bakken shale montana

7/29/2019 bakken shale montana

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BAKKEN SHALE

8/23/2010 MONTANA ADDENDUM


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Contents

FIELDS AND MAJOR PIPELINES .................................................................................. 2

BAKKEN LAND TRAC MAP .......................................................................................... 3

.......................... 3

DNRC WEEKLY ACTIVITY REPORT FOR WEEK ENDING 8/12/2010 .................... 4

New Locations: ............................................................................................................... 4

New Locations - Horizontal Wells: ................................................................................ 7

Re-Issued Locations: ....................................................................................................... 9

Permit Modifications / Corrections:.............................................................................. 10

Completions: ................................................................................................................. 10

ELM COULEE FIELD ..................................................................................................... 12

Montana Oil: The Next Bakken Rush Source: Keith Kohl, Energy &Capital 08/02/2010 .............................................................................................. 13

EOG Resources - Bakken Shale Update ....................................................................... 16Operators ........................................................................................................................... 17

Fidelity Exploration and Production ............................................................................. 17

Williston Basin Interstate Pipeline Co. ........................................................................... 1


3/21

FIELDS AND MAJOR PIPELINES


4/21

BAKKEN LAND TRAC MAP


5/21

DNRC WEEKLY ACTIVITY REPORT FOR WEEK ENDING 8/12/2010

MONTANA DEPARTMENT OF NATURAL

RESOURCES AND CONSERVATION

BOARD OF OIL AND GAS CONSERVATION2535 St. Johns Avenue, Billings, MT 59102 (406) 656-0040

ACTIVITIES: 8/6/2010 To 8/12/2010

New Locations:

Fallon Wildcat

Chaparral Energy, LLC Burlington Northern 44-5

025-23048SHL: SE SE 5-10N-58E (1060 FSL/660 FEL) EL 2701' GR

Proposed Depth: 9350' (Red River)

28698

Approved: 08/05/2010

Phillips Bowdoin

Fidelity Exploration & Production Co. Federal 1528

071-23321

SHL: NW SE 21-31N-34E (1832 FSL/1558 FEL) EL 2174' GR

Proposed Depth: 1800' (Mowry Shale)

28700


Phillips Bowdoin


071-23322

SHL: NW NE 30-31N-34E (766 FNL/2526 FEL) EL 2299' GR


28701


Phillips Bowdoin

Fidelity Exploration & Production Co. Fee 1539071-23323

SHL: NE NW 4-31N-34E (580 FNL/1822 FWL) EL 2239' GR


28706


Phillips Bowdoin


6/21

Fidelity Exploration & Production Co. Fee 1546

071-23324

SHL: NW NW 6-31N-34E (660 FNL/321 FWL) EL 2178' GR


28707


Phillips Bowdoin

Fidelity Exploration & Production Co. State 1540

071-23325

SHL: SE SW 16-31N-34E (672 FSL/1764 FWL) EL 2173' GR


28708


Phillips Bowdoin


071-23326



28709


Phillips Bowdoin

Fidelity Exploration & Production Co. State 1533

071-23327

SHL: NW NE 36-32N-33E (210 FNL/1404 FEL) EL 2179' GRProposed Depth: 1800' (Mowry Shale)

28710


Phillips Bowdoin


071-23328

SHL: SE SE 34-32N-34E (762 FSL/669 FEL) EL 2260' GR


28711

Approved: 08/10/2010Phillips Bowdoin


071-23329

SHL: NE NW 19-31N-34E (394 FNL/2018 FWL) EL 2390' GR


28716


7/21


Sweetgrass Wildcat

Noble Energy, Inc. Sweet Pea 31-33

097-21069


Proposed Depth: 4500' (Frontier)

28703


Valley Bowdoin


105-21562

SHL: NW SW 19-31N-35E (2428 FSL/1049 FWL) EL 2168' GR


28704


Valley Bowdoin


105-21563

SHL: SW NW 32-32N-35E (2219 FNL/682 FWL) EL 2230' GR


28705


Valley Bowdoin

Fidelity Exploration & Production Co. Fee 1536105-21564



28712


Valley Bowdoin


105-21565

SHL: SE SE 2-31N-34E (756 FSL/1280 FEL) EL 2264' GR

Proposed Depth: 1800' (Mowry Shale)28713


Valley Bowdoin


105-21566



8/21


28714


Valley Bowdoin


105-21567



28715


Valley Bowdoin


105-21568

SHL: SE NE 10-31N-34E (1548 FNL/915 FEL) EL 2236' GR


28717


Valley Bowdoin


105-21569



28718


New Locations - Horizontal Wells:

Dawson Wildcat

Petro-Hunt, LLC Austby 19-53 2B-34-1H

021-21183

SHL: NE NW 2-19N-53E (400 FNL/1700 FWL) EL 2671' GR 28699


PBHL: 14656' SW SE 34-20N-53E (1300 FSL/1700 FEL) Red River

Dawson Wildcat

Petro-Hunt, LLC Boje Farms 19-54 17D-20-1H

021-21184SHL: SE SE 17-19N-54E (275 FSL/660 FEL) EL 2570' GR 28719


PBHL: 14719' SW SW 17-19N-54E (250 FSL/700 FWL) Red River C

New Locations - Horizontal Wells:

Richland Wildcat

Slawson Exploration Company Inc Scoundrel 1-8H


9/21

083-22856

SHL: SE SE 8-23N-53E (350 FSL/650 FEL) EL 2390' GR 28695


PBHL: 13704' NW NE 8-23N-53E (700 FNL/2200 FEL) Bakken

Richland Wildcat

Slawson Exploration Company Inc Rascal 1-18H

083-22857

SHL: SE SE 18-23N-53E (350 FSL/650 FEL) EL 2433' GR 28696


PBHL: 13708' NW NE 18-23N-53E (700 FNL/2200 FEL) Bakken

Richland Wildcat

Ursa Resources Group, LLC Sorteberg 27-34 1H

083-22858

SHL: NE NE 27-25N-57E (415 FNL/700 FEL) EL 2310' GR 28702


PBHL: 19708' SE SE 34-25N-57E (660 FSL/660 FEL) BakkenRe-Issued Locations:

Blaine Wildcat

Devon Energy Production Co., LP US-DIR 2-6

005-23775

SHL: SW NW 2-25N-17E (2389 FNL/894 FWL) EL 3557' GR 28720


PBHL: 2750' SE NW 2-25N-17E (1800 FNL/1980 FWL) Eagle

Glacier Red Creek

Mountain View Energy, Inc. Red Creek 38035-22079

SHL: NW SW 12-37N-5W (2240 FSL/1060 FWL) EL 3700' GR

Proposed Depth: 2900' (Cut Bank)

28721


Roosevelt Wildcat

Fort Worth Operating Company, LLC E. Patch 3-4

085-21738


Proposed Depth: 1000' (Judith River)28722


Roosevelt Wildcat

Fort Worth Operating Company, LLC E. Patch 3-13

085-21739

SHL: SW SW 3-27N-51E (660 FSL/660 FWL) EL 2010' GR


10/21

Proposed Depth: 1000' (Judith River)

28723


Re-Issued Locations:

Roosevelt Wildcat

Fort Worth Operating Company, LLC E. Nees 1-4

085-21740



28724


Roosevelt Wildcat

Fort Worth Operating Company, LLC E. Nees 1-13

085-21741



28725


Roosevelt Wildcat

Fort Worth Operating Company, LLC M. Knowlton 4-14

085-21742



28726


Roosevelt Wildcat

Fort Worth Operating Company, LLC Murray 25-1

085-21743

SHL: NE NE 25-28N-50E (1214 FNL/860 FEL) EL 2074' GR


28727


Roosevelt Wildcat

Fort Worth Operating Company, LLC Murray 25-15085-21744

SHL: SW SE 25-28N-50E (660 FSL/1980 FEL) EL 2078' GR


28728


Roosevelt Wildcat

Fort Worth Operating Company, LLC Ralph Patch 33-2


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085-21745



28729


Roosevelt Wildcat

Fort Worth Operating Company, LLC Ralph Patch 33-15

085-21746

SHL: SW SE 33-28N-51E (660 FSL/1980 FEL) EL 2079' GR


28730


Roosevelt Wildcat

Fort Worth Operating Company, LLC V. Clark 20-10

085-21747

SHL: NW SE 20-29N-50E (1969 FSL/1889 FEL) EL 2303' GR


28731


Sheridan Outlook

El Paso E&P Company, L.P. Ruegsegger 13-13 SWD

091-21865


Proposed Depth: 4900' (Morrison)

28697


Permit Modifications / Corrections:

Hill Tiger Ridge

Devon Energy Production Co., LP Neuwerth-DIR 17-9

041-23538

SHL: NW SE 17-31N-15E (1764 FSL/1505 FEL) EL 2866' GR 28443


PBHL: 2750' NE SE 17-31N-15E (1965 FSL/1245 FEL) Eagle

Completions:

Blaine Sawtooth Mountain

Devon Energy Production Co., LP US 19-14

005-23733


Completed 7/30/2010 (GAS). TD 1778' PBTD 1706'.

IP 0 BOPD/740 MCFPD/0 BWPD Eagle


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Chouteau Wildcat

Devon Energy Production Co., LP Beumee 4-8

015-21823


Completed 7/13/2010 (DH). TD 2610'

Toole Kevin-Sunburst

Somont Oil Company, Inc. Emmons 31 6-31

101-24135

SHL: SE NW 31-35N-1W (2200 FNL/2315 FWL) EL 3474' GR

Completed 5/12/2010 (OIL). TD 1700'

IP 0 BOPD/0 MCFPD/7 BWPD Madison


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ELM COULEE FIELD

Elm Coulee Oil Field was discovered in theWilliston BasininRichland County, eastern

Montana, in 2000. It produces oil from theBakken Formationand, as of 2007, is the"highest-producing onshore field found in the lower 48 states in the past 56 years. "

[1]By

2007, the field had become one of the 20 largest oil fields in the United States.[2][3]

The field exploitshorizontal drilling technologyby perforating the productive rocksparallel to the beds, rather than through a vertical well perpendicular to the relatively thin

Bakken Formation. At Elm Coulee Field, the Bakken is only about 45 feet (15 m) thick

and lies at depths of 8,500 to 10,500 feet (2,6003,200 m), but horizontal wells penetrate

3,000 to 5,000 feet (9001,500 m) of the reservoir rock, aporousdolomiteofDevonianage that probably originated as a largecarbonate bankon the western flank of the basin.

The field is astratigraphic

trap.[4]

In 2006, Elm Coulee was

producing about53,000 barrels (8,400 m3) of

oil per day from more than

350 wells. Ultimate

production is expected toexceed 270 million barrels

(45 million m),[5]

with

some estimates as high as

500 million barrels(80 million m).[6]

Production at Elm Coulee

has more than doubled theoil output of the state of

Montana, from around 40

000 barrels per day in 2000to almost 100 000 in '06.

However, montana

production fell againstarting in 2007, down to

some 70 000 barrels per dayin mid 2009.[7]

[8]
http://en.wikipedia.org/wiki/Williston_Basinhttp://en.wikipedia.org/wiki/Williston_Basinhttp://en.wikipedia.org/wiki/Williston_Basinhttp://en.wikipedia.org/wiki/Richland_County,_Montanahttp://en.wikipedia.org/wiki/Richland_County,_Montanahttp://en.wikipedia.org/wiki/Richland_County,_Montanahttp://en.wikipedia.org/wiki/Montanahttp://en.wikipedia.org/wiki/Montanahttp://en.wikipedia.org/wiki/Bakken_Formationhttp://en.wikipedia.org/wiki/Bakken_Formationhttp://en.wikipedia.org/wiki/Bakken_Formationhttp://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-0http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-0http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-0http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-1http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-1http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-1http://en.wikipedia.org/wiki/Directional_drillinghttp://en.wikipedia.org/wiki/Directional_drillinghttp://en.wikipedia.org/wiki/Directional_drillinghttp://en.wikipedia.org/wiki/Porosityhttp://en.wikipedia.org/wiki/Porosityhttp://en.wikipedia.org/wiki/Dolomitehttp://en.wikipedia.org/wiki/Dolomitehttp://en.wikipedia.org/wiki/Dolomitehttp://en.wikipedia.org/wiki/Devonianhttp://en.wikipedia.org/wiki/Devonianhttp://en.wikipedia.org/wiki/Devonianhttp://en.wikipedia.org/wiki/Carbonate_platformhttp://en.wikipedia.org/wiki/Carbonate_platformhttp://en.wikipedia.org/wiki/Carbonate_platformhttp://en.wikipedia.org/wiki/Oil_reservoir#Stratigraphic_trapshttp://en.wikipedia.org/wiki/Oil_reservoir#Stratigraphic_trapshttp://en.wikipedia.org/wiki/Oil_reservoir#Stratigraphic_trapshttp://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-3http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-3http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-3http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-4http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-4http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-4http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-5http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-5http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-5http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-6http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-6http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-7http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-7http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-7http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-7http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-6http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-5http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-4http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-3http://en.wikipedia.org/wiki/Oil_reservoir#Stratigraphic_trapshttp://en.wikipedia.org/wiki/Oil_reservoir#Stratigraphic_trapshttp://en.wikipedia.org/wiki/Carbonate_platformhttp://en.wikipedia.org/wiki/Devonianhttp://en.wikipedia.org/wiki/Dolomitehttp://en.wikipedia.org/wiki/Porosityhttp://en.wikipedia.org/wiki/Directional_drillinghttp://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-1http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-1http://en.wikipedia.org/wiki/Elm_Coulee_Oil_Field#cite_note-0http://en.wikipedia.org/wiki/Bakken_Formationhttp://en.wikipedia.org/wiki/Montanahttp://en.wikipedia.org/wiki/Richland_County,_Montanahttp://en.wikipedia.org/wiki/Williston_Basin


14/21

Montana Oil: The Next Bakken RushSource: Keith Kohl, Energy & Capital 08/02/2010

Sometimes a story just doesn't unfold the way you expect it to.

For Montana's oil industry, the carpet was pulled out from underneath them when themedia's attention was snatched away by the state's neighbor to the east. . .

It must have been painful for them to watch North Dakota's oil industry explode, even inspite of a massive global recession. But the last laugh hasn't been heard.

And that's because Montana is preparing to re-take the spotlightand for investorssearching for the next phase of the Bakken oil boom, it's time to give Montana its due.

Sympathy for Montana
http://www.addthis.com/bookmark.php?v=250&pub=xa-4b26e4054a784caahttp://www.addthis.com/bookmark.php?v=250&pub=xa-4b26e4054a784caa


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If you've looked into the Bakken formation, there's a good chance you've come across theElm Coulee oil field.

Located in Richland county, on the eastern side of Montana, the Elm Coulee field wasdiscovered in 2000. Like most Bakken wells, companies have utilized horizontal drilling

and multi-stage fracturing techniques to increase production.

By 2006, the field was pumping out 56,000 barrels per day from approximately 350wells, with an estimatedultimate recovery of 270million barrels. A year later,the Elm Coulee field had

become the highest-producing onshore field inthe lower 48 states.

To put that into

perspective, Montana's oilproduction in 2003averaged 53,000 barrelsper day. In 2006, the ElmCoulee field wasresponsible for almost 60%of the state's productionthat year.

You've got to have somesympathy for Montana. . .

Though Montana shares aportion of the now-famousBakken, the TreasureState's oil production hasstruggled while a good old-fashioned oil boom has

been taking place right nextdoor in North Dakota.

Over the last five years, oiland gas producers acrossthe U.S. have had shalefever. But sadly forMontana, North Dakota hastaken center stage.

After an impressive start into the shale fever gripping the country's oil producers,Montana's oil production lost momentum.

The state's production (pictured below)which reached averaged 99,000 barrels per dayin 2006fell to 76,000 barrels per day in 2009.


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Montana became the forgotten stepchild in the U.S. oil industry.

But don't feel too sorry for them, because things are about to change. . .

Time to Cash in on the Bakken Fame

As you know, North Dakota has been a hotbed of activity for oil and gas drillers.

According the Baker Hughes rig count, there are 128 active drilling rigs. You only needone guess to figure out where those rigs are drilling. . .Approximately 95% of those rigsare drilling in the Bakken and Three Forks formations. The Three Forks formation islocated beneath the Bakken.

That means the number of active rigs has jumped 333% since oil prices collapsed to $33per barrel in December 2008.

North Dakota's drilling boom is paying off, too. Last week, North Dakota overtookOklahoma's position as the country's third-most active drilling state. Remember, NorthDakota surpassed Oklahoma in 2009 to become the fourth-largest oil producer in theU.S.

And North Dakota's success is good news for Montana.

Drillers looking to expand their Bakken exposure are starting to revisit Montana. Ascompanies continue to improve upon drilling and completion techniques, those Montanaleases are looking more attractive.

How can we be sure?

Digging a little further, you'll discover that the Montana Board of Oil and Gas is beingflooded with drilling permit applications. According to one administrator, TomRichmond, oil and gas there could be more than 300 permits this year.

Taking another look at the latest rig count byBaker Hughes, there are only five rigscurrently drilling in Montana. All five are drilling the Williston Basin in RichlandCounty.

2011 is shaping up to be a strong year for Montana.

The latest scramble to pick up leases in northeastern Montana is reminiscent of the landrush that occurred in North Dakota in 2008. If you remember, the catalyst for NorthDakota's oil boom was when the USGS updated their Bakken assessment in April 2008.

Of course, the Bakken has been extremely generous to investors. In fact it's helped myreaders closewinner after winnerincluding more than 400% on one of our favoriteBakken stocks.

You can bet they won't miss out on Montana's good fortune.
http://gis.bakerhughesdirect.com/RigCounts/Attributes.aspxhttp://gis.bakerhughesdirect.com/RigCounts/Attributes.aspxhttp://gis.bakerhughesdirect.com/RigCounts/Attributes.aspxhttp://www.angelnexus.com/o/web/22680http://www.angelnexus.com/o/web/22680http://www.angelnexus.com/o/web/22680http://gis.bakerhughesdirect.com/RigCounts/Attributes.aspx


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06/21/2010

EOG Resources - Bakken Shale Update

EOG Resources (EOG) drilled its first horizontal well in the Elm Coulee field in

Montana, and expanded its development slowly over the next few years. The company

has drilled 242 gross horizontal wells in the Bakken Shale through April 2010.

These 242 wells are distributed among 3 areas that EOG Resources is developing:

Bakken Lite68 wells

Bakken Core163 wells

Three Forks11 wells

EOG Resources has production of 28,800 barrels of oil per day from the Bakken and

Three Forks formation as of April 2010.

EOG Resources is running 11 rigs in the Bakken Shale as of April 2010, and added a12th rig during the second quarter of 2010. The company plans to drill 78 net wells in

2010 on its acreage.
http://shale.typepad.com/bakkenshale/2010/06/eog-resources-bakken-shale-update.htmlhttp://shale.typepad.com/bakkenshale/2010/06/eog-resources-bakken-shale-update.htmlhttp://shale.typepad.com/bakkenshale/2010/06/eog-resources-bakken-shale-update.html


18/21

Operators

Fidelity Exploration and Production

Fidelity Exploration & Production

2010 Montana AvenueGlendive, MT 59330-3700

(406) 359-7360

Fidelity Exploration & Production Company is engaged in natural gas and oil

acquisition, exploration, development and production activities in the Rocky

Mountain and Mid-Continent/Gulf States regions of the United States.

Fidelity is part of the WBI Holdings family of companies which provide essential

services to the energy industry and is an indirect wholly owned subsidiary of MDU

Resources Group (NYSE: MDU), a Fortune 500 company and a member of the S&P

MidCap 400 index.

In addition to Fidelity, WBI Holdings family of companies includes:

Williston Basin Interstate Pipeline Company

Bitter Creek Pipelines

Total Corrosion Solutions

Prairielands Energy Marketing

Rocky Mountain

Fidelitys properties in this region are primarily in Colorado, Montana, North

Dakota, Utah and Wyoming. Fidelity owns in fee or holds natural gas and oil leases

for the properties it operates in:

Bonny Field in eastern Colorado

Baker Field in southeastern Montana and southwestern North Dakota

Bowdoin area in north-central Montana

Powder River Basin of Montana and Wyoming

Bakken formation in North Dakota

Paradox Basin of Utah


19/21

Big Horn Basin of Wyoming

Green River Basin of Wyoming

Fidelity also owns nonoperated natural gas and oil interests and undeveloped

acreage positions in this region.

Mid-Continent/Gulf StatesFidelity's properties in this area are primarily in Alabama, Louisiana, New Mexico,

Oklahoma, Texas, and the offshore Gulf of Mexico area. Fidelity owns in fee or holds

natural gas and oil leases for the property it operates in:

Tabasco and Texan Gardens Fields in South Texas

East Texas in Rusk County

In addition, Fidelity owns nonoperated interests in oil and gas production along

with undeveloped acreage positions in this region.


20/21

Headquarters

1700 Lincoln Street

Suite 2800

Denver, Colo. 80203Phone: (303) 893-3133

Toll-free: (800) 986-3133

Fax: (303) 893-1964

Operating Offices

2585 Heartland Drive

Sheridan, Wyo. 82801

Phone: (307) 675-4900

Fax: (307) 673-6850

1021 Main, Suite 1100

Houston, Texas 77002

Phone: (713) 351-1950

Fax: (713) 351-1999

2010 Montana Ave.

Glendive, Mont. 59330

Phone: (406) 359-7360

Fax: (406) 359-7273

[Vendor Services

For many production and

development projects, Fidelity

seeks services from a variety of

vendors. To visit with a

company representative aboutpotential project work, call

(800) 986-3133, or e-mail:

[email protected]


21/21

Williston Basin Interstate Pipeline Co.

Plans announced to expand Bakken natural gas delivery volumes

May 19, 2010

Williston Basin Interstate Pipeline Company, the wholly owned naturalgas transmission pipeline subsidiary of MDU Resources Group, Inc. (NYSE:MDU),

announced plans to expand its existing natural gas pipeline capacity by approximately 33

percent in the Bakken production area in northwestern North Dakota. The proposedexpansion would add up to 30 million cubic feet per day (MMcf/d) to existing volumes

from the Bakken production area for delivery to Northern Border Pipeline.

Williston Basin Interstate Pipeline Company provides natural gas transportation, storageand gathering services through an interstate pipeline system located in Montana, North

Dakota, South Dakota and Wyoming.

Williston Basin is part of the WBI Holdings family of companies which provide essentialservices to the energy industry and is an indirect wholly owned subsidiary of MDU

Resources Group (NYSE: MDU), a Fortune 500 company and a member of the S&P

MidCap 400 index.

Documents

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