VP Biden visits the Petrobras Research Center

Photo courtesy PETROBRAS NEWS AGENCY

Today, at the Petrobras Research Center (Cenpes), the company’s CEO, Maria das Graças Silva Foster, welcomed the US vice-president, Joe Biden, along with the US ambassador to Brazil, Thomas Shannon, and the US consul general in Rio de Janeiro, John Creamer. The group held a 30-minute closed meeting, which was also attended by Cenpes executive manager Marcos Assayag, advisor to the CEO André Garcez Ghirardi and Brazilian Foreign Affairs Ministry (Itamaraty) representative William Santos.

Following the meeting, the group toured the verification and WAG (Water Alternating Gas) injection laboratories. At the verification lab they were presented with samples of sediments collected during exploratory drilling in Brazil’s offshore basins.

The laboratory uses these samples to analyze and measure the porosity, permeability and fluid saturation level of the sediment. The WAG injection laboratory focuses mainly on natural gas or carbon dioxide (CO2) injection as a means of augmenting oil field production, while avoiding emission of these greenhouse gases into the atmosphere.

Strata Oil adds 1.4 billion barrels to its resource base

Strata Oil & Gas Inc. on Wednesday announced, in a company press release, the completion of its 51-101 compliant Technical Resource Evaluation of the 22 sections (approximately 14,080 acres) of its Cadotte West holdings in the Peace River region of Alberta, Canada. This resource evaluation adds 1.4 billion barrels of Petroleum-Initially-In-Place (PIIP as per COGE Handbook definition) to Strata’s present resource base bringing it to a total of 3.4 billion barrels in place. The resource evaluation was completed for Strata independently by Norwest Corporation (“Norwest”) of Calgary, Alberta. Norwest also completed the resource evaluation of Strata’s Cadotte Central holdings.

The Cadotte West project is located on 22 sections northwest of Shell’s Carmon Creek Project and is contiguous to the company’s Cadotte Central property holdings. As anticipated, the Debolt, Elkton, and the Bluesky/Gething ore zones are continuous from the Cadotte Central property through to the Cadotte West property. Highlights of the report confirm up to 18 meters Net Thickness in parts of the Bluesky/Gething ore zone and up to 20 meters Net Thickness of the Debolt ore zone in some sections of Cadotte West.

Commenting on the results, Ron Daems, President and CEO of Strata Oil & Gas, said, “Strata holds 82 sections total in the Cadotte area and the completion of the resource evaluation of Cadotte West constitutes substantial progress in line with Strata’s Development and Production Plan. The report confirms similar pay thicknesses and grades for the Debolt formation in the West as in Cadotte Central. We are extremely delighted to report that the ore zone thickness and grade in the Bluesky/Gething formation running through Cadotte West is far better than originally anticipated. The Bluesky/ Gething formation is the Cretaceous Oil Sands (clastics) formation from which our close neighbors are today producing oil via primary cold-flow recovery techniques.”

Hydro-Fracking Firm Shows Off New Control Trailer

The “big rig” on display at the Glendive Energy Expo. Sun Times photos by Darryl L. Flowers

By Darryl L. Flowers

Published: Friday, May 31, 2013 9:22 AM CDT

At the recent Eastern Montana Energy Expo, vendors seeking business in the growing oil patch were on hand to describe what they had to offer.

It was the first time for the Glendive event, held at Dawson Community College.

But the fun part… at least for an old “gearhead” were the equipment displays set up in an adjacent field.

The most impressive piece of equipment was a mobile command center designed to serve as the control point for hydro-fracking operations.

The trailer is owned by TOPS (Total Oilfield Pumping Solutions) Well Services and operates out of the regional office in Williston, ND.

The trailer, built by Stewart & Stevenson and pulled by a long-nose Kenworth, features computer servers, multiple workstations and by far the most comfortable seats you can find at a wellsite.

A small testing lab is at the front of the trailer, and a slide-out section has extra cushy seats for the customer.

According to Yacob Zergaw, an engineer with TOPS, the firm recently entered the  field, getting started in 2012.

Warren Buffett Picks Up Another Newspaper

BH Media Group Acquires The Roanoke Times from Landmark Media Enterprises

ROANOKE, VA – May 30, 2013 – BH Media Group, a subsidiary of Berkshire Hathaway, will purchase The Roanoke Times from Landmark Media Enterprises on Friday.
Dirks, Van Essen & Murray, a newspaper merger and acquisition firm in Santa Fe, New Mexico, represented Landmark Media Enterprises in the transaction.  Terms were not disclosed.

The acquisition was announced today at an employee meeting by Landmark Chairman and CEO Frank Batten Jr.  Landmark has owned the 76,000-circulation daily since 1969.

Terry Jamerson, a vice president of BH Media and publisher of the Lynchburg News and Advance, has been named publisher of The Roanoke Times, according to a news release from BH Media.  Jamerson replaces Debbie Meade, who has been the Times’ publisher since 2007.

“I’m looking forward to working with the team at The Roanoke Times, which is truly one of Virginia’s outstanding newspapers and digital enterprises.  All of us at BH Media are excited to become associated with a newspaper that consistently delivers quality news and information for the greater Roanoke area,” Jamerson said.

“We’re delighted to have The Roanoke Times join our growing family of newspapers,” said Terry Kroeger, CEO of BH Media Group.  “The Times is a great fit with our newspapers in Virginia, and we welcome the Roanoke employees into the BH Media family.”

Michael Abernathy, president of Landmark’s publishing division, said in a press release that Landmark was “pleased that The Times will be joining a company such as BH Media that is committed to the future of newspapers.”

BH Media group, headquartered in Omaha, is a wholly owned subsidiary of Berkshire Hathaway Company.  BH Media owns 29 daily newspapers and related weekly papers in Nebraska, Iowa, Texas, Oklahoma, Virginia, North Carolina, South Carolina, Alabama and Florida.

WBI Energy plans natural gas pipeline to transport Bakken gas to Eastern ND, MN and WI

WBI Energy Graphic

Published: Friday, May 31, 2013 9:22 AM CDT

Bismarck, ND — WBI Energy, Inc., the pipeline and energy services subsidiary of MDU Resources Group, Inc., announced plans Thursday for a proposed natural gas pipeline stretching from far western North Dakota to western Minnesota where it would connect with Viking Gas Transmission Company’s pipeline system.

This project would increase pipeline takeaway capacity out of the Bakken to accommodate rapidly growing natural gas production in the region. “It’s exciting to think that the proposed pipeline could provide a new transportation route to bring Bakken-produced natural gas directly to industrial customers and commercial and residential utility customers in eastern North Dakota,” said David L. Goodin, president and CEO of MDU Resources. “Through interconnecting pipelines, the proposed pipeline could also serve Minnesota, Wisconsin and Midwest U.S. markets.”

The pipeline has been initially designed to transport approximately 400 million cubic feet per day of natural gas and, depending on user commitments, could be expanded to more than 500 million cubic feet per day. The project investment is estimated to be between $650 million and $700 million.

The currently proposed route for the pipeline would stretch from approximately 20 miles southwest of Williston, N.D., to an interconnection with Viking Gas Transmission northeast of Moorhead, Minn. The majority of the proposed 400-mile system would be comprised of 24-inch diameter pipeline and the project would include two new compressor stations.

“Since 2010, we have invested over $150 million in energy development projects in North Dakota including our acquisition of midstream assets near Belfield and the Dakota Prairie Refining diesel plant currently under construction near Dickinson,” said Steven L. Bietz, president and CEO of WBI Energy. “This project would be the largest single pipeline construction project in our company history. This project, combined with other recent and ongoing projects, would bring our total Bakken-related investment to nearly $1 billion.”

Long-term capacity commitments on the proposed pipeline will be sought during an open season expected to begin in late summer. Following receipt of capacity commitments and necessary permits and regulatory approvals, construction on the new pipeline would begin in early 2016 with completion expected by late 2016.

Omimex OK’d For Glacier Tribal Well; Petroshale Gets OK For Judith Basin Well

Compiled by Darryl L. Flowers

New Locations – Horizontal Wells

In Richland County, Whiting Oil and Gas Corporation was approved for three Bakken wells. The Christiansen 34-11-5H has a Surface Hole Location (SHL) at SW SE 11-25N-58E (325 FSL/1880 FEL) and a Probable Bottom Hole Location (PBHL) of 20,121 feet at NW NE 2-25N-58E (240 FNL/1960 FEL); the Christiansen 34-11-6H has an SHL at SW SE 11-25N-58E (325 FSL/1835 FEL) and a PBHL of 20,164 feet at NE NE 2-25N-58E (240 FNL/1280 FEL) and the Christiansen 34-11-7H has an SHL at SW SE 11-25N-58E (325 FSL/1790 FEL) and a PBHL of 20,477 feet at NE NE 2-25N-58E (240 FNL/600 FEL).

Re-Issued Locations

In Fallon County’s Cedar Creek Field, Fidelity Exploration & Production Co. was greenlighted for 14 wells. All of the wells will target the Eagle Formation at a Proposed Depth of 2,000 feet. The wells are: the State 2860, located at SW SE 36-6N-60E (118 FSL/1446 FEL); the Fee 2881, located at NE NW 12-7N-59E (457 FNL/1630 FWL); the Federal 2955, located at SW NE 4-6N-60E (1970 FNL/2004 FEL); the Fee 2907, located at SE NW 30-7N-60E (1974 FNL/1849 FWL); the Fee-CP 2903, located at SW SE 3-4N-61E (536 FSL/1887 FEL); the Fee-CP 2972, located at SW NW 7-4N-62E (2479 FNL/1254 FWL); the Fee-CP 2970, located at SE NW 17-4N-62E (1980 FNL/973 FEL); the Fee-CP 2971, located at NW SW 17-4N-62E (1383 FSL/1097 FWL); the Fee-CP 2982, located at SW SE 5-5N-61E (159 FSL/1406 FEL); the Fee 2983, located at NW NW 8-5N-61E (120 FNL/1211 FWL); the Fee 2981, located at SE SW 9-5N-61E (1266 FSL/2586 FWL), the Fee-CP 2980, located at NW SW 15-5N-61E (2465 FSL/1318 FWL), the Fee-CP 4045, located at NW 31-9N-59E (1274 FNL/129 FWL) and the Fee-CP 4050, located at SE NW 31-9N-59E (1761 FNL/2028 FWL).

In Glacier County, Omimex Canada, Ltd. received approval for the Tribal 355 6-7-37N-7W, with an SHL at SE NW 7-37N-7W (1917 FNL/2074 FWL). The Tribal will aim for the Duperow Formation at a depth of 6,000 feet.

In Judith Basin County, Petroshale Energy, LLC was greenlighted to drill the Cobra 1A, located at SW SE 36-15N-14E (350 FSL/2287 FEL), targeting the Kibbey Formation at a Proposed Depth of 3,500 feet.

In Richland County, there were five re-issued permits for Bakken wells. XTO Energy Inc. was approved to drill the Shaw 44X-13, with an SHL at SE SE 13-22N-59E (366 FSL/341 FEL) and a PBHL of 17,067 feet at NE SE 12-22N-59E (1948 FSL/1000 FEL) and EOG Resources Inc. was approved to drill the Candee 4-0405H, with an SHL at NE SW 4-25N-53E (1960 FSL/1545 FWL) and a PBHL of 13,725 feet at NW NE 5-25N-53E (660 FNL/2245 FEL).

The remaining three re-issued permits in Richland County went to Slawson Exploration Company Inc. The Slawson wells are: the Dag 1-8H, with an SHL at SW SW 8-21N-59E (200 FSL/675 FWL) and a PBHL of 14,522 feet at NW NW 8-21N-59E (700 FNL/735 FWL); the Hornet 1-25H, with an SHL at NE NE 36-23N-54E (270 FNL/775 FEL) and a PBHL of 14,674 feet at NE NE 25-23N-54E (700 FNL/775 FEL) and the Savage 1-32H, with an SHL at NE NE 32-24N-52E (350 FNL/668 FEL) and a PBHL of 14,032 feet at SE SE 32-24N-52E (250 FSL/750 FEL).

In Roosevelt County, EOG Resources, Inc. won approval for the Star Coulee 3-1720H, a Bakken Formation well with an SHL at NW NE 17-27N-58E (200 FNL/1575 FEL) and a PBHL of 20,164 feet at SW SE 20-27N-58E (200 FSL/1800 FEL).

In Rosebud County, Fidelity Exploration & Production Co. was approved to drill the Sun Coulee 24-14H. The Heath Formation well has an SHL at SE SW 14-9N-34E (330 FSL/2310 FWL) and a PBHL of 9,580 feet at NW NW 14-9N-34E (380 FNL/380 FWL).

Permit Modifications / Corrections

A permit modification or correction was issued to Petro-Hunt, LLC for the Nagode 12-61 20D-3-1 well located in Wibaux County. The Nagode, located at SE SE 20-12N-61E (661 FSL/1295 FEL) will target the Red River Formation at a Proposed Depth of 11,350 feet.

Completions

In Glacier County, Anschutz Exploration Corporation filed a completion report for the Flat Iron 1-8-32-12, located at SW SE 8-32N-12W (988 FSL/1427 FEL). The Flat Iron reported an Initial Potential (IP) of 49 Barrels of Oil Per Day (BOPD) and 8 Thousand Cubic Feet of gas Per Day (MCFPD). According to the Board of Oil and Gas Conservation, the Flat Iron is producing from the Cone Calcareous Member.

In Richland County,  Slawson Exploration Company Inc. filed completion reports for three Bakken Formation wells. The Pilum 1-24H has an SHL at NW NW 24-21N-59E (250 FNL/275 FWL), a BHL of 15,290 at SW SW 24-21N-59E (254 FSL/849 FWL), and reported an IP of 160 BOPD, 103 MCFPD and 144 Barrels of Water Per Day (BWPD). The Dirk Federal 1-22-21H has an SHL at NW NW 23-21N-59E (587 FNL/286 FWL) and two laterals, with a BHL of 17,056 feet at NW NE 21-21N-59E (1001 FNL/1356 FEL) and 16,622 feet at SE NE 21-21N-59E (1848 FNL/807 FEL). The Dirk reported an IP of 207 BOPD, 41 MCFPD and 481 BWPD. The Weasel 1-36H has an SHL at NW NW 36-23N-53E (210 FNL/1050 FWL), a BHL of 13,834 feet at SW SW 36-23N-53E (697 FSL/786 FWL), and turned in an IP of 184 BOPD, 202 MCFPD and 348 BWPD.

Continental Resources Inc. brought in four Bakken Formation wells in Richland County. The Rognas 3-27H has an SHL at S2 S2 27-25N-55E (175 FSL/2640 FEL), a BHL of 20,097 feet at NW NE 22-25N-55E (236 FNL/2637 FEL) and reported an IP of 445 BOPD, 371 MCFPD and 157 BWPD. The Butka 3-5H has an SHL at S2 S2 5-23N-54E (175 FSL/2640 FEL), a BHL of 19,672 feet at NW NE 32-24N-54E (284 FNL/2649 FEL) and turned in an IP of 776 BOPD, 388 MCFPD and 253 BWPD. The Klasna (Redrill) 3-19H, with an SHL at SE SE 19-24N-54E (225 FSL/1230 FEL) and a BHL of 19,527 feet at NE NE 18-24N-54E (231 FNL/1292 FEL) reported an IP of 505 BOPD, 173 MCFPD and 45 BWPD. The Osborn 1-34H, with an SHL at SE SW 34-27N-56E (180 FSL/1960 FWL) and a BHL of 19,894 feet at NE NW 27-27N-56E (231 FNL/1985 FWL) reported an IP of 322 BOPD, 306 MCFPD and 225 BWPD.

Oasis Petroleum North America LLC reported the completion of the David Federal 2658 43-9H in Richland County. The Bakken Formation well has an SHL at SW SE 9-26N-58E (225 FSL/2100 FEL) and a BHL of 20,050 feet at NW NE 4-26N-58E (287 FNL/2003 FEL). The well recorded an IP of 1,185 BOPD, 763 MCFPD and 2,484 BWPD.

Whiting Oil and Gas Corporation reported the completion of the Vitt 31-17-1H, a Bakken well located in Richland County. The Vitt has an SHL at NW NE 17-25N-57E (186 FNL/2356 FEL) and a BHL of 21,801 feet at SW SW 20-25N-57E (237 FSL/738 FWL) and reported an IP of 224 BOPD, 180 MCFPD and 494 BWPD.

In Roosevelt County, G3 Operating, LLC filed a completion report for the Sorensen 1-6-7H, with an SHL at NW NE 6-29N-57E (300 FNL/1980 FEL) and three laterals with BHLs of 17,176 feet at  SW NE 7-29N-57E (2364 FNL/1957 FEL); 17,146 feet at SW NE 7-29N-57E (2338 FNL/1985 FEL) and 19,865 feet at SW SE 7-29N-57E (234 FSL/1974 FEL). The IP was reported as 0 BOPD, 0 MCFPD and 0 BWPD.

In Rosebud County, Fidelity Exploration & Production Co. filed completion reports for two Heath Formation wells. The Kincheloe 11-23H has an SHL at NW NW 23-12N-32E (552 FNL/1185 FWL) and four laterals with BHLs at 6,710 feet at SE NW 23-12N-32E (2196 FNL/1425 FWL); 9,352 feet at SE NE 26-12N-32E (2071 FNL/2246 FEL); 5,698 feet at NW NW 23-12N-32E (1197 FNL/1336 FWL) and 8,007 feet at NE SW 23-12N-32E (3290 FNL/2099 FWL). The Kincheloe recorded an IP of 2 BOPD, 28 MCFPD and 180 BWPD. The Grebe 31-33H, with an SHL at NW NE 33-11N-33E (337 FNL/2312 FEL) and a BHL of 9,688 feet at SE SE 33-11N-33E (379 FSL/340 FEL) turned in an IP of 1 BOPD, 73 MCFPD and 56 BWPD.

In Sheridan County, TAQA North USA, Inc. reported the completion of four Bakken Formation wells. The McKinnon 17-8H, with an SHL at SE NE 17-37N-57E (1990 FNL/240 FEL) and a BHL of 12,070 feet at SE NE 16-37N-57E (1939 FNL/720 FEL) recorded an IP of 4 BOPD, 6 MCFPD and 633 BWPD. The Hellegaard 8-1H-1, with an SHL at NE NE 8-37N-57E (30 FNL/260 FEL) and a BHL of 12,505 feet at NE NE 9-37N-57E (785 FNL/705 FEL) turned in an IP of 40 BOPD, 17 MCFPD and 463 BWPD. The Hellegaard 8-1H-2, with an SHL at NE NE 8-37N-57E (80 FNL/260 FEL) and a BHL of 12,015 feet at NW NW 8-37N-57E (685 FNL/695 FWL), reported an IP of 55 BOPD, 30 MCFPD and 490 BWPD. TAQA’s State 16-12H well, with an SHL at NW SW 16-37N-56E (2365 FSL/260 FWL) and a BHL of 12,008 feet at NE SE 16-37N-57E (2054 FSL/691 FEL) turned in an IP of 10 BOPD, 0 MCFPD and 580 BWPD.

Expired Permits

In Richland County, the permits expired for three Slawson Exploration Company Inc. wells: the Targe 1-18H, located at NE NE 18-21N-59E (250 FNL/700 FEL); the Scimitar (Federal) 1-8H, located at NE NE 8-20N-60E (230 FNL/749 FEL) and the Muzzleloader 1-11H, located at SE SE 11-22N-56E (225 FSL/925 FEL).

Abandoned Wells

Two wells were approved to abandon during the reporting period. Both wells are in Big Horn County and listed Fidelity Exploration & Production Co. as the operator: the Federal 2699 24C, located at SE SW 26-9S-39E (416 FSL/2028 FWL) and the Federal 2699 24D, located at SE SW 26-9S-39E (442 FSL/1982 FWL).

Darryl L. Flowers is the Publisher of the Sun Times in Fairfield, Montana, www.fairfieldsuntimes.com, and can be reached at publisher@fairfieldsuntimes.com.