota and the other in Montana.

    WellStar was the successful bidder ontwo adjacent North Dakota Departmentof Trust Lands oil and gas leases totaling240 net acres (320 gross acres) with an18.75 percent working interest in anexisting spacing unit in Billings Countyoperated by Continental Resources. Thecompany also picked up 924 net acresthat lie within a contiguous 22,400 gross-acre asset from Vaalco Energy inSheridan County in far northeastMontana.

    “This acquisition establishes WellStaras a non-operated working interest ownerin the Bakken oil play with approximate-ly 1,164 net acres,” company President

    Andrew H. Rees said in a Jan. 16 pressrelease. “Management is excited to enterthe Bakken oil play with this acquisition.Our model is to build WellStar’s produc-tion base through the drill bit and addi-tional acquisitions as a pure play Bakkenproducer.”

    The North Dakota tractsThe Minerals Management Division of

    Trust Lands offered the two adjacenttracts in the Ukrania field in easternBillings County in an online auction con-ducted by Trust Lands’ online auctioncontractor EnergyNet. Online bidding onthe tracts opened on Dec. 23, although thefirst bid of $50 per acre wasn’t placeduntil Dec. 27. Two more bids were sub-mitted on Dec. 31 and one more on Jan.3.The remaining 14 bids were all placedon Jan. 6.

    WellStar had the successful bid of$510 per acre that came in just secondsbefore bidding closed on Jan. 6, paying atotal of $128,068 for the two tracts. The

    acreage is part of a standup 1,280-acreunit where Continental’s Snider-21-H1Three Forks well was spud in November.That well is still on confidential status.

    According to North DakotaDepartment of Mineral Resources Oiland Gas Division records, Continentalhas seven wells in the Ukrania field, fiveof which are on confidential status. Thetwo wells on active status are adjacentspacing to the unit where WellStar pickedup its acreage and both are completed inthe Three Forks formation.

    One of those two wells went on pro-duction in August 2012 with a 24-hourinitial production, IP, rate of 327 barrelsof oil per day and through November2013 produced 65,846 barrels over 476days of production for a pumping dailyaverage of 138 bpd. Continental’s otheractive status well in the Ukrania fieldwent on production in September 2013with an IP of 412 barrels and throughNovember produced 8,974 barrels over54 days of production for an average of166 bpd.

    Montana acquisitionAcross the border in Montana,

    WellStar said the 924 net acres it is pick-ing up from Vaalco is prospective for bothBakken and Three Forks formations.WellStar indicates that 13 horizontal

    wells have been drilled in the area,although the wells were not identified.

    Records maintained by the MontanaBoard of Oil and Gas conservation indi-cate that Vaalco has drilled two horizontalBakken wells in Sheridan County, onewhich is shut-in and the other which isidentified as “producing,” although noproduction data have been provided to theboard. Vaalco is a Houston-based inde-pendent with a focus on offshore andonshore exploration and production inWest Africa.

    WellStar said in the Jan. 16 pressrelease that it has retained a qualifiedreserves evaluator to prepare a technicalreport on the petroleum reserves andresources in the Montana acquisitionaccording to National Instrument 51-101,the standard that governs the reporting ofreserves for publically traded oil and gasproducers in Canada. The company saidthat upon receipt of the report, and ifappropriate, it will file for reactivationand graduation to Tier 2 status on theCalgary-based stock exchange TSXVenture Exchange.

    Other ND acquisition terminatedIn its Jan. 16 press release, WellStar

    also announced that an acquisition of

    l L A N D & L E A S I N G

    WellStar picks up non-op Bakken interestsAssets include the two tracts offered in ND Trust Lands’ recent online lease auction along with acreage in Sheridan County, Mont.

    4 PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014

    Kay Cashman PUBLISHER & EXECUTIVE EDITOR

    Mike Ellerd EDITOR-IN-CHIEF

    Ray Tyson CONTRIBUTING WRITER

    Gary Park CONTRIBUTING WRITER (CANADA)

    Eric Lidji CONTRIBUTING WRITER

    Rose Ragsdale CONTRIBUTING WRITER

    Steve Sutherlin CONTRIBUTING WRITER

    Darryl Flowers CONTRIBUTING WRITER

    Maxine Herr CONTRIBUTING WRITER

    Jannelle Steger Combs LEGAL COLUMNIST

    Mary Mack CEO & GENERAL MANAGER

    Raylene Combs BAKKEN ADVERTISING EXECUTIVE

    Ashley Lindly RESEARCH ASSOCIATE

    Mark Cashman RESEARCH ASSOCIATE

    Susan Crane ADVERTISING DIRECTOR

    Bonnie Yonker AK / NATL ADVERTISING SPECIALIST

    Steven Merritt PRODUCTION DIRECTOR

    Marti Reeve SPECIAL PUBLICATIONS DIRECTOR

    Tom Kearney ADVERTISING DESIGN MANAGER

    Heather Yates BOOKKEEPER & CIRCULATION MANAGER

    Renee Garbutt CIRCULATION SALES

    Shane Lasley IT CHIEF

    Dee Cashman RESEARCH ASSOCIATE

    ADDRESSP.O. Box 231647

    Anchorage, AK 99523-1647

    NEWSMIKE ELLERD

    406.551.0815

    [email protected]

    CIRCULATION 907.522.9469

    [email protected]

    ADVERTISING 907.522.9469

    [email protected]

    FAX NUMBER907.522.9583

    OWNER: Petroleum Newspapers of Alaska LLC (PNA)Petroleum News Bakken • Vol. 2, No. 41 • Week of January 26, 2014

    Published weekly. Address: 5441 Old Seward, #3, Anchorage, AK 99518(Please mail ALL correspondence to: P.O. Box 231647 Anchorage, AK 99523-1647)

    Subscription prices in U.S. — $98.00 1 year, $176.00 2 years • Canada — $185.95 1 year, $334.95 2 years Overseas (sent air mail) — $220.00 1 year, $396.00 2 years

    POSTMASTER: Send address changes to Petroleum News, P.O. Box 231647 Anchorage, AK 99523-1647.

    www.PetroleumNewsBakken.com

    Several of the individualslisted above are

    independent contractors

    Petroleum News Bakken seeks ad sales repLooking for experienced salesperson to work from home in North Dakota.Contact Kay Cashman at [email protected] or 907.561.7517

    Arctic Catering, Inc.Serving the Oilfield and Construction Industries since 1974

    The Difference Is Our People!

    Contact us at:701-842-2862

    [email protected]

    MOVING HYDROCARBONSAlberta Clipper restarted after spill

    Canada’s national energy regulators are probing the cause of a pipeline spill thatbriefly interrupted the flow of crude on Enbridge’s Alberta Clipper link from the oilsands to Superior, Wis.

    The pipeline was restarted Jan. 19, one day after about 125 barrels — although thefinal estimate is still being determined — leaked out near Regina and was confinedmostly to a pumping station.

    Canada’s National Energy Board has deployed its emergency response team tomonitor and assess Enbridge’s immediate handling of the event and ensure that peo-ple are safe and the environment is being protected.

    Enbridge said in a statement that there “is no impact to the public, wildlife or water-ways.”

    The company said it is committed to its goal of achieving “zero spills and will thor-oughly investigate the incident for lessons learned.”

    Alberta Clipper covers 1,000 miles from Hardisty in east-central Alberta, crossingparts of Saskatchewan and Manitoba and the northeast corner of North Dakota beforereaching its destination at Superior, Wis.

    The system normally carries 449,000 barrels per day of oil sands bitumen and isbeing expanded to 570,000 bpd, with capacity to reach 800,000 bpd, making thepipeline a key part of Enbridge’s mainline that delivers crude bitumen to U.S. markets.

    —GARY PARK

    see WELLSTAR page 5

    http://www.profileproducts.com/bakken

  • By MAXINE HERRFor Petroleum News Bakken

    Anxiety is growing in the railroad-heavy Pacific Northwest due to therecent trail derailments carrying Bakkencrude in North America. In easternWashington state, Spokane is a busycrossroads where BNSF, Union Pacificand the Spokane, Portland and SeattleRailway routes all converge. It’s also anAmtrak connecting point. With that levelof rail activity chugging through the city,recent derailments in North Dakota,Alberta, Alabama and the most destruc-tive Quebec accident that killed 50 peopleand destroyed more than 30 nearby build-ings, has Spokane officials reviewingtheir emergency plans.

    “Safety is my top priority,” SpokaneMayor David Condon told PetroleumNews Bakken in an email. “Preparation isvitally important to managing unplannedsituations when they arise. We evaluateand assess a number of considerations aspart of our regular operational prepared-ness planning. These incidents havereceived a lot of attention and remind usto review our plans and inform anyupdates we might make.”

    Legislation to reduce spill risksCrude oil spills from rail are on the

    rise. In 2013, nearly 26,000 barrels ofcrude oil was spilled from U.S. rail cars,according to data from the Pipeline andHazardous Materials SafetyAdministration. In comparison, railroadsspilled a total of 18,600 barrels of crudeoil from 1975 through 2012. These datado not include Canadian rail incidents butauthorities estimate more than 34,000barrels of crude oil spilled in the Lac-Megantic, Quebec, accident alone.However, the American Association ofRailroads, AAR, estimates that railroadsshipped more than 267 million barrels ofoil last year, which means 99.99 percentof shipments arrived without incident.

    Washington is hoping to be prepared ifthe odds fail them. State Rep. JessynFarrell introduced a bill into theLegislature that would enhance the safetyof how oil is transported within the state.The bill, dubbed the Oil TransportationSafety Act, describes the potential hazardof transporting crude oil and refinedpetroleum products along routes withinthe state, citing the U.S. Department ofTransportation alert issued Jan. 2 statingthat Bakken crude oil is more volatilethan previously thought.

    “Washington is a major export stateand that’s a status that we all appreciateand want to protect,” Farrell toldPetroleum News Bakken. “But the land-scape around domestic energy productionhas changed tremendously in the last fiveyears, which is a great success story in alot of ways, but given the catastrophes, wejust want to make sure we are respondingto the changing environment.”

    Farrell’s bill establishes measures toreduce the risk of oil spills, encouragespill prevention, and ensure that the pub-lic has access to information about oil

    traffic and its risks to their safety. “Since the federal government regu-

    lates the rail industry, we’re fairly restrict-ed on what we can regulate, but we canask for a study of our emergency pre-paredness, disaster response and recov-ery,” Farrell said. “There are jurisdictionsthat have really good, coordinatedresponses in place, so preparedness is afairly common sense approach.”

    Transparency from oil facilities is animportant piece, she said.

    “We want to handle this responsiblyand we’re trying to do that in a way thatbalances the proprietary interest of the oilindustry, yet at the same time provideenough information to have that responsi-ble emergency response,” Farrell said.

    Communities need to be proactiveWith greater information, Farrell

    hopes communities will be empowered totake care of themselves.

    “We have vantage points at the localand state levels that will help us take athoughtful, methodical approach to thesafety of the Spokane community,”Condon said.

    In the U.S., 1,400 trains now carrycrude each day, up from just 31 in 2009.BNSF hauls more than 600,000 barrels ofcrude a day across its network and one ofthose trains typically moves throughSpokane. Analysts project that as many as22 full and empty trains will soon rollthrough the city each day.

    Those numbers will climb as newrefineries and transfer terminals gear upfor more oil. Currently, the state has threeoil refineries, with two more on the hori-zon. Washington is also expected to housefive additional terminals to receive andship the oil, including one proposed at thePort of Vancouver by Tesoro Corp. andSavage Cos. that would be the largest rail-

    l M O V I N G H Y D R O C A R B O N S

    Concerns rise for northwest rail hot spotAt the crossroads of three railroads, Spokane, Wash., has been spurred into action in the wake of recent crude-by-rail explosions

    PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014 5

    ONE & DONELock down soils in high wind

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    FREEapproximately 429 net acres in NorthDakota which the company had previous-ly announced has been terminated.WellStar previously announced that it hadentered into a purchase agreement with aprivate Colorado firm for the acquisitionof non-operated working interests inapproximately 3,940 gross (approximate-ly 429 net) acres in North Dakota.

    However, the Jan. 16 press release alsoindicated that WellStar is continuing tonegotiate “potential alternative acquisi-tions with the vendor.” l

    continued from page 4

    WELLSTAR

    “Safety is my top priority. Theseincidents have received a lot of

    attention and remind us to reviewour plans and inform any updates

    we might make.” —Spokane Mayor David Condon

    see SPOKANE RAIL page 7

  • By STEVE SUTHERLINFor Petroleum News Bakken

    Due to ample capacity, the cost ofmany hydraulic fracturing servicesin North America is likely to remain sta-ble or fall in 2014, Paal Kibsgaard,Schlumberger CEO, said in a Jan. 17earnings call.

    In fracturing, Kibsgaard said, “there is

    still today significant industry overcapac-ity of horsepower, so at this stage we donot expect the market to reach equilibri-um in 2014.”

    Kibsgaard said he expects activity,however, to rise.

    “For North America you expect solidgrowth in activity on land in 2014 and alot of this is still going to be driven by fur-ther improvements in drilling and frack-

    ing efficiency,” he said, adding that heexpects the trends of 2013 to extend into2014.

    Technology-driven product introduc-tions are expected to drive effective pric-ing up in North America, Kibsgaard said.

    “I choose to focus on North Americabecause this is where I think technologywill have a significant impact in terms ofhow the market is going to be shapedgoing forward,” he said.

    “The main challenge in the NorthAmerica land market is still pricing, andwe saw further downward pricing pres-sure in most product lines in the fourthquarter partly amplified by the renegotia-tion and roll over of several key con-tracts,” he said.

    Frigid BakkenHalliburton expects its North

    American margins to be “modestly high-er” in 2004, Dave Lesar, Halliburtonpresident and CEO, said in a Jan. 21 earn-ings call.

    Winter weather has been a challengefor Halliburton in the Bakken and otherareas during the fourth quarter of 2013and the first quarter of 2014, according toJeff Miller, Halliburton executive vice

    president and COO. “Switching to North America, weather

    related activity disruptions resulted insequential drops in both revenue andoperating income,” Miller said. “Howeveractivity levels were stronger than expect-ed during the holiday season whichhelped to minimize that sequentialdecline.

    “Several areas including the Bakken,Permian Basin and Marcellus got off to aslow start in January due to weather dis-ruptions, but activity levels have sincereset,” Miller said. “We expect first quar-ter activity levels to be similar to thefourth quarter as our completions calen-dar is looking very active over the comingmonths; however this outlook is subject toadditional weather delays.”

    Pad levelingBaker Hughes is seeing price slippage

    in some product lines, and those productsmay see additional price softening in thefirst quarter of 2014, Martin Craighead,Baker Hughes CEO, said during a Jan. 21earnings conference.

    Newer products the company is intro-ducing are expected to provide a positiveoffset going forward, he said, adding thatthe “premium is being tested upwards,not downwards” when value is provided.

    “So the biases on revenue, to me, areall going in the right direction,” he said.

    Technology-driven products may well

    6 PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014

    MOVING HYDROCARBONS6 Bakken crude cars derail in Philadelphia

    Seven cars of a CSX Corp. freight train derailed on a bridge spanning theSchuykill River and Expressway in metropolitan Philadelphia on Jan. 20, six car-rying Bakken crude oil, but none leaked according to the U.S Coast Guard. Theseventh derailed car was carrying sand.

    The 101-car train was traveling from Chicago to Philadelphia when the sevencars positioned near the rear of the train jumped the tracks on the bridge in theearly morning hours of the 20th, causing the expressway to be temporarily closed.

    In a statement, a CSX spokesperson said the safe removal of the derailed tankcars would involve “the careful and environmentally responsible transfer of oil toother tank cars or tanker trucks. It also will require the removal of sand carried inone of the cars.”

    Nobody was injured in the derailment. Philadelphia-area emergency respon-ders, including the Philadelphia Fire Department and the Coast Guard, respondedto the derailment.

    The cause of the derailment is not known and the investigation continues, butone local city official told Philadelphia NBC affiliate WCAU that there has longbeen concern over the age of the bridge, which was built around the turn of the20th century.

    —MIKE ELLERD

    l D R I L L I N G & C O M P L E T I O N

    Overcapacity of fracking horsepowerPrices for many fracking and completion services expected to remain stable or even fall in 2014; market equilibrium elusive

    “The main challenge in the NorthAmerica land market is still

    pricing.” —Paal Kibsgaard, Schlumberger CEO

    see SERVICE PRICING page 8

    http://www.arcticcatering.com

  • By ROSE RAGSDALEFor Petroleum News Bakken

    Marathon Oil Corp. said Jan. 20 itsboard of directors has electedDeanna L. Jones to the position of vicepresident of human resources and admin-istrative services, effective Jan. 27. Jonessucceeds Robert L. Sovine, who retiredfrom Marathon Oil Jan. 1 after 33 years ofservice.

    “We are very pleased to welcomeDeanna to the Marathon Oil leadershipteam and look forward to the contribu-tions she will make in leading the manydimensions of our company’s humanresource activities,” said Marathon OilPresident and Chief Executive OfficerLee M. Tillman.

    Tillman also thanked Sovine for morethan 30 years of “dedicated service” toMarathon.

    “Attracting and retaining talentedemployees on a global scale is central toour ability to achieve our business goalsand create shareholder value. MarathonOil has been able to accomplish thisunder Bob’s distinguished leadership,which has been guided by an unwaveringcommitment to our core values. We wishBob and his family the very best forgood health and much happiness in thecoming years.”

    Jones, 45, is a 20-year-plus veteran ofoilfield-related human resources organi-zations in North America. Most recently,she served for nearly four years as vicepresident of human resources and chiefcommercial officer for NewfieldExploration Co. in Houston. Prior tojoining Newfield in August 2010, Jonescapped a 20-year career with

    Schlumberger Ltd., in the ReservoirProduction Group as human resourcedirector from 2008 until 2010. She for-merly served as vice president, NorthAmerica for Schlumberger InformationSolutions from 2006 and 2008, and inthat role, was responsible for leadingsoftware, information and the company’srelated infrastructure organization in theUnited States.

    From 2003 to 2006, Jones served asvice president of personnel forSchlumberger Information Solutions,and was responsible for leading allhuman resources-related activities forSchlumberger’s worldwide work forcefrom its London office. During the pre-vious decade, she worked in a variety ofmanagerial assignments of increasingresponsibility for Schlumberger inCanada and the United States.

    Jones holds a bachelor’s degree incommerce from the University ofCalgary, and has completed executivebusiness courses in human resources atthe University of Michigan and infinance at the IMD Business School inLausanne, Switzerland. l

    PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014 7

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    COMPANY UPDATEMountain Divide adding 2 more ND wells

    Montana-based Mountain View Energy’s subsidiary Mountain Divide hasdrilled two additional Three Forks formation wells in its 12 Gauge project inDivide County, N.D., and preparation is under way for completing both wells. TheReistad 23-14-1H and Reistad 26-35S-1H bring to eight the number of wells thecompany has in its 12 Gauge project.

    Mountain Divide reports it has also increased its working interest in the twowells. The company’s working interest in the Reistad 23 well increased from 67 to92.5 percent and from 78 to 99.2 percent in the Reistad 26 well.

    “We are pleased that both wells were successfully drilled safely, efficiently andunder budget, indicating that our operational experience gained from the firstwells in the program has led to cost efficiencies on current wells,” Mountain ViewPresident Patrick Montalban said in a Jan. 14 press release. “The ability toincrease our working interest in this prospective acreage is a positive transactionfor the Company and we look forward to the upcoming fracture stimulation oper-ations.”

    The two Reistad wells were drilled by Calgary-based Ensign Energy’s 118 rig,which is the first “skidable” rig that Mountain Divide has used on its first multi-well pad. The two Reistad wells will be fracked simultaneously with 32 plug-and-perf stages each.

    Other Mountain Divide wellsAll eight wells in Mountain Divide’s 12 Gauge project are in or near the

    Fortuna field in northwest Divide County, and all target the Three Forks forma-tion. Some of those wells are still on confidential status, but five of the 12 Gaugewells are on active status and went on production between February and October,2013. Three of the five active wells went on production in February, March andApril with 24-hour initial production, IP, rates ranging from 341 to 470 barrels perday. Though November, those three wells have had average daily production ratesof between 205 and 207 bpd.

    The other two wells on active status went on production in September andOctober with 24-hour IPs of 480 and 456 bpd. Through November, productionfrom those two wells has averaged 318 and 429 bpd.

    Montalban told Petroleum News Bakken in November that while the Bakkenformation is prospective in northwest Divide County, the Three Forks formationhas proven a better prospect. Those wells have a flatter decline curve, and wellscost less because the Three Forks is shallower in that region.

    Oil and Gas Division records also indicate that in November, the most recentmonth for which total production data are available, Mountain Divide ranked 37thamong the top 50 oil producers in the state based on non-confidential, operatedwells producing an average of 894 bpd.

    —MIKE ELLERD

    l P E O P L E T A L K

    Marathon Oil picksJones to lead HRNew vice president brings with her nearly 24 years of seniorexecutive experience: 20 with Schlumberger, four with Newfield

    People Talk

    oil terminal in the Northwest (seestory on page 1).

    Spokane officials feel their com-munity needs to be protected. CityCouncil President Ben Stuckart toldthe city’s local newspaper that hewants the City Council to have avoice in state approval of new refiner-ies and terminals and also push forstronger federal rail safety regula-tions.

    The rail industry recently urgedfederal regulators to toughen existingstandards for new tank cars andrequire that existing tank cars used totransport flammable liquids, includ-ing crude oil, be retrofitted withadvanced safety-enhancing technolo-gies or, if not upgraded, phased out.

    On Jan. 16, TransportationSecretary Anthony Foxx met with railand oil industry representatives todiscuss changes in tank car design,traveling speeds, and routes. Foxxsaid the changes would be announcedin the next 30 days. l

    continued from page 5

    SPOKANE RAIL

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    MERGERS & ACQUISITIONSMagnolia adds interest in 4 Kodiak wells

    Oklahoma-based Magnolia Petroleum has added four more Bakken wells to itsportfolio of non-operated Williston Basin assets, those being four Kodiak Oil andGas-operated wells in the South Fork field in northeast Dunn County. Two of thewells will target the Bakken formation and two the Three Forks formation.

    In a Jan. 20 press release, Magnolia says that the four new wells are to be drilledon the same spacing unit as two other Kodiak wells in which Magnolia has an inter-est. One of those wells, the Skunk Creek 2-8-17-15H , a Three Forks formationwell, went on production in January 2012 with 24-hour initial production, IP, rateof 2,303 barrels per day.

    “Though it has since been superseded, notably by four of the six Statoil operat-ed Jake wells in North Dakota, at 2,303 bopd, the initial production rate for theSkunk Creek 15H well was, at the time, our best ever,” said Magnolia ChiefOperating Officer Rita Whittington in the Jan. 20 press release.

    The “Jake” wells to which Whittington refers are six wells by that name in theLast Chance field in southwest Williams County, all in which Magnolia holds aninterest. Those six wells had 24-hour IPs ranging from 2,320 bpd to 3,606 bpd withan average of 2,758 bpd.

    Magnolia also participates in wells operated by Marathon Oil. In June and Julyof 2013, Magnolia released production results from two of the Marathon-operatedwells Magnolia participates in, the Gustafson 31-30H and the Helgeson 41-30H,both in the Bailey field in central Dunn County. Those two wells had 24-hour IPsof 1,216 and 1,401 bpd, respectively.

    “In addition, these four new infill wells serve as a reminder that in North Dakotait is accepted practice to drill a total of four wells per formation on each spacingunit in order to maximize the recovery of the reserves,” Whittington said. “As theThree Forks Sanish lies below the Bakken formation, there is therefore the poten-tial for eight wells to be drilled per unit on all our leases in North Dakota, includ-ing the Jake wells and the Marathon operated Gustafson and Helgeson wells.”

    In addition to its non-operated acreage in North Dakota, Magnolia also holdsapproximately 7,600 acres in northeast Montana, most of which is in DanielsCounty. Although a non-operator in the Williston Basin, Magnolia does have oper-ations in the Mississippi Lime and Woodford/Hunton plays in Oklahoma.

    —MIKE ELLERD

    MOVING HYDROCARBONSKoch scraps Dakota Express pipeline

    Wichita-based Koch Pipeline Co. is shelving its plans to build the Dakota Expresspipeline that would have moved Bakken crude oil from western North Dakota to crudeoil terminalling hubs in Illinois.

    Bloomberg reported on Jan. 21 a Koch Industries spokesperson as saying that KochPipeline Co. is no longer developing the Dakota Express pipeline did not offer a rea-son. As Petroleum News Bakken reported inJuly 2013, Koch Pipeline was to begin a 45-dayopen season on July 1, 2014, but Bloombergquotes the Koch spokesperson as saying the“non-binding open season for the DakotaExpress pipeline is no longer being pursued.”

    The Dakota Express was to involve construc-tion of a new pipeline as well as reversal of anexisting line between Saint Paul, Minn., andHartford, Ill. It would have the capacity to shipapproximately 250,000 barrels of oil per day. Had the project proceeded, service wouldhave begun in 2016. Koch was also planning to explore connecting the Dakota Expressto Energy Transfer’s proposed Eastern Gulf Crude Access Pipeline, a project proposedto transport crude oil from the Patoka, Ill., hub south to eastern Gulf Coast refineries.

    However, as Petroleum News Bakken reported Jan. 12, the Eastern Gulf Coast proj-ect, which is a joint venture between Energy Transfer Partners and Enbridge, is still inthe works and is planned to transport up to 600,000 barrels of Canadian and Bakkencrude to the Eastern Gulf Coast refinery region.

    —MIKE ELLERD

    regulation issue and in oil counties 13 per-cent are undecided.

    The views on regulations haven’tchanged significantly over the last threeyears. In 2012, 61 percent of those polledstatewide thought the regulations wereabout right while 26 percent felt theywere too lax and 4 percent thought theywere too harsh. In the oil counties thosethree numbers were 67, 23 and 4 percent,respectively.

    In 2011, 57 percent of people polledboth statewide and in the oil counties feltregulations were about right, while 26percent statewide and 28 percent in oilcounties thought regulations were too lax.Statewide, 4 percent felt regulations weretoo harsh in 2011, while that number in

    oil counties was 3 percent.

    FlaringNorth Dakotans are also divided on flar-

    ing, with only 55 percent of those polledstatewide agreeing that the current level ofoil and gas should be maintained despiteflaring in order to support job growth and astrong economy, and 34 percent agreeingthat the level of oil and gas developmentshould be reduced in order to cut down onflaring until there is sufficient gas gatheringinfrastructure to keep pace with production.

    In the oil counties the numbers are near-ly identical to the statewide results with 56percent supporting the current level of pro-duction despite flaring and 35 percentfavoring a production decrease to reduceflaring. l

    continued from page 3

    MIXED VIEWS

    The Dakota Express was toinvolve construction of a newpipeline as well as reversalof an existing line between

    Saint Paul, Minn., andHartford, Ill.

    be the next efficiency frontier, as rapidgains realized from pad drilling level out.

    Baker Hughes research of industry-wide trends indicates that in the Bakkenand the Eagle Ford, approximately half ofthe wells drilled in 2012 and 2013 werehorizontal, Craighead said.

    In 2012, 40 percent of horizontal wellswere on a pad; in 2013, 50 percent to 60percent of the horizontal wells were on

    pads, he said. “You can’t keep going up50 percent every year.”

    “I think on multiple fronts, I don’t careif it’s the drilling, the completions, thepad drilling — this efficiency curve isflatlining for our customers — and you’renot going to get every horizontal well offof a pad,” Craighead said. “So if we sit at60 percent today, let’s say next year wemay get to 80 percent; I don’t know howmuch more you can get past that.” l

    continued from page 6

    SERVICE PRICING

    C O M P A N Y U P D A T E

    A S S O C I A T I O N S

    L A N D & L E A S I N G

    Vol. 1, No. 21 • www.PetroleumNewsBakken.com A semi-monthly newspaper for industry and government February 17, 2013

    Crude on rails in for long haul

    VERN

    WHI

    TTEN

    PHO

    TOG

    RAPH

    Y

    Plains All American’s Manitou crude oil and NGL rail facility nearRoss, west of Stanley in Mountrail County, North Dakota. Phototaken this winter by Vern Whitten. See rail story below.

    WLL gets bum rapJames. T. Brown: Whiting Petroleum is not running out of drilling inventory

    By RAY TYSONPetroleum News Bakken

    Denver-based E&P independentWhiting Petroleum Corp. is findingit difficult convincing investors that thecompany is not running out of suitableplaces to drill.

    “The knock against Whiting is that youguys don’t have any inventory and in threeyears you’re going to be done,” James T.Brown, Whiting’s president and chief operating offi-cer, told industry analysts Feb. 6 at the Credit Suisse2013 Energy Summit in Vail, Colo.

    The lack-of-inventory perception seems to be par-

    ticularly acute when it comes to findingnew targets in Whiting’s flagship Sanishfield in North Dakota’s Williston Basin,which accounts for around 30,000 barrelsper day, or nearly 40 percent of the compa-ny’s roughly 80,000 barrels per day of pro-duction.

    By the end of 2012, a total of about 300production wells had been drilled in theSanish field, with at least another 200 to bedrilled and completed.

    “It seems that when we get to the end of everyyear, we have two-and-half to three years of drilling

    Riverbed draws top bidsQEP Energy high bidder on 22 Missouri River leases; shore zone included

    By MIKE ELLERDFor Petroleum News Bakken

    A total of 27,370 acreswere leased in 306 tractsin nine western North Dakotacounties in the Feb. 5 NorthDakota Department of TrustLands oil and gas lease auctionbringing in a total of$24,609,206 at an averageprice of $899 per acre. The auction was dominated bytracts between the former high water marks on thetwo banks of the Missouri River under LakeSakakawea in Dunn County.

    Of the 27,370 acres leased, slightly less than one-

    third or 9,900 acres were in106 Missouri riverbed tracts inDunn County and those tractsbrought in a total $21,227,455,a sum that accounted for morethan 86 percent of the grossauction proceeds.

    The Dunn County leaseactivity was, in turn, dominat-ed by 22 Missouri riverbedtracts totaling 1,465 acres that

    fetched a total of $16,536,197 at an average price of$11,291 per acre, all purchased by Denver-basedQEP Energy Co.

    Galt: MPA ever vigilantMontana Petroleum Association chief keeps tabs on several bills during session

    see WHITING INVENTORY page 18

    LANCE GAEBE DREW COMBS

    see ND LEASE AUCTION page 21

    By MIKE ELLERDFor Petroleum News Bakken

    Numerous oil and gas-related billshave been introduced thus far in the63rd session of the Montana legislaturecurrently in session in Helena, and whileMontana Petroleum Association ExecutiveDirector Dave Galt follows all of themclosely, he recently spoke with PetroleumNews Bakken and discussed those that hethinks are most important to his membership.

    The key bills Galt identified fall into a variety ofcategories. Some deal with compensation forlandowner surface damage, eminent domain andforced pooling, all of which Galt lumps together intowhat he considers to be “property rights” legislation.Other bills that Galt considers key deal with taxation,

    temporary leasing of water rights, financialrelief to oil and gas-impacted communities,and carbon sequestration and enhanced oilrecovery using carbon dioxide.

    Property rights: surface damage compensation

    House Bill 431, introduced by Rep.Austin Knudsen of Culbertson, is a surfacedamage compensation bill that would addto the existing oil and gas surface damage

    and disruption compensation statue the definition of“lost land value” as “the value of the highest and bestreasonably available use, including the proposed use.”The bill would also require that the surface owner andthe oil and gas developer or operator attempt “in good

    DAVE GALT

    see ENERGY LEGISLATION page 22

    Rail will survive pipeline additionsThe need for rail to move crude from

    Midcontinent fields will likely persist,even if plans for expanding pipelinelinks from the Bakken to the Gulf Coastgo ahead, EOG Resources ChiefExecutive Officer Mark Papa told aColorado conference.

    He said rail will still be used fiveyears from now to deliver Bakken crudeto all three Lower 48 coasts — the Gulf,East and West — but expects the cur-rent advantage of Louisiana Light Sweet, LLS, crude pricesin the Houston market will probably change within 18

    Bakken threatens Alberta upgraderThe Bakken might be about to register a friendly-fire vic-

    tim — a C$11.6 billion Suncor Energy upgrader to convert oilsands bitumen into synthetic crude for refining into fuels.

    Suncor, with France’s Total as a 49 percent partner, expectsto decide no later than March 31 on the immediate fate of itsVoyageur project, which has been in a holding pattern for thelast four years, putting an end to its original startup date of2016.

    Since taking control of the oil sands giant nine monthsago, Suncor Chief Executive Officer Steve Williams hasincreasingly hinted that economic challenges could be theundoing of Voyageur.

    His explanation has been delivered in clear-cut terms.

    Helms slams U.S. Fish & Wildlife Two new slides have appeared in

    Lynn Helms’ presentation packet —slides with information that he thinksindicate an attempt bythe U.S. Fish & WildlifeService to take over oiland gas permitting inNorth Dakota.

    One is a map backing up his agency’srecent analysis that shows 83 percent ofNorth Dakota’s oil and gas spacing unitshave some federal land ownership, surface and/or minerals.

    Helms, director of the North Dakota IndustrialCommission’s Department of Minerals, Oil and Gas Division,told North Dakota lawmakers in January, “It was really sur-prising to me when we did this analysis to find out that 83

    see RAIL SURVIVAL page 24

    MARK PAPA

    see ALBERTA UPGRADER page 24

    see PERMITTING page 10

    JAMES T. BROWN

    LYNN HELMS

    page6

    Senate majority leader weighs in onNorth Dakota oil, gas legislation GET THE

    LATEST BAKKEN NEWS.SUBSCRIBE TODAY!907-522-9469PETROLEUMNEWSBAKKEN.COM

    http://www.dakotalanding.comhttp://www.petroleumnewsbakken.com

  • PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014 9

    BAKKENStatsMontana well permits and completionsJanuary 10—16, 2014

    COMPILED BY DARRYL L. FLOWERSFor Petroleum News Bakken

    CompletionsIn Richland County, four Bakken for-

    mation wells were reported as completed.

    Whiting Oil and Gas Corp. reported

    the completion of the Sundheim 31-2-1H,

    which has an SHL at NE 2-25N-57E (280

    FNL/2400 FEL) and a BHL of 20,950

    feet at SW SW 11-25N-57E (273

    FSL/765 FWL). The Sundheim reported

    an IP of 1,021 BOPD, 431 MCFPD of gas

    and 2,593 BWPD.

    The three remaining Richland County

    completions are wells operated by

    Continental Resources Inc.

    Continental’s Fitzsimons 1-26H has an

    SHL at NE NW 26-23N-54E (260

    FNL/2165 FWL) and three laterals with

    BHLs of 11,751 feet at SE NW 26-23N-

    54E (2215 FNL/1984 FWL); 12,020 feet

    at SE NW 26-23N-54E (2481 FNL/1959

    FWL); and 14,591 feet at SE SW 26-23N-

    54E (231 FSL/1970 FWL). The reported

    IP was 147 BOPD, 91 MCFPD of gas and

    222 BWPD.

    The Thomas-Bettye HSU has an SHL

    at SE SE 27-23N-56E (275 FSL/355

    FEL) and a BHL of 20,318 feet at NW

    NW 23-23N-56E (236 FNL/29 FWL) and

    reported an IP of 315 BOPD, 92 MCFPD

    of gas and 37 BWPD.

    The Jeanette 3-14H has an SHL at SE

    SW 14-23N-54E (260 FSL/2225 FWL)

    and a BHL of 19,895 feet at NE NW 11-

    23N-54E (224 FNL/1935 FWL) and

    reported an IP of 525 BOPD, 298

    MCFPD of gas and 533 BWPD.

    Expired permitsIn Roosevelt County, the permit for the

    Star Coulee 3-1720H, operated by EOG

    Resources Inc., expired. The Star Coulee

    had an SHL at NW NE 17-27N-58E (200

    FNL/1575 FEL) and was permitted to the

    Bakken formation.

    Converted to injectionIn Richland County, the Staci 3-11H,

    operated by Continental Resources Inc.

    was approved for injection. The Staci pro-

    duces from the Bakken formation and has

    an SHL at NE NW 11-23N-55E (330

    FNL/1700 FWL). ●

    Editor’s note: Darryl L. Flowers, acontributor to Petroleum News Bakken,is the publisher of the Fairfield SunTimes in Fairfield, Mont., www.fairfield-suntimes.com, and can be reached [email protected]. Theinformation is derived from the onlinerecords of the Montana Board of Oil &Gas Conservation Commission.

    Abbreviations & parametersWith a few exceptions, the Montana weekly oil activity report includes horizontal well activity in

    the Bakken petroleum system in the eastern/northeastern part of the state within the Williston Basin. It

    also includes the Heath play and what is referred to as the South Alberta Bakken fairway in northwest-

    ern/west-central Montana, which is at least 175 miles long (north-south) and 50 miles wide (east-west),

    extending from southern Alberta, where the formation is generally referred to as the Exshaw, south-

    wards through Montana’s Glacier, Toole, Pondera, Teton and Lewis & Clark counties. The Southern

    Alberta Bakken, under evaluation by several oil companies, is not part of the Williston Basin.

    Following are the abbreviations used in the report and what they mean.

    BHL: bottomhole location | BOPD: barrels of oil per day | BWPD: barrels of water per day

    IP: initial production | MCFPD: thousand cubic feet per day | PBHL: probable bottomhole location

    PD: proposed depth | SHL: surface hole location | TD: total depth

    And public land survey system abbreviations:

    FNL = from north line | FEL = from east line | FSL = from south line | FWL = from west line

    Company Exchange Symbol Closing price Previous Wed.

    Abraxas Petroleum Corporation NASDAQ AXAS $3.26 $3.11

    American Eagle Energy Corporation OTC AMZG $2.04 $1.78

    Arsenal Energy USA, Inc. TSE AEI $5.02 $5.13

    Baytex Energy USA Ltd NYSE BTE $37.64 $36.59

    Burlington Resources Co., LP (ConocoPhillips) NYSE COP $68.37 $68.08

    Continental Resources, Inc. NYSE CLR $112.45 $108.56

    Crescent Point Energy US Corporation TSE CPG $39.83 $39.39

    Denbury Onshore, LLC NYSE DNR $16.57 $16.49

    Emerald Oil, Inc. NYSEMKT EOX $7.79 $7.46

    Enerplus Resources USA Corporation NYSE ERF $18.48 $17.76

    EOG Resources, Inc. NYSE EOG $171.72 $170.36

    Fidelity Exploration & Production (MDU) NYSE MDU $31.43 $30.58

    GMX Resources, Inc. PINK GMXRQ $0.09 $0.10

    Halcon Resources NYSE HK $3.57 $3.34

    Hess Corporation NYSE HES $78.12 $77.67

    Kodiak Oil and Gas (USA), Inc. NYSE KOG $11.45 $10.83

    Legacy Reserves Operating LP NASDAQ LGCY $27.92 $28.11

    Marathon Oil Company NYSE MRO $34.40 $34.01

    Mountain Divide, LLC (Mountainview Energy) CVE MVW.V $0.49 $0.52

    Newfield Production Company NYSE NFX $25.92 $25.28

    Northern Oil and Gas NYSE NOG $15.10 $14.03

    Oasis Petroleum North America NYSE OAS $44.60 $43.75

    Oxy USA, Inc. (Occidental Petroleum) NYSE OXY $90.96 $91.46

    PetroShale Inc. CVE PSH $1.38 $1.34

    QEP Energy Company NYSE QEP $31.30 $29.70

    Resolute Natural Resources Company, LLC NYSE REN $8.93 $8.43

    Samson Resources Company (KKR & Co) NYSE KKR $26.30 $25.75

    SM Energy Company NYSE SM $87.58 $84.87

    Statoil Oil and Gas LP NYSE STO $24.94 $24.94

    Triangle USA Petroleum Corporation NYSE TPLM $8.88 $8.13

    Whiting Oil and Gas Corporation NYSE WILL $61.51 $59.73

    WPX Energy Williston, LLC NYSE WPX $19.95 $19.01

    XTO Energy, Inc. (ExxonMobil) NYSE XOM $97.88 $98.78

    Bakken producers’ stock pricesClosing prices as of Jan.22along with those from previous Wednesday

    BAKKEN STATS COMMENTARYWhiting No. 2 producer; Statoil tops IP

    Whiting Oil and Gas reclaimed the No. 2 position among North Dakota’s top

    50 oil producers in November, pushing Hess Corp. into the No. 3 spot but by the

    slimmest of margins (page 13). Whiting’s daily production in November averaged

    74,205 barrels per day, 8 bpd more that Hess’s average daily production of 74,197

    bpd. Continental Resources held on strong to its No. 1 spot with an average daily

    production of 81,758 bpd.

    Among the top 10 oil producers, EOG Resources held its No. 4 position with

    56,998 bpd, but Statoil Oil and Gas moved up one place to the No. 5 spot with

    54,971 bpd, replacing XTO Energy which fell to the No. 6 spot at 51,585 bpd.

    Burlington Resources replaced Kodiak Oil and Gas in the No. 7 spot at 43,877

    bpd, and Kodiak moved down to the No. 10 spot at 41,201 bpd. Oasis Petroleum

    moved up two slots to the No. 8 position with 42,648 bpd. Marathon Oil held its

    No. 9 position with 41,339 bpd.

    Statoil tops IP listStatoil Oil and Gas had the highest 24-hour initial production, IP, for the week

    of Jan. 14-20 at 4,884 barrels from one of its Banks field wells (page 11), not far

    off the record high IP of 5,417, which Statoil holds for another Banks field well.

    Statoil also had the second and third highest IP wells for the week with a

    Sandrocks field well in second with 3,358 barrels, and another Banks field well

    third at 3,099 barrels. The Banks field is in far north-central McKenzie County.

    The Sandrocks field lies to the southwest toward central McKenzie County.

    Other operators with wells on the Top 10 list are Burlington Resources, which

    had the fourth place well at 2,856 barrels; QEP Energy, which had the fifth, sev-

    enth and eighth wells; Petro-Hunt at ninth; and Whiting at tenth. IPs for those

    seven wells ranged from 1,210 to 2,856 barrels. Those wells are in the Charlson,

    Grail and Clear Creek fields in McKenzie County, and in the Reunion Bay and

    Sanish fields in Mountrail County.

    Montana productionNot only is Continental the No. 1 producer in North Dakota but also in

    Montana where the company’s daily production averaged 16,421 bpd in

    November. Oasis Petroleum came in as the second largest producer in Montana in

    November with 6,757 bpd, followed by Enerplus Resources, XTO Energy and

    Whiting to round out the top five Montana producers.

    —MIKE ELLERD

    January 13, 2014From: Denbury Onshore, LLCTo: Cornerstone Natural Resources, LLC#04387 - North American Royalties 1; vertical;Madison; Northeast Foothills; 3/13/1968; 70 bbl;SWSW 6-161N-90W; Burke Co.

    From: Hess CorporationTo: Enduro Operating, LLC#02998 - SWSCU 25-34; vertical; Spearfish/Charles;South Westhope; 10/6/1961; 44 bbl; SWSE 25-162N-80W; Bottineau Co

    January 14, 2014From: Petro Hunt, LLCTo: White Owl Energy Services, Inc.#07701 - Carus 1-20-3D; vertical; Madison; LittleKnife; 7/3/1980; 145 bbl; SWSE 20-145N-97W; DunnCo.

    From: Samson Resources CompanyTo: Hess Corporation#21304 - Stanley 28-21-156-91H; horizontal; Bakken;Ross; 5/17/2012; 398 bbl; SESW 28-156N-91W;Mountrail Co.

    —Compiled by Ashley Lindly

    North Dakota well operator transfers January 11–17, 2014

    LEGENDDate of well operator transfer

    Well(s) transferred from

    Well(s) transferred to

    NDIC well file number — well name — well type — geological target — field —

    IP (initial production) test date — IP oil rate in barrels — location — county

    Subscribe at

    PETROLEUMNEWSBAKKEN.COM

    http://www.petroleumnewsbakken.com

  • 10 PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014

    Abraxas Petroleum (October 2013)Elm Coulee – Bakken – Richland 37Lane – Bakken – Richland 0Sidney – Bakken – Richland 0

    Daily average: 1

    Armstrong Operating (October 2013)Elm Coulee – Bakken – Richland 808

    Daily average: 26

    Burlington Resources Oil and Gas (ConocoPhillips) (October 2013)Elm Coulee – Bakken – Richland 38,278

    Daily average: 1,235

    Charger ResourcesElm Coulee – Bakken – Richland 200

    Daily average: 7

    Continental ResourcesElm Coulee – Bakken – Richland 457,255Elm Coulee, Northeast – Three Forks – Richland 440Elm Coulee, Northeast – Bakken – Richland 20,104Elm Coulee, Northeast – Bakken – Roosevelt 14,833Wildcat Richland – Bakken – Richland 0

    Monthly total: 492,632Daily average: 16,421

    Denbury OnshoreLookout Butte – Lodgepole – Fallon 121Lookout Butte, East, Unit – Lodgepole – Fallon 0

    Daily average: 4

    Earthstone EnergySpring Lake, West – Bakken – Richland 0

    Enerplus Resources USACharlie Creek – Bakken – Richland 160Elm Coulee – Bakken – Richland 164,991Epworth – Bakken – Richland 145Girard – Bakken – Richland 163Mustang – Bakken – Richland 422Putnam – Bakken – Richland 0Spring lake – Bakken – Richland 276

    Three Buttes – Bakken – Richland 212

    Monthly total: 166,369Daily average: 5,546

    EOG ResourcesElm Coulee – Bakken – Richland 19,700Elm Coulee, Northeast – Bakken – Roosevelt 49,460Wildcat Richland – Bakken – Richland 0

    Monthly total: 69,160Daily average: 2,305

    Fidelity Exploration and Production (MDU)Elm Coulee – Bakken – Richland 2,913Elm Coulee – Three Forks – Richland 290

    Monthly total: 3,203Daily average: 107

    Marathon Oil (October 2013)Elm Coulee, Northeast – Bakken – Sheridan 6,540Elm Coulee, Northeast – Three Forks – Sheridan 1,695

    Monthly total: 8,235Daily average: 266

    MBI Oil and Gas (October 2013)Elm Coulee, Northeast – Bakken – Richland 770

    Daily average: 25

    McRae and Henry (October 2013)Outlook – Mission Canyon, Bakken – Sheridan 0Outlook – Nisku, Bakken – Sheridan 317

    Daily average: 10

    Mountain Pacific General (October 2013)Two Waters – Bakken – Richland 0

    Newfield ProductionElm Coulee – Bakken – Richland 20,912Comertown – Lodgepole – Sheridan 0

    Daily average: 697

    Oasis Petroleum North AmericaElm Coulee – Bakken – Richland 500Elm Coulee, Northeast – Bakken – Richland 45,246Elm Coulee, Northeast – Bakken – Roosevelt 153,055Elm Coulee, Northeast – Three Forks – Roosevelt 3,899

    Monthly total: 202,700Daily average: 6,757

    Panther Energy Company (October 2013)Elm Coulee, Northeast – Bakken – Richland 339

    Daily average: 11

    Sagebrush ResourcesRedstone – Bakken – Sheridan 71

    Daily average: 2

    Samson Oil and Gas (October 2013)Elm Coulee, Northeast – Bakken – Roosevelt 0

    Samson Resources (KKR & Co) (October 2013)Elm Coulee, Northeast – Bakken – Sheridan 1,416Elm Coulee, Northeast – Three Forks – Sheridan 779

    Monthly total: 2,195Daily average: 71

    Sinclair Oil and GasElm Coulee – Bakken – Richland 1,473Elm Coulee, Northeast – Bakken – Sheridan 963

    Monthly total: 2,436Daily average: 81

    Slawson ExplorationElm Coulee – Bakken – Richland 59,191Elm Coulee – Lodgepole – Richland 444Elm Coulee, Northeast – Bakken – Roosevelt 6,351

    Monthly total: 65,986Daily average: 2,200

    SM EnergyBrorson – Mission Canyon, Bakken – Richland 355Brorson, South – Bakken – Richland 0Brorson, South – Mission Canyon, Bakken – Richland 948Elm Coulee – Bakken – Richland 21,726Mustang – Bakken – Richland 89Putnam – Mission Canyon, Bakken – Richland 148Vaux – Mission Canyon, Bakken – Richland 468

    Monthly total: 23,734Daily average: 791

    TAQA North (October 2013)Flat Lake – Bakken – Sheridan 25,656Johnson Lake – Bakken – Sheridan 0

    Daily average: 828

    Whiting Oil and GasElm Coulee – Bakken – Richland 229Elm Coulee, Northeast – Bakken – Richland 104,353Elm Coulee, Northeast – Bakken – Roosevelt 2,646Elm Coulee, Northeast – Three Forks – Richland 2,061Elm Coulee, Northeast – Three Forks – Roosevelt 1,727Elm Coulee, Northeast – Three Forks – Sheridan 706

    Monthly total: 111,722Daily average: 3,724

    XTO Energy (ExxonMobil)Elm Coulee – Bakken – Richland 156,519Elm Coulee, Northeast – Bakken – Roosevelt 8,985

    Monthly total: 165,504Daily average: 5,517

    —Compiled by Ashley Lindly

    The information below is derived from State of Montana production reports and separated out by company. Note this is oilproduced by wells operated by these companies; it does not identify the percentage of Bakken petroleum system oil such asThree Forks, Bakken, Pronghorn, etc. that is actually owned by the company, so it might differ from what each companyreports. It also does not include oil production from wells operated by others, in which these companies might hold an interest,or wells currently on confidential status. The daily average was derived from dividing the total production by the number ofdays in November, excluding production from wells on confidential status and rounded to the nearest whole. Note: Abraxas,Armstrong, Burlington Resources Oil and Gas, Marathon, MBI Oil and Gas, McRae and Henry, Mountain Pacific, Panther Energy, Samson Resources, Samson Oil and Gas USA Montana, andTAQA North had not yet filed their November production information, so their October production is shown, as noted.

    The operator names used in this report are as they appear in State of Montana records, even though some of the companies or their Bakken system assets might have been purchased byother companies. When that is the case, the current owner’s name is in parenthesis behind the owner of record. If any current owners are missing, please contact Ashley Lindly at [email protected].

    LEGENDField – pool – county – barrels of oil per monthDaily average in barrels of oil

    Montana Bakken oil production by company November 2013

    Top 5 Montana Bakken oil producersNovember 2013

    Continental Resources 16,421 bpdOasis Petroleum 6,757 bpdEnerplus Resources 5,546 bpdXTO Energy (ExxonMobil) 5,517 bpdWhiting Oil and Gas 3,724 bpd

    Average November 2013 Bakken oil production: 44,162

    Billings Co.Permits renewedPetro-HuntHagen 144-98-12C-1-1H; NENW 13-144N-98W;285’FNL and 2,235’FWL; Little Knife; N/A*; on confi-dential status; 2,522’ ground; 24781; 33-007-01783;1/16/2014Osadchuk 142-100-14A-15-1H; SENE 14-142N-100W; 1,550’FNL and 285’FEL; Tree Top; N/A*; on con-fidential status; 2,731’ ground; 24777; 33-007-01781;1/16/2014State 144-98-16A-21-1H; NWNE 16-144N-98W;250’FNL and 1,620’FEL; Little Knife; N/A*; on confi-dential status; 2,549’ ground; 24778; 33-007-01782;1/16/2014Terres 144-98-13B-24-1H; NENW 13-144N-98W;285’FNL and 2,310’FWL; Little Knife; N/A*; on confi-dential status; 2,524’ ground; 24782; 33-007-01784;1/16/2014

    Burke Co.Permits issuedOasis PetroleumShaw 6092 11-23 2B; NWNW 23-160N-92W;1,034'FNL and 250'FWL; Cottonwood; Bakken; hori-zontal; 2,422’ ground; 27467; 33-013-01767;1/14/2014Shaw 6092 11-23 3T2; NWNW 23-160N-92W;1,067'FNL and 250'FWL; Cottonwood; Bakken; hori-zontal; 2,421’ ground; 27466; 33-013-01766;1/14/2014Shaw 6092 11-23 4T; NWNW 23-160N-92W;1,100'FNL and 250'FWL; Cottonwood; Bakken; hori-zontal; 2,421’ ground; 27465; 33-013-01765;1/14/2014Shaw 6092 11-23 6B; NWNW 23-160N-92W;1,166'FNL and 250'FWL; Cottonwood; Bakken; hori-zontal; 2,419’ ground; 27463; 33-013-01763;1/14/2014

    Petro-HuntMoody 159-94-15B-22-2H; NENW 15-159N-94W;215'FNL and 1,850'FWL; North Tioga; N/A*; on confi-dential status; 2,310’ ground; 27471; 33-013-01770;1/15/2014Moody 159-94-15B-22-3H; NENW 15-159N-94W;215'FNL and 1,775'FWL; North Tioga; N/A*; on confi-dential status; 2,308’ ground; 27470; 33-013-01769;1/15/2014Moody 159-94-15B-22-4H; NENW 15-159N-94W;215'FNL and 1,700'FWL; North Tioga; N/A*; on confi-dential status; 2,308’ ground; 27469; 33-013-01768;1/15/2014

    Divide Co.Permits issuedMurex PetroleumJoey Danyale 27-34H; NW/NE 27-161N-101W;450'FNL and 2,100'FEL; Writing Rock; Bakken; horizon-

    LEGENDThe county name is on the upper line, thetype of permit issued is on the second line,and company names are next, followed byindividual wells with data in this order: wellname; location; footages; field; geologicaltarget; well bore type; elevation; NDIC filenumber; API number; date permit shows onNDIC website.

    AbbreviationsFollowing are the abbreviations used in thereport and what they mean:FNL = From North Line | FEL = From East LineFSL = From South Line | FWL = From West Line

    North Dakota oil permit activity January 14—20, 2014

    see ND PERMIT page 11

  • PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014 11

    tal; 2,193’ ground; 27491; 33-023-01157; 1/17/2014Shauna Michelle 26-35H; NENW 26-161N-102W;280'FNL and 2,200’FWL; Daneville; Bakken; horizontal;2,115’ ground; 27492; 33-023-01158; 1/17/2014

    Dunn Co.Permits issuedContinental ResourcesHartman 5-28H3; NWNW 28-146N-95W; 235'FNLand 959'FWL; Chimney Butte; N/A*; on confidentialstatus; 2,310’ ground; 27453; 33-025-02436;1/14/2014Hartman 6-28H2; NWNW 28-146N-95W; 235'FNLand 1,004'FWL; Chimney Butte; N/A*; on confidentialstatus; 2,311’ ground; 27454; 33-025-02437;1/14/2014Hartman 7-28H3; NWNW 28-146N-95W; 235'FNLand 1,049'FWL; Chimney Butte; N/A*; on confidentialstatus; 2,311’ ground; 27455; 33-025-02438;1/14/2014Hartman 8-28H1; NWNW 28-146N-95W; 385'FNLand 914'FWL; Chimney Butte; N/A*; on confidentialstatus; 2,313’ ground; 27450; 33-025-02433;1/14/2014Hartman 9-28H2; NWNW 28-146N-95W; 385'FNLand 959'FWL; Chimney Butte; N/A*; on confidentialstatus; 2,311’ ground; 27451; 33-025-02434;1/14/2014Hartman 10-28H; NWNW 28-146N-95W; 385'FNLand 1,004'FWL; Chimney Butte; N/A*; on confidentialstatus; 2,309’ ground; 27452; 33-025-02435;1/14/2014

    HessLK-Bice- 147-97-1201H-7; SWSW 12-147N-97W;470'FSL and 862'FWL; Big Gulch; N/A*; on confiden-tial status; 2,568’ ground; 27461; 33-025-02444;1/14/2014LK-Bice- LW- 147-97-1201H-1; SWSW 12-147N-97W; 470'FSL and 829'FWL; Big Gulch; N/A*; on confi-dential status; 2,566’ ground; 27462; 33-025-02445;1/14/2014

    HRC Operating (Halcon Resources)Fort Berthold 148-95-26B-35-3H; NENW 26-148N-95W; 203'FNL and 2,025'FWL; Eagle Nest; Bakken;horizontal; 2,441’ ground; 27456; 33-025-02439; 1-14-2014Fort Berthold 148-95-26B-35-4H; NENW 26-148N-95W; 173'FNL and 2,077'FWL; Eagle Nest; Bakken;horizontal; 2,440’ ground; 27458; 33-025-02441; 1-14-2014Fort Berthold 148-95-26B-35-5H; NENW 26-148N-95W; 142'FNL and 2,128'FWL; Eagle Nest; Bakken;horizontal; 2,442’ ground; 27460; 33-025-02443; 1-14-2014Fort Berthold 148-95-26B-35-8TFH; NENW 26-148N-95W; 157'FNL and 2,102'FWL; Eagle Nest;Bakken; horizontal; 2,441’ ground; 27459; 33-025-02442; 1-14-2014Fort Berthold 148-95-26B-35-9TFH; NENW 26-148N-95W; 188'FNL and 2,051'FWL; Eagle Nest;Bakken; horizontal; 2,440’ ground; 27457; 33-025-02440; 1-14-2014

    Permits renewedEnerplus ResourcesHidatsa Hills 26-21H; NENW 26-149N-93W; 725’FNLand 1,600’FWL; Mandaree; N/A*; on confidential sta-tus; 2,230’ ground; 20343; 33-025-01287; 1/16/2014Jupiter 148-93 19B-2H TF; LOT1 19-148N-93W;201’FNL and 901’FWL; McGregory Buttes; N/A*; onconfidential status; 2,207’ ground; 20438; 33-025-01307; 1/16/2014

    Hunt OilHalliday 2-19-18H; LOT4 19-146N-92W; 500’FSL and245’FWL; Werner; Bakken; horizontal; 2,348’ ground;21607; 33-025-01488; 1/14/2014

    Marathon OilFox USA 14-1H; NESW 14-147N-93W; 2,443’FSL and2,626’FWL; Moccasin Creek; N/A*; on confidential sta-tus; 2,233’ ground; 24744; 33-025-02035; 1/14/2014Fox USA 14-4TFH; NESW 14-147N-93W; 2,569’FSLand 2,544’FWL; Moccasin Creek; N/A*; on confidentialstatus; 2,230’ ground; 24745; 33-025-02036;1/14/2014

    Location resurveyedHess Bakken Investments IILK-Alwin- 147-97-1324H-4; SWSW 12-147N-97W;470'FSL and 721'FWL; Little Knife; N/A*; on confiden-tial status; 2,562’ ground; 26309; 33-025-02259;1/14/2014LK-Alwin- 147-97-1324H-5; SWSW 12-147N-97W;470'FSL and 754'FWL; Little Knife; N/A*; on confiden-tial status; 2,563’ ground; 26308; 33-025-02258;1/14/2014

    McKenzie Co.Permits issuedEmerald OilDudley Dawson 4-2-11H; SESW 32-149N-102W;350'FSL and 2,248'FWL; Sheep Butte; Bakken; horizon-tal; 2,400’ ground; 27486; 33-053-05617; 1/16/2014Dudley Dawson 5-2-11H; SESW 32-149N-102W;350'FSL and 2,298'FWL; Sheep Butte; Bakken; horizon-tal; 2,400’ ground; 27485; 33-053-05616; 1/16/2014Joel Goodsen 3-32-29H; SESW 32-149N-102W;350'FSL and 2,348'FWL; Moline; Bakken; horizontal;2,398’ ground; 27484; 33-053-05615; 1/16/2014Joel Goodsen 4-32-29H; SESW 32-149N-102W;350'FSL and 2,398'FWL; Moline; Bakken; horizontal;2,393’ ground; 27483; 33-053-05614; 1/16/2014

    Hess Bakken Investments IIHA-Thompson- 2560-152-95-2017-1918H-1;SWSW 20-152N-95W; 628'FSL and 1,130'FWL;Hawkeye; N/A; on confidential status; 2,444’ ground;27472; 33-053-05603; 1/15/2014

    Newfield ProductionGariety 150-99-36-25-4H; SWSE 36-150N-99W;325'FSL and 2,340'FEL; Siverston; N/A*; on confiden-tial status; 2,178’ ground; 27482; 33-053-05613;1/16/2014Gariety 150-99-36-25-5H; SWSE 36-150N-99W;325'FSL and 2,295'FEL; Siverston; N/A*; on confiden-tial status; 2,170’ ground; 27481; 33-053-05612;1/16/2014

    Whiting Oil and GasSovig 24-22H; SESW 22-150N-100W; 230'FSL and1,322'FWL; Arnegard; Bakken; horizontal; 2,277’ground; 27476; 33-053-05607; 1/16/2014

    Sovig 24-22-3H; SESW 22-150N-100W; 346'FSL and1,522'FWL; Arnegard; Bakken; horizontal; 2,278’ground; 27473; 33-053-05604; 1/16/2014Sovig 24-22-4H; SESW 22-150N-100W; 301'FSL and1,522'FWL; Arnegard; Bakken; horizontal; 2,278’ground; 27474; 33-053-05605; 1/16/2014Sovig 24-22-5H; SESW 22-150N-100W; 256'FSL and1,522'FWL; Arnegard; Bakken; horizontal; 2,277’ground; 27475; 33-053-05606; 1/16/2014

    WPX EnergyKale Bad Brave 19-18HA; LOT4 19-149N-94W;343'FSL and 526'FWL; Squaw Creek; N/A*; on confi-dential status; 2,386’ ground; 27479; 33-053-05610;1/16/2014Kale Bad Brave 19-18HB; LOT4 19-149N-94W;383'FSL and 618'FWL; Squaw Creek; N/A*; on confi-dential status; 2,385’ ground; 27477; 33-053-05608;1/16/2014Kale Bad Brave 19-18HW; LOT4 19-149N-94W;363'FSL and 572'FWL; Squaw Creek; N/A*; on confi-dential status; 2,386’ ground; 27478; 33-053-05609;1/16/2014Kale Bad Brave 19-18HX2; LOT4 19-149N-94W;323'FSL and 480'FWL; Squaw Creek; N/A*; on confi-dential status; 2,385’ ground; 27480; 33-053-05611;1/16/2014

    Permits renewedBurlington Resources Oil and Gas (ConocoPhillips)Brown 41-1TFH; NENE 1-150N-96W; 410’FNL and660’FEL; Blue Buttes; N/A*; on confidential status;2,387’ ground; 20468; 33-053-03493; 1/16/2014State Veeder 44-36TFH; SESE 36-150N-96W; 275’FSLand 785’FEL; Blue Buttes; N/A*; on confidential status;2,294’ ground; 20469; 33-053-03494; 1/16/2014

    Enerplus ResourcesFool Bear 23-34H; SWSE 23-152N-94W; Antelope;N/A; on confidential status; 2,138’ ground; 20376; 33-053-03460; 1/16/2014

    Location resurveyedOasis PetroleumHagen Banks 5298 #42-31 5B; SESW 31-152N-98W;230'FSL and 1,523'FWL; Banks; Bakken; horizontal;2,327’ ground; 27111; 33-053-05514; 1/14/2014Hagen Banks 5298 #42-31 6T; SESW 31-152N-98W;230'FSL and 1,490'FWL; Banks; Bakken; horizontal;2,328’ ground; 27110; 33-053-05513; 1/14/2014Hagen Banks 5298 #42-31 7T3; SESW 31-152N-98W; 230'FSL and 1,457'FWL; Banks; Bakken; horizon-tal; 2,329’ ground; 27109; 33-053-05512; 1/14/2014Hagen Banks 5298 #42-31 8B; SESW 31-152N-98W;230'FSL and 1,424'FWL; Banks; Bakken; horizontal;2,330’ ground; 27109; 33-053-05511; 1/14/2014

    Whiting Oil and GasRoen 152-102-10C-3-2H; SESW 10-152N-102W;300'FSL and 1,635'FWL; Elk; N/A*; on confidential sta-tus; 2,161’ ground; 24913; 33-053-04772; 1/16/2014Roen 24-10-2H; SESW 10-152N-102W; 300'FSL and1,590'FWL; Elk; N/A*; on confidential status; 2,161’ground; 24912; 33-053-04771; 1/16/2014

    Mountrail Co.Permits issuedHess Bakken Investments IIEN-L Cvancara- 155-93-2627H-2; SENE 26-155N-93W; 2,486'FNL and 300'FEL; Robinson Lake; N/A*; on

    confidential status; 2,367’ ground; 27494; 33-061-02926; 1/17/2014EN-L Cvancara- 155-93-2627H-3; SENE 26-155N-93W; 2,519'FNL and 300'FEL; Robinson Lake; N/A*; onconfidential status; 2,368’ ground; 27495; 33-061-02927; 1/17/2014EN-L Cvancara- 155-93-2627H-4; SENE 26-155N-93W; 2,552'FNL and 300'FEL; Robinson Lake; N/A*; onconfidential status; 2,369’ ground; 27496; 33-061-02928; 1/17/2014EN-L Cvancara- 155-93-2627H-5; SENE 26-155N-93W; 2,585'FNL and 300'FEL; Robinson Lake; N/A*; onconfidential status; 2,369’ ground; 27497; 33-061-02929; 1/17/2014EN-L Cvancara- 155-93-2627H-6; SENE 26-155N-93W; 2,618'FNL and 300'FEL; Robinson Lake; N/A*; onconfidential status; 2,369’ ground; 27498; 33-061-02930; 1/17/2014

    Slawson ExplorationAlamo 8-19-18TF2H; SWSE 19-151N-92W; 320'FSLand 1,373'FEL; Big Bend; N/A*; on confidential status;1,917’ ground; 27499; 33-061-02931; 1/17/2014Temptest 3-14H; SWSE 14-152N-92W; 330'FSL and1,900'FEL; Big Bend; N/A*; on confidential status;1,947’ ground; 27493; 33-061-02925; 1/17/2014

    Permit for injectionWhiting PetroleumSirp 31-12; NWNE 12-153N-92W; 420’FNL and1,600’FEL; Sanish; Bakken; directional; 2,329’ ground;24779; 33-061-02383; 1/15/2014

    Williams Co.Permits issuedCrescent Point EnergyCpeusc Matilda May 32-29-158-100; SWSE 32-158N-100W; 350'FSL and 1,425'FEL; Church; N/A*; onconfidential status; 1,958’ ground; 27468; 33-105-03387; 1/15/2014

    Kodiak Oil and GasP Irgens 155-99-3-4-9-13H; LOT3 4-155N-99W;300'FNL and 1,680'FWL; Epping; Bakken; horizontal;2,127’ ground; 27490; 33-105-03391; 1/17/2014P Irgens 155-99-3-4-9-13H3; LOT3 4-155N-99W;300'FNL and 1,710'FWL; Epping; Bakken; horizontal;2,127’ ground; 27489; 33-105-03390; 1/17/2014P Irgens 155-99-3-4-9-14H; LOT3 4-155N-99W;300'FNL and 1,740'FWL; Epping; Bakken; horizontal;2,126’ ground; 27488; 33-105-03389; 1/17/2014P Irgens 155-99-3-4-9-14H3; LOT3 4-155N-99W;300'FNL and 1,770'FWL; Epping; Bakken; horizontal;2,125’ ground; 27487; 33-105-03388; 1/17/2014

    Permits renewedOasis PetroleumHerb 5501 14-1B; LOT1 1-155N-101W; 350’FNL and925’FEL; Cow Creek; Bakken; horizontal; 1,983’ground; 24775; 33-105-02972; 1/16/2014Marlene 5501 14-1T; LOT1 1-155N-101W; 350’FNLand 975’FEL; Cow Creek; Bakken; horizontal; 1,980’ground; 24774; 33-105-02971; 1/16/2014

    *Note - The geologic target for these wells was not listed in its wellfile because they are tight (confidential) holes, but the followingfields produce from the Bakken pool; Big Bend, Big Gulch, BlueButtes, Chimney Buttes, Church, Elk, Little Knife, Mandaree,McGregory Buttes, Moccasin Creek, North Tioga, Robinson Lake,Siverson and Tree Top.

    continued from page 10

    ND PERMIT

    IPs for completed North Dakota wells

    Abraxas Petroleum25606; Lillibridge 20-17-5H; Pershing; SESW 20-150N-96W; 2SEC; McKenzie; Bakken; horizontal; 20,633;11/20/2013; 1,298 bbl25607; Lillibridge 20-17-6H; Pershing; SESW 20-150N-96W; 2SEC; McKenzie; Bakken; horizontal; 20,695;11/28/2013; 1,086 bbl25608; Lillibridge 20-17-7H; Pershing; SESW 20-150N-96W; 2SEC; McKenzie; Bakken; horizontal; 20,810;11/29/2013; 1,048 bbl25609; Lillibridge 20-17-8H; Pershing; SESW 20-150N-96W; 2SEC; McKenzie; Bakken; horizontal; 20,884;12/13/2013; 1,018 bbl

    Burlington Resources Oil and Gas(ConocoPhillips)23208; CCU Boxcar 44-22PH; Corral Creek; SESE 22-147N-95W; U; Dunn; Bakken; vertical; N/A;10/31/2013; 240 bbl25655; Washburn43-36TFH; Charlson; NESE 36-153N-95W; 2SEC; McKenzie; Bakken; horizontal; 20,091;12/29/2013; 2,856 bbl

    Continental Resources24836; Bice Federal 4-32H1; Chimney Butte; SESW 32-146N-95W; 4SEC; Dunn; Bakken; horizontal; 21,028;12/22/2013; 413 bbl

    Cornerstone Natural Resources22524; Funk 2-27-34H; Carter; NENE 27-162N-90W;2SEC; Burke; Bakken; horizontal; 17,393; 8/2/2013; 48bbl

    Kodiak Oil and Gas25290; Charging Eagle 14-14-24-16H3; Twin Buttes;SESW 14-147N-92W; 2SEC; Dunn; Bakken; horizontal;19,445; 12/16/2013; 741 bbl

    Mountain Divide25664;Heckman 7-6-1H; Fortuna; SWSE 7-162N-101W; 2SEC; Divide; Bakken; horizontal; 18,165;9/12/2013; 480 bbl25668; Olson 2-11S-1H; Fortuna; SESE 35-163N-101W; 2SEC; Divide; Bakken; horizontal; 18,888;10/15/2013; 456 bbl

    QEP Energy25306; Paul 1-26-35BH; Grail; NENE 26-150N-95W;

    This chart contains initial production rates, or IPs, for active wells that were filed as completed with the state of North Dakota from Jan. 14-20, 2014 inthe Bakken petroleum system, which includes formations such as the Bakken and Three Forks. The completed wells that did not have an available IPrate (N/A) likely haven’t been tested or were awarded confidential (tight-hole) status by the North Dakota Industrial Commission’s Department ofMinerals. This chart also contains a section with active wells that were released from confidential status during the same period, Jan. 14-20. Again,some IP rates were not available (N/A). The information was assembled by Petroleum News Bakken from NDIC daily activity reports and other sources.The name of the well operator is as it appears in state records, with the loss of an occasional Inc., LLC or Corporation because of space limitations.Some of the companies, or their Bakken petroleum system assets, have been acquired by others. In some of those cases, the current owner’s name is inparenthesis behind the owner of record, such as ExxonMobil in parenthesis behind XTO Energy. If the chart is missing current owner’s names, pleasecontact Ashley Lindly at [email protected].

    LEGENDThe well operator’s name is on the upper line, followed by individual wells withdata in this order: NDIC file number; well name; field; location; spacing; county;geologic target; wellbore type; total depth; IP test date; IP oil flow rate. (IP standsfor initial production; in this chart it’s the first 24 hours of oil production.)

    IPs for ND Bakken wells January 14—20, 2014

    Statoil Oil and Gas24360; Knight 35-26 2H; Banks; McKenzie; 4,884bbl23860; Hovde 33-4 2H; Sandrocks; McKenzie; 3,358bbl24361; Knight 35-26 3TFH; Banks; McKenzie; 3,099bbl

    Burlington Resources Oil and Gas(ConocoPhillips)25655; Washburn43-36TFH; Charlson; McKenzie;2,856 bbl

    QEP Energy25306; Paul 1-26-35BH; Grail; McKenzie; 2,460 bbl

    Marathon Oil25346; Abner 21-13TFH; Reunion Bay; Mountrail;2,374 bbl

    QEP Energy25304; Paul 2-26-35TH; Grail; McKenzie; 2,257 bbl25305; Paul 2-26-35BH; Grail; McKenzie; 2,243 bbl

    Petro-Hunt24312; Brenna 152-96-14A-23-7H; Clear Creek;McKenzie; 2,120 bbl

    Whiting Oil and Gas25719; Savannah TTT 41-26H; Sanish; Mountrail;1,210 bbl

    Note: This chart contains initial production rates, or IPs, from theadjacent IP chart for active wells that were filed as completedwith the state of North Dakota from Jan. 14–20, 2014 in theBakken petroleum system, as well as active wells that werereleased from tight- hole (confidential) status during the sameperiod. The well operator’s name is on the upper line, followedby individual wells; the NDIC file number; well name; field;county; IP oil flow rate in barrels of oil.

    Top 10 Bakken wells by IP rate

    see ND IP page 12

  • 12 PETROLEUM NEWS BAKKEN • WEEK OF JANUARY 26, 2014

    2SEC; McKenzie; Bakken; horizontal; 20,750; 12/20/2013; 2,460 bbl25305; Paul 2-26-35BH; Grail; NENE 26-150N-95W; 2SEC; McKenzie;Bakken; horizontal; 20,765; 12/20/2013; 2,243 bbl

    Samson Resources (KKR & Co.)25630; Bel Air 2314-2H; Ambrose; NWNW 26-163N-99W; 4SEC; Divide;Bakken; horizontal; 18,736; 1/2/2014; 194 bbl25632; Bel Air 2314-3H; Ambrose; NWNW 26-163N-99W; 4SEC; Divide;Bakken; horizontal; 18,556; 12/24/2013; 160 bbl25631; Comet 2635-2H; Ambrose; NWNW 26-163N-99W; 4SEC; Divide;Bakken; horizontal; 18,308; 12/24/2013; 128 bbl25633; Comet 2635-3H; Ambrose; NWNW 26-163N-99W; 4SEC; Divide;Bakken; horizontal; 15,901; 12/24/2013; 128 bbl

    SM Energy25001; Annie 12-18H; Poe; LOT3 18-151N-99W; 2SEC; McKenzie; Bakken;horizontal; 21,426; 11/3/2013; 907 bbl

    Statoil Oil and Gas23860; Hovde 33-4 2H; Sandrocks; NWNE 33-151N-100W; 2SEC;McKenzie; Bakken; horizontal; 21,625; 12/11/2013; 3,358 bbl24360; Knight 35-26 2H; Banks; SESE 35-153N-98W; 2SEC; McKenzie;Bakken; horizontal; 23,192; 12/12/2013; 4,884 bbl24361; Knight 35-26 3TFH; Banks; SESE 35-153N-98W; 2SEC; McKenzie;Bakken; horizontal; 22,819; 12/17/2013; 3,099 bbl

    XTO Energy (ExxonMobil)25850; Wallace 21X-2E; West Capa; LOT3 2-154N-97W; 2SEC; Williams;

    Bakken; horizontal; 20,010; 12/16/2013; 990 bbl

    IPs for ND wells released from confidential status

    Continental Resources25905; Jefferson 3-17H1; Crazy Man Creek; NWNE 17-153N-99W; N/A;Williams; Bakken; horizontal; N/A; N/A; N/A25906; Jefferson 4-17H; Crazy Man Creek; NWNE 17-153N-99W; N/A;Williams; Bakken; horizontal; N/A; N/A; N/A25904; Jefferson 5-17H; Crazy Man Creek; NWNE 17-153N-99W; N/A;Williams; Bakken; horizontal; N/A; N/A; N/A

    Emerald Oil25231; Slugger 1-16-21H; Wildcat; NENW 16-149N-102W; N/A; McKenzie;Bakken; horizontal; N/A; N/A; N/A25232; Talon 1-9-4H; Charbonneau; NENW 16-149N-