Permitted

[lt.driv...@gmail.com]

Thank you ,Bruce for your interest in, and knowledge of the Bakken! We have mineral rights for permits 23790 - 23793. They were originally permited August 2012, and repermitted September 2013'. They are still on the confidential list ,no experation date. Are these considered expired?

[Bruce Oksol]

Excellent question.

They are in the Banks oil field, a very, very good field.

They are CLR permits.

The NDIC site still shows them as "CONFIDENTIAL" -- so I assume CLR keeps sending in the $100 each year to renew the permit.

I have to pick up my granddaughter from school, but I might come back to this later over at the main blog; a very interesting case.

But the short answer: nothing to suggest these permits have expired. If they were re-permitted September, 2013, and nothing has happened, we will know within a few months -- the NDIC website sometime lags the paperwork. I've also seen cases where letters have been sent to the operator reminding the operator that a permit has expired and asking if the operator planned to renew the permit. Because they are still confidential, one can't see any of their paperwork.

But, wow, I would hate to think an operator would lose permits in Banks oil field.

[linda olson]

where is this located ?

[Bruce Oksol]

Permits 23790 - 23793 are in Banks oil field, section 2-152-99.

If you want to see the location on google maps, use these coordinates:

Latitude: 48.013948     Longitude: -103.321959

[rihe...@gmail.com]

I have an interest in four wells that are on Confidential Status. I've noticed that some wells on this status will have spud dates, but none of our four do. Why would they be on confidential if the drilling hasn't started? We have one active well on each unit and and 4 that are NC and 4 that are LOC. Thanks for your efforts and any info you have!
31341

[Bruce Oksol]

I think I will let others answer this one. As often as I've discussed the "confidential" issue, I still don't understand some of the nuances/subtleties.

[Bruce Oksol]

Since no one has said anything yet, this is my opinion.

When an  operator sends in an application for a permit to drill a well, the operator can include a letter requesting that the well be confidential. At that point, except for those items allowed to be released regarding a well on confidential status, all other information is confidential. There is no requirement that the well be spud before the permit/well is on the confidential list.

In the old days, during wildcatting, I would assume the majority of permit applications carried that request, to keep the well confidential from the time the permit is let. However, the six-month clock begins ticking the day the well is spud.

I agree that it seems unusual to request a well be placed on confidential list at time of permit application but there may be specific operational reasons or it may simply be administrative reasons.

I would assume that if a well is on the confidential list, it's hard for anyone to know much about the well except for folks who are physically at the well site (workers, surface owners, other visitors).

[agera...@gmail.com]

Bruce has covered the issue quite well. Permits last for one year. If the well is not spud in that time the (Company) must renew or the permit will be cancelled. The well comes off of confidential 6 months after it has been spud(begin drilling).

[donald overland]

It has been my experience that back in the old days,  that when a well has been put on the confidential list, usually in  about three months  I would receive a ck .  but since the price of oil is down,  the oil companies are holding off on drilling because the cost to drill is not cheap, and they need to make a profit just to stay in business, so  putting wells on the confidential list is another way they can stay alive.

[lt.driv...@gmail.com]

Hi again. Contenental started drilling these finally in April. They even added four more. I think they are on the last one 30253 right now. We're looking forward to a first check now. Thanks so much for your imput

[Bruce Oksol]

Wow, good for you! Thank you for the update. It is very kind of you to write; this data might not otherwise show up on the NDIC file reports for several weeks, or even several months. This information will be appreciated by many. I provided the update here:

http://themilliondollarway.blogspot.com/2015/10/how-irrelevant-is-rig-count-platts.html

[lt.driv...@gmail.com]

Hi Bruce. I noticed these 4 wells are on your oldest duc list today. They are now listed at ncw. What exactly does the w mean? Thanks

[Bruce Oksol]

Wow, that's an incredibly good question. I had not noticed that before. I posted the answer at the main blog:

http://themilliondollarway.blogspot.com/2016/12/new-acronym-in-bakken-ncw-december-8.html

[pbm...@gmail.com]

Hi Bruce Thank You for the M Schmidt update Yes our new well will be 150 days if they don't cut a check they have to pay 18% every day they delay.

[Bruce Oksol]

These wells are DUCs. I assume they will eventually be completed. From a July 25, 2016, sundry form for one of the wells from CLR: "The well will be completed once commodity prices improve to a point where it is economic to do so."

[Bruce Oksol]

I've update the Monroe wells here:

http://themilliondollarway.blogspot.com/2016/12/random-update-on-monroe-pasadena-wells.html

[lt.driv...@gmail.com]

Sorry if you've answered this before. Continental has now drilled 12 new wells here. Can you tell me what the green circles on 33095-33098 are?

[Bruce Oksol]

The "green" circles correlate to wells being on "DRL" (drill) status. I'm not sure of the exact criteria the NDIC uses, but I think the process is something like this. If I'm wrong, someone will likely correct me.

1. First, and most importantly, the map and the file reports cannot be updated until NDIC gets the paperwork from the operator. There is always a lag in getting paperwork into an organization, and then scanning it and transcribing it.

2. If the paperwork is delayed, NDIC has "alerts" to let them know when a well should be reporting.

3. Having said that, I think this is how the process works.

4. Once the permit is issued, the well is put on "LOC" status. "LOC" simply means a permit has been issued; no other activity at the well site.

5. Once the well is being drilled, it goes on "DLR" (drill) status. Once it reaches total depth (TD), the map shows the well with a horizontal line (if it's a horizontal well)  and the "green circle" becomes a black dot. If you are suggesting that the rigs have already been taken down from the site, and the wells have reached TD, then I would expect these "green circles" to become black dots soon. If they have reached TD and the "green circles" are still there, I assume the paperwork is still being sent in/processed at NDIC. But once the operators reach TD, they should turn to black dots, even if the wells have not been fracked/completed. Even after the rigs are gone, the wells could still be on "DRL" status while work at the surface is being completed to bring the wells into production.

6. Once the wells have reached TD, the operators are expected to complete them in a timely manner. Because of low commodity prices, operators are now allowed to drill the wells to depth, and then shut them in -- for up to two years -- these are known as "drilled but uncompleted wells" (DUCs). They are drilled to total depth but they have not been fracked/completed. The file report shows them as "SI/NC" -- shut in/not complete (not fracked).

7. Bottom line, if one knows for sure that the drilling is complete, that the wells have reached total depth (and based on the length of the horizontals on the map, I'm sure they have reached total depth), I would assume the paperwork is on its way to the NDIC. Once the paperwork is processed, the "green circles" will become black dots, and then within a few months, one will start see production data, UNLESS the wells are not completed/fracked and go to SI/NC status first.

8. "Green circles" mean "DRL" status -- a period during which, even if the rigs are removed, they are still doing work on the wells to bring them into production, with or without being fracked.