BAKKEN OIL BUSINESS JOURNAL

BakkenJournal_Apr-May17

The BAKKEN OIL BUSINESS JOURNAL is a high-gloss, full-color magazine with a targeted distribution that gets our Advertisers in front of the RIGHT EYES in this industry. Direct mailed to Companies in the Bakken with bonus distribution at Energy Shows.

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Read online @ B A K K E N O I L B I Z . C O M / d i g i t a l - j o u r n a l 31 Consider Us Your Home Away From Home, at the Candlewoo d Suites in Loveland Colorado. 6046 East Crossroads Blvd., Loveland, CO 80538 | 970-667-5444 Low oil price associated with lifting of sanctions on Iran, a weak world economy, and capital movement to the Permian basin continued to depress drilling rig count. Utilization rate for rigs capable of 20,000+ feet is 25-30% and for shallow well rigs (7,000 feet or less) 15-20%. Drilling permit activity rose sharply from December to January then returned to normal in February. Opera- tors are maintaining a permit inventory that will ac- commodate a return to the drilling price point within the next 12 months. Rigs actively drilling on federal surface in the Dakota Prairie Grasslands remains at 0. North Dakota leasing activity is limited to renewals and top leases in the Bakken - Three Forks area. US natural gas storage is now 14.3% above the five- year average indicating little price improvement in the future. North Dakota shallow gas exploration could be economic at future gas prices, but is not at the cur- rent price. The operator of the exploration well (file 27235) in Emmons County has cancelled all other permits in the area and is in the process of transfer- ring the well to a working interest owner who plans a production test. The well appears to contain 2 pay sections totaling about 80 feet thick with very good gas shows. The price of natural gas delivered to Northern Bor- der at Watford City is down $0.48 to $2.00/MCF. This results in a current oil to gas price ratio of 21 to 1. The percentage of gas flared decreased to 12% even with lingering winter weather related freezing prob- lems. This also resulted in the Tioga gas plant operat- ing at 65% of capacity. The expansion of gas gath- ering from south of Lake Sakakawea is now starting up, but the crude oil and natural gas liquids trans- fer lines still have not been approved. The January Bakken capture percentage was 89% with the daily volume of gas flared from December to January down 16 MMCFD. The historical high flared percent was 36% in 09/2011. ■ Gas capture statistics are as follows: Statewide 88% Statewide Bakken 89% Non-FBIR Bakken 90% FBIR Bakken 83% Trust FBIR Bakken 82% Fee FBIR 87% 77% January 1, 2015 through March 31, 2016 80% April 1, 2016 through October 31, 2016 85% November 1, 2016 through October 31, 2018 88% November 1, 2018 through October 31, 2020 91% beginning November 1, 2020 Photo taken by Justin Voeller, Chicken Coop Photography ➤ continued from pg 30

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