Anadarko E&P Onshore Re-permits Two Bakken Wells in Toole County

By Darryl L. Flowers | Posted: Tuesday, January 27, 2015 1:00 pm

1/12/2015 To 1/23/2015

New Locations – Horizontal Wells

In Richland County, Whiting Oil and Gas Corporation permitted a Bakken Formation well, the Hay Creek Federal 24-31-4H. The Hay Creek has a surface hole location (SHL) at SE SW 31-25N-58E (300 FSL/1740 FWL) and a probable bottom hole location (PBHL) of 21,803 feet at NE NE 30-25N-58E (240 FNL/660 FEL).

Re-Issued Locations

In Richland County, three re-issued permits were approved for wells that will be operated by Whiting Oil and Gas Corporation: the State 43-16-2H, with an SHL at NE SE 16-24N-59E (2330 FSL/300 FEL) and a PBHL of 20,234 feet at SW NW 17-24N-59E (2460 FNL/240 FWL); the State 43-16-3H, which has an SHL at NE SE 16-24N-59E (2285 FSL/300 FEL) and a PBHL of 20,157 feet at NW SW 17-24N-59E (1740 FSL/240 FWL) and the State 43-16-4H, with an SHL at NE SE 16-24N-59E (2240 FSL/300 FEL) and a PBHL of 20,680 feet at SW SW 17-24N-59E (660 FSL/240 FWL).

In Toole County, two re-issued permits were approved for wells to be operated by Anadarko E&P Onshore, LLC: the Simmes Ranch 3603-01-41H has an SHL at NW NW 1-36N-3W (450 FNL/245 FWL) and a PBHL of 7,492 feet at NE NE 1-36N-3W (400 FNL/330 FEL); the Simmes Ranch 3603-02-11H has an SHL at NE NE 2-36N-3W (400 FNL/880 FEL) and a PBHL of 6,875 feet at NW NW 2-36N-3W (400 FNL/330 FWL). Both wells will target the Bakken Formation.

Completions

In Blaine County’s Bowes Field, Citation Oil & Gas Corp. reported the completion of the Bowes Sawtooth Unit B208H. The Sawtooth Formation horizontal well has an SHL at NW NW 8-31N-20E (750 FNL/760 FWL) and a bottom hole location (BHL) of 6,217 feet at NE SE 6-31N-20E (1407 FSL/1310 FEL). The reported initial production was 15 barrels of oil per day (BOPD) and 400 barrels of water per day (BWPD).

In Carbon County, Energy Corporation of America reported the completion of the Hunt Creek 1-H, located at SW SW 7-8S-23E (741 FSL/805 FWL). No initial production numbers were reported.

In Dawson County’s Deer Creek Field, Legacy Reserves Operating LP reported the completion of the Deer Creek 8-22, located at SE NE 22-17N-53E (2050 FNL/660 FEL). The Red River vertical well reported an initial production of 321 BOPD, 5,000 cubic feet of gas per day and 1,215 BWPD.

Three Bakken Formation wells were reported as completed in Richland County.

Whiting Oil and Gas Corporation reported the completion of two of the wells. The Sundheim 21-27-3H, with an SHL at NE NW 27-25N-58E (440 FNL/1980 FWL) and a BHL of 20,478 feet at SW SE 34-25N-58E (245 FSL/1907 FEL). The Sundheim 21-27-3H recorded an initial production of 1,293 BOPD, 658 thousand cubic feet of gas per day (MCFPD), and 2,807 BWPD. The Sundheim 21-27-4H has an SHL at NE NW 27-25N-58E (395 FNL/1980 FWL) and a BHL of 21,497 feet at SE SE 34-25N-58E (241 FSL/572 FEL). No initial production rates were reported.

Wrapping up the three Richland County completions is the Babka 3-12H, operated by Continental Resources Inc. The Babka has an SHL at SW SW 12-24N-52E (325 FSL/735 FWL) and a BHL of 15,594 at 1-24N-52E (237 FNL/690 FWL). The Babka reported an initial production of 595 BOPD, 125 MCFPD and 281 BWPD.

Abandoned Wells

In Sheridan County, final abandonment procedures were approved for the Ostby 11-35, located at NW NE 35-31N-58E (825 FNL/1517 FEL). Omimex Canada, Ltd. was the operator of record.

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

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A Passion For The Bakken: PR Rep Brings Positivity To The Field

By Marissa Hall Shale Plays Media | Posted: Tuesday, December 9, 2014 5:36 pm

Sometimes the oil and gas industry has difficulty finding positive voices. But two years ago, Jessica Sena brought it to the industry. “I saw the Bakken boom as something so enormously positive and exciting, especially for younger people like myself, ” she said. And she is successfully becoming a voice for the positivity she sees in the industry through the Montana Petroleum Association (MPA) and Northern Oilfield Services, Inc. (NOSI). According to Sena, “working as an independent communications director and consultant for both an industry association and a small oilfield service company is a dream come true. ”

Sena didn’t realize how passionate she was about the industry until relatively recently. She grew up in Montana and Nebraska, and started her college career at Nebraska Wesleyan University. But before she finished, she decided to come back north to finish her degree through Dickinson State University. She made the drive from Grassy Butte every day, an hour drive each way, and finally graduated in 2009 with a Communications and Public Relations degree. But in 2009, there wasn’t much economic development. The boom hadn’t really exploded yet.

Sena moved back to Montana and worked as a ranch hand and housekeeper, followed by a string of odd jobs. After spending some time as a campaign manager and communication director, she realized how fascinating she found natural resource policy. That’s when she reached out to the MPA in 2012. “I saw the opportunities being created by oil activity for lower and middle class individuals and families especially, and at the same time recognized the need for positive industry communication and education, ” she explained. Sena was allowed a part-time, contracted position as an independent communications adviser. Like the boom, though, her role in the MPA and the oil industry only continued to grow, and she is still with the MPA today.

It took a while for Sena to find her footing and become “the biggest oilfield fan there is, ” as she dubs herself. “At first I used Twitter so share news articles, economic findings, etc. with very little of my own views, ” she said. “I didn’t offer my own comments. ” This approach earned her media and industry followers, but it wasn’t capturing the audience she wanted. But now she has embraced her voice. Her Twitter account (@MTPetroleum) is full of loud and proud comments about the oilfield and the people who make it.

Because she’s an independent contractor, Sena has the freedom to broadcast these views without repercussions from MTP or NOSI. “I have the freedom to do and say just about anything, ” she rejoiced. “No one’s scripting me. ” But sharing her views, as positive as they are, came with backlash. “I’ve often been called a hired gun, scum of the earth, a company shill, and other names, ” she recalls. “The insults come with the territory. There are many activists who use anonymous accounts to harass those in the oil and gas industry in particular.”

But she’s started to hear “thank you” in the mix, too, and for Sena, that’s what makes it all worth it. She keeps her focus on bringing positivity into the conversation. “I realized that it truly was more effective to remain positive no matter what,” she says. Sena keeps to this strategy, even when dealing with her more difficult opponents. “Once I invited two of my more frequent adversaries out to coffee so that I could ‘look [them] in the eye when we talk about these important issues. ’ Both took me up on the offer, and neither has criticized anything I’ve posted since! ”

Sena’s sphere of influence in the industry is growing. “Two months ago I was hired by [NOSI], and my true passion was found after working in the field with the crew, ” she said. “It was really eye opening to actually get dressed up in [personal protective equipment] and see things up close and personal. “And now it’s what she looks forward to every month.

Spending time in the field sets Sena apart from other PR representatives. “I actually spend time in the field, have gauged oil tanks, greased polishing rods, and dedicated far more time to reaching out to the men and women in the field to make sure I’m getting the facts right and really speaking their language,” she explains. “It’s important to me to empower them, as much as I educate the public and elected officials about the industry. ”

“These days, ” Sena says, “the natural resources development industry needs a social license to operate.” Fracking debates across the nation have sparked bans in several cities—Los Angeles, California; Denton, Texas; and Athens, Ohio—and other regions are working toward them. St. Tammany Parish is fighting hydraulic fracking in the courtroom while cities in Colorado work to keep their moratoriums by seeking approval from voters. “Public opinion is shaping public policy, ” Sena says. So she works every day to improve the public’s attitude about fracking by giving the Bakken boom a face. Tahnee Peppinger, Miss Montana USA, learning what it’s like to work in the Bakken. (Photo courtesy of Jessica Sena via the Montana Petroleum Association Facebook page)

Sena’s work is also having an amazingly positive impact in NOSI. Since she joined the company and started working with crew in the field, the owner, Bart Horner, has commented on the rise in positivity he sees in his employees. “I think my energy has been a dose of much needed medicine in an industry that is often the target for criticism and negativity, ” Sena said happily.

Sena recently returned from a week in the field with Miss Montana USA, Tahnee Peppenger. She documented the experience through photos and videos posted on the various social media pages she’s involved with through MPA and NOSI.

Outside of work, Sena is the lead singer in “The Essentials, ” a band which plays at a brewery in Helena once a month. Despite her love of the burly lifestyle in the oilfield, she also takes time to shop and spend time in art galleries. Lately, though, Sena says her favorite pastime has quickly become spending time with the men and women of the oilfield. She even cooked Thanksgiving dinner for the crew of a drilling rig, and she wouldn’t have it any other way.

Thanks to our friends at Shale Plays Media for reprint permission. Visit them at www.bakken.com, or read the original article at http://bakken.com/news/id/227226/passion-bakken-pr-rep-brings-positivity-field/

Wyoming’s True Oil, LLC Greenlighted For Richland County Well: Weekly Oil Report

Published: Tuesday, February 12, 2013 2:41 PM CST

Compiled by Darryl L. Flowers

New Locations – Horizontal Wells

In Daniels County, Sagebrush Resources II, LLC has been approved for the Gunderson 1-8H. The well has a Surface Hole Location (SHL) at NW SW 8-35N-51E (2417 FSL/320 FWL) and a Probable Bottom Hole Location (PBHL) of 13,659 feet at SE NE 17-35N-51E (1980 FNL/660 FEL). The well targets the Bakken Formation.

In Richland County, two Bakken wells were greenlighted. XTO Energy Inc. was approved for the Dige 41X-29DXA, with an SHL at NE NE 29-23N-59E (230 FNL/1170 FEL) and a PBHL of 20,587 feet at SW SE 33-23N-59E (250 FSL/50 FWL). True Oil, LLC was issued a permit for the Anvick 21-3 3-10H. The Anvick has an SHL at NE NW 3-25N-58E (250 FNL/2400 FWL) and a PBHL of 20,490 feet at SE SW 10-25N-58E (200 FSL/1320 FWL).

In Roosevelt County, Oasis Petroleum North America LLC was OK’d for three wells. The Romo Bro Louise 2759 43-9B has an SHL at SW SE 9-27N-59E (255 FSL/1570 FEL) and a PBHL of 20,444 feet at NW NE 4-27N-59E (250 FNL/1960 FEL); the Romo Bro Margaret 2759 43-9B has an SHL at SW SE 9-27N-59E (255 FSL/1520 FEL) and a PBHL of 20,413 feet at NW NW 4-27N-59E (200 FNL/1280 FEL) and the Romo Bro Ray 2759 43-9B has an SHL at SW SE 9-27N-59E (255 FSL/1470 FEL) and a PBHL of 20,574 feet at NE NE 4-27N-59E (250 FNL/600 FEL). All three Roosevelt County wells will aim for the Bakken Formation.

Re-Issued Locations

Thirteen wells were approved for Fidelity Exploration & Production Co.,.

The wells are, in Phillips County (Bowdoin Field, targeting the Mowry Shale): the Federal 1548, with an SHL at NW NE 30-31N-34E (766 FNL/2526 FEL); the Fee 1539, with an SHL at NE NW 4-31N-34E (580 FNL/1822 FWL); the Fee 1546, with an SHL at NW NW 6-31N-34E (660 FNL/321 FWL; the State 1540, with an SHL at SE SW 16-31N-34E (672 FSL/1764 FWL); the Fee 1530, with an SHL at SE SE 34-32N-34E (762 FSL/669 FEL) and the Fee 1526, with an SHL at NE NW 19-31N-34E (394 FNL/2018 FWL); in Rosebud County (Wildcat, targeting the Heath Formation): the Nefsy 44-2H, with an SHL at SE SE 2-11N-33E (328 FSL/568 FEL). In the Valley County portion of the Bowdoin Field, these wells will target the Mowry Shale: the Federal 1549, with an SHL at NW SW 19-31N-35E (2428 FSL/1049 FWL); the Fee 1536 with an SHL at NW NW 2-31N-34E (1046 FNL/681 FWL); the Fee 1538, with an SHL at SE SE 2-31N-34E (756 FSL/1280 FEL); the Fee 1544, with an SHL at NW NW 26-31N-34E (390 FNL/143 FWL); the Fee 1524, with an SHL at NW NW 27-31N-34E (1255 FNL/428 FWL) and the Fee 1542, with an SHL at SE NE 10-31N-34E (1548 FNL/915 FEL).

Completions

In Glacier County, Newfield Production Company reported the completion of two wells. The Tribal Buffalo Jump 1-28, has an SHL at NE NE 28-35N-11W (244 FNL/255 FEL) and a Bottom Hole Location (BHL) of 10,975 feet at NE NE 28-35N-11W (711 FNL/710 FEL); the Tribal Rumney 1-21H has an SHL at SE SE 21-37N-11W (264 FSL/818 FEL) and a depth of 10,283 feet.

In Richland County, Whiting Oil and Gas Corporation reported the completion of the Hackley 21-30H. The well has an SHL at NE NW 30-26N-57E (270 FNL/2370 FWL) and two laterals, with a BHL of 12,038 feet at SE NW 30-26N-57E (2328 FNL/1886 FWL) and a BHL of 19,600 feet at SE SW 31-26N-57E (690 FSL/2030 FWL), with both laterals in the Bakken Formation. The well turned in an Initial Potential (IP) of 235 Barrels of Oil Per Day (BOPD); 211 Thousand Cubic Feet of Gas Per Day (MCFPD) and 692 Barrels of Water Per Day (BWPD).

In Roosevelt County, EOG Resources, Inc. reported the completion of two Bakken Formation Wells. The Highline 1-2833H has an SHL at NW NE 28-29N-59E (380 FNL/880 FEL) and a BHL of 19,774 feet at SW SE 33-29N-59E (710 FSL/807 FEL). The Highline reported an IP of 600 BOPD; 300 MCFPD and 3,360 BWPD. The Stateline 12-2932H has an SHL at NW NW 29-28N-59E (325 FNL/1070 FWL) and a BHL of 19,959 feet at SE SW 32-28N-59E (370 FSL/1608 FWL). The Stateline reported an IP of 528 BOPD; 320 MCFPD and 2,352 BWPD.

In Rosebud County, Central Montana Resources, LLC reported the completion of two wells:  the Zeus 1H-13, which has an SHL at SE SW 13-11N-34E (383 FSL/2419 FWL) and a depth of 5,280 and the Poseidon 1H-5, with an SHL at S2 S2 5-12N-35E (480 FSL/2640 FWL) and a depth of 4,600 feet.

Abandoned Wells

In Glacier County, Newfield Production Company was approved to abandon the Tribal Buffalo Jump 1-28. The well has an SHL at NE NE 28-35N-11W (244 FNL/255 FEL), tapping into the Nisku Formation.

In Toole County, Sonkar, Inc. was approved to abandon the I.H. Baker 2. The well has an SHL at SW SW SE 4-35N-2W (220 FSL/2420 FEL).

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

Increase Federal Revenue By Increasing Energy Production, Not Raising Taxes

By Senator Alan Olson
Published: Tuesday, February 12, 2013 2:41 PM CST

America’s energy producers have been a favorite target of the liberal left for the last few years, even as we’ve seen the incredible job creation produced by the Bakken economic engine.  Technological innovations, like horizontal drilling and hydraulic fracturing, have created an economic boom in many parts of the country and contributed mightily to our otherwise flagging GDP.

What thanks does the energy industry get for their contributions to job creation and economic opportunity?  They are continually threatened with a litany of arbitrary and punitive tax policies that would harm jobs and impede economic growth.

And now the Obama administration is once again ramping up the rhetoric on raising taxes on the energy industry.  Obama and his allies are dusting off some of the same tax schemes that have been rejected before due to the economic harm they would cause our country.  Despite that harm, the left needs more tax revenue to feed the massive government growth created in the past four years, and that planned in the years immediately ahead. They view the energy industry as that old, reliable easy target.

Make no mistake, the incredible government debt racked up during this administration must be addressed, in part through constrained spending and part through increased revenue.  Note that I said more revenue, not higher taxes.

And it’s this same energy industry that is poised to provide a large infusion of new tax revenue if it is allowed the natural expansion that the marketplace wants.  We don’t need to tax energy more—we just need to open all production opportunities.

A recent report by the Institute for Energy Research shows just how much potential exists to increase government revenue.  IER’s study examined energy production opportunities on federal land and waters that are currently off limits.  They found that expanding energy production opportunities could produce $2.7 trillion in federal revenue, and an additional $1.1 trillion in state and local tax revenue over the next four decades.

That’s even more revenue than the various energy tax proposals that have been floated by Democrats.  It seems to me that if we are serious about reducing government debt by increasing tax revenue, then the reasonable way to accomplish this is to increase production, not increase taxes.

But government tax revenue isn’t our only concern; in fact for most people it’s a secondary concern.  The study also showed that opening energy production opportunities on federal property would create over half a million new jobs by the end of this decade, and result in a net increase of $900 billion over the same time period, compared with the status quo.

Increasing energy taxes would have the opposite effects on jobs and GDP.  As energy companies absorb a higher tax burden, they have less capital available to invest in labor, research and development, and new technology.  That adds up to fewer jobs and a potential decline in GDP.

Finally, increasing energy production increases the supply of energy, which in turn drives down the cost of energy for consumers.  That leaves households with more money to spend elsewhere in the economy.  It also means that energy intensive businesses, like manufacturing, have that much more capital on hand to create jobs.

Obviously, raising taxes on energy would have the opposite effect on energy prices as the cost of the taxes are passed on to consumers.

Those calling for higher taxes on the energy sector in the name of increasing government revenue need to be honest.  There’s a way to do it without the side effect of job losses, lower GDP and more costly energy.  In fact, opening new drilling opportunities has great potential to greatly benefit our economy and our country.

Senator Alan Olson represents Senate District 23, which includes parts of Yellowstone and Musselshell Counties.  He is the chair of the Senate Energy and Telecommunications Committee.

Can America Really be the Planet’s Top Energy Producer?

Chris Faulkner Photo courtesy Breitling Oil & Gas

CEO of Breitling Oil & Gas asks…

By Chris Faulkner
Published: Tuesday, February 12, 2013 2:41 PM CST

For decades, Americans have lamented their dependence on foreign energy, especially Middle East oil. Now, however, the tables are turning. Growing numbers of analysts are concluding that within a decade, America could become the world’s top energy producer.

That would certainly be desirable. Substantial expansion of domestic energy would generate tens of thousands of jobs, lower everyday energy expenses, and eliminate our dependence on unstable Middle East governments.

But that future is far from guaranteed. We have the entrepreneurship and technological innovation we need. The question is whether we’ll have the smart public policies that allow them to flourish. While America’s energy prospects have never been brighter, regulators have never been more vehement in their push for restrictive controls on development of new projects.

Of course, we must protect the environment and ensure worker safety. But lawmakers have gone well beyond that, and they need to scale back the needless and costly rules if we are to have any hope of reaching our full potential.

There are three obvious places to start with reform.

First, regulators need to ease restrictions on hydraulic fracturing.

“Fracking” uses water pressure to extract oil and natural gas from shale formations buried deep under the earth’s crust. This technique is already in widespread use in the Bakken Shale in North Dakota. The energy boom in that state has led to astonishing economic growth and three percent unemployment.

The massive shale deposits in America could, if fully developed, profoundly change our energy landscape. But so far, oppressive state and federal rules have prevented firms realizing this potential.

Most of the environmental concerns over fracking, which turn on possible groundwater contamination, are based on misinformation or a misunderstanding of the process. This technique has been around since the 1940s. Over 1.2 million wells have been successfully fracked. The shale formations disrupted by the process are separated from water aquifers by up to two miles of rock, limestone, sand and earth. And over 99 percent of the standard fracking liquid mixture is simply water.

In other words, fracking presents very little environmental risk — and massive potential for economic gains. By some estimates, natural gas development in the Marcellus alone would create over 100,000 new jobs.

The second major way federal regulators can promote American energy is to open up off-shore energy reserves for drilling. After the tragic Deepwater Horizon spill, the Interior Department instituted a rigid drilling moratorium that effectively halted offshore development. Eventually, the courts forced regulators to ease the ban, but there is still a great deal of uncertainty and delay surrounding the offshore permit process.

Since the moratorium was announced, eleven major ocean drilling operations have closed shop, destroying an estimated 91,000 jobs.

The Deepwater disaster certainly justifies targeted safety standards for offshore drilling. But the status quo is overkill — imagine if federal aviation officials grounded all flights forever after a single crash.

Finally, the Obama administration needs to grant full approval for the construction of Keystone XL — a planned $7 billion, 2,000-mile pipeline that would carry oil from Canadian shales to refineries in Texas.

Extensive environmental analysis by the State Department and others shows Keystone will have minimal adverse effects on surrounding areas. The Constructing and maintaining the pipeline will create 130,000 new jobs.

It is indeed possible for the United States to become the world’s premier energy producer by 2020. But reaching that goal requires policymakers to identify and eliminate regulatory barriers that are now keeping America from achieving its astounding energy potential.

Chris Faulkner is the CEO of Breitling Oil & Gas.

Sun Times, Pacific Steel Host Energy Business Forum in Great Falls, Montana

Sun Times Publisher Darryl L. Flowers chats with Ed Walker of Loenbro Pipeline Solutions.

Full House Present For “A Night In The Oil Patch;” Funds Raised For Lyndsey Tikalsky

From Staff Reports

“We’re all in this together.”
-Paul Bellamy, Halliburton.

On Thursday, March 22, 2012, the brainchild of Pacific Steel and Recycling’s Tina Nolevanko and Sun Times owner and publisher Darryl Flowers, A Night in the Oil Patch, drew more than 100 business owners, geologists, drilling consultants, manufacturers, and landowners out to discuss oil activity on the Eastern slope of the Rockies.

Meetings have been taking place in Eastern Montana’s Richland County regularly over the last year as oil business picks up and local officials seek solutions on how best to handle the increased need for teachers, law enforcement, and infrastructure.

Choteau and Great Falls have entertained numerous round tables and listening sessions within the last few months in an effort to get a head start on the predicted boom in the area, educating the public about the lease and drilling processes.

Last Thursday, employees , associates, and spokesmen from companies as diverse as Primary Petroleum, Halliburton, and Anschutz joined representatives from local companies like Cascade Machine in Great Falls and Lewistown’s Wickens Construction at the Hilton Garden Inn to speak about better-business relations at the onset of a new economic boom.

The meeting opened with a statement from Jeff Millhollin, President and CEO of Pacific Steel. Asked after the meeting for his thoughts on how the evening went, Millhollin said, “Pacific Steel & Recycling was very pleased to have this opportunity to work with Darryl Flowers of the Fairfield Sun Times and co-host this event. It was a great opportunity for us to find yet another way to provide better service for our customers by recognizing opportunities coming their direction. We hope they will be able to utilize the information presented to support their businesses in the near future.”

“I see friends and I see competitors, and that’s how it should be,” said Texas geologist for Lonesome Dove Resources, Jim Bass. “Competition’s great.”  Bass explained that once the leasing process is complete, competitors “drop knives and come together” to accomplish a shared goal; to recover as much oil as possible.

Darryl Flowers grew up in the newspaper business in the 60’s and 70’s, and explained that, “they [newspapers] used to serve communities.”  Flowers expressed that he maintains the obligation, as a paper owner, to publish a wide variety of news stories and community events.  Darryl described the Sun Times’ Weekly Oil Report as one of the most popular articles as of late, now printed in the Great Falls Tribune as well.

“If you think things are picking up on the Front now, you ain’t seen nothing yet,” said Flowers.

When asked how big this is going to be, Bass answered, “The upside… a lot of acreage.   We can probably see drilling here for 10 years, though many will complete most of their production within the first 5 to 6 years, and then activity will taper off.  Then we’re looking at production for the next 20 years.”

Bass, who refers to himself as an environmentalist, tipped his hat to the technological progress the oil and gas industry have made. Bass, a third generation geologist, says that drilling nowadays is simply unrecognizable compared to the methods used by his grandfather.

“The best thing [about horizontal drilling] is we don’t have to drill in the backyard, in the middle of a pivot, a barn, or your farmland.”  The process, instead, allows petroleum engineers to pinpoint a location from several hundred yards away, now capable of creating a bend in the pipe to reach highly pressurized zones without drilling directly above the site.

“We’re not here to run over ranchers.  We don’t want to break any rules or regulations,” said Bass.  “People have a right to negotiate everything.”

Many echoed the same sentiment throughout the night.  Halliburton Field Sales and Service Representative Paul Bellamy, a native of Conrad, said “this is not a new frontier, this is a new technology.” Bellamy, a self-proclaimed drilling man for thirty years has worked in oil fields in Alaska, and assured listeners that the technology used nowadays is significantly cleaner than drilling methods of yesteryear.

“These oil companies are in here and they’re going to do it right,” said Bellamy.

Jim Bass provided a long list of items needed to accommodate the influx in oil exploration and activity in and around Teton County, siting homes to rent, hotels, office space, places to eat, and other job creating opportunities.

“We need GIS analysts, folks that understand the permitting process and the rules and regulations,” responded Bass when asked what kind of educated people companies would be looking to hire. Additionally, he mentioned land men, attorneys, petroleum engineers, well-site geologists, truck drivers, and other positions.

“What we’re dealing with is huge; young people are going to get hired.  Your colleges, your technical schools, they need to gear up.  Why give jobs away when we have young people here looking for employment,” said Bass.

Harold Yeager, of Montana Overthrust Management, believes it’s still early in the process, saying that Primary Petroleum has leased the land they want to examine, and will now begin the exploration process. He said he has been approached by vendors eager to start construction; one hotel, for example, but says his priority is to keep focus on the work at hand…the oil work, that is.

Yeager also acknowledged Flowers’ work in keeping the public educated on the whereabouts and progress of the many oil leases along the Rocky Mountain Front.

The Public Relations representative, Brent Temmer, of Anschutz Exploration stated, “We’re still in exploration mode,” but ensured vendors and job seekers at the event that Anschutz, a 75-year-old Colorado based company, will likely seek the services of numerous Montana businesses in the near future.

Jim Bass and other speakers addressed the need for oil companies, vendors, and the community to work together.

“We’re all in this together,” said Paul Bellamy of Halliburton.

As Bass put it, “the community must take the responsibility to have a social conscious.”  He said area residents ought to help in the effort to build infrastructure that can keep up with the predicted development, but also that service stations, manufacturers, and other businesses should seek to become allies of oil companies and survey crews.

Shawn Boylan from Wickens Construction in Lewistown, “the kind of person that makes vendors like us [Pacific Steel] do our jobs better,” according to Tina Nolevanko, shared ideas on how to build healthy business relationships.

“The oil is coming,” said Boylan, “and I’ve seen the effects of businesses that didn’t want to ramp up.  When I’m dealing with vendors, there’s not a sense of urgency a lot of times.”

Boylan described a “lackadaisical attitude” as a crutch to efficiency, and emphasized the importance of good service, saying that often vendors don’t know their customers, which makes it difficult to provide quality service.

A spokesman for L&H Industrial shared the company’s value system with the crowd, saying that it has been the key to the success of the family owned business.  On a large screen at the front of the room read, We Value: Integrity, Fairness, Honesty, Loyalty, & Respect.  Safety, Productivity, Innovation, & Accountability. Our employees and their families.  Going the extra mile and giving people more than they expect.

The Wyoming-based company provides welding, machining, hard chrome plating, and a myriad of other drilling and mining related manufacturing services.  From less than 20 employees, L&H has grown into a worldwide operation with facilities in Australia, South America, and India.

L&H has not been issued a single OSHA (Occupational Safety & Health Administration) citation in the last 14 years.

Tina Novelanko encouraged utilizing other businesses for additional resources, even across state lines in the case of L&H Industrial.

“We don’t have the equipment to do what we need to do.  They do,” said Tina.

Aside from the obstacle of needing supplies and/or resources that may be hard to come by, especially water which Jim Bass says can run oil companies as much as $800,000.00 per well, the Eastern Slope of the Rockies provides other challenges for surveyors, geologists, and crew members.

“We’re dealing with some pretty challenging circumstances.  We’ve learned that Porta potties do fly,” said Brent Temmer, “thanks to 80 mile an hour winds.”

In the spirit of social consciousness, attendees concluded the night with an auction to raise money for Lyndsey Tikalsky of Fairfield, who underwent brain surgery last December.  Tikalsky and her young family are without health insurance, and the means to cover Lyndsey’s recent medical expenses.

Fairfield artist and business owner Diane Hausmann donated an oil painting depicting a drilling rig on Halverson Road in Teton County.

Waterjet Extreme Technologies also donated artwork for the auction; a bronze replica of an “old time” oil well and derrick. The oil rig, complete with a Bloodwood base to represent the blood, sweat, and tears of the workers, was cut with highly pressurized water mixed with powdered garnet.  An American flag, reminiscent of tradition, completed the piece.

“Darryl, this is Brian Schweitzer.” – Weekly Oil Report

Primary Petroleum rig at Watson Flats, near Choteau. Sun Times photo by Darryl L. Flowers
Compiled by Darryl L. Flowers

Last week there were reports about a visit to the oil fields in Eastern Montana by Governor Brian Schweitzer.  The Gazette in Billings had a fine write up covering the Governor’s comments on “fracturing”. I sent a brief email to the Governor’s staff, with a compliment to the Governor for not being afraid to speak out about fracturing in the oil fields.  Before long, the phone rang. When I answered, there was no mistaking the voice on the other end: “Darryl, this is Brian Schweitzer.”

It was more of an informal chat than an interview. I invited the Governor to come to our booming oil patch so we could do a full on interview about the energy opportunities in Montana.

Rockin’ In Roosevelt

Samson Oil and Gas has just released an update on two of their wells in Roosevelt County, Montana.

At the Gretel II 12KA 3 #1-30H well, the rig crew recovered 100% of the cored interval in the Bakken and Three Forks formations, then drilled the vertical pilot hole down to 8,925 feet.

The well was logged and a cement “kick-off” plug was set.  The wellbore was deviated into the Middle Bakken target zone.  A 7 inch casing string was set and cemented at 10,816 feet.  The “kick-off” is the point at which a driller begins a change of direction with the drill bit from vertical to horizontal.

Samson reports that the 6 inch horizontal lateral is currently drilling ahead at a depth of 12,262 feet. Significant oil and gas shows have been observed with “greenish foamy oil” being observed on the shale shakers. The lithology of the lateral has some variation and the best shows are being recorded in a dolomitic lithology, which is possibly consistent with the geology of the adjacent Elm Coulee Oil Field.

The company added, “The forward plan is to drill the lateral to a measured depth of 16,400 feet and run the 4 inch completion liner. The well would then be stimulated, and whilst a frac date has yet to be set, the job has been awarded to Schlumberger, who has advised that they see no undue delays in the supply of the frac spread. The timing of the frac will most likely be determined by flow back operations on the Australia II well.”

At the Australia II 12KA 6, #1-29H well, rig up operations in preparation for the fracture stimulation have been underway during the last week and those operations are essentially complete and the first stage of the stimulation was being pumped Monday.

The forward plan is to complete the 16 stage fracture stimulation, which is expected to take 4 days on a trouble free basis.

The Australia II well was previously drilled to a total measured depth of 14,972 feet and completed with a 4 inch liner equipped with 15 external casing packers.

Big Sky In The Big Sky

Also on Monday, Big Sky Petroleum announced it had completed the Lateral Fracture Stimulation of the company’s first well, the  14-29.

The company also reported it had completed the vertical drilling and casing of its second well (15-13), permitted for a third well (4-3) and is working on permitting for a fourth well (81-4).

The 14-29 Well located in Sec 29-35N-1W of Toole County, Montana has been fracture stimulated and is currently undergoing testing and evaluation. The approximate 4,100 feet lateral section targeted the Middle Bakken Formation. Further results are expected to be received in March. This data will determine the potential economics of this well and will also be used for planning fracturing completions for future wells including the 15-13 Well.

The 15-13 Well is located approximately 3 miles south-west of the 14-29 Well and was vertically drilled and cased. The next operation planned for this well is horizontal drilling and completion including a planned 26 stage fracture stimulation. This operation is scheduled for the second quarter.

Permitting has been obtained on a new well – the 4-3 Well – which is anticipated to be spud in the second quarter.

The 81-4 Well is another new well located in Glacier County, Montana, and is expected to receive permitting approval by the end of March. Once approval for the 81-4 Well has been obtained, the first phase of drilling this new well will be completed. Big Sky previously re-entered, deepened, and stimulated the 81-3 Well which confirmed the presence of oil and provided the basis for drilling the 81-4 Well.

Sam Nastat, President of Big Sky, commented that, “We continue to be very optimistic about our exploration program and our early entry into the Alberta Bakken. The team has done a great job in completing work for each well and we plan to continue this level of activity during 2012.”

State Activity

Nine horizontal well locations were approved last week.  In Glacier County, Anschutz Exploration will be heading for the Sun River Dolomite layer with the Whitecalf 2-4-30-10 well (SW NW 4-30N-10W). The PBHL (Probable Bottom Hole Location) is 8,120 feet.

In Richland County, Fidelity Exploration and Production won approval for the Bouchard 34-21H (SW SE 21-22N-57E). The well is aiming for the Three Forks formation with a PBHL of 14,855 feet.  Also in Richland County, Brigham Oil and Gas will be drilling the Skov 21-16 1H (NE NE 28-25N-58E).  Brigham will be “Rockin’ the Bakken” with a PBHL entering the formation at 21,056 feet.

Slawson Exploration was OK’d for three wells in Richland County: the Canucks 2-13H (NW NW 24-21N-59E), the Pilum 1-24H (NW NW 24-21N-59E) and the Cleaver 1-30H (SW SW 30-21N-60E).  All three wells are boring into the Bakken layer with PBHLs in the 14,500 foot neighborhood.

In Roosevelt County, Whiting Oil and Gas was greenlighted for the Olson 21-28TFH (NE NW 28-30N-56E).  The Three Forks Formation well has a PBHL of 19,061 feet.

Rosebud County will be the home of the Nefsy 44-2H well (SE SE 2-11N-33E).  The Fidelity Exploration well is heading for the Heath Formation with a PBHL of 10,473 feet.

In Sheridan County, Marathon Oil Company was approved for the Rodney Sveet 21-28H (SE SW 21-31N-59E).  The Bakken well has a PBHL of 19,875 feet.

In Richland County, Poor Boy Oil was granted a permit for Re-Entry of a Plugged Well at the Dore 1 well (NW NW 29-24N-59E).  The well has a proposed depth of 6,500 feet into the Rierdon Formation.

There were six Re-Issued Locations in Phillips County, all for Fidelity Exploration wells. The wells, all in the Bowdoin Field, are the Federal 1548 (NW NE 30-31N-34E), the Fee 1539 (NE NW 4-31N-34E), the Fee 1546 (NW NW 6-31N-34E), the State 1540 (SE SW 16-31N-34E), the Fee 1530 (SE SE 34-32N-34E) and the Fee 1526 (NE NW 19-31N-34E).  All the wells have a proposed depth of 1,800 feet targeting the Mowry Shale.

In Roosevelt County, a Re-Issue Location was permitted for the Stateline 8-3328H (SE SE 33-28N-59E), a Bakken formation well with a PBHL of 19,602 feet. The well operator is EOG Resources.

Rounding out the Re-Issued Locations are six in Valley County. All are in the Bowdoin Field and have a proposed depth of 1,800 feet into the Mowry Shale. The wells are the Federal 1549 (NW SW 19-31N-35E), the Fee 1536 (NW NW 2-31N-34E), the Fee 1538 (SE SE 2-31N-34E) the Fee 1544 (NW NW 26-31N-34E), the Fee 1524 (NW NW 27-31N-34E) and the Fee 1542 (SE NE 10-31N-34E).  All six wells are operated by Fidelity Exploration.

There was one Permit Modification/Correction permitted last week, the Ella Marie 2759 42-9H (SE SW 9-27N-59E) operated by Oasis Petroleum North America. The well has a PBHL of 20,510 feet.

In Fallon County, Continental Resources completed the Husted 12-14SH (SW NW 14-6N-61E).  The well has a BHL (Bottom Hole Location) of 15,253 feet.  The well reported an IP (Initial Potential) of 75 BOPD (Barrels of Oil Per Day), 570 MCFPD (Thousand Cubic Feet of gas Per Day) and 331 BWPD (Barrels of Water Per Day).

In Roosevelt County, Brigham Oil and Gas brought in the Gobbs 17-8 1-H (SW SE 17-28N-57E). The Bakken Formation well has a BHL at 19,402 feet.  Brigham reported an IP of 1,544 BOPD, 1,643 MCFPD and 3,447 BWPD. Also in Roosevelt County, Oasis Petroleum wrapped up the Smestad 2758 13-5H (NW NE 5-27N-58E), another Bakken well with a BHL of 19,570 feet.  The well operator reported an IP of 1,133 BOPD, 1,655 MCFPD, and 1,676 BWPD.

The last of the reported completions was the Ward 12-5H well operated by TAQA North USA (NW NW 12-37N-57E).  The well has a BHL at 11,859 feet, hitting the Bakken formation. The Ward reported an IP of 340 BOPD, 65 MCFPD and 420 BWPD.

There were three expired permits in Blaine County. The Swank 9-12-34-21C (NW SW 9-34N-21E) and the Lybeck 35-7-35-20B (SW NE 35-35N-20E) belonged to NFR Bear Paw Basin. The SE Battle 5-2-34N-20E (SW NW 2-34N-20E) belonged to Montana Land and Exploration.

In Teton County’s “Pondera” Field, Mountain View Energy’s permit expired for the Donovan 33-1 (NE NW SE 33-27N-4W).

In McCone County, Native American Energy Group cancelled a horizontal redrill for the Beery 2 well (NE NE 24-23N-49E).

In Blaine County 11 wells were abandoned. Five of the wells listed Devon Energy Production as the operator.  They are the Loney 1-4 (NW NW 1-31N-18E), the Risley 11-6 (SE NW 11-31N-18E), the Staff 32-5 (SW NW 32-32N-18E), the Williamson 4-16 (SW SE SE 4-31N-18E) and the Paulsen 15-16 (SE SE 15-31N-18E).  All five are located in the Tiger Ridge field.

Also in Blaine County, Behm Energy filed to abandon five wells: the State 36-37-20 (NW SE 36-37N-20E), the Gordon 1-8 (NW SE 8-37N-21E), the S Bar B Ranch 1-31-37-20 (SE NW 31-37N-20E), the Gordon 1-26-37-21 (SW NE 26-37N-21E) and the Gordon 14-12-37-20 (SE SW 12-37N-20E). Finishing out the list of abandoned wells in Blaine County is the Summit Resources Rabbit Hills 9-14 (NW SE 14-34N-19E).

In Chouteau County, there was a single filing to abandon a well, and there is not much “known” about this one.  The well operator, as well as the well name, are all listed as “UNKNOWN”. The location is reported as SW NW SW 29-27N-3E.

In Glacier County, FX Drilling Company filed for permits to abandon four wells. The wells, all in the Cut Bank field, are the SWCBSU 57-W2 (SE NW NW 23-32N-6W), the SWCBSU 34-W1 (SE SE SW 12-32N-6W), the SWCBSU 22-02 (SW NW NE 7-32N-5W) and the SWCBSU 12-W5 (NW SW 5-32N-5W).

A permit was granted by the Board of Oil and Gas Conservation for the Conversion to Injection of the Grizzly 2-24H (SE SW 2-25N-59E), operated by Prima Exploration.