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Latest Prices |
CO, ND, WY Crude Oil:
Colorado SE: $78.25
CO Western: $75.33
N.D. Sweet: $70.43
SW WY Sweet: $74.83
WY Sweet: $72.35
Prices updated May 24
Regional Spot Prices:
Chicago CG: $2.55
Michcon: $2.60
Opal Hub: $2.36
Questar: $2.29
Ventura, IA: $2.47
Prices updated May 28
U.S. Rig Count
1983
as of 5/25/12
-3 from 5/18/12
+136 from 5/28/11
(Courtesy Baker Hughes)
MDU Buys Into Belfield Gas Facility
MDU Resources subsidiary Bitter Creek Pipelines, LLC, paid $66 million for a 50% undivided interest in Whiting Oil and Gas Corporation’s natural gas and oil midstream assets near Belfield, N.D.
“This vestment diversifies our operations into midstream gathering and processing of natural gas liquids and crude oil,” said Steven L. Bietz, president and chief executive officer of Bitter Creek. “This complements both our expertise in dry gas gathering, transportation and storage, and our asset base in the Bakken.”
The facilities include a newly constructed, state-of-the-industry natural gas processing plant south of Belfield and a natural gas gathering pipeline system connected to the plant.
A natural gas residue line that ties into the Williston Basin Interstate Pipeline Company system, an MDU Resources subsidiary, is also included; along with a crude oil gathering system, a crude oil storage terminal, and a crude oil pipeline that connects the terminal to the Bridger Pipeline.
Whiting will continue to operate the facilities.
The Belfield natural gas processing plant has an inlet processing capacity of 35 million cubic feet per day. The oil terminal is currently under construction, with completion expected in the third quarter of 2012. It will have a storage capacity of 20,000 barrels.
QEP Adds 4th Rig To Bakken Play
QEP Resources of Denver said it will add a fourth rig in June to its rig fleet in North Dakota, where first quarter production for this year averaged 5,728 BOEPD.
Reporting earnings of $345.7 million and an overall 113% increase in oil and NGL production for the first three months, QEP said its average completed well cost in the Bakken ranges between $9.7 million and $10.4 million.
The company operates 32 producing wells and has a working interest in 106 producing wells operated by other producers. With leases on 90,000 acres in the state, QEP has just completed two new wells in the first quarter and is waiting on the completion of two others.
In Wyoming’s Pinedale Anticline, the company plans to run six rigs and complete 110 natural gas wells this year. It is costing QEP an average of $3.9 million to complete a well, and the average drilling time is running 13.9 days.
During the first quarter, its net production averaged 244 Mmcfe a day from the Wyoming field.
Hess Ordered To Pay Royalties
For Flared Gas
Hess Corporation was ordered by the North Dakota Industrial Commission May 21 to pay $72,000 in royalties to mineral owners and $16,000 in production taxes...
A Quality Mats crew in the Tioga, ND yard loads up mats for a new location near Stanley.
Bakken Crude Heading To Albany
A new rail destination on the East Coast at Albany, NY is opening up to receive crude oil unit trains from North Dakota...
Construction crews erect a new shop building, stretching 200 by 85 feet, at Epping, ND for Vision Oil Tools, a new company servicing Williston Basin operators.
Ward County Sale Draws Low Bids
Ward County drew the lowest bids in the May 1 ND state oil and gas lease sale, with high bidding only reaching $12 an acre, indicating a sharp lack of interest in that county as a potential exploration site in the Williston Basin.
The sale conducted by the ND Dept. of Trust Lands saw total bonuses of $10.5 million.
Cody Oil and Gas paid $12/acre for three tracts totaling 180 acres in sections 8 and 18, T157N-R87W. Vecta Oil and Gas paid $10/acre for 300 acres in sections, 8, 19 and 30, T153N-R87W. Cody paid $6/acre for two tracts totaling 110 acres in Sec. 19, T157N-R86W.
Montana Acres Up For Sale
A public auction to sell 1,239 mineral acres in Montana’s McCone County will be held at 7 pm, May 18 in Sidney at the Elks Club.
The sellers want to sell off the mineral ownership rather than lease it.
More information about the auction can be obtained by calling Montana Land Auctions, Inc. at 406-939-2501.
Upcoming Events
May 24: Tight Oil Niobrara Congress 2012 in Denver, CO. The one-day program will feature several aspects of geology and production engineering in the new play. Featured speakers include: Ed Holloway, CEO of Synergy Resources; Paul Gagnon, president of Lario Oil & Gas; Fred Julander, president of Julander Resources; and Frank C. Ingreselli, CEO of Pacific Energy Development.
Also speaking are: Mark Watson, petroleum engineer for the Wyoming Oil & Gas Conservation Commission; John Humphrey, geology department head at the Colorado School of Mines; and Eric Erslev, geology professor at the University of Wyoming.
For more information, call 800-721-3915 or visit: www.tight-oil-niobrara-congress.com.
May 30–31: Bakken Tight Oil Congress 2012 in Denver, CO. Several top industry experts, including Stan Wilson with Continental Resources and Robin Pilcher, a geologist with Hess Corp., will be speaking.
The conference will focus on completions strategy, as well as hydraulic fracturing techniques, well spacing, and reservoir management. There will also be several presentations on geologic issues such as permeability, porosity, water saturation, and natural fractures.
Other speakers include Jon Payne, a geologist with Kodiak Oil & Gas Corp.; Timothy Benton, vice president of geosciences for GMX; and Rene LaPrade, senior vice president of operations for PetroBakken.
For sponsorship opportunities, visit: www.bakken-tight-oil.com or call 800-721-3915.
August 13–16: 24th annual Energy Epicenter Conference in Denver, CO. James T. Hackett, chairman and CEO of Anadarko Petroleum Corp., will be the keynote speaker at the conference, which will be held at the Denver Convention Center.
Sponsored by the Colorado Oil and Gas Assn., the conference features several hot topics related to finance and infrastructure, along with a trade show.
Gov. John Hickenlooper and Dan Pickering, president of Tudor, Pickering and Holt, are also slated to speak at the conference.
To learn more about exhibiting and registration, visit: http://www.energyepicenter.org.
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