 |
Latest Prices |
CRUDE OIL:
71.92
(NYMEX futures price)
prices updated February 8
Colorado SE: $61.25
CO Western: $56.08
N.D. Sweet: $55.83
WY Sweet: $56.83
SW WY Sweet: $58.33
CO, ND and WY prices updated February 5.
NATURAL GAS:
5.57
(Henry Hub spot price)
prices updated February 8
Chicago CG: $5.75
Malin, OR: $5.56
Opal Hub: $5.36
Ventura, IA: $5.71
Regional hub prices updated February 8.
U.S. Rig Count
1335 as of
2/5/10
+18 from 1/29/10
-64
from 2/6/09
(Courtesy Baker Hughes)
Exhibitors Wanted For ND Expo
Because of early positive response, The ND Petroleum Council is urging exhibitors to sign up now for the 2010 Williston Basin Petroleum Conference and Expo scheduled for May 2-4 in Bismarck.
Only 60 of the 370 indoor exhibit spaces after left, the NDPC said Exhibitors can sign up on the NDPC website at: www.ndoil.org.
The conference will host oilfield companies and government regulators from Canada and the US and several presentations are planned that will focus on drilling, geology and regulatory issues in the Williston Basin.
Contact the NDPC at 701 223-6380 for more details on hotels, registration and program events.
Brigham Uses 30 Stage Fracs
Brigham Exploration of Austin, TX said it used a 30-stage frac on two new wells in North Dakota’s Williams County, and each of them had a high 24-hour initial production rate.
The Jackson 35-34 #1H produced 3,064 BOPD and 2.86 Mmcf a day while the Owan-Nehring 27-34 #1H well had an IP of 2,215 BOPD and 1.79 Mmcf a day, the company said.
“Our staff continues to enhance both drilling and completion efficiencies and techniques, delivering exceptional operation results,” said Bud Brigham, chairman, president and CEO. “For example, our most recent well, Jerome Anderson 15-10 #1H, took only 18 days to spud to reach total depth of 19,350 feet, which an improvement from our typical well drilling days of 22 to 26 days.”
The company said it is running four drilling rigs in North and four wells are waiting to be completed. According to Brigham, all will be horizontal laterals will be completed with 30-stage fracs.
ND Waste Oil Plant Okayed After Violation
A company that had erected a waste oil treating plant in North Dakota’s McKenzie County in violation of administrative procedures was given approval to operate the plant and post a $150,000 bond by the ND Industrial Commission Jan. 25.
After admitting that the four-acre site was leveled in violation of a verbal agreement with the commission, Boysani was allowed to have total storage capacity limited to 3,300 barrels.
The treatment facility is located in Sec. 27, T152N-R96W.
The company had proposed an 880-barrel tank and a 1,000-barrel tank for treating, a 1,000-barrel sale tank and a 1000-barrel dirty oil tank.
The facility heat waste oil from tank bottoms, drilling pits, and saltwater disposal tanks to 160 degrees and a demulsifier would be added. The clean oil would be drawn off the top.
The commission banned the burying waste at the site and required Boysani to build dikes around the storage tanks and operate the plant to prevent leaks, spills and fires.
Boysani was also required to submit monthly reports on the sale and disposition of waste oil as well as water and residue waste.
Commissions Stops Drilling Permit
A permit for Newfield Production Co. of Denver to drill a well in McKenzie County was stopped Jan. 25 by the ND Industrial Commission, which gave approval to Burlington Resources Oil & Gas Co LP to drill wells on 1280-acres spacing in sections 33 & 34, T13N-R96W.
Newfield previously gave a permit to drill the Sand Creek Federal #1-34H well in Sec. 27, T153N-R96W. The company had earlier objected to Burlington’s request for the 1280-acre spacing.
Burlington said it plans to spud its well in February to maintain their leases. The company believes that Newfield could get a federal drilling permit in time to spud its Sand Creek well by Feb. 18 but doing so would not maintain Burlington’s leases in Sec. 33.
Burlington asked that the Newfield permit be terminated and argued that better recovery of oil would happen on the 1280-acre spacing with long laterals having 18 to 20 fracs rather than a shorter lateral under 640-ace spacing sought by Newfield.
DCP Buys D-J Basin NGL Line
DCP Midstream Partners, LP said it paid $22 million for a 350-mile natural gas liquids (NGL) pipeline that runs from Denver-Julesburg Basin in Colorado to Bushton, KS from Buckeye Partners, L.P.
Midstream will spend $18 million to integrate the newly acquired pipeline with its facilities. “We believe the acquisition of the NGL people by the Partnership will benefit our customers by maintaining a critical outlet for increased NGL production in the D-J Basin, said Tom O’Connor, chairman, president and CEO of DCP.
The company is investing more in the D-J Basin and is in the process of building a 65 Mmcf natural gas processing plant at Gilcrest CO that will start up next year.
IPAMS Wants Obama To Scrap Tax Plan
The Obama Administration was urged by the Independent Petroleum Assn. of Mountain States to abandoned plans to raise taxes on energy companies.
“With a $1.3 trillion deficit for this year and a myriad of new programs being proposed, we are concerned that the President will once again target our industry with his $80 billion in tax hikes,” said Marc Smith, executive director of IPAMS. “These proposed tax hikes would devastate small American energy companies, known as independents, who produce the clean, affordable, American natural gas that offers a real solution to our pressing economic, energy and environmental challenges.”
Among the proposals are repealing the expensing of intangible drilling costs and repealing the percentage depletion deduction.
“The enormous tax that the President is trying to impose on the natural gas and oil industry, however, will make the development of this American energy source even more difficult and costly,” Smith said.
Notice To Email Subscribers
Oil Patch Hotline is copyrighted and limited to circulation within your immediate office. It has come to our attention that some subscribers are emailing their copies to other offices. This practice is strictly prohibited and a violation of copyright laws, unless you have the express written permission of Oil Patch Hotline.