page MDU advancing in Bakken and 3 Paradox with record 3Q production

Vol. 2, No. 30 • www.PetroleumNewsBakken.com A weekly newspaper for industry and government Week of November 10, 2013 • $2.50

COMPANY UPDATE Continental in Banks ‘Subtle’ fracks Statoil maintains slower Bakken growth as part of long-term strategy

By MIKE ELLERD VERN WHITTEN PHOTOGRAPHY “The key here is to frack as Petroleum News Bakken subtle as you can, reduce the espite routinely coming in with distances between the fracks and Dchart-topping 24-hour initial get the maximum out of your production rates in North Dakota, reservoir.” —Statoil CFO Torgrim Reitan Statoil’s Bakken production is holding steady as the Norwegian state-owned ASA STATOIL TROND ISAKSEN, 45,100 bpd average in the second quar- multinational continues to focus on ter, and the second quarter production sustainable long-term in the Williston Continental Resources well pads in the Banks field north of TORGRIM REITAN was an 8 percent increase over the first Watford City in north-central McKenzie County, North Dakota. Basin. quarter average production of 41,900 bpd. That Photo looking west. While many Bakken operators have and are slower growth, however, is part of Statoil’s seeing double digit month-over-month production Bakken strategy. increases, in the third quarter Statoil’s Bakken October ND Trust Lands lease When asked during an Oct. 30 third quarter production averaged 46,800 barrels of oil per day, auction average back near par an increase of just under 4 percent from the see STATOIL STRATEGY page 11 After seeing the second lowest average price per acre over the last six years in its August oil and gas lease auction, the COMPANY UPDATE Minerals Management Division of the North Dakota Department of Trust Lands saw the average price bounce back to near the six-year average in its November lease auc- ‘Ears back’ at Antelope tion. In the Nov. 5 auction, a total of 6,869.39 acres were leased in 74 tracks across eight western counties bringing in a total Continental accelerates full-field middle Bakken, 3-bench Three Forks development of $7,022.584.35 for an average of $1,022.30 per acre, just strating very strong initial production in below the six year average of $1.065.52. By KAY CASHMAN the Middle Bakken and the first three Those results are in sharp contrast to the August lease auc- Petroleum News Bakken benches of the Three Forks.” see LEASE AUCTION page 19 t’s “ears back” at Continental Antelope development will first IResources Antelope prospect says the occur at Hawkinson, as planned, but QEP’s Williston Basin output company’s founder, chairman and CEO since its results came in ahead of sched- Harold Hamm, comparing the North ule by 30 days and the infrastructure to boosts crude production growth Dakota prospect to a horse allowed to handle takeaway for both oil and gas is “almost” finished, Continental is pro- QEP Resources Inc. boosted its net run “full out.” ceeding with “ears back,” likely adding income to $37 million in third quarter In the case of the Antelope, a Bakken HAROLD HAMM to projected production, Hamm said in a 2013, up from a net loss of $3.1 million petroleum system play, it means the big third quarter earnings conference call Nov. 7. in the third quarter last year, the compa- Oklahoma-based E&P independent is accelerat- “Once again, Continental is pioneering the ny said in a Nov. 6 conference call. Its ing development of its Antelope prospect, where expansion and improved recoveries in the world- adjusted net income was $63.3 million Hamm announced in early November the suc- class Bakken oil play, demonstrating the produc- for the third quarter 2013, compared to cessful completion of Continental’s first well den- $35.4 million in the third quarter of sity test in the Hawkinson spacing unit, “demon- see ANTELOPE PROSPECT page 12 2012. The company said its net income CHUCK STANLEY MOVING HYDROCARBONS increase was due primarily to higher oil see QEP OUTPUT page 12 Canadian XL irritations New completion methods up frack Frustration continues to build as more Keystone twists and turns come to light sand demand; pricing responds significantly exacerbate the The use of silica sand as a proppant in horizontal wells By GARY PARK problem of carbon pollu- has boosted total sand output in the North America as the rig For Petroleum News Bakken tion.” count rises — unconventional drilling has exploded in the The confusion in Canada last decade. emperatures are again is compounded by word In 2008, overall U.S. sand production was 30.4 million Trising among Canadian seeping out of Washington tons and prices averaged $30.82 per ton, according to the political and business lead- that the State Department is U.S. Geological Survey. In 2012, production was 49.5 mil- ers as they try to figure out quietly gathering informa- lion tons and the average price was $44.78 per ton. what the Obama administra- tion really wants in tion on whether shipment by Future sand demand, however, may be driven by the vol- exchange for approving rail is a viable alternative to umes of sand used per well. ALISON REDFORD JIM PRENTICE TransCanada’s Keystone XL the pipeline from the Alberta Michael Filloon advances the volume demand case for pipeline. oil sands and North Dakota Bakken to Gulf Coast higher sand prices in a Seeking Alpha post — “Frack sand One of the central issues on the line is whether refineries. pricing could go parabolic as EOG Resources well design Washington wants environmental concessions Sources have said the State Department is revolutionizes unconventional oil production.” from Canada and what message President Barack extending the view it offered in March that halt- see FRACK SAND DEMAND page 17 Obama was conveying earlier this year when he said XL will get the go-ahead only if it “does not see XL IRRITATIONS page 18 2 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 contents Petroleum News Bakken ON THE COVER 4 Completions still paying off for Halcon ‘Subtle’ fracks 3Q Bakken output up 237% over 2012; downspacing Statoil maintains slower Bakken growth tests yielding positive results; drill times as part of long-term strategy down from 15 to 17 percent ‘Ears back’ at Antelope 7 Marathon running leaner Continental accelerates full-field middle Output flat with temp shutdowns, but drill Bakken, 3-bench Three Forks development times improve 20 percent and good success Canadian XL irritations seen in first bench Three Forks 9 Newfield’s Bakken output beats guidance, again Frustration continues to build as more Keystone twists and turns come to light 10 XTO Energy sets internal Bakken production record October ND Trust Lands lease GOVERNMENT auction average back near par 6 KLJ selected to conduct ND oil study QEP’s Williston Basin output Wardner says committee’s goal is to sustain oil boosts crude production growth activity in the state; wants to be sure N.D. New completion methods up is competitive in taxing industry frack sand demand; pricing responds MOVING HYDROCARBONS BAKKEN STATS 5 Enbridge gives Sandpiper a fresh start 13 Montana well permits and completions, Oct. 25-31 10 Rail safety can’t escape spotlight 13 North Dakota well operator transfers, Oct. 26-Nov. 1 PEOPLE TALK 14 Bakken producers’ stock prices 8 CenterPoint drafts COO for succession 15 North Dakota oil permit activity, Oct. 28-Nov. 4 16 IPs for ND Bakken wells, Oct. 29-Nov. 4 Marathon elects retired Baker Hughes exec Chad Deaton SIDEBAR, Page 16: Top 10 Bakken wells by IP rate to board; and Renegade nabs three directors, hires search firm for CEO COMPANY UPDATE 3 MDU advancing in Bakken, Paradox GET THE Third quarter production record set as growth hits 37 LATEST BAKKEN NEWS. percent; Bakken output up 41 percent; Three SUBSCRIBE TODAY! 522 9469 Forks results encouraging 907-522-9469 PETROLEUMNEWSBAKKEN.COM 4 ConocoPhillips sees Bakken growth PETROLEUMNEWSBAKKE

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COMPANY UPDATE MDU advancing in Bakken, Paradox Third quarter production record set as growth hits 37 percent; Bakken output up 41 percent; Three Forks results encouraging

By STEVE SUTHERLIN ers allows it to excited to talk about the potential of the The company is also doing a route study For Petroleum News Bakken increase frack stages Paradox and it was largely just that, poten- of a proposed 400-mile natural gas pipeline and it is very similar tial; at that time it accounted for just 6 per- from the Bakken to western Minnesota at a DU Resources Group Inc. is project- philosophically to cent of our total oil production yet showed projected cost of $650 million to $700 mil- Ming a 30 percent to 35 percent what the rest of the plenty of promise with the 12-1 well having lion — by far the largest pipeline project the increase in oil production for 2013 with pro- industry is doing, but just come online,” Goodin said. “Now if we company has undertaken, Goodin said. jected production rising 10 percent or more with a twist or two. fast-forward a year the 12-1 well has pro- MDU said it is actively pursuing in the fourth quarter alone. Oil accounts for “There’s a few duced over half a million barrels of oil and exploratory and reserve acquisitions, focus- 47 percent of total MDU production. things that we’re the basin now accounts for 17 percent of our ing on higher return oil development plays. “Our business plans and strategic capital doing a little different DAVID L. GOODIN total oil production.” It plans to invest $2.1 billion over next 5 deployment are yielding desired results real- on the design in par- Goodin said MDU will invest about $80 years. ly across the board, as I believe we are doing ticular and how we execute it that we’re million in the Paradox Basin this year. In 2013 the company booked 18 percent a better job of executing our growth plans,” going to keep confidential at this time,” “We plan to add a second rig there with- higher average realized oil prices and 22 David L. Goodin, MDU president and CEO Barney said. “But I think this is going to in the next two to three months and begin percent higher average realized natural gas said in a Nov. 1 analyst call. “Our E&P seg- really help going forward.” testing up whole clastics,” he said. prices. ment achieved 37 percent oil production Sales gains were partially offset by real- growth, which resulted in 83 percent earn- Paradox Infrastructure and acquisitions ized commodity derivatives loss, higher ings increase compared to last year.” While the Bakken continues to be the In 2014 MDU will construct a pipeline depreciation depletion and amortization The company operates in the Bakken, largest source of MDU’s production, the serving the Garden Creek II plant that will expense, increased production taxes, as well the Paradox Basin and in Texas through its Paradox Basin is becoming an increasingly add more than 200 million cubic feet of as higher general and administrative subsidiary Fidelity Exploration and important part of the company’s production Bakken related capacity along with a 16- expenses, MDU said. Production. mix and growth platform, Goodin said. mile loop to increase capacity delivery into Goodin said MDU would spend approx- “In the third quarter of 2012, we were the Black Hills region. imately $400 million on E&P in 2013, excluding closed divestments of non-strate- gic assets totaling $30 million and potential acquisitions. Going forward the company will boost capex spending 25 percent over the next five years. Bakken up Goodin said success with improved completion techniques in the Bakken helped increase oil production there in the third quarter, taking adjusted earnings to $25.3 million, up from $13.8 million a year ago. The company set a total quarterly oil pro- duction record of 1.25 million barrels in the third quarter — with Bakken production up 41 percent and averaging 8,300 barrels per day, and Paradox Basin production up 272 percent year-over-year. Lease operating costs were $7.74 per barrel of oil equivalent, down 11 percent from $8.77 per boe a year ago. In the Bakken, MDU has two rigs — one in Mountrail County and one in Stark County. Goodin said its well cost efficiency gains are in line with or ahead of the indus- try average. In Mountrail County, MDU recently completed its first well adopting a new com- pletion technique using cemented lines to pinpoint stimulations. “Similar practices have been proven effective by other industry players in the area and the results so far are very encour- aging,” Goodin said. In Richland County, Montana, MDU is evaluating the Red River Horizon, which has yielded positive results for other pro- ducers, Goodin said. Bakken spend $210 million “We anticipate our total spend on our Bakken acreage this year to be approxi- mately $210 million,” Goodin said. Dave Barney, president and CEO of MDU subsidiary Knife River Corp., told analysts MDU has completed the first well in a three-well pilot series that will test the Three Forks formation in Mountrail County, with drilling to continue in November. “We are really encouraged by what we’ve seen; we’ve only got three weeks of production on it, but it’s very encouraging compared to what we’ve done in the Three Forks before,” Barney said. “When we do the next two wells, if that all goes well, that sets us up for another 60-plus Three Forks locations in Mountrail County — but I think we need to wait until we see the next two wells.” Barney said MDU’s use of cemented lin- 4 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013

COMPANY UPDATE COMPANY UPDATE ConocoPhillips sees Bakken growth New completions still ConocoPhillips is reporting big production increases from the Bakken formation, but the company said it plans to maintain its current rig count in the region for the near term. paying off for Halcon ConocoPhillips, which also operates as Burlington Resources in the Williston Basin, produced 34,000 barrels of oil equivalent per day from its Bakken operations in the third quarter, up 13 percent from the second quarter and 31 percent from the 3Q Bakken output up 237% over 2012; downspacing tests third quarter of 2012. The growth helped the company hit a goal of 500,000 boe per day from the Lower 48, which also includes Eagle Ford and Permian operations in yielding positive results; drill times down from 15 to 17 percent Texas. Even so, ConocoPhillips plans to keep 11 rigs in the play for the time being, By MIKE ELLERD “So the slickwater technique and Executive Vice President of Exploration and Production Matt Fox said in an Oct. 31 Petroleum News Bakken earnings call. its concentration of proppant and “I think that that’s the right level for now,” he said. “But one of the beauties of these ince modifying its completion methods more complex fracturing, which is unconventional plays is that you do have flexibility. It’s just a question of making sure Searlier this year, Halcon Resources our target and others’ targets that we are exercising that flexibility at the right time and with the right information.” reports improvements in production rang- here, seems to be working.” ing from 20 to nearly 60 percent from its —Halcon CEO Floyd Wilson Shift to pad drilling Williston Basin wells completed with the ConocoPhillips said it is focusing on bringing drilled wells into production more modified methods. quickly, which the company believes will become important as it increasingly shifts In a Nov. 4 press release with third quar- percent, respectively. ter financial and operating results, Halcon to pad drilling. Currently, nine of its 11 rigs in the play are at pads instead of at single Rig count wells. said it believes that That said, ConocoPhillips is running pilot projects to see whether its 320-acre spac- increasing frack stage Halcon ran an average of six drill rigs in ing standard remains the best fit. “It’s quite possible that ultimately we will want to density coupled with the basin in the third quarter and is looking tighten up that spacing,” Fox said, “so we have pilot tests under way to try and give increasing proppant to run between five and six through the us a good sense of what’s the optimum spacing and what level of communication concentration are the fourth quarter. Wilson said the wells drilled exists between the Middle Bakken and the Three Forks for the fracks that we’re doing primary factors con- with these rigs will be completed using the just now.” tributing to the pro- modified techniques, which he said “have Asked whether the goal of infill drilling was to increase production or extend the duction improvement proven to be game changers” for his com- expected production plateau for declining Bakken wells, Fox said, “The answer is sort in its newer Bakken pany. “All current wells are dramatically of easy — both. I would like to increase the plateau size and increase the duration,” wells. However, outperforming well drilling completed adding that he believes the opportunity exists in all three Lower 48 unconventional Halcon said the use of FLOYD WILSON using methods and drilled by previous oper- plays. slickwater fracking ators.” Halcon plans to run between four —ERIC LIDJI fluid has also been a contributing factor in and five rigs in the Williston Basin in 2014. production improvements. The company reports that two wells Downspacing completed with slickwater fracks in the Halcon has also been pilot testing McGregory Buttes field in Halcon’s South downspacing in the northern end of its Fort Berthold area in northern Dunn County North Fort Berthold area in McKenzie M SPACE came in with an average 60-day initial pro- County in the third quarter. Three Bakken ® duction, IP, rate of 1,542 barrels of oil wells on spacings of 660 feet came in with Single Family, Efficiency & Workforce Housing Commercial & Light Industrial equivalent per day. That average, Halcon an average IP of 2,665 boepd. Halcon calls 701.484.1891 877.677.2231 says, is 58 percent higher than all other the results “promising” and plans to down- Halcon-operated wells that went on produc- space the majority of future drilling in its www.mspaceholdings.com tion in that area in 2013. Another slickwa- Fort Berthold area on 660-foot spacings and ter-fracked well in the Antelope field in is proceeding with drilling both Bakken and Alexander | Fairview/Dore | Keene | Sidney | Stanley | Watford City | Williston northwest McKenzie County had an IP of Three Forks wells on 660-foot spacings on 2,820 boepd, which was a 20 percent four other pads in the Fort Berthold area. increase over the average IP of all Halcon- The company is also planning to test operated wells that have gone on production downspacing in its acreage in Williams www.PetroleumNewsBakken.com in that area in 2013. County. “So the slickwater technique and its con- In addition to downspacing, Halcon is Kay Cashman PUBLISHER & EXECUTIVE EDITOR ADDRESS P.O. Box 231647 centration of proppant and more complex also testing deeper into the Three Forks for- Mike Ellerd EDITOR-IN-CHIEF Anchorage, AK 99523-1647 fracturing, which is our target and others’ mation, and is currently testing the second Ray Tyson CONTRIBUTING WRITER targets here, seems to be working,” Halcon bench of the Three Forks in its Fort Chairman and Chief Executive Officer Berthold area. Halcon also has a 15.5 per- Gary Park CONTRIBUTING WRITER (CANADA) NEWS Floyd Wilson said of the results in a Nov. 5 cent working interest in a Continental Eric Lidji CONTRIBUTING WRITER MIKE ELLERD conference call. Resources operation that is testing the first 406.551.0815 Rose Ragsdale CONTRIBUTING WRITER Not only have well efficiencies gone up, three benches of the Three Forks. [email protected] Steve Sutherlin CONTRIBUTING WRITER but so too have the company’s drilling effi- “We’re looking at 660-foot … middle ciencies with the average time from spud to Bakken wells,” Wilson said. “We’re look- CONTRIBUTING WRITER CIRCULATION Darryl Flowers depth now at 17.7 days in the Forth ing at lease line wells wherever possible, so 907.522.9469 Mary Mack CEO & GENERAL MANAGER Berthold area and 17.1 days in its Williams you don’t leave that oil behind. We’re look- [email protected] County operations, reductions of 15 and 17 Raylene Combs BAKKEN ADVERTISING EXECUTIVE see HALCON COMPLETIONS page 20 Ashley Lindly RESEARCH ASSOCIATE ADVERTISING Mark Cashman RESEARCH ASSOCIATE 907.522.9469 Susan Crane ADVERTISING DIRECTOR [email protected]

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MOVING HYDROCARBONS Enbridge gives Sandpiper a fresh start

By GARY PARK For Petroleum News Bakken &$1$'$ nbridge is sticking with its in-service date of early 2016 for its Sandpiper 81,7('67$7(6

E ENBRIDGE COURTESY pipeline project to ship 225,000 barrels 7RZQHU &RXQW\ per day of sweet crude out of the Bakken, ¤£ 6WDQOH\ despite running into problems earlier this )DFLOLW\ *OHQEXUQ &DQGR :LOOLDPV ^ ^ year with the U.S. Federal Energy &RXQW\ 0LQRW$)% 5DPVH\ ^ &RXQW\ ^7LRJD  Regulatory Commission. 6WDQOH\ %HUWKROG ^ ¦¨§ ¤£ )" ^ )" ^)" ^ 5XJE\ ^ The Canadian pipeline giant has for- 7RZQHU 0RXQWUDLO ^ 3LHUFH mally submitted its application to the &RXQW\ 0F+HQU\ /HHGV 0LQRW &RXQW\ &RXQW\ ^ North Dakota Public Service Commission /DNRWD %HDYHU/RGJH :DUG ¤£ ^ %HUWKROG 'HYLOV/DNH )" ^0LFKLJDQ&LW\ to build the $2.5 billion, 610-mile con- )DFLOLW\ &RXQW\ ¤£ *UDQG)RUNV 0F.HQ]LH )DFLOLW\ ¤£ 1HOVRQ ^ nection from a station near Tioga to &RXQW\ *UDQG)RUNV &RXQW\ ^ Clearbrook, Minn., and possibly growing 3RWHQWLDO ^ 7KRPSVRQ to 375,000 bpd to Superior, Wis. /DNRWD)DFLOLW\ 1RUWKZRRG Construction is scheduled to start about a year from now. FERC originally denied the proposed common carrier rate structure proposed ¤£ )" by Enbridge, mainly because the tolls 3XPS6WDWLRQ6LWH would have been rolled into the existing 3URSRVHG/LQH 0LOHV North Dakota rate base, said Vern Yu, -DPHVWRZQ  ^ ¦¨§ ^¦¨§ ([LVWLQJ(QEULGJH3LSHOLQHV¦¨§ ¦¨§ )DUJR ^ Enbridge’s senior vice president of busi- ^¦¨§^ ness and market development.

Refiners protested He said that although smaller produc- Stanley, Minot and Grand Forks. security.” Refiners including Flint Hills ers in the Bakken have switched to rail It said that communities along the North Dakota Pipeline Authority Resources and St. Paul Park Refining Co. because of their reluctance to commit to Sandpiper route will “enjoy potential Director Justin Kringstad told Forum had protested the surcharges to existing long-term pipeline capacity, there are high-paying construction and manufac- New Service that with Bakken production rates, with Flint claiming Enbridge did larger producers who have the financial turing jobs, increased retail sales, food exceeding pipeline capacity and with out- not get shipper commitments to pay rates backing to sign up for pipeline space. and lodging purchases and equipment and put expected to keep growing for some that would cover the cost of expansion, Enbridge has spent about $100 million materials purchases during construction.” time, it is important to have “an adequate indicating that the proposal was not this year on gathering laterals to feed the Enbridge also emphasized that transportation system in place” to access viable. North Dakota system and its $600 million Sandpiper will “reduce reliance on crude markets in region areas and beyond. FERC ruled that, in addressing Bakken expansion to move about 145,000 oil imports from countries that are often Enbridge North Dakota’s cost recovery bpd and invested $100 million at Berthold unstable or unfriendly to U.S. interests mechanisms, it has to ensure shippers to develop a unit train rail loading facility and move North America towards energy were protected from risks that “should to move about 80,000 bpd out of North appropriately be assigned to the pipeline.” Dakota until pipeline capacity is avail- Yu said Sandpiper has since been able. reworked and is now “primarily a contract Enbridge also has about 1.7 million pipeline with a small amount of available bpd of new market access projects, cost- spot space that will rolled into the existing ing about $7.5 billion, including a pipe- Alliance Pipeline: rate base.” to-rail strategy in the Chicago area, count- “We are very much in the final stages ing on using a pipeline to Chicago, then of landing an anchor shipper to support rail to Philadelphia, estimating it could Well Connected the project and that anchor shipper will move 100,000-200,000 bpd by using that provide enough capacity and commit- strategy. Western Canadian ments to make the project go forward,” he Sedimentary Basin said. Also spill concerns Enbridge has launched an open season In addition to the tolling issue, for the uncontracted capacity and once Sandpiper has raised public concern that phase concluded the company will because of the recent 20,000 barrel spill Midwest Market file a new petition with FERC. from a ruptured pipeline at Tioga. Ontario Market Bakken To deal with matters related to routing, (Dawn) ‘Positive outcome’ expected construction of the pipeline and the short- East Coast Market Yu said that based on a review of the and long-term economic impacts such as ACE Hub Connecting rate structure with FERC, Enbridge tax revenues and employment, Enbridge
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www.alliancepipeline.com 6 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013

GOVERNMENT KLJ selected to conduct ND oil study Wardner says committee’s goal is to sustain oil activity in the state; wants to be sure N.D. is competitive in taxing industry

By KAY CASHMAN Management, the 17 lawmakers who ing enhanced oil recovery techniques, the Although Triplett was gracious in Petroleum News Bakken essentially conduct the work of the legis- “effects of mature production areas on her questioning of the Louis lature between its biannual 80-day ses- state and local tax policy; future infra- North Dakota interim legislative Berger representatives and sions, tasked the interim committee with structure needs; and environmental con- A committee has chosen a Bismarck ultimately chose them over KLJ, finding an independent consultant to con- siderations.” firm to help develop a long-range legisla- she also told them after their duct a study that will help North Dakota’s The North Dakota Legislative Council, lawmakers develop a “legislative vision” which provides legislative management tive plan for the oil industry, including a presentation, “Right now every modeling of information and analysis that of “long-term policy issues” and “revenue with assistance from its staff of attorneys, state officials can use to make policy deci- single person in this room, and expenditures” related to the oil indus- fiscal analysts, information technology, sions regarding taxation of the industry including every member of the try in the state. support and library personnel, sent out a and the allocation of those earnings in the audience, knows a whole lot more request for proposals, or RFP, on Sept. 10, state. about the North Dakota oil Mandated by legislature looking for such a consultant to complete On Oct. 31 the 12-member Energy industry than you do.” The study was actually mandated by a the study by Aug. 29, 2014, giving leg- Development and Transmission bill passed in the most recent legislative islative management time to study it and Committee selected Kadrmas, Lee & session of early 2013, House Bill 1198, make oil policy recommendations to the Jackson, or KLJ, over the Morristown, $125,000, or about $1,400 more than that which tasked legislative management to North Dakota Legislative Assembly — N.J.-based Louis Berger Group, after both of Louis Berger Group, a consulting firm “study the likely changes to oil industry the formal name of the state’s legislative groups presented proposals for the study that provides engineering, architecture, practices, production, impacts and tax pol- body. to the between-session group of senators program and construction management, icy in the foreseeable future of North In November of each (even-numbered) and representatives headed by Sen. Rich environmental planning, and economic Dakota,” requiring the body to obtain the year between sessions, legislative man- Wardner, R-Dickinson. development services throughout the services of an independent consultant agement meets to consider the results of The Bismarck engineering and plan- country and abroad. with “demonstrated insight into current all committee work and may accept, reject ning firm’s base study estimate was North Dakota Legislative and future production advances,” includ- or amend committee reports. Legislative management, currently headed by Sen. Ray Holmberg, will then present its rec- ommendations, together with bills and resolutions necessary for implementation, to the legislature. Holmberg will have final say on the oil and gas policy recommendations forward- ed to the legislature. Looking to ‘play our cards right’ AN INDUSTRY THAT But at the Oct. 31 hearing Wardner, chairman of the interim Energy Development and Transmission Committee, took the time to tell execu- tives from KLJ and Louis Berger what he is looking for from the study, the key pol- . icy goal being to sustain oil activity in MOVES INDUSTRY North Dakota. $ “First of all, we are about sustaining Privately owned freight railroads invest more than 20 BILLION annually on the rail network to ensure this oil activity,” he said, noting the state that America’s energy sources are moved in the safest, most efficient and cost-effective way possible. had experienced busts in the past, but that the Bakken was a different type of oil play; specifically, “a mining play” and that this time around North Dakota’s law- makers were looking to “play our cards right.” “Sustainability of the oil activity” was the goal, Wardner said: “That’s what we’re looking for. Getting the most out of it, and I don’t mean that we’re looking … like a bunch of hogs looking for every- thing,” but to smooth things out by getting the “best information about price and pro- duction” for “forecasting, and predicting.” Once lawmakers receive the informa- tion “then we need to take a look at what’s coming into our different pots. … And a lot of it’s by percentage and it’s capped, so if it dries up it won’t be as much. But then we have to take a look at the social and infrastructure impacts that are still needed to maintain it out there and you’re going to take a look at that,” he said. Wardner, backed by later statements by other committee members, also made it clear that North Dakota has “come to the point where we’re competing with other oil shales now. We were lucky when we got in, but now there are other oil shales. One’s opening up in Colorado; we got the Eagle Ford and the Barnett in Texas. And we are competing for capital to put into these oil plays, and so that’s one of the driving factors here that we need to find For more information visit: out where we’re at as far as competitive tax rates.” www.aar.org/crudebyrailfacts Designed to Move a Nation KLJ wins in 7-3 vote At the end of the presentations by the

see OIL STUDY page 9 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 7

COMPANY UPDATE Marathon running leaner Output flat with temp shutdowns, but drill times improve 20 percent and good success seen in first bench Three Forks

By STEVE SUTHERLIN and on track to meet estimated ultimate recovery targets Eagle Ford production doubled compared to third For Petroleum News Bakken for the company. quarter 2012. “Certainly what we see is our well completions are Tillman said net production was approximately arathon Oil’s third quarter Bakken oil production performing EUR-wise at or above the tight curves that we 92,000 boepd over the last seven days of October; the Messentially was flat over the prior quarter, but it have established in both the Eagle Ford and as well as the company expects to achieve a 2013 exit rate of approxi- was up 27 percent over the same quarter a year ago, the Bakken, however as you know there is variability across mately 100,000 boepd net. company reported in a Nov. 5 conference call. all plays so there are various tight curves that we are com- Marathon is reducing well costs in the Eagle Ford. Marathon averaged approximately 38,000 net barrels paring against,” Tillman said. “But overall our perform- “In the Eagle Ford now we have down to, spud to TD of oil equivalent per day of production in the Bakken ance is very well aligned with the tight curves that we of about 12 days,” Tillman said. “We are continuing also during the third quarter — flat due to the temporary shut- have assumed in our go forward volumes profile.” to work completion optimization not just from a cost in of producing wells while com- Marathon is primarily using 320-acre spacing in the standpoint, but also from a value standpoint and ensur- pleting adjacent new wells, Lee Bakken, and it continues to run high density pilot drilling ing that we deliver the highest productivity completions Tillman, Marathon president and to look at combinations of both the Middle Bakken and to generate the best economics.” CEO said. the Three Forks. The North America E&P segment reported income of On the other hand, the compa- The company is targeting all of the benches of the $242 million in the third quarter of 2013, compared to ny’s well costs continue to decline. Three Forks, so far achieving solid production from the $221 million in the second quarter of 2013. The increase “Marathon Oil’s average time to first bench. was primarily due to higher liquid hydrocarbon realiza- drill a Bakken well improved by 20 “We have quite a bit of production already in the Three tions and lower exploration expenses, partially offset by percent compared to the year ago Forks first bench as we look out in 2014,” Tillman said. a realized loss on crude oil derivative instruments, the quarter, averaging 14 days spud to “We are starting to also look at the additional benches in company said. total depth in the third quarter of LEE TILLMAN the Three Forks, but we’re having very good success in Marathon reported third quarter 2013 net income of 2013, a top-quartile performance in the areas where the first bench.” $569 million, or 80 cents per diluted share, compared to Marathon Oil operates,” Tillman said. The company has a slim shot at making its projected net income in the second quarter of 2013 of $426 mil- The company reached total depth on 21 gross wells exit rate for the year. lion, or 60 cents per diluted share. and brought the same number of wells to sales during the “We’re looking to be probably just under the 40,000 Marathon is expanding on its position in Africa. The third quarter, compared to reaching total depth on 22 barrels per day guidance that we’ve provided at the company is the apparent high bidder on two deepwater gross wells and bringing 13 wells to sales in the second Bakken,” Tillman said. Gabon blocks; contract negotiations are under way, the quarter. Marathon — at 37,625 bpd — was the seventh largest company said. During the third quarter Marathon’s Bakken produc- producer of oil from the Bakken petroleum system in The company said its previously announced $1 billion tion averaged approximately 90 percent crude oil, 4 per- North Dakota in August, per information released Oct. 15 share repurchase program was on schedule; $500 million cent natural gas liquids and 6 percent natural gas, he by the Oil and Gas Division of the North Dakota in share purchases are complete, with phase two expect- said. Industrial Commission’s Department of Minerals for ed to commence in the fourth quarter. operated non-confidential wells. Marathon said its 2013 reserve replacement is expect- Recoveries on target ed to exceed 140 percent, excluding acquisitions and Tillman said Marathon’s wells in the Bakken and the Eagle Ford soars divestitures. Eagle Ford were very solid producers so far, performing Marathon Oil’s production in the Eagle Ford shale well against the company’s projected performance curves averaged 81,000 net boepd in the third quarter. POWERING SOLUTIONS

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PEOPLE TALK CenterPoint drafts COO for succession Marathon elects retired Baker Hughes exec Chad Deaton to board; and Renegade nabs three directors, hires search firm for CEO

By ROSE RAGSDALE People Talk Marathon elects directors, Donald Copeland, Joseph For Petroleum News Bakken services exec to board Durante and Peter Burnham and hired an CenterPoint Energy’s predecessor compa- executive search firm to assist and he board of directors of CenterPoint ny, Houston Lighting & Power Co., in OILFIELD SERVICES VETERAN enhance the efforts of Renegade’s board TEnergy Inc. has picked Scott M. 1972 following his graduation from the CHAD DEATON has been elected to of directors to identify a new chief execu- Prochazka to succeed David M. University of Texas. He held various posi- Marathon Oil Corp.’s board of directors, tive officer. McClanahan at the company’s president tions of increasing responsibility until effective Jan. 1. Copeland, an engineer and independent and chief executive officer. being appointed president and CEO in Deaton, 60, served as executive chair- businessman with extensive experience in McClanahan, 64, will step down Dec. 2001. man of the board of Baker Hughes Inc. the oil and gas industry, currently sits on 31 as top executive and a director at the McClanahan said Prochazka has from January 2012 until his retirement the boards of directors of Western Energy Houston-based domestic energy delivery helped the company achieve strong finan- April 25. Prior to that, he was chairman, Services Corp., Crocotta Energy Inc. and company, but he will stay on as an officer cial and operational performance in its president and CEO of the company from is chairman of Toscana Energy Income and special advisor to the CEO during the business units, and has good depth of 2004 until January 2012. Corp. first half of 2014. experience from leading both the electric “Marathon Oil is very pleased to wel- Durante, a 25-year-plus Canadian oil Prochazka, 47, is chief operating offi- and natural gas utility businesses at come Chad Deaton to our company’s and gas industry veteran, has served as cer and executive vice president at CenterPoint. board of directors,” said Marathon Oil managing director and CEO of Sprott CenterPoint. He joined the company in In April, CenterPoint reached a long- Executive Chairman Clarence P. Cazalot Toscana, an organization of financial and October 2001 and at various times has led term agreement with XTO Energy Inc. to Jr. “Chad’s depth of experience and technical experts focusing on providing the operations of the company’s electric gather XTO’s crude oil production knowledge of the oil and gas industry, his financial and energy-related yield vehicles and natural gas utility businesses. He also through a new pipeline system in North demonstrated leadership and his keen to investors. held key leadership roles in corporate Dakota’s Bakken shale owned by a sub- awareness of the key drivers of success in Burnham is a geologist and independ- strategic planning and customer service, sidiary, CenterPoint Energy Bakken Crude our industry make him an outstanding ent businessman with extensive executive and assumed his current responsibilities Services LLC. Prochazka said at the time addition to the Marathon Oil board.” experience in both private and public oil Aug. 1, 2012. that the deal would enable CenterPoint to Before joining Houston-based Baker and natural gas companies. He has a “Succession planning is a key compo- leverage its core competencies, as well as Hughes in 2004, Deaton was president strong knowledge of the Western nent in a smooth leadership transition. diversify its product-gathering capabilities and CEO of Hanover Compressor Co. Canadian Sedimentary Basin and in par- Since being appointed COO, Scott has and geographic footprint. from 2002 through October 2004. He was ticular, southeast Saskatchewan, one of demonstrated outstanding leadership and Prior to joining CenterPoint Energy, a senior advisor to Schlumberger Oilfield Renegade’s core areas. strategic vision,” said CenterPoint Prochazka worked in a variety of roles for Services from 1999 to 2001 and was an Since commencement of a strategic Chairman Milton Carroll. “The board has Dow Chemical from 1989 to 2001. He executive vice president of that company review by the Calgary, Alberta-based confidence that Scott will be effective in received a bachelor’s degree with highest from 1998 to 1999. independent, Renegade said its board has helping achieve sustainable, long-term honors in chemical engineering from the Deaton currently serves on the boards recognized that management and board success for our shareholders, employees University of Texas. He also completed of Ariel Corp., a privately held manufac- changes were necessary; however, and the communities we serve.” executive development programs at the turer of gas compressor equipment; Air Renegade’s directors have been keenly Carroll also thanked McClanahan for University of Chicago’s Booth School of Products and Chemicals Inc., a supplier of aware that the timing of such changes was 41 years of “invaluable” service to the Business and the Kelley School of gases and equipment, specialty and inter- crucial. company. Business at Indiana University. mediate chemicals, and environmental and Recently, Alex Wylie, former vice pres- McClanahan started his career with energy systems; and Transocean Ltd. ident, finance and chief financial officer, and Michael Erickson, former president, Renegade taps CEO and a director, left the company. In directors, search firm addition, Thomas Budd has replaced D.M. “Bud” McDonald as chairman of RENEGADE PETROLEUM LTD. said Renegade’s board. it has further strengthened its board of directors through the addition of three new experienced, skilled and independent

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page Senate majority leader weighs in on 6 North Dakota oil, gas legislation GET THE Vol. 1, No. 21 • www.PetroleumNewsBakken.com A semi-monthly newspaper for industry and government February 17, 2013

COMPANY UPDATE Crude on rails in for long haul WLL gets bum rap James. T. Brown: Whiting Petroleum is not running out of drilling inventory

ticularly acute when it comes to finding VERN WHITTEN PHOTOGRAPHY By RAY TYSON Petroleum News Bakken new targets in Whiting’s flagship Sanish field in North Dakota’s Williston Basin, enver-based E&P independent which accounts for around 30,000 barrels DWhiting Petroleum Corp. is finding per day, or nearly 40 percent of the compa- it difficult convincing investors that the ny’s roughly 80,000 barrels per day of pro- company is not running out of suitable duction. Plains All American’s Manitou crude oil and NGL rail facility near places to drill. By the end of 2012, a total of about 300 LATEST Ross, west of Stanley in Mountrail County, North Dakota. Photo taken this winter by Vern Whitten. See rail story below. “The knock against Whiting is that you production wells had been drilled in the guys don’t have any inventory and in three JAMES T. BROWN Sanish field, with at least another 200 to be years you’re going to be done,” James T. drilled and completed. Rail will survive pipeline additions Brown, Whiting’s president and chief operating offi- “It seems that when we get to the end of every The need for rail to move crude from cer, told industry analysts Feb. 6 at the Credit Suisse year, we have two-and-half to three years of drilling Midcontinent fields will likely persist, 2013 Energy Summit in Vail, Colo. even if plans for expanding pipeline The lack-of-inventory perception seems to be par- see WHITING INVENTORY page 18 links from the Bakken to the Gulf Coast go ahead, EOG Resources Chief LAND & LEASING Executive Officer Mark Papa told a BAKKEN NEWS. Colorado conference. He said rail will still be used five years from now to deliver Bakken crude Riverbed draws top bids to all three Lower 48 coasts — the Gulf, MARK PAPA East and West — but expects the cur- QEP Energy high bidder on 22 Missouri River leases; shore zone included rent advantage of Louisiana Light Sweet, LLS, crude prices in the Houston market will probably change within 18 By MIKE ELLERD third or 9,900 acres were in For Petroleum News Bakken 106 Missouri riverbed tracts in see RAIL SURVIVAL page 24 Dunn County and those tracts total of 27,370 acres brought in a total $21,227,455, Bakken threatens Alberta upgrader A were leased in 306 tracts a sum that accounted for more in nine western North Dakota than 86 percent of the gross The Bakken might be about to register a friendly-fire vic- counties in the Feb. 5 North auction proceeds. SUBSCRIBE tim — a C$11.6 billion Suncor Energy upgrader to convert oil Dakota Department of Trust The Dunn County lease sands bitumen into synthetic crude for refining into fuels. Lands oil and gas lease auction activity was, in turn, dominat- Suncor, with France’s Total as a 49 percent partner, expects bringing in a total of LANCE GAEBE DREW COMBS ed by 22 Missouri riverbed to decide no later than March 31 on the immediate fate of its $24,609,206 at an average tracts totaling 1,465 acres that Voyageur project, which has been in a holding pattern for the price of $899 per acre. The auction was dominated by fetched a total of $16,536,197 at an average price of last four years, putting an end to its original startup date of tracts between the former high water marks on the $11,291 per acre, all purchased by Denver-based 2016. two banks of the Missouri River under Lake QEP Energy Co. Since taking control of the oil sands giant nine months Sakakawea in Dunn County. ago, Suncor Chief Executive Officer Steve Williams has Of the 27,370 acres leased, slightly less than one- see ND LEASE AUCTION page 21 increasingly hinted that economic challenges could be the undoing of Voyageur. ASSOCIATIONS His explanation has been delivered in clear-cut terms. see ALBERTA UPGRADER page 24 Galt: MPA ever vigilant Helms slams U.S. Fish & Wildlife Montana Petroleum Association chief keeps tabs on several bills during session Two new slides have appeared in Lynn Helms’ presentation packet — By MIKE ELLERD temporary leasing of water rights, financial relief to oil and gas-impacted communities, TODAY! slides with information that he thinks For Petroleum News Bakken indicate an attempt by and carbon sequestration and enhanced oil the U.S. Fish & Wildlife umerous oil and gas-related bills recovery using carbon dioxide. Service to take over oil Nhave been introduced thus far in the and gas permitting in 63rd session of the Montana legislature Property rights: surface North Dakota. currently in session in Helena, and while damage compensation One is a map backing up his agency’s Montana Petroleum Association Executive House Bill 431, introduced by Rep. recent analysis that shows 83 percent of Director Dave Galt follows all of them LYNN HELMS Austin Knudsen of Culbertson, is a surface North Dakota’s oil and gas spacing units closely, he recently spoke with Petroleum DAVE GALT damage compensation bill that would add have some federal land ownership, surface and/or minerals. News Bakken and discussed those that he to the existing oil and gas surface damage Helms, director of the North Dakota Industrial thinks are most important to his membership. 907-522-9469 and disruption compensation statue the definition of Commission’s Department of Minerals, Oil and Gas Division, The key bills Galt identified fall into a variety of “lost land value” as “the value of the highest and best told North Dakota lawmakers in January, “It was really sur- categories. Some deal with compensation for reasonably available use, including the proposed use.” prising to me when we did this analysis to find out that 83 landowner surface damage, eminent domain and The bill would also require that the surface owner and forced pooling, all of which Galt lumps together into the oil and gas developer or operator attempt “in good see PERMITTING page 10 what he considers to be “property rights” legislation. PETROLEUMNEWSBAKKEN.COM Other bills that Galt considers key deal with taxation, see ENERGY LEGISLATION page 22 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 9

COMPANY UPDATE Newfield’s Bakken output beats guidance, again

By MIKE ELLERD Williston Basin “could be prospective for development of in Oklahoma. In a Nov. 4 press release, Newfield Petroleum News Bakken multi-zones beneath the middle Bakken.” announced a second resource play in the Anadarko, which According to Howard, Newfield is looking to put forth a it calls its STACK play and includes the Meramec and lthough not its largest play, Texas-based Newfield similar level of effort in the Williston Basin in 2014. “Our Woodford shales. AExploration Co. is seeing strong performance from its early planning for 2014 envisions similar levels of activity Newfield reports average daily production from the Bakken operations with third quarter production averaging and continued production growth.” Eagle Ford at 8,200 boepd and in the Uinta Newfield’s pro- 13,400 barrels of oil equivalent per day, exceeding guidance Newfield has also been working on Bakken well cost duction averaged 23,100 boepd in the quarter. Daily pro- by 1,600 boepd. reduction and reports the cost of all of the SXLs completed duction from Newfield’s Anadarko plays averaged 22,300 Originally Newfield projected that its 2013 production thus far in 2013 average $8.7 million, including $800,000 in boepd in the third quarter. would increase by 15 percent over 2012. That guidance was artificial lift and facilities costs. That is a 23 percent reduc- Combined, all of Newfield’s domestic third quarter pro- updated in the second quarter to finish the year 28 percent tion over the company’s average 2012 Bakken well cost. duction averaged approximately 113,000 boepd. That mix above 2012. With the third quarter production data, was 36 percent crude and condensate, 13 percent natural Newfield now expects its 2013 output to increase 40 percent Williston Basin acreage gas liquids, with natural gas making up the balance. over 2012. Newfield has approximately 100,000 net acres in north- Newfield has international operations in Southeast Asia The company is currently operating four rigs in the basin west North Dakota and northeast Montana and is actively and this year produced an additional approximately 17,400 and Daryll Howard, Newfield’s vice president of Rocky developing approximately 41,000 of those in its Lost Bear, boepd of production. However, the company now classifies Mountain operations, said in a Nov. 5 conference call that Aquarium, Watford and Westberg areas in McKenzie, those operations as “discontinued,” and recently announced the drilling program is “dominated” by multi-well pads and Mountrail, Dunn and McKenzie counties of North Dakota, a sale agreement for its business in Malaysia which is super extended laterals, SXLs, i.e., laterals as long as 10,000 and in the Elm Coulee area of Richland County, Mont. expected to close in 2014. That is the first of two transac- feet. Those wells, Howard said, had an average gross initial As of August, Newfield ranked 19th among the top 50 tions the company has planned to divest its international production, IP, rate of 2,200 barrels of oil per day with 90- oil producers in North Dakota based on production from businesses. day production averaging approximately 570 bpd. operated, non-confidential wells according to Department Looking forward, Newfield expects it will produce a Newfield also completed a second bench Three Forks of Mineral Resources Oil and Gas Division records. total of 48 million boe by the end of 2013 for an average of well in the third quarter that came in with an IP of approxi- 131,506 boepd. That estimate also includes approximately mately 1,775 boepd and a 30-day average of approximately Overall production 8 million boe from discontinued operations. 620 boepd. Howard said that the company believes that Newfield also has operations in the Eagle Ford, the approximately a third of its development acreage in the Uinta Basin and in its SCOOP play in the Anadarko Basin continued from page 6 “Yes they’re (KLJ) well-connected,” Triplett said. “Right now every single person in this room, including “(But) that’s the single piece we’ve been missing over the every member of the audience, knows a whole lot more OIL STUDY years.” about the North Dakota oil industry than you do.” Triplett, whose motion failed by a 2-8 vote, had also A subsequent motion by Sen. Phil Murphy, D-Portland, two companies, Sen. Connie Triplett, D-Grand Forks, suggested going back to legislative management for addi- to award the contract to KLJ, passed by a 7-3 vote. made a motion to give the study to The Louis Berger tional funding that would allow a combined effort by both In its presentation KLJ executives touted their firm’s Group, saying the state has been a bit “provincial” in using firms but Wardner said, given the timeframe, that would knowledge and experience in the state, saying about 80 in-state sources. not be possible. percent of its projects were related to the Bakken. She said an outside perspective on how national and Although Triplett was gracious in her questioning of the —The Associated Press contributed to this report. global energy policy relates to North Dakota would be Louis Berger representatives and ultimately chose them helpful. over KLJ, she also told them after their presentation, 10 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013

COMPANY UPDATE MOVING HYDROCARBONS Rail safety can’t escape spotlight XTO Energy sets There was no evacuation of local residents, no evidence of leaks from a damaged tanker car carrying sulphur dioxide and CN Railway’s main track between Edmonton and the British Columbia coast resumed normal service within about 24 hours of the latest derailment. internal Bakken But these days there is no such thing as a minor derailment, especially when it occurs within 60 miles of last month’s fire and explosion when 13 cars on a CN Rail train left the tracks and forced the evacuation of 125 people from a nearby hamlet. The latest accident involved 13 cars, 12 of them loaded with lumber and one with SO2, and happened in the early hours of Nov. 3. production record A spokesman for CN Rail said the dangerous goods car remained upright and did not pose any environmental concerns or threats to the public. By MIKE ELLERD In an Oct. 31 earnings conference Petroleum News Bakken No safety board investigators call with analysts, Rosenthal said Even the Transportation Safety Board of Canada decided not to send investigators xxonMobil subsidiary XTO Energy the increase in Bakken production to the site, leaving the matter to CN Rail crews. Eset a company production record with was the result of several factors, But Greenpeace spokesman Mike Hudema wasted no time offering his thoughts on its third quarter Bakken production com- including a record 85 wells going the recent string of derailments. ing in at 65,000 barrels of oil equivalent on production since the first of the “This is another that we’re dealing with in (Alberta) that has already seen its fair per day. That output, according to David year, as well as production from the share of derailments in recent months. There really is a lot that we need to be doing to Rosenthal, ExxonMobil’s vice president improve rail safety that is not being done,” he said in a news release. for investor relations, was an 81 percent Danbury Resources Bakken assets Hudema urged the Canadian government to start an independent review of petro- increase over third quarter 2012 produc- that ExxonMobil acquired in 2012. chemical shipments by rail across Canada and argued the public should be told more tion. about the dangers associated with hazardous materials moving through their commu- In an Oct. 31 earnings conference call Oklahoma. He said the company is run- nities. with analysts, Rosenthal said the increase ning about 40 drill rigs in the U.S., most “It’s time the federal government stepped up and did its job,” he said. in Bakken production was the result of of which are drilling in these three core After the October event, federal Transport Minister Lisa Raitt said the government several factors, including a record 85 areas. has spent more than C$100 million on rail safety and has raised fines for companies wells going on production since the first “But if you think about our three core that violate safety regulations — actions that stemmed from the Quebec disaster in of the year, as well as production from the areas,” Rosenthal told analysts, “the July that claimed 47 lives. Danbury Resources Bakken assets that Bakken, and the Ardmore and the —GARY PARK ExxonMobil acquired in 2012. Permian, those are where the wells we are Well efficiencies also contributed to drilling, that’s what we are seeing, not the increase. “This volume increase only the increase in production, but very reflects the benefits of well pad develop- pleased with the progress we are making ment drilling and optimized well comple- on operating expense reduction, produc- tions across our core Bakken acreage,” tivity of the wells, capex, efficiency and Rosenthal said. all of that as you know helps on unit prof- itability in the portfolio as well as cash U.S. core areas flow generation.” According to Rosenthal, ExxonMobil has three core areas in the U.S.: the Third quarter output Bakken, the Permian Basin and the ExxonMobil doesn’t report its Bakken Ardmore in the Woodford Shale in production separately but instead reports total U.S. production. ExxonMobil also breaks out production in terms of liquids and natural gas with liquids consisting of not only crude oil and natural gas liquids but also bitumen and synthetic crude oil from the company’s operations in the oil sands in Canada. In the third quarter, total U.S. liquids production averaged 423,000 bpd, up slightly from second quarter pro- duction of 419,000 bpd and up from the 397,000 bpd average production in the third quarter 2012. ExxonMobil’s combined U.S. liquids and natural gas third quarter output was 1.016 million boepd, exactly the same as in the second quarter 2013 and the second quarter 2012. However, the company’s production had increased to 1.055 million and 1.033 million boepd in the fourth quarter 2012 and the first quarter 2013, Now Available respectively. Canadian production is reported ( Customer service center, development-ready business park, and together with South American production, warehouse space with additional land for further expansion and ExxonMobil’s combined liquids and natural gas output from those areas ( Qualifying business incentives: tax breaks and workforce training programs increased from 322,000 boepd in the sec- ( Quality workforce ond quarter to 335,000 boepd in the third quarter. ( Easy access to the Bakken (via road, rail, and air) On a global scale, ExxonMobil’s total ( Major petroleum research and engineering resources combined production declined from 4.074 at the University of North Dakota million boepd in the second quarter to 4.018 million boepd in the third quarter. That decline was attributable to natural gas output because the company’s liquids output actually increased slightly from 2.182 million bpd to 2.199 million bpd between the second and third quarters. The third quarter global combined out- Expand East. put of 4.074 million boepd was an Do Business West. Expand East. increase over the 3.960 million boepd Do Business West. ExxonMobil produced per day in the Visit us at www.accessthebakken.com third quarter 2012. or call Keith Lund at 701.746.2720 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 11 continued from page 1 Statoil Beaux 18-19 4H, 6H, 7H Wells STATOIL STRATEGY ¯

T154N, R 100W T154N, R 099W T154N, R 098W conference call about Statoil’s slower STOCKYARD CREEK T154N, R 097W T154N, R 096W production growth in the Williston Basin GRINNELL compared to many of its competitors, Statoil Chief Financial Officer Torgrim Reitan said his company views long-term TRUAX production from a reservoir as more Williams important than maximizing short-term T153N, R 100W LONG CREEK production. He said boosting initial pro- T153N, R 099W CRAZY MAN CREEK T153N, R 098W duction to high rates in the Bakken is T153N, R 097W easy, but that, he said, can be followed by SAND CREEK T153N, R 096W rapid decline. WILLOW CREEK

Of that 49,400 boepd Bakken ¤£1806 production, liquids accounted for 46,800 boepd and gas made up the other 2,600 boepd for a nearly 95 percent liquids output, the highest TWIN VALLEY of all of Statoil’s eight liquids McKenzie BEAUX 18-19 7H producing North American fields. BANKS CAMP T152N, R 100W T152N, R 099W T152N, R 098W T152N, R 097W “It will be the easiest thing to boost WESTBERG BEAUX 18-19 4HBEAUX 18-19 6H short-term production in (the) Bakken. It Well Location is just to frack very hard and then you’ll State/Federal Roads see the initial production go very, very POE To w n s hip s ELIDAH high and then decline very rapidly,” OilFields Reitan said. “The key here is to frack as SIVERSTON T151N, R 100W T151N, R 099W subtle as you can, reduce the distances NORTH TOBACCO GARDEN T151N, R 098W T151N, R 097W between the fracks and get the maximum 0120.5 Miles out of your reservoir. Then you get the higher recovery rate but a much flatter production profile and much less initial Furthermore, three of the weekly high available from the North Dakota not represent total volume produced. production.” IPs were record high North Dakota IPs. Department of Minerals Management Oil On a global scale, Statoil’s internation- Statoil has also cut its rig count by The latest record was the 5,417 bpd pro- and Gas Division, Statoil ranked as the al, i.e., non-Norwegian, equity produc- two-thirds throughout the first three quar- duced from Statoil’s Beaux 18-19 7H fourth largest oil producer in North tion, which includes North America, aver- ters of 2013. Between the first and second well in the Banks field in north-central Dakota averaging 50,921.87 barrels of oil aged 728,000 boepd, which was 73 per- quarters, Statoil reduced its rig count McKenzie County. The other two record per day from operated, non-confidential cent liquids. The company’s Norwegian from 15 to 10, and between the second setting IP wells, the Beaux 18-19 4H and wells. equity production averaged 1.124 million and third quarters it again cut the rig 6H, are also in the Banks field (see map). boepd, which was 52 percent liquids. count by five and is now running just five Two of the Beaux wells are on the same Global production Combined, Statoil’s third quarter produc- rigs, all part of the company’s long-term pad at the bottom of a standup 1,280-acre Statoil reports its production in terms tion averaged 1.852 million boepd and strategy. spacing unit and run north, and the other of “equity” volumes, which represent the was 60 percent liquids. “For us it’s very important to take a is on the adjacent spacing to the north volume corresponding to the percentage long-term perspective on that asset,” with the well running south parallel with that Statoil owns in a given field under Reitan said. He added that with the small- the other two wells. All three are middle production sharing agreements and does er number of rigs, Statoil is able to take Bakken formation wells. what it learns from one drilling operation The other chart-topping IP wells dat- and apply it across the full Bakken rig ing back to July 8 are in the Alger field in portfolio. southwest Mountrail County, the Avoca FOR CondoCondoo forfor leaselease downtowndowntown DenverDenver field in southwest Williams County, the LEASE Upscale,Upscale, 2 bed/2ba,bed/2ba, fuffullyully furnishedfufurnisheda andnde equippedquippedint in thehec capitalapital North American output Stony Creek field which borders the hillhilla area.rea. NearN earr restaurants,estaurants, ccapitalapitalb building,uilding, andanddo downtown.wntown. Statoil’s overall North American pro- Avoca field to the north, and the Poe field with borders the Banks field in northern duction averaged 240,700 barrels of oil ImmediateImmediateeo occupancy,ccupancyy,, $2300/month.$2300/month. equivalent per day in the third quarter, of McKenzie County. In August, the last month for which which the company’s production from the ForForm moreorei infinformationfoormationco contact:ntact: [email protected]@aaol.com || 303-263-212303-263-21288 Bakken petroleum system accounted for total preliminary production data were just over 20 percent at 49,400 boepd. Of that 49,400 boepd Bakken production, liquids accounted for 46,800 boepd and gas made up the other 2,600 boepd for a RIG MATS nearly 95 percent liquids output, the high- Designed for est of all of Statoil’s eight liquids produc- Durability ing North American fields. In terms of barrels of oil equivalent, the Marcellus was Statoil’s largest North American producer averaging 108,400 boepd in the third quarter, but that pro- Lister I - Laminated Mat duction was 93 percent gas. The Bakken Lister Arctic Mats was the company’s second largest pro- Proven Durability ducing field in North America, with the Eagle Ford coming in third at 32,100 Thank you to the Oilpatch for 45 years of boepd which was 62 percent oil. continued success through the ups & downs. North Dakota output Lister Industries is the longest serving rig mat company in North America - blazing the trails where Even though Statoil does not focus on maximizing short-term production, over others are following. We continue to lead the way. the last year it has regularly had wells going on production with the highest 24- For Sales Inquires Call hour initial production, IP, rates in North Dakota. For example, new Statoil wells 780-468-2040 were among the top IP wells for every week except for the 17 weeks between July 8 and Nov. 4, and the company’s wells topped the IP chart in 12 of those 17 weeks with IPs ranging from 2,811 to Global Leader since 1968 in “Rig Mat Design & Manufacturing” 5,417 barrels per day and averaging 3,822 For Sales Inquiries Contact: bpd. [email protected] | PH 780.468.2040 | FX 780.468.3337 | Edmonton, AB. | www.listerindustries.com 12 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 continued from page 1 QEP OUTPUT WILLISTON BASIN ² 116,000 NET ACRES production and improved realized natural QEP net production $SSUR[(DVWHUQ (Boepd) Fat Cat ILHOGERXQGDU\ gas prices offset by lower midstream nat- ural gas liquids revenue and higher depre- 25,000 ciation, depletion and amortization and 20,000 other expenses in the third quarter 2013 15,000 Fort Berthold compared to 2012. 10,000 Crude oil production increased 83 per- 5,000 cent over production in the third quarter 2012 and 11 percent from the second 0 quarter of 2013 to a record 28,700 barrels South Antelope of oil per day, QEP said, adding that crude oil and NGLs comprised 29 percent of production compared to 21 percent in the third quarter of 2012. Lion’s share of oil from Williston The company said that the lion’s share of its oil production growth came from the Williston Basin. “Our third quarter results demonstrate that QEP is making steady progress on our strategic goal of growing high-margin crude oil production, a trend we expect to continue as we head into next year,” said Chuck Stanley, QEP president and CEO. Bakken Formation well 0LOHV “In the Williston Basin, we brought on Three Forks Formation wells 21 new QEP operated wells in the third Operated focus area QEP leasehold quarter compared to a total of 27 operated completions in the first half of the year,” he said. “Production results from our crude oil systems and shutting in of exist- which not only slowed us down, but also the company anticipates growth in oil South Antelope wells continue to confirm ing wells for offset completions, Stanley resulted in lower realized prices as a production of 60 percent over 2012. our pre-drill EUR expectations.” said. result of additional costs associated with QEP’s Bakken production was slowed “We actually were forced during the trucking oil that should have gone down Bakken recently by delayed well completions due quarter to take oil off of the gathering sys- gathering systems,” Stanley said. QEP Bakken and Three Forks net pro- tem and truck it to rail-loading facilities, Despite the challenges, Stanley said, to bottlenecks in third-party downstream see QEP OUTPUT page 20 continued from page 1 ANTELOPE PROSPECT &RQWLQHQWDO*RHV³(DUV%DFN´LQ$QWHORSH tive potential of four to five stacked zones with multiple wells in each,” he was quot-  ed as saying in a Nov. 6 press release. 3ODQWRGULOOZHOOVRYHUWKHQH[W In October the Hawkinson unit initial- IRXUWRILYH\HDUV ly tested at a combined rate of 14,850 bar- rels of oil equivalent per day from 14 ‡ 8WLOL]LQJPHJDSDGVZLWKDVPDQ\DV wells, Continental said. ZHOOVSHUSDG This included 13,400 boe per day from  11 new wells drilled this year and com- bined current rates of 1,450 boe per day )XOOILHOGGHYHORSPHQWWRLQFOXGH from three existing wells in the unit, 0%7)7)DQG7) which to date have cumulative production of 1.3 million boe since 2010.  'HYRWLQJULJVWRIXOOILHOG No flaring, standard choke size GHYHORSPHQWLQ When asked how the Hawkinson EUR’s compare to middle Bakken upper-  bench Three Forks wells, W.F. “Rick” 8QGHUGHYHORSHGDUHD Bott, Continental’s president and chief operating officer, ‡ 3LSHOLQHLQIUDVWUXFWXUHXQGHUFRQVWUXFWLRQ said it was really too ‡ aZHOOVEXGJHWHGIRUZLWKODUJH early to talk about SURGXFWLRQLPSDFWLQ firm EURs, but  noted Continental is  not flaring the wells 0LOHV and uses a standard   3ODQQHG$QWHORSH0HJD3DGV ZHOOVRUPRUH  choke size. 3ODQQHG$QWHORSH0XOWL:HOO3DGV  “We have a range  in the lower bench- 3URSHUW\RI&RQWLQHQWDO5HVRXUFHV,QF5HSURGXFWLRQDQGGLVWULEXWLRQRQO\ZLWKZULWWHQSHUPLVVLRQ  es; we’re seeing RICK BOTT some scattering, event for CLR and further validates our involves 11 new wells drilled with 1,320- 390-440 range, some also approaching It is the industry’s first density vision for full field development of the foot same zone inter-well spacing, similar 900,000 boe such as our Angus well,” he drilling program in the basin to Bakken-Three Forks reservoirs in this to the Hawkinson. said. “We just don’t have a lot of tests include three of the lower benches world class oil field,” Bott said. “Clearly The Wahpeton project in McKenzie right now. The Hawkinson is a week from (bench four was also tested) — there is more oil to be recovered than pre- has 13 new wells configured in four zones testing and just basically getting back viously perceived and projects like the at tighter spacing, which is 660-foot same online.” and the first to call for up to 30 wells on a pad. Hawkinson are leading the way to defin- zone inter-well spacing. Continental has 40 gross wells in the ing the optimum drilling density and pat- During 2014, Continental said it plans Antelope prospect, which lies in tern to maximize oil recovery. The news to conduct three additional density pilots It is the industry’s first density drilling McKenzie and Williams counties. in the Bakken just keeps getting better.” to test 660-foot inter-well spacing, further program in the basin to include three of The Hawkinson density project In addition to Hawkinson, Continental defining the density spacing across a very the lower benches (bench four was also includes four middle Bakken, three Three has three other density pilot tests under large portion of its acreage in the Bakken. tested) — and the first to call for up to 30 Forks first bench, four Three Forks second way in North Dakota, with results expect- The company plans to complete wells on a pad. bench and three Three Forks third bench ed in the first half of 2014. approximately 282 net (761 gross) wells wells, “which all were spaced 1,320 feet ‘Milestone event’ for company The Tangsrud project in Divide in the Bakken in 2013, including both apart in the same zone and offset 660 feet County involves 12 new wells and the operated and non-operated wells. It esti- in the adjacent zones,” the company said. “The Hawkinson project is a milestone Rollefstad project in McKenzie County see ANTELOPE PROSPECT page 18 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 13 BAKKENStats Montana well permits and completions October 25—31, 2013

Colorado, recently opened an office in SHL at NW NE 17-25N-58E (300 Abbreviations & parameters Billings. FNL/2125 FEL) and a BHL of 21,434 With a few exceptions, the Montana weekly oil activity report includes horizontal well activity in Re-issued locations feet at SW SW 20-25N-58E (250 the Bakken petroleum system in the eastern/northeastern part of the state within the Williston Basin. It FSL/760 FWL). The well reported an IP also includes the Heath play and what is referred to as the South Alberta Bakken fairway in northwest- Three re-issued permits for Bakken of 463 BOPD, 464 MCFPD and 2,250 ern/west-central Montana, which is at least 175 miles long (north-south) and 50 miles wide (east-west), extending from southern Alberta, where the formation is generally referred to as the Exshaw, south- formation wells were approved in BWPD. wards through Montana’s Glacier, Toole, Pondera, Teton and Lewis & Clark counties. The Southern Richland County. Slawson Exploration Continental Resources Inc. filed a Alberta Bakken, under evaluation by several oil companies, is not part of the Williston Basin. Company Inc. was approved for the completion report for the Constance- Following are the abbreviations used in the report and what they mean. Barong Federal 1-17-20H, with an SHL Stoney Butte HSU, in Richland County, at SW SW 8-21N-59E (200 FSL/700 BHL: bottomhole location | BOPD: barrels of oil per day | BWPD: barrels of water per day with an SHL at NE NE 19-23N-56E (290 IP: initial production | MCFPD: thousand cubic feet per day | PBHL: probable bottomhole location FWL) and a PBHL of 20,073 feet at SW FNL/272 FEL) and a BHL of 20,590 feet PD: proposed depth | SHL: surface hole location | TD: total depth SW 20-21N-59E (700 FSL/700 FWL). at NW NW 8-23N-56E (460 FNL/12 Continental Resources Inc. was approved And public land survey system abbreviations: FWL). The Bakken well had an IP of 237 for two wells: the Abernathy 1-16H, with BOPD, 85 MCFPD and 40 BWPD. FNL = from north line | FEL = from east line | FSL = from south line | FWL = from west line an SHL at NE NW 16-23N-52E (240 Oasis Petroleum North America LLC FNL/1765 FWL) and a PBHL of 13,745 filed a completion report for the feet at SE SW 16-23N-52E (200 COMPILED BY DARRYL L. FLOWERS In Roosevelt County, Oasis Petroleum Stonewall Fed. 2959 43-21H, with an FSL/1980 FWL) and the Brearly 1-36H, North America LLC was green lighted to SHL at SW SE 21-29N-59E (190 For Petroleum News Bakken with an SHL at NE NW 36-23N-52E (235 drill the Miller Girls Federal 2759 42-7H. FNL/2270 FWL) and a PBHL of 13,976 FSL/1500 FEL) and a BHL of 20,400 feet New locations—horizontal wells: The Miller Girls has an SHL at SE SW 7- feet at SE SW 36-23N-52E (200 at NW NE 16-29N-59E (249 FNL/1553 27N-58E (200 FSL/2140 FWL) and a FSL/1980 FWL). FEL). The Bakken producer recorded an In Richland County, Continental PBHL of 20,619 feet at SE SW 19-27N- IP 1,004 BOPD, 695 MCFPD and 2,372 Resources Inc. was approved for two 58E (200 FSL/2400 FWL), targeting the Completions BWPD. G Editor’s note: Darryl L. Flowers, a Bakken formation wells. The Stoney Bakken. Whiting Oil and Gas Corp. filed com- contributor to Petroleum News Bakken, Butte 4-17H has an SHL at SE SW 17- In Stillwater County, Energy pletion reports for two Bakken formation is the publisher of the Fairfield Sun 23N-56E (380 FSL/1925 FWL) and a Corporation of America was approved to wells in Richland County. The Sundheim PBHL of 20,234 feet at NE NW 8-23N- drill the Holman Morse 1-H, which has 44-8-3H has an SHL at NW NE 17-25N- Times in Fairfield, Mont., www.fairfield- 56E (200 FNL/1500 FWL). The Stoney an SHL at SE SE 12-5S-16E (988 58E (345 FNL/1925 FEL) and a BHL of suntimes.com, and can be reached at Butte 5-17H has an SHL at SE SW 17- FSL/466 FEL) and a PBHL of 6,200 feet 20,830 feet at NW NE 5-25N-58E (249 [email protected]. The 23N-56E (380 FSL/1970 FWL) and a at SW SE 7-5S-17E (502 FSL/2162 FNL/2038 FEL). The Sundheim reported information is derived from the online PBHL of 20,181 feet at NE NW 8-23N- FEL). The well will target the Lakota an IP 692 BOPD, 558 MCFPD and 2,680 records of the Montana Board of Oil & 56E (200 FNL/2200 FWL). Formation. The company, based in BWPD. The Sundheim 31-17-1H has an Gas Conservation Commission. North Dakota well operator transfers October 26 – November 1, 2013

47 bbl; SWNE 35-148N-102W; McKenzie Co. 179 bbl; NENW 16-158N-95W; Williams Co. LEGEND #10676 - Union-Mcginnity 1-6; vertical; Duperow; Temple; 8/2/1984; 110 #08085 - State 16-1; vertical; Madison; Square Butte; 8/16/1981; 98 bbl; bbl; SENW 6-158N-95W; Williams Co. NENW 16-139N-103W; Golden Valley Co. Date of well operator transfer #02571 - Skarphol A 2; vertical; Madison; Stoneview; 2/27/1960; 55 bbl; #12557 - 20401 JV-P SSU 123H; horizontal re-entry; Stonewall; Well(s) transferred from NWSE 11-160N-95W; Divide Co. Stoneview; 1/1/1991; 343 bbl; NWSW 23-160N-95W; Divide Co. Well(s) transferred to #10700 - Klein Brothers A 1; vertical; Madison; Square Butte; 5/18/1984; #07495 - Flat Top Butte 15-24; vertical; Madison; Flat Top Butte; 152 bbl; NWNE 20-139N-103W; Golden Valley Co. 8/30/1980; 368 bbl; SESW 15-146N-101W; McKenzie Co. NDIC well file number — well name — well type — geological #13635 - Flat Top Butte Nelson 11-24; vertical; Duperow; Flat Top Butte; #12560 - Mile Butte 31-11; vertical; Duperow; Pierre Creek; 2/25/1989; target — field — IP (initial production) test date — IP oil rate 3/7/1994; 394 bbl; NWNW 24-146N-102W; McKenzie Co. 338 bbl; NWNW 31-147N-102W; McKenzie Co. #15007 - Stoneview-Stonewall Unit 3314H; horizontal; Stonewall; #12607 - Haydraw 28-24F; vertical; Birdbear; Hay Draw; 2/6/1990; 69 bbl; in barrels — location — county Stoneview; 10/29/2000; 204 bbl; NWSE 14-160N-95W; Divide Co. SESW 28-147N-102W; McKenzie Co. #03055 - Bronson 32-25; vertical; Winnipegosis; Temple; 10/17/1987; 162 #14908 - Petersen Trust 11-22H; horizontal; Midale/Nesson; Lakeside; bbl; SWNE 25-159N-96W; Williams Co. 1/19/2000; 153 bbl; NWNW 22-163N-89W; Burke Co. October 28, 2013 #14909 - Guerdett 11-15H; horizontal; Midale/Nesson; Lakeside; #07167 - Little Tank 19-21; vertical; Red River; Little Tank; 6/21/1982; 557 From: Sequel Energy, LLC 9/9/1999; 880 bbl; NWNW 15-163N-89W; Burke Co. bbl; NENW 19-148N-101W; McKenzie Co. To: Enduro Operating, LLC (10/27/2013) #11359 - Pierre Creek 41-7; vertical; Red River; Pierre Creek; 4/8/1985; #12696 - SND 1-28X; vertical; Madison; Tree Top; 9/21/1989; 124 bbl; #15001 - Stoneview-Stonewall Unit 4410H; horizontal; Stonewall; 654 bbl; NENE 7-146N-102W; McKenzie Co. SWNW 28-142N-100W; Billings Co. Stoneview; 1/14/2001; 172 bbl; SESE 10-160N-95W; Divide Co. #10308 - Snowcover 43-18; vertical; Red River; Snowcover; 1/10/1984; #06532 - Bull Moose 1-15; vertical; Madison; Bull Moose; 10/7/1978; 450 #13275 - Stoneview-Stonewall Unit 16; vertical; Stonewall; Stoneview; 519 bbl; NESE 18-147N-101W; McKenzie Co. bbl; SWSE 15-147N-101W; McKenzie Co. 3/27/1992; 552 bbl; SWNE 23-160N-95W; Divide Co. #15118 - Skarderud 32-7; vertical; Winnipegosis; Temple; 7/29/2001; 168 #14923 - NDCA 4; vertical; Winnipegosis; McGregor; 1/18/2000; 463 bbl; #13318 - Stoneview-Stonewall Unit 17; vertical; Stonewall; Stoneview; bbl; SWNE 7-158N-95W; Williams Co. NWNW 21-158N-95W; Williams Co. 4/29/1992; 275 bbl; SENW 11-160N-95W; Divide Co. #10600 - Square Butte SWD System D01; vertical; Madison; Square Butte; #06718 - Bull Moose 22-32F; vertical; Madison; Bull Moose; 3/30/1979; #09858 - Snowcover 13-33; vertical; Red River; Snowcover; 4/22/1983; 5/23/1984; 22 bbl; SESW 10-139N-103W; Golden Valley Co. 123 bbl; SWNE 22-147N-101W; McKenzie Co. 543 bbl; NWSE 13-147N-102W; McKenzie Co. #10396 - Albert 21-25; vertical; Winnipegosis; Temple; 1/15/1988; 175 #06846 - Flat Top Butte 15-44; vertical; Madison; Flat Top Butte; #13418 - Stoneview-Stonewall UNIT 20; vertical; Stonewall; Stoneview; bbl; NENW 25-159N-96W; Williams Co. 7/12/1979; 198 bbl; SESE 15-146N-101W; McKenzie Co. 11/10/1992; 52 bbl; NENE 26-160N-95W; Divide Co. #15203 - State 1-36H; horizontal; Stonewall; North Tioga; 11/20/2001; 82 #07494 - Flat Top Butte 15-22; vertical; Madison; Flat Top Butte; #15117 - Skarderud 13-7; vertical; Winnipegosis; Temple; 8/23/2001; 13 bbl; NESE 36-160N-95W; Divide Co. 3/18/1981; 313 bbl; SENW 15-146N-101W; McKenzie Co. bbl; NWSW 7-158N-95W; Williams Co. #10480 - Skarderud 22-7; vertical; Winnipegosis; Temple; 2/5/1984; 455 #05628 - Howard 1; vertical; Madison; Hamlet; 6/13/1975; 197 bbl; #13434 - Stoneview-Stonewall Unit 110; vertical; Stonewall; Stoneview; bbl; SENW 7-158N-95W; Williams Co. NWNW 24-160N-96W; Divide Co. 1/12/1993; 252 bbl; NENE 10-160N-95W; Divide Co. #10073 - Skarderud 10-7; vertical; Winnipegosis; Temple; 8/14/1983; #03983 - North Dakota C A 3; vertical; Devonian; McGregor; 1/18/1966; #13452 - Cinnamon Creek 31-7; vertical; Duperow; Cinnamon Creek; 1,265 bbl; NESW 7-158N-95W; Williams Co. 234 bbl; NESW 16-158N-95W; Williams Co. 1/10/1993; 312 bbl; NWNE 7-145N-102W; McKenzie Co. #10059 - Seaton 1; vertical; Winnipegosis; Temple; 5/1/1983; 352 bbl; #12962 - North Branch 35X-34; vertical; Birdbear; North Branch; #15011 - 20401 JV-P NDCA 5; horizontal; Winnipegosis; McGregor; SENE 1-158N-96W; Williams Co. 3/10/1991; 35 bbl; SWSE 35-148N-102W; McKenzie Co. 11/4/2000; 83 bbl; NWNW 16-158N-95W; Williams Co. #10047 - Total-State 1-36; vertical; Winnipegosis; Temple; 5/29/1983; 147 #08883 - Bowline Creek 35-24; vertical; Red River; North Branch; #09955 - North Branch 2-32F; vertical; Red River; North Branch; 2/1/1983; bbl; NESW 36-159N-96W; Williams Co. 5/6/1982; 659 bbl; SESW 35-148N-102W; McKenzie Co. 410 bbl; SWNE 2-147N-102W; McKenzie Co. #10260 - Bronson 1-26; vertical; Dakota; Temple; N/A; N/A; NENE 26- #16182 - 20401 JV-P NDCA 7; vertical; Winnipegosis; McGregor; N/A; #10209 - McGinnity 24-6; vertical; Winnipegosis; Temple; 8/5/1983; 299 159N-96W; Williams Co. N/A; SWNE 21-158N-95W; Williams Co. bbl; SESW 6-158N-95W; Williams Co. #09942 - Wildrose 36-5; horizontal #09362 - Burning Mine Butte 9-21; vertical; Red River; Burning Mine; #05667 - Moore 31-23HR; horizontal re-entry; Madison; Hamlet; re-entry; Winnipegosis; Moraine; 3/16/1983; 497 bbl; SWNW 36-161N- 6/19/1982; 294 bbl; NENW 9-147N-102W; McKenzie Co. 8/9/1975; 167 bbl; NWNE 23-160N-96W; Divide Co. 98W; Divide Co. #15044 - Stoneview-Stonewall Unit 4226H; horizontal; Stonewall; #05610 - Tofte 1 SWD; vertical; Madison; Hamlet; 6/29/1975; 91 bbl; #09909 - Bowline 21-7; directional; Red River; Bowline; 5/26/1983; 153 Stoneview; 12/19/2000; 424 bbl; SENE 26-160N-95W; Divide Co. NWNE 24-160N-96W; Divide Co. bbl; NENW 7-147N-101W; McKenzie Co. #07461 - Government Taylor A 2; vertical; Madison; Square Butte; #08657 - Rider 1; vertical; Madison; Rider; 8/24/1981; 35 bbl; SESW 13- #04684 - Government Taylor B 2; vertical; Madison; Square Butte; 6/16/1981; 11 bbl; SENE 9-139N-103W; Golden Valley Co. 140N-103W; Golden Valley Co. 7/23/1969; 102 bbl; SENW 10-139N-103W; Golden Valley Co. #12906 - Stoneview-Stonewall Unit 814; vertical; Stonewall; Stoneview; #08668 - Flat Top Butte 15-34; vertical; Red River; Flat Top Butte; #09920 - Sagaser 1; vertical; Winnipegosis; Temple; 1/22/1983; 169 bbl; 8/11/1990; 480 bbl; SENE 14-160N-95W; Divide Co. 9/2/1982; 287 bbl; SWSE 15-146N-101W; McKenzie Co. SESE 1-158N-96W; Williams Co. #12555 - North Branch 34-42F WIW; vertical; Birdbear; North Branch; #07944 - Bull Moose 1X-15; vertical; Red River; Bull Moose; 2/28/1981; #05104 - Ellen Osterhout 1; vertical; Madison; Rider; 12/18/1971; 343 bbl; 2/22/1989; 243 bbl; SENE 34-148N-102W; McKenzie Co. 437 bbl; SWSE 15-147N-101W; McKenzie Co. NWSW 24-140N-103W; Golden Valley Co. #12550 - North Branch 22X-35; vertical; Birdbear; North Branch; #13101 - Stoneview-Stonewall Unit 1511; vertical; Stonewall; Stoneview; #13468 - Federal 21-14HR; horizontal re-entry; Bakken; Flat Top Butte; 8/4/1989; 335 bbl; SENW 35-148N-102W; McKenzie Co. 3/24/1991; 458 bbl; SWSE 11-160N-95W; Divide Co. 1/11/1993; 384 bbl; NENW 14-146N-102W; McKenzie Co. #14794 - Stensrud 43-14; vertical; Red River; Flat Top Butte; 8/14/1998; #09361 - Pederson 3; vertical; Winnipegosis; Temple; 6/24/1982; 157 bbl; #09253 - Flat Top Butte 15-32; vertical; Madison; Flat Top Butte; 336 bbl; NESE 14-146N-102W; McKenzie Co. SWNE 18-158N-95W; Williams Co. 12/14/1982; 290 bbl; SWNE 15-146N-101W; McKenzie Co. #05935 - N.D.C. A Deep Unit 1; vertical; Devonian; McGregor; #13135 - 20401 JV-P SSU 1114H; horizontal re-entry; Stonewall; #13522 - Stoneview-Stonewall Unit 21; vertical; Stonewall; Stoneview; 10/11/1976; 128 bbl; NWNE 21-158N-95W; Williams Co. Stoneview; 4/28/1991; 260 bbl; NESW 14-160N-95W; Divide Co. 6/29/1993; 392 bbl; NWSW 24-160N-95W; Divide Co. #12570 - Pierre Creek 44-7H; horizontal; Bakken; Pierre Creek; 9/10/1989; #08337 - Harris-Federal 1-30; vertical; Red River; Wannagan; 6/19/1981; #04677 - Government Brown A 1; vertical; Madison; Square Butte; 298 bbl; SESE 7-146N-102W; McKenzie Co. 265 bbl; NESE 30-141N-102W; Billings Co. 7/14/1969; 53 bbl; SENW 15-139N-103W; Golden Valley Co. #02009 - North Dakota C A 2; vertical; Devonian; McGregor; 12/21/1958; #15192 - North Branch 7-35; vertical; Duperow; North Branch; 2/9/2002; see TRANSFERS page 14 14 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 continued from page 13 8/29/1998; 522 bbl; NWNW 21-163N-89W; Burke Co. #06600 - Arithson E 1; vertical; Red River; South Horse Creek; 10/9/1978; #12329 - Strombeck FLB 1; vertical; Stonewall; North Tioga; 3/29/1988; 452 bbl; NESE 28-129N-104W; Bowman Co. TRANSFERS 151 bbl; NENW 6-159N-94W; Burke Co. #11091 - Arithson 1X; vertical; Red River; South Horse Creek; 9/22/1984; #14833 - Sorum 11-13H; horizontal; Midale/Nesson; Customs; 5/12/1998; 82 bbl; SESW 34-129N-104W; Bowman Co. 511 bbl; NWNW 13-163N-90W; Burke Co. #17524 - Paradox 34-31H; horizontal; Madison; Woburn; 10/9/2008; 70 #13147 - Stoneview-Stonewall Unit 624; vertical; Duperow; Stoneview; #12384 - Bull Moose 11-23; vertical; Duperow; Bull Moose; 8/5/1988; bbl; SWSE 31-163N-90W; Burke Co. 5/19/1991; 5 bbl; SENW 24-160N-95W; Divide Co. 291 bbl; NWNW 23-147N-101W; McKenzie Co. #16599 - Mesa 11-31H; horizontal; Midale/Nesson; Lakeside; 7/6/2007; #12506 - Hay Draw 32-33; horizontal; Bakken; Hay Draw; 11/21/1988; #14824 - Freed 44-6H; horizontal; Midale/Nesson; Customs; 6/23/1998; 131 bbl; NWNW 31-163N-89W; Burke Co. 148 bbl; SWNE 33-147N-102W; McKenzie Co. 49 bbl; SESE 6-163N-89W; Burke Co. #13815 - Smetana 31 2; vertical; Dakota; Great Northern; N/A; N/A; #05535 - Vatne ET AL 1; vertical; Madison; Hamlet; 2/20/1975; 1,340 bbl; #14809 - Jorgenson 44-14H; horizontal; Midale/Nesson; Customs; SENW 31-160N-83W; Bottineau Co. NWSW 24-160N-96W; Divide Co. 3/18/1998; 335 bbl; SESE 14-163N-90W; Burke Co. #12127 - Johnson 4-24; vertical; Madison; Greenbush; 7/27/1987; 354 #15582 - 20104 JV-P SSU 31-11H; horizontal; Stonewall; Stoneview; #15624 - 20401 JV-P Michael 1-H; horizontal; Birdbear; Stoneview; bbl; NWNW 24-159N-87W; Ward Co. 9/7/2004; 80 bbl; NWNE 11-160N-95W; Divide Co. 10/22/2004; 40 bbl; NWNW 11-160N-95W; Divide Co. #16228 - Fortification 43-16-162-90H; Midale/Nesson; Carter; 8/19/2006; #07794 - Mile Butte 31-13; vertical; Red River; Pierre Creek; 11/8/1981; #14787 - Pederson 5; vertical; Duperow; Temple; 3/14/1998; 51 bbl; 209 bbl; NESE 16-162N-90W; Burke Co. 210 bbl; NWSW 31-147N-102W; McKenzie Co. NWNE 18-158N-95W; Williams Co. #17180 - Mesa 44-10H; horizontal; Midale/Nesson; Lakeside; 5/30/2008; #05925 - Nygaard 33-23HR; vertical; Madison; Hamlet; 2/6/1977; 38 bbl; #14630 - Steffan 12-6H; horizontal; Madison; Barta; 6/16/1997; 131 bbl; 341 bbl; SESE 10-163N-89W; Burke Co. NWSE 23-160N-96W; Divide Co. SWNW 6-141N-97W; Dunn Co. #19383 - Gunnison 44-25H; horizontal; Bakken; Little Butte; 5/31/2011; #13065 - 20401 JV-P Olson 1313; horizontal re-entry; Stonewall; #15626 - 20401 JV-P Ness 1-25H; horizontal; Stonewall; Stoneview; 48 bbl; SESE 25-161N-91W; Burke Co. Stoneview; 1/6/1991; 497 bbl; SWSW 13-160N-95W; Divide Co. 12/13/2004; 83 bbl; NWNW 25-160N-95W; Divide Co. #07949 - Arithson E-2; vertical; Red River; South Horse Creek; #15136 - McGinnity 2-6H; horizontal; Ratcliffe; Temple; 9/5/2001; 243 #16679 - 20401 JV-P Nelson 33-8; vertical; Winnipegosis; McGregor; 11/25/1980; 130 bbl; SWSW 27-129N-104W; Bowman Co. bbl; SWNW 6-158N-95W; Williams Co. 10/9/2007; 138 bbl; SESE 8-158N-95W; Williams Co. #10927 - State 1-44-6; vertical; Duperow; Colgan; 9/14/1984; 76 bbl; #20276 - Flat Top Butte 15-34R; vertical; Red River; Flat Top Butte; #14846 - Botton 11-10H; horizontal; Midale/Nesson; Customs; 7/24/1998; SESE 6-163N-100W; Divide Co. 4/5/2012; 63 bbl; SWSE 15-146N-101W; McKenzie Co. 96 bbl; NWNW 10-163N-90W; Burke Co. #16653 - Paradox 11-30H; horizontal; Madison; Flaxton; 10/20/2007; 285 #09781 - Biwer 1; vertical; Winnipegosis; Temple; 12/5/1982; 512 bbl; #12073 - Pierre Creek 14-5; vertical; Red River; Pierre Creek; 1/11/1988; bbl; LOT 1 30-163N-90W; Burke Co. NENE 12-158N-96W; Williams Co. 213 bbl; SWSW 5-146N-102W; McKenzie Co. #13739 - Oberholtzer 30 1; vertical; Madison; Great Northern; 1/13/1995; #15054 - 20401 JV-P HOSETH 41-17; directional; Winnipegosis; #14917 - Stoneview-Stonewall Unit 1311; horizontal; Stonewall; 65 bbl; SESW 30-160N-83W; Bottineau Co. McGregor; 2/1/2001; 598 bbl; NENE 17-158N-95W; Williams Co. Stoneview; 11/27/1999; 370 bbl; SWSW 11-160N-95W; Divide Co. #16867 - Mesa 13-29H; horizontal; Midale/Nesson; Lakeside; 1/16/2008; #12249 - Pierre Creek 21-17; vertical; Red River; Pierre Creek; 1/25/1988; #14626 - Josoden 11-15HR; horizontal; Madison; Willmen; 5/22/1997; 154 bbl; NWSW 29-163N-89W; Burke Co. 111 bbl; NENW 17-146N-102W; McKenzie Co. 508 bbl; NWNW 15-142N-97W; Dunn Co. #17095 - Huerfano 11-23H; horizontal; Midale/Nesson; Lakeside; #12238 - Pierre Creek Federal 14-30; vertical; Red River; Pierre Creek; #14046 - Pierre Creek Nelson 42-23; vertical; Red River; Pierre Creek; 5/8/2008; 111 bbl; NWNW 23-163N-89W; Burke Co. 1/8/1988; 132 bbl; SWSW 30-147N-102W; McKenzie Co. 4/10/1996; 5 bbl; SENE 23-146N-102W; McKenzie Co. #18608 - Gunnison State 44-36H; horizontal; Bakken; Little Butte; #08468 - Beicegel Creek 27-42; vertical; Duperow; Flat Top Butte; #11450 - Skarderud 33-7; vertical; Winnipegosis; Temple; 7/26/1985; 312 5/5/2010; 613 bbl; SESE 36-161N-91W; Burke Co. 2/25/1982; 514 bbl; SENE 27-146N-101W; McKenzie Co. bbl; NWSE 7-158N-95W; Williams Co. #90022 - Arithson 1; vertical; Dakota; South Horse Creek; N/A; N/A; #12240 - Hay Draw 33-33; vertical; Birdbear; Hay Draw; 2/3/1988; 49 bbl; #11536 - Pierre Creek 43-7 SWD; vertical; Birdbear; Pierre Creek; NENW 34-129N-104W; Bowman Co. NWSE 33-147N-102W; McKenzie Co. 12/13/1985; 281 bbl; NESE 7-146N-102W; McKenzie Co. #17701 - Wildhorse 11-24H; horizontal; Midale/Nesson; Lakeside; #04627 - Government Taylor A 1; vertical; Madison; Square Butte; #16785 - Flat Top Butte 5-15H; horizontal; Madison; Flat Top Butte; 10/6/2010; 63 bbl; NWNW 24-163N-89W; Burke Co. 5/10/1969; 122 bbl; SESE 9-139N-103W; Golden Valley Co. 6/21/2008; 40 bbl; SWNW 15-146N-101W; McKenzie Co. #20368 - Alice-Jean 33-30; vertical; Madison; Great Northern; 9/28/2011; #12427 - Wildrose State 2-36; vertical; Winnipegosis; Moraine; N/A; N/A; #11719 - Snowcover 43-19 SWD; vertical; Dakota; Snowcover; N/A; N/A; 117 bbl; NWSE 30-160N-83W; Bottineau Co. NWNE 36-161N-98W; Divide Co. NESE 19-147N-101W; McKenzie Co. #19371 - Gunnison 11-31H; horizontal; Bakken; South Coteau; #16692 - 20401 JV-P Gohrick 43-17; vertical; Winnipegosis; McGregor; #12062 - Strombeck 1; vertical; Stonewall; North Tioga; 7/13/1987; 368 5/13/2011; 96 bbl; NWNW 31-161N-90W; Burke Co. 9/21/2007; 32 bbl; NESE 17-158N-95W; Williams Co. bbl; SWSW 31-160N-94W; Burke Co. #16297 - Poudre 44-18H; horizontal; Madison; Woburn; 9/27/2006; 291 #12366 - Wold 1; vertical; Bakken; North Tioga; 6/23/1988; 113 bbl; SWSE #11493 - State 3-16; vertical; Madison; Square Butte; 8/24/1985; 93 bbl bbl; SESE 18-162N-90W; Burke Co. 31-160N-94W; Burke Co. NWSW 16-139N-103W; Golden Valley Co. #17440 - Mesa 24-2H; horizontal; Midale/Nesson; Lakeside; 9/28/2008; #11848 - Pierre Creek 33-31; vertical; Red River; Pierre Creek; 2/1/1986; #15519 - SSU 4303H; horizontal; Stonewall; Stoneview; 3/21/2004; 323 55 bbl; SESW 2-163N-89W; Burke Co. 875 bbl; NWSE 31-147N-102W; McKenzie Co. bbl; NESE 3-160N-95W; Divide Co. #12529 - Miller F 12-13; vertical; Dakota; Greenbush; N/A; N/A; NWSW #11840 - North Branch 2-22F; vertical; Duperow; North Branch; #11468 - North Branch 41-3; vertical; Duperow; North Ranch; 7/13/1985; 13-159N-87W; Ward Co. 1/27/1986; 403 bbl; SENW 2-147N-102W; McKenzie Co. 361 bbl; NENE 3-147N-102W; McKenzie Co. #17013 - Mesa 44-11H; horizontal; Midale/Nesson; Lakeside; 4/7/2008; #11847 - Hay Draw 31-33; vertical; Birdbear; Hay Draw; 3/2/1986; 217 #12068 - Hay Draw 22-33; vertical; Stonewall; Hay Draw; 4/22/1987; 190 232 bbl; SESE 11-163N-89W; Burke Co. bbl; NWNE 33-147N-102W; McKenzie Co. bbl; SENW 33-147N-102W; McKenzie Co. #16956 - Crystal 44-18H; horizontal; Midale/Nesson; Carter; 3/25/2008; #11807 - North Branch 35-24; vertical; Duperow; North Branch; #11214 - North Branch 22-35 WIW; vertical; Red River; North Branch; 160 bbl; SESE 18-162N-89W; Burke Co. 12/30/1985; 414 bbl; SESW 35-148N-102W; McKenzie Co. 1/13/1985; 102 bbl; SENW 35-148N-102W; McKenzie Co. #19573 - Larson 41-30; vertical; Madison; Great Northern; 12/21/2010; #15016 - NDCA 6H; horizontal; Winnipegosis; McGregor; 11/27/2000; 595 #20239 - Rider 4-13; directional; Madison; Rider; N/A; N/A; NWSE 13- 147 bbl; NENE 30-160N-83W; Bottineau Co. bbl; SESE 16-158N-95W; Williams Co. 140N-103W; Golden Valley Co. #90153 - Coteau 11-31 SWD; vertical; Dakota; South Coteau; N/A; N/A; #11995 - Pierre Creek Federal 11-8HR; horizontal re-entry; Red River; #14769 - Agribank 44-7H; horizontal; Midale/Nesson; Customs; NWNW 31-161N-90W; Burke Co. Pierre Creek; 9/29/1986; 285 bbl; NWNW 8-146N-102W; McKenzie Co. 12/17/1997; 247 bbl; SESE 7-163N-89W; Burke Co. #16049 - Paradox 43-36-163-91H; horizontal; Madison; Flaxton; #13770 - Cinnamon Creek Federal 14-24HR; horizontal re-entry; #15522 - SSU 1314H; horizontal; Stonewall; Stoneview; 5/4/20040; 292 5/18/2006; 175 bbl; NESE 36-163N-91W; Burke Co. Duperow; Cinnamon Creek; 5/14/1996; 163 bbl; S2SW 24-145N-103W; bbl; NWSW 14-160N-95W; Divide Co. #20110 - Gunnison 41-23H; horizontal; Bakken; Clayton; 10/10/2011; 507 McKenzie Co. #15675 - 20401 JV-P LISA 1-H; horizontal; Stonewall; Stoneview; N/A; bbl; NWNE 23-161N-91W; Burke Co. #14843 - Iverson 44-5H; horizontal; Midale/Nesson; Customs; 7/18/1998; N/A; SWSE 3-160N-95W; Divide Co. #20268 - Fortification 31-25H; horizontal; Bakken; Rennie Lake; 509 bbl; SESE 5-163N-90W; Burke Co. #19765 - Bull Moose 22Y-32; vertical; red River; Bull Moose; 9/23/2011; 11/12/2011; 44 bbl; NWNE 25-162N-91W; Burke Co. #90139 - North Branch 22-35 WSW; vertical; Dakota; North Branch; N/A; 19 bbl; SWNE 22-147N-101W; McKenzie Co. #16044 - Ganskop 11-23-163-90H; horizontal; Midale/Nesson; Customs; N/A; SENW 35-148N-102W; McKenzie Co. 2/2/2006; 228 bbl; NWNW 23-163N-90W; Burke Co. #14578 - Warner ET AL 13-12SWD; horizontal; Midale/Nesson; Customs; October 31, 2013 1/31/1997; 49 bbl; NWSW 12-163N-90W; Burke Co. From: Prima Exploration, Inc. From: Missouri Basin Well Service, Inc. #14884 - McClaflin 11-9H; horizontal; Midale/Nesson; Customs; To: Rim Operating, Inc. To: Basin Service Company, Inc. 12/15/1998; 147 bbl; NWNW 9-163N-90W; Burke Co. #17320 - Huerfano 11-13H; horizontal; Midale/Nesson; Lakeside; #16564 - S.E. 3-H; horizontal; Madison; Wildcat; 4/16/2007; 7 bbl; SWSE #14885 - Wilson 44-32H; horizontal; Midale/Nesson; Customs; 6/25/1999; 8/12/2008; 196 bbl; NWNW 13-163N-89W; Burke Co. 8-160N-85W; Renville Co. 141 bbl; SESE 32-164N-90W; Burke Co. #13642 - Smetana 31 1; vertical; Madison; Great Northern; 4/5/1994; 128 #14886 - Gresz 11-33HR; horizontal; Madison; Hungry Man Butte; bbl; NENW 31-160N-83W; Bottineau Co. From: WW Oilfield Services, LLC 12/12/1998; 97 bbl; NWNW 33-143N-98W; Billings Co. #17146 - Fortification 11-19H; horizontal; Midale/Nesson; Carter; To: Basin Service Company, Inc. #14868 - Larsen 11-21H; horizontal; Midale/Nesson; Customs; 10/9/1998; 11/28/2008; 101 bbl; LOT 1 19-162N-90W; Burke Co. #06039 - Martin-Williams SWD 1; vertical; Dakota; South Westhope; N/A; 203 bbl; NWNW 21-163N-90W; Burke Co. #18162 - Mactavish 32-30; vertical; Madison; Great Northern; 9/16/2009; #14845 - Knudson 11-21H; horizontal; Midale/Nesson; Lakeside; 118 bbl; SWNE 30-160N-83W; Bottineau Co. see TRANSFERS page 15

Looking for a rig report? Bakken producers’ stock prices Closing prices as of Nov. 6, along with those from previous Wednesday

North Dakota Company Exchange Symbol Closing price Previous Wed. The best list for North Dakota is updated daily by the North Dakota Oil and Gas Abraxas Petroleum Corp. NASDAQ AXAS $3.16 $2.59 Division at www.dmr.nd.gov/oilgas/riglist.asp American Eagle Energy Corp. AMZG OTC $2.47 $2.24 Arsenal Energy USA, Inc. TSE AEI $5.10 $5.20 Saskatchewan Baytex Energy Corp. NYSE BTE $40.39 $41.48 Weekly drilling activity report from the government of Saskatchewan: Burlington Resources Co. (ConocoPhillips) NYSE COP $73.90 $73.25 www.economy.gov.sk.ca/Daily-Well-Bulletin-Weekly-Drilling-Reports Continental Resources, Inc. NYSE CLR $116.69 $114.56 Crescent Point Energy Corp. TSE CPG $40.12 $40.20 Manitoba Enerplus Resources USA Corp. NYSE ERF $17.16 $17.08 EOG Resources, Inc. NYSE EOG $176.64 $180.33 Weekly drilling activity report from the government of Manitoba: Fidelity Exploration and Production (MDU) NYSE MDU $30.40 $29.83 www.manitoba.ca/iem/petroleum/wwar/index.html GMX Resources, Inc. PINK GMXRQ $0.13 $0.14 Hess Corp. NYSE HES $81.00 $80.32 HRC Operating (Halcon Resources Corp.) NYSE HK $4.70 $5.23 Kodiak Oil and Gas (USA), Inc. NYSE KOG $12.30 $13.07 Legacy Reserves Operating LP NASDAQ LGCY $27.61 $26.66 Marathon Oil Co. NYSE MRO $36.45 $35.76 Newfield Production Co. NYSE NFX $30.09 $30.56 Oasis Petroleum, Inc. NYSE OAS $52.55 $53.78 Oxy USA (Occidental Petroleum Corp.) NYSE OXY $97.01 $96.06 QEP Energy Co. NYSE QEP $32.42 $33.05 Resolute (Resolute Energy Corp.) NYSE REN $9.13 $9.31 Samson Resources Co. (KKR & Co.) NYSE KKR $23.24 $22.96 SM Energy Co. NYSE SM $87.29 $89.69 Statoil Oil and Gas LP NYSE STO $23.77 $23.83 Sundance Energy, Inc. SEA ASX $1.16 $1.10 Triangle USA Petroleum Corp. NYSE TPLM $10.13 $10.35 Whiting Oil and Gas Corp. NYSE WLL $65.05 $67.63 WPX Energy, Inc. NYSE WPX $21.43 $22.74

PHOTO COURTESY CONTINENTAL RESOURCES XTO Energy, Inc. (ExxonMobil) NYSE XOM $93.22 $88.81 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 15

North Dakota oil permit activity October 28—November 4, 2013

confidential status; 2,650; 26903; 33-025-02350; 11/1/2013 zontal; 2,436’ ground; 21826; 33-053-03856; LEGEND 11/1/2013 Fort Berthold 152-93-19D-18-5H; SESE 19-152N- 11/1/2013 The county name is on the upper line, the 93W; 250'FSL and 1,000'FEL; Four Bears; Bakken; hori- Gullickson Trust 150-101-36-25-4H; SESE 36-150N- type of permit issued is on the second line, Whiting Oil zontal; 2,030’ ground; 26913; 33-053-05449; 101W; 470’FSL and 1,170’FEL; Rawson; Bakken; hori- and company names are next, followed by Faiman 24-33PH; SWSE 33-141N-97W; 345'FSL and 11/1/2013 zontal; 2,438’ ground; 21828; 33-053-03858; 2,081'FEL; St. Anthony; Bakken; horizontal; 2,570’ Fort Berthold 152-93-19D-18-6H; SESE 19-152N- 11/1/2013 individual wells with data in this order: well ground; 26896; 33-025-02347; 10/31/2013 93W; 250'FSL and 2,413'FEL; Four Bears; Bakken; hori- name; location; footages; field; geological Faiman 44-33PH; SWSE 33-141N-97W; 390'FSL and zontal; 2,027’ ground; 26907; 33-053-05444; Zenergy (Oasis) target; well bore type; elevation; NDIC file 2,081'FEL; St. Anthony; Bakken; horizontal; 2,570’ 11/1/2013 USA FS 23-14H; LOT3 23-150N-103W; 331’FSL and number; API number; date permit shows on ground; 26895; 33-025-02346; 10/31/2013 Fort Berthold 152-93-19D-18-7H; SESE 19-152N- 1,945’FWL; Foreman Butte; N/A*; on confidential sta- NDIC website 93W; 250'FSL and 2,463'FEL; Four Bears; Bakken; hori- tus; 2,164’ ground; 24302; 33-053-04560; 10/30/2013 XTO Energy (ExxonMobil) zontal; 2,028’ ground; 26906; 33-053-05443; Abbreviations FBIR Guyblackhawk 24X-27A; SESW 27-149N-92W; 11/1/2013 Permits cancelled Following are the abbreviations used in the 656'FSL and 2,530'FWL; Heart Butte; N/A*; on confi- Burlington Resources Oil and Gas dential status; 2,297’ ground; 26879; 33-025-02342; Oasis Petroleum (ConocoPhillips) report and what they mean: 10/29/2013 Brier 5200 44-22 3B; SESE 22-152N-100W; 221'FSL Crater Lake 11-14MBH; NWNW 14-152N-95W; FNL = From North Line | FEL = From East Line FBIR Guyblackhawk 24X-27E; SESW 27-149N-92W; and 1,147'FEL; Camp; Bakken; horizontal; 2,142’ 244’FNL and 404’FWL; Hawkeye; Bakken; horizontal; FSL = From South Line | FWL = From West Line 651'FSL and 2,500'FWL; Heart Butte; N/A*; on confi- ground; 26890; 33-053-05442; 10/30/2013 2,266’ ground; 26143; 33-053-05182; 11/4/2013 dential status; 2,297’ ground; 26881; 33-025-02343; Brier 5200 44-22 4T2; SESE 22-152N-100W; 221'FSL Craterlands 11-14TFH; NWNW 14-152N-95W; 10/29/2013 and 1,180'FEL; Camp; Bakken; horizontal; 2,138’ 244’FNL and 359’FWL; Hawkeye; Bakken; horizontal; Billings Co. FBIR Guyblackhawk 24X-27F; SESW 27-149N-92W; ground; 26889; 33-053-05441; 10/30/2013 2,266’ ground; 26144; 33-053-05183; 11/4/2013 Seismic permit 660'FSL and 2,560'FWL; Heart Butte; N/A*; on confi- Brier 5200 44-22 5T; SESE 22-152N-100W; 221'FSL Dawson Geophysical dential status; 2,297’ ground; 26878; 33-025-02341; and 1,213'FEL; Camp; Bakken; horizontal; 2,134’ Mountrail Co. NW Russian Creek 3-D; 142-95,96,97,98; 143- 10/29/2013 ground; 26888; 33-053-05440; 10/30/2013 Permits issued 95,96,97,98; 144- 95,96,97,98; 210 sq.mi.; Brier 5200 44-22 6T2; SESE 22-152N-100W; 221'FSL EOG Resources 10/30/2013; 970243 Permits renewed and 1,246'FEL; Camp; Bakken; horizontal; 2,130’ Wayzetta 148-0311H; SWNW 3-153N-90W; Continental Resources ground; 26887; 33-053-05439; 10/30/2013 2,480'FNL and 550'FWL; Parshall; Bakken; horizontal; Burke Co. Micahlucas 2-5H; SWSW 5-145N-96W; 200’FSL and Brier 5200 44-22 7B; SESE 22-152N-100W; 221'FSL 2,226’ ground; 26929; 33-061-02796; 11/4/2013 Permits issued 825’FWL; Jim Creek; N/A*; on confidential status; and 1,279'FEL; Camp; Bakken; horizontal; 2,127’ Oasis Petroleum 2,558’ ground; 21833; 33-025-01532; 11/1/2013 ground; 26887; 33-053-05438; 10/30/2013 Fidelity Exploration and Production (MDU) Delta 6093 24-15 2T; SENE 15-160N-93W; 2,316'FNL CB 13-24H-25; NWSW 24-155N-92W; 1,324'FSL and and 298'FEL; Gros Ventre; Bakken; horizontal; 2,525’ Oxy USA (Occidental Petroleum) Triangle Petroleum 824'FWL; Alger; Bakken; horizontal; 2,292’ ground; ground; 26897; 33-013-01746; 10/31/2013 Michael Fitzmaurice 1-16-21H-141-97; NENE 16- Hagen 149-100-9-4-5H; SESE 9-149N-100W; 315'FSL 26926; 33-061-02795; 11/4/2013 Delta 6093 24-15 3B; SENE 15-160N-93W; 141N-97W; 560’FNL and 1,117’FEL; St. Anthony; and 925'FEL; Ellsworth; Bakken; horizontal; 2,268’ 2,349'FNL and 298'FEL; Gros Ventre; Bakken; horizon- Bakken; horizontal; 2,581’ ground; 24344; 33-025- ground; 26908; 33-053-05445; 11/1/2013 Hess tal; 2,422’ ground; 26898; 33-013-01747; 10/31/2013 01985; 11/1/2013 Hagen 149-100-9-4-6H; SESE 9-149N-100W; 315'FSL EN-State D- 154-93-2635H-6; NWNE 26-154N-93W; Delta 6093 24-15 5T; SENE 15-160N-93W; 2,415'FNL and 875'FEL; Ellsworth; Bakken; horizontal; 2,267’ 258'FNL and 2,256'FEL; Robinson Lake; N/A*; on con- and 298'FEL; Gros Ventre; Bakken; horizontal; 2,424’ Golden Valley Co. ground; 26909; 33-053-05446; 11/1/2013 fidential status; 2,328’ ground; 26856; 33-061-02785; ground; 26899; 33-013-01748; 10/31/2013 Seismic permit Hagen 149-100-9-4-7H; SESE 9-149N-100W; 315'FSL 10/29/2013 Whiting Oil and Gas and 825'FEL; Ellsworth; Bakken; horizontal; 2,266’ EN-State D- 154-93-2635H-7; NWNE 26-154N-93W; Divide Co. Sentinel Butte 3-D Phase I; 139-104,105; 140- ground; 26910; 33-053-05447; 11/1/2013 258'FNL and 2,289'FEL; Robinson Lake; N/A*; on con- Permits issued 104,105; 141-103,104; 61 sq.mi.; 10/31/2013; 970242 Hagen 149-100-9-4-8H; SESE 9-149N-100W; 315'FSL fidential status; 2,328’ ground; 26857; 33-061-02786; Samson Resources (KKR & Co.) and 775'FEL; Ellsworth; Bakken; horizontal; 2,265’ 10/29/2013 Bel Air 2314-8H; NENE 26-163N-99W; 408'FNL and McKenzie Co. ground; 26911; 33-053-05448; 11/1/2013 EN-State D- 154-93-2635H-8; NWNE 26-154N-93W; 1,028'FEL; Ambrose; N/A*; on confidential status; Permits issued 258'FNL and 2,322'FEL; Robinson Lake; N/A*; on con- 2,236’ ground; 26915; 33-023-01127; 11/1/2013 Abraxas Petroleum XTO Energy (ExxonMobil) fidential status; 2,328’ ground; 26858; 33-061-02787; Comet 2635-8H; NENE 26-163N-99W; 400'FNL and Ravin 26-35-4H; SESW 35-150N-97W; 308'FSL and Ruby State Federal 34X-36A; SWSE 36-154N-97W; 10/29/2013 1,004'FEL; Ambrose; N/A*; on confidential status; 1,602'FWL; North Fork; N/A*; on confidential status; 319'FSL and 2,408'FEL; Grinnell; N/A*; on confidential EN-State D- 154-93-2635H-9; NWNE 26-154N-93W; 2,236’ ground; 26915; 33-023-01127; 11/1/2013 2,389’ ground; 26885; 33-053-05437; 10/30/2013 status; 1,876’ ground; 26863; 33-053-05432; 258'FNL and 2,355'FEL; Robinson Lake; N/A*; on con- Ravin 26-35-5H; SESW 35-150N-97W; 308'FSL and 10/29/2013 fidential status; 2,328’ ground; 26859; 33-061-02788; Dunn Co. 1,570'FWL; North Fork; N/A*; on confidential status; Ruby State Federal 34X-36B; SWSE 36-154N-97W; 10/29/2013 Permits issued 2,388’ ground; 26884; 33-053-05436; 10/30/2013 379'FSL and 2,408'FEL; Grinnell; N/A*; on confidential EN-State D- 154-93-2635H-10; NWNE 26-154N- HRC Operating (Halcon Resources) Ravin 26-35-6H; SESW 35-150N-97W; 308'FSL and status; 1,876’ ground; 26862; 33-053-05431; 93W; 258'FNL and 2,388'FEL; Robinson Lake; N/A*; on Fort Berthold 148-94-33C-28-8TFH; SWSW 33- 1,538'FWL; North Fork; N/A*; on confidential status; 10/29/2013 confidential status; 2,328’ ground; 26860; 33-061- 148N-94W; 291'FSL and 593’FWL; McGregory Buttes; 2,388’ ground; 26883; 33-053-05435; 10/30/2013 Ruby State Federal 34X-36E; SWSE 36-154N-97W; 02789; 10/29/2013 Bakken; horizontal; 2,380’ ground; 26865; 33-025- Ravin 26-35-7H; SESW 35-150N-97W; 308'FSL and 289'FSL and 2,408'FEL; Grinnell; N/A*; on confidential 02337; 10/29/2013 1,506'FWL; North Fork; N/A*; on confidential status; status; 1,876’ ground; 26864; 33-053-05433; Oasis Petroleum Fort Berthold 148-94-33C-28-9H; SWSW 33-148N- 2,387’ ground; 26882; 33-053-05434; 10/30/2013 10/29/2013 Overal 5892 11-30T; NWNW 30-158N-92W; 550'FNL 94W; 290'FSL and 623’FWL; McGregory Buttes; Ruby State Federal 34X-36F; SWSE 36-154N-97W; and 240'FWL; Cottonwood; Bakken; horizontal; 2,276’ Bakken; horizontal; 2,381’ ground; 26866; 33-025- Burlington Resources Oil and Gas 409'FSL and 2,408'FEL; Grinnell; N/A*; on confidential ground; 26900; 33-061-02792; 10/31/2013 02338; 10/29/2013 (ConocoPhillips) status; 1,876’ ground; 26861; 33-053-05430; Fort Berthold 148-94-33C-28-10TFH; SWSW 33- Crater Lake 11-14MBH-R; NWNW 14-152N-95W; 10/29/2013 Slawson Exploration 148N-94W; 288'FSL and 653’FWL; McGregory Buttes; 291'FNL and 914’FWL; Hawkeye; N/A*; on confidential Alamo 4-19-18TFH; SWSE 19-151N-92W; 321'FSL Bakken; horizontal; 2,384’ ground; 26867; 33-025- status; 2,277’ ground; 26927; 33-053-05456; Permits renewed and 1,348'FEL; Big Bend; N/A*; on confidential status; 02339; 10/29/2013 11/4/2013 Burlington Resources Oil and Gas 1,917’ ground; 26891; 33-061-02790; 10/30/2013 Fort Berthold 148-94-33C-28-11H; SWSW 33-148N- Craterlands 11-14TFH-R; NWNW 14-152N-95W; (ConocoPhillips) Alamo 5-19-18TFH; SWSE 19-151N-92W; 319'FSL 94W; 286'FSL and 684’FWL; McGregory Buttes; 291'FNL and 869'FWL; Hawkeye; N/A*; on confidential Sheep Creek SHEEP CREEK 18-1H; SESW 7-146N- and 1,423'FEL; Big Bend; N/A*; on confidential status; Bakken; horizontal; 2,384’ ground; 26868; 33-025- status; 2,276’ ground; 26928; 33-053-05457; 100W; 520’FSL and 1,531’FWL; Rough Rider; N/A*; on 1,918’ ground; 26892; 33-061-02791; 10/30/2013 02340; 10/29/2013 11/4/2013 confidential status; 2,518’ ground; 21881; 33-053- 03870; 11/4/2013 Whiting Oil and Gas Marathon Oil Hess Lee State 44-16-2H; SESE 16-154N-90W; 404'FSL Irene Ell 11-1H; SESW 33-145N-96W; 220'FSL and AN-Gudbranson- 153-94-2215H-3; SESW 22-153N- Continental Resources and 875'FEL; Parshall; Bakken; horizontal; 2,293’ 1,500'FWL; Murphy Creek; N/A*; on confidential sta- 94W; 450'FSL and 1,530'FWL; Elm Tree; N/A*; on con- Joliet 1-18H; NENW 18-146N-98W; 170’FNL and ground; 26904; 33-061-02793; 11/1/2013 tus; 2,477’ ground; 26925; 33-025-02351; 11/4/2013 fidential status; 2,160’ ground; 26920; 33-053-05451; 1,980’FWL; Ranch Creek; N/A*; on confidential status; Lee State 44-16-3H; SESE 16-154N-90W; 403'FSL 11/4/2013 2,584’ ground; 21869; 33-053-03866; 11/4/2013 and 830'FEL; Parshall; Bakken; horizontal; 2,293’ Oxy USA (Occidental Petroleum) AN-Gudbranson- 153-94-2215H-4; SESW 22-153N- Lansing 3-25H; NENE 25-152N-99W; 695’FNL and ground; 26905; 33-061-02794; 11/1/2013 Leiss 4-26-23H-143-96; SESE 26-143N-96W; 741'FSL 94W; 450'FSL and 1,580'FWL; Elm Tree; N/A*; on con- 555’FEL; Banks; N/A*; on confidential status; 2,146’ and 1,259'FEL; Fayette; Bakken; horizontal; 2,318’ fidential status; 2,159’ ground; 26921; 33-053-05452; ground; 24335; 33-053-04571; 11/1/2013 Williams Co. ground; 26893; 33-025-02344; 10/30/2013 11/4/2013 Lansing 4-25H; NENE 25-152N-99W; 695’FNL and Permits issued Robert Sadowsky 2-35-2H-143-96; SESE 26-143N- AN-Gudbranson- 153-94-2215H-5; SESW 22-153N- 600’FEL; Banks; N/A*; on confidential status; 2,146’ Continental Resources 96W; 719'FSL and 1,225'FEL; Manning; Bakken; hori- 94W; 450'FSL and 1,630'FWL; Elm Tree; N/A*; on con- ground; 24334; 33-053-04570; 11/1/2013 Lawrence 6-24H1; NENW 25-159N-95W; 350'FNL zontal; 2,317’ ground; 26894; 33-025-02345; fidential status; 2,158’ ground; 26922; 33-053-05453; Steele Federal 3-24H; NENE 25-152N-99W; 695’FNL and 2,099'FWL; North Tioga; N/A*; on confidential sta- 10/30/2013 11/4/2013 and 800’FEL; Banks; N/A*; on confidential status; tus; 2,267’ ground; 26880; 33-105-03297; 10/29/2013 AN-Gudbranson- 153-94-2215H-6; SESW 22-153N- 2,144’ ground; 24333; 33-053-04569; 11/1/2013 Lawrence 7-24H2; NENW 25-159N-95W; 350'FNL Petro-Hunt 94W; 450'FSL and 1,680'FWL; Elm Tree; N/A*; on con- Steele Federal 4-24H; NENE 25-152N-99W; 695’FNL and 2,144'FWL; North Tioga; N/A*; on confidential sta- Marinenko 145-97-30B-31-3H; NENW 30-145N- fidential status; 2,158’ ground; 26923; 33-053-05454; and 845’FEL; Banks; N/A*; on confidential status; tus; 2,264’ ground; 26873; 33-105-03292; 10/29/2013 97W; 250'FNL and 1,480'FWL; Little Knife; N/A*; on 11/4/2013 2,142’ ground; 24332; 33-053-04568; 11/1/2013 Lawrence 8-24H3; NENW 25-159N-95W; 350'FNL confidential status; 2,649; 26901; 33-025-02348; AN-Gudbranson- 153-94-2215H-7; SESW 22-153N- and 2,189'FWL; North Tioga; N/A*; on confidential sta- 11/1/2013 94W; 450'FSL and 1,662'FWL; Elm Tree; N/A*; on con- Kodiak Oil and Gas tus; 2,262’ ground; 26877; 33-105-03296; 10/29/2013 Marinenko 145-97-30B-31-4H; NENW 30-145N- fidential status; 2,158’ ground; 26924; 33-053-05455; Grizzly 147-103-16-21-16-2H, SESE 21-147N-103W; Lawrence 9-24H; NENW 25-159N-95W; 350'FNL and 97W; 250'FNL and 1,380'FWL; Little Knife; N/A*; on 11/4/2013 225’FSL and 1,280’ FEL; Mondak; Bakken; horizontal; 2,234'FWL; North Tioga; N/A*; on confidential status; confidential status; 2,649; 26902; 33-025-02349; 2,195’ ground; 21956; 33-053-03882; 10/30/2013 2,261’ ground; 26876; 33-105-03295; 10/29/2013 11/1/2013 HRC Operating (Halcon Resources) Lawrence 10-24H2; NENW 25-159N-95W; 350'FNL Marinenko 145-97-30B-31-5H; NENW 30-145N- Fort Berthold 152-93-19D-18-4H; SESE 19-152N- Triangle Petroleum and 2,279'FWL; North Tioga; N/A*; on confidential sta- 97W; 250'FNL and 1,280'FWL; Little Knife; N/A*; on 93W; 250'FSL and 925'FEL; Four Bears; Bakken; hori- Gullickson Trust 150-101-36-25-2H; SESE 36-150N- zontal; 2,031’ ground; 26914; 33-053-05450; 101W; 470’FSL and 1,220’FEL; Rawson; Bakken; hori- see PERMITS page 16 continued from page 14 From: SBG Tioga Facility LLC From: SBG Grassy Butte LLC To: Cypress Energy Partners – Bakken, LLC To: Cypress Energy Partners – Bakken, LLC TRANSFERS #90144 - Cypress Tioga SWD 1; vertical; Dakota; Beaver Lodge; N/A; N/A; #90179 - Cypress Grassy Butte SWD 1; vertical; Dakota; Wildcat; N/A; NWNW 15-156N-96W; Williams Co. N/A; SENE 35-147N-99W; McKenzie Co.

N/A; NENW 27-162N-80W; Bottineau Co. From: SBG Green River Facility LLC From: SBG Prairie Lakes LLC #10160 - Montgomery 1; vertical; Dakota; Sergis; N/A; N/A; SESE 1-162N- To: Cypress Energy Partners – Bakken, LLC To: Cypress Energy Partners – Bakken, LLC 80W; Bottineau Co. #90234 - Cypress Green River SWD 1; vertical; Dakota; St. Demetrius; #90248 - Cypress Prairie Lakes SWD 1; on confidential status; N/A*; West #10304 - Cawdor ET AL 1; vertical; Spearfish/Madison; Northeast Landa; N/A; N/A; NWNW 23-141N-99W; Billings Co. Ambrose; N/A; N/A; SWSW 25-162N-100W; Divide Co. N/A; N/A; NWSW 32-164N-78W; Bottineau Co. From: SBG 1804 Facility LLC *Note -The geologic target for these wells was not listed in its well From: SBG Manning Facility LLC To: Cypress Energy Partners – Bakken, LLC file because they are on confidential status, but the West Ambrose To: Cypress Energy Partners – Bakken, LLC #90274 - Cypress 1804 SWD 2; vertical; Dakota; Robinson Lake; N/A; N/A; field produces from the Bakken and Duperow pools. #90157 - Cypress Manning SWD 1; vertical; Dakota; Murphy Creek; N/A; SESW 35-155N-93W; Mountrail Co. N/A; SWSW 18-143N-95W; Dunn Co. #90182 - Cypress 1804 SWD 1; vertical; Dakota; Robinson Lake; N/A; N/A; SWSW 35-155N-93W; Mountrail Co. 16 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 IPs for ND Bakken wells October 29—November 4, 2013

This chart contains initial production rates, or IPs, for active wells that were filed as completed with the state of North Dakota from Oct. 29-Nov. 4, 2013 in the Bakken petroleum system, which includes formations such as the Bakken and Three Forks. The completed wells that did not have an available IP LEGEND rate (N/A) likely haven’t been tested or were awarded confidential (tight-hole) status by the North Dakota Industrial Commission’s Department of The well operator’s name is on the upper line, followed by individual wells with Minerals. This chart also contains a section with active wells that were released from confidential status during the same period, Oct. 29-Nov. 4. Again, data in this order: NDIC file number; well name; field; location; spacing; county; some IP rates were not available (N/A). . The information was assembled by Petroleum News Bakken from NDIC daily activity reports and other sources. geologic target; wellbore type; total depth; IP test date; IP oil flow rate. (IP stands The name of the well operator is as it appears in state records, with the loss of an occasional Inc., LLC or Corporation because of space limitations. Some for initial production; in this chart it’s the first 24 hours of oil production.) of the companies, or their Bakken petroleum system assets, have been acquired by others. s. In some of those cases, the current owner’s name is in parenthesis behind the owner of record, such as ExxonMobil in parenthesis behind XTO Energy. If the chart is missing current owner’s names, please con- tact Ashley Lindly at [email protected].

IPs for completed North Dakota wells Bakken; horizontal; N/A; N/A; N/A Top 10 Bakken wells by IP rate Burlington Resources Oil and Gas (ConocoPhillips) Hess 25279; CCU William 24-20MBH; Corral Creek; NENW 29-147N-95W; U; HRC Operating (Halcon Resources) 25203; EN-Trinity-154-93- 2833H-4; SWSE 21-154N-93W; 2SEC; Dunn; Bakken; horizontal; 22,395; 10/24/2013; 2,966 bbl 20915; Fort Berthold 150-94-3B-10-2H; Spotted Horn; McKenzie; Mountrail; Bakken; horizontal; 20,630; 10/7/2013; 1,033 bbl 25235; Everglades 21-3TFH; Keene; LOT3 3-152N-96W; 2SEC; McKenzie; 3,363 bbl 24025; RC-Lonna-140-95- 2932H-1; Davis Buttes; NENW 29-140N-95W; Bakken/Three Forks; horizontal; 21,302; 8/31/2013; 2,285 bbl N/A; Stark; Bakken; horizontal; N/A; N/A; N/A Whiting Oil and Gas Continental Resources 25732; Eide 41-13-2H; Timber Creek; McKenzie; 3,046 bbl HRC Operating (Halcon Resources) 23784; Brandvik 3-25H; Corral Creek; NWNE 36-147N-96W; 4SEC; Dunn; 20915; Fort Berthold 150-94-3B-10-2H; Spotted Horn; LOT4 3-150N-94W; Bakken; horizontal; 21,621; 10/6/2013; 632 bbl Burlington Resources Oil and Gas (ConocoPhillips) 2SEC; McKenzie; Bakken; horizontal; 20,467; 8/30/2013; 3,363 bbl 23783; Brandvik 4-25H1; Corral Creek; NWNE 36-147N-96W; 4SEC; Dunn; 25279; CCU William 24-20MBH; Corral Creek; Dunn; 2,966 bbl 20916; Fort Berthold 151-94-34C-27-2H; Antelope; LOT4 3-150N-94W; Bakken; horizontal; 21,543; 10/8/2013; 640 bbl N/A; McKenzie; Sanish; horizontal; N/A; N/A; N/A HRC Operating (Halcon Resources) Emerald Oil 23554; Fort Berthold 152-94-14D-11-4H; Antelope; McKenzie; 2,909 Hunt Oil 19863; Mongoose 1-8-5H; Charbonneau; SESW 8-149N-102W; 2SEC; bbl 26493; Bear Butte 1-12-1HX; Bear Butte; SWSW 12-148N-101W; N/A; McKenzie; Bakken; horizontal; 20,574; 6/27/2013; 1,190 bbl McKenzie; Bakken; horizontal; N/A; N/A; N/A 23909; Arsenal {Federal} 1-17-20H; Charbonneau; SESW 8-149N-102W; Burlington Resources Oil and Gas (ConocoPhillips) 2SEC; McKenzie; Bakken; horizontal; 21,190; 5/26/2013; 1,461 bbl 24905; CCU Prairie Rose 31-30MBH; Corral Creek; Dunn; 2,846 bbl Kodiak Oil and Gas 23953; Charging Eagle 16-21-16-1HA; Twin Buttes; SESE 21-147N-92W; Hess Oasis Petroleum 2SEC; Dunn; Bakken; horizontal; 19,279; 8/27/2013; 2,022 bbl 24641; HA-Nelson 152-95-3328H-5; Hawkeye; SESW 33-152N-95W; 2SEC; 24952; Leni 5693 42-11B; Alger; Mountrail; 2,765 bbl McKenzie; Bakken; horizontal; 20,518; 9/28/2013; 680 bbl Marathon Oil 21646; LK-State 146-98-3526H-1; Ranch Coulee; SWSE 35-146N-98W; Burlington Resources Oil and Gas (ConocoPhillips) 25275; Betty Fettig 21-27H; Killdeer; NENW 27-146N-95W; N/A; Dunn; 2SEC; McKenzie; Bakken; horizontal; 20,883; 9/29/2013; 22 bbl 25278; CCU William 24-20TFH; Corral Creek; Dunn; 2,605 bbl Bakken; horizontal; N/A; N/A; N/A 21343; Darwin 34-35H; Murphy Creek; SWSE 35-145N-96W; 2SEC; Dunn; HRC Operating (Halcon Resources) Marathon Oil Bakken; horizontal; 20,484; 9/5/2013; 1,869 bbl 24299; Fort Berthold 148-95-13A-24-3H; Eagle Nest; NWNE 13-148N- 25101; Martin 31-14H; Reunion Bay; Mountrail; 2,566 bbl 23549; Jane Nelson 34-24H; Strandahl; SWSE 24-157N-103W; N/A; 95W; 2SEC; Dunn; Bakken; horizontal; 21,123; 9/15/2013; 1,687 bbl Williams; Bakken; horizontal; N/A; N/A; N/A 23505; Fort Berthold 152-93-17D-08-7H; Four Bears; SESE 17-152N-93W; Statoil Oil and Gas 25101; Martin 31-14H; Reunion Bay; NWNE 14-151N-93W; 2SEC; 2SEC; McKenzie; Bakken; horizontal; 20,616; 9/10/2013; 2,147 bbl Viking 16-15 2TFH; Poe; McKenzie; 2,521 bbl Mountrail; Bakken; horizontal; 20,324; 8/29/2013; 2,566 bbl 23554; Fort Berthold 152-94-14D-11-4H; Antelope; SESE 14-152N-94W; 25114; Patrick 34-32H; Bailey; SWSE 32-146N-93W; 2SEC; Dunn; Bakken; 2SEC; McKenzie; Sanish; horizontal; 20,944; 8/18/2013; 2,909 bbl QEP Energy horizontal; 20,203; 8/29/2013; 2,417 bbl 23094; MHA 2-06-05H-149-92; Heart Butte; Dunn; 2,512 bbl 24078; Vorwerk USA 24-34H; Deep Water Creek Bay; SWSW 34-150N- Kodiak Oil and Gas 90W; N/A; McLean; Bakken; horizontal; N/A; N/A; N/A 24788; Smokey 13-7-19-13H; Pembroke; LOT4 7-149N-98W; 2SEC; Note: This chart contains initial production rates, or IPs, from the adjacent IP chart McKenzie; Bakken; horizontal; 21,504; 9/16/2013; 1,880 bbl for active wells that were filed as completed with the state of North Dakota from Oct. Oasis Petroleum 24789; Smokey 13-7-19-13H3; Pembroke; LOT4 7-149N-98W; 2SEC; 29–Nov. 4, 2013 in the Bakken petroleum system, as well as active wells that were 24761; Gloria 5393 44-4B; Sanish; SESE 4-153N-93W; SEC; Mountrail; Bakken; horizontal; 15,050; 7/19/2013; 1,957 bbl McKenzie; Bakken; horizontal; 21,595; 9/15/2013; 1,669 bbl released from tight- hole (confidential) status during the same period. The well oper- 24952; Leni 5693 42-11B; Alger; SESW 11-156N-93W; 2SEC; Mountrail; 24786; Smokey 13-7-19-14H; Pembroke; LOT4 7-149N-98W; 2SEC; ator’s name is on the upper line, followed by individual wells; the NDIC file number; Bakken; horizontal; 20,520; 7/18/2013; 2,765 bbl McKenzie; Bakken; horizontal; 21,690; 9/10/2013; 1,321 bbl well name; field; county; IP oil flow rate in barrels of oil. 24787; Smokey 13-7-19-14H3M; Pembroke; LOT4 7-149N-98W; 2SEC; 24226; Neva Federal 5300 14-25T; Willow Creek; NENE 25-153N-100W; McKenzie; Bakken; horizontal; 21,678; 9/12/2013; 1,329 bbl N/A; Williams; Bakken; horizontal; N/A; N/A; N/A 24644; Newberry 5200 41-20T; Camp; SWSW 20-152N-100W; 2SEC; QEP Energy Burlington Resources Oil and Gas (ConocoPhillips) McKenzie; Bakken; horizontal; 21,482; 9/10/2013; 1,773 bbl 25186; Bert 1-2-11BH; Grail; LOT2 2-149N-95W; 2SEC; McKenzie; Bakken; 22184; Bretton Woods 24-20MBH; Crooked Creek; SESW 20-143N-97W; 24968; Sonora 6094 42-24H; North Tioga; SESW 24-160N-94W; 2SEC; horizontal; 21,332; 10/11/2013; 2,170 bbl N/A; Dunn; Bakken; horizontal; N/A; N/A; N/A Burke; Bakken; horizontal; 18,951; 7/13/2013; 505 bbl 23096; MHA 1-06-05H-149-92; Heart Butte; SWSE 6-149N-92W; ICO; 24905; CCU Prairie Rose 31-30MBH; Corral Creek; NWNE 30-147N-95W; 24570; Shields 5200 43-20T; Camp; SWSE 20-152N-100W; 2SEC; Dunn; Bakken; horizontal; 17,680; 9/11/2013; 825 bbl U; Dunn; Bakken; horizontal; 20,918; 8/6/2013; 2,846 bbl McKenzie; Bakken; horizontal; 20,650; 7/23/2013; 1,649 bbl 23094; MHA 2-06-05H-149-92; Heart Butte; SWSE 6-149N-92W; ICO; 18095; CCU Red River 34-9H; Corral Creek; SWSE 9-147N-95W; N/A; Dunn; Bakken; horizontal; 16,950; 9/15/2013; 2,512 bbl Dunn; Bakken; horizontal; N/A; N/A; N/A Oxy USA (Occidental Petroleum) 25279; CCU William 24-20MBH; Corral Creek; NENW 29-147N-95W; U; 24716; John Kinne 1-27-34H-142-98; Snow; SESW 22-142N-98W; 2SEC; Statoil Oil and Gas Dunn; Bakken; horizontal; 22,395; 10/24/2013; 2,966 bbl Billings; Bakken; horizontal; 20,954; 4/29/2013; 797 bbl Viking 16-15 2TFH; Poe; NWNW 16-151N-100W; 2SEC; McKenzie; 25278; CCU William 24-20TFH; Corral Creek; NENW 29-147N-95W; U; Bakken; horizontal; 21,000; 9/25/2013; 2,521 bbl Dunn; Bakken; horizontal; 22, 550; 10/14/2013; 2,605 bbl Petro-Hunt 24262; Glacier 41-4TFH; Clear Creek; LOT1 4-151N-96W; N/A; McKenzie; 21725; USA 150-102-6A-7-1H; Foreman Butte; LOT1 6-150N-102W; 2SEC; True Oil Bakken; horizontal; N/A; N/A; N/A McKenzie; Bakken; horizontal; 20,377; 7/9/2013; 230 bbl 24865; Nelson 41-24 24-23H MB1; Red Wing Creek; NENE 24-148N- 24530; Wollan 152-96-27D-4H; Clear Creek; SESE 27-152N-96W; SEC; 101W; 2SEC; McKenzie; Bakken; horizontal; 17,433; 9/30/2013; 803 bbl Continental Resources McKenzie; Bakken; horizontal; 15,739; 9/10/2013; 818 bbl 24675; Jerol 4-27H1; Lindahl; SWSW 22-150N-95W; 4SEC; Williams; Whiting Oil and Gas Bakken; horizontal; 20,159; 9/14/2013; 694 bbl QEP Energy 25732; Eide 41-13-2H; Timber Creek; NENE 13-150N-100W; 2SEC; 24359; Mack 7-2H; Antelope; LOT1 2-152N-94W; SEC; McKenzie; Bakken; 25186; Bert 1-2-11BH; Grail; LOT2 2-149N-95W; 2SEC; McKenzie; Bakken; McKenzie; Bakken; horizontal; 21,600; 10/1/2013; 3,046 bbl horizontal; 15,878; 8/10/2013; 842 bbl horizontal; 21,332; 10/11/2013; 2,170 bbl 26338; Stang 1-11H; White Earth; SWSE 11-157N-94W; N/A; Mountrail; 25187; Bert 2-2-11BH; Grail; LOT2 2-149N-95W; 2SEC; McKenzie; Bakken; IPs for ND wells released from confidential status Bakken; horizontal; N/A; N/A; N/A horizontal; 21,116; 10/4/2013; 2,175 bbl 24433; Stoltenberg 1-9H; Corinth; SESW 9-159N-97W; 2SEC; Williams; 25188; Bert 2-2-11TH; Grail; LOT2 2-149N-95W; 2SEC; McKenzie; Bakken; horizontal; 21,123; 10/2/2013; 2,132 bbl American Eagle Energy Bakken; horizontal; 19,464; 8/22/2013; 252 bbl 24070; Murielle 9-1E-163-102; NESE 1-163N-102W; N/A; Divide; Bakken; To view this chart in its entirety, please visit horizontal; N/A; N/A; N/A EOG Resources 19392; Austin 103-08H; Parshall; SESE 8-154N-90W; N/A; Mountrail; http://bit.ly/1atTD9B continued from page 15 11/4/2013 Topeka 5-12H; SESE 12-155N-98W; 225’FSL and and 1,345'FEL; East Fork; N/A*; on confidential status; Rainbow 10-19-18HBK; NENW 29-158N-98W; 965’FEL; Brooklyn; N/A*; on confidential status; 2,374’ 1,881’ ground; 24755; 33-105-02964; 11/4/2013 PERMITS 300'FNL and 901'FWL; Rainbow; N/A*; on confidential ground; 24325; 33-105-02879; 10/30/2013 Melissa 31-30 #4H; SWSE 31-156N-100W; 552'FSL status; 2,240’ ground; 26918; 33-105-03300; and 1,315'FEL; East Fork; N/A*; on confidential status; 11/4/2013 HRC Operating (Halcon Resources) 1,881’ ground; 24756; 33-105-02965; 11/4/2013 tus; 2,261’ ground; 26875; 33-105-03294; 10/29/2013 Hagen 1-12-1H; NWNE 13-158N-102W; 310’FNL and Melissa 31-30 #5TFH; SWSE 31-156N-100W; 552'FSL Lawrence 11-24H3; NENW 25-159N-95W; 350'FNL XTO Energy (ExxonMobil) 2,344’FEL; Climax; N/A*; on confidential status; 2,239’ and 1,285'FEL; East Fork; N/A*; on confidential status; and 2,324'FWL; North Tioga; N/A*; on confidential Cindy Blikre 41X-2C; LOT1 2-158N-95W; 340'FNL ground; 24238; 33-105-02869; 11/4/2013 1,881’ ground; 24757; 33-105-02966; 11/4/2013 status; 2,261’ ground; 26874; 33-105-03293; and 1,220'FEL; Lindahl; N/A*; on confidential status; Pederson 1-8-5H; NENW 17-158N-101W; 259’FNL Melissa 31-30 #6H; SWSE 31-156N-100W; 552'FSL 10/29/2013 2,383’ ground; 26871; 33-105-03290; 10/29/2013 and 1,548’FWL; Little Muddy; N/A*; on confidential and 1,255'FEL; East Fork; N/A*; on confidential status; Cindy Blikre 41X-2D; LOT1 2-158N-95W; 340'FNL status; 2,177’ ground; 24246; 33-105-02884; 1,881’ ground; 24758; 33-105-02967; 11/4/2013 HRC Operating (Halcon Resources) and 1,160'FEL; Lindahl; N/A*; on confidential status; 11/1/2013 Melissa 31-30 #7TFH; SWSE 31-156N-100W; 552'FSL Jane Nelson 34-24H; SWSE 24-157N-103W; 371'FSL 2,383’ ground; 26869; 33-105-03288; 10/29/2013 and 1,255'FEL; East Fork; N/A*; on confidential status; and 2,357'FEL; Strandahl; Bakken; horizontal; 2,471’ Cindy Blikre 41X-2G; LOT1 2-158N-95W; 340'FNL Permits cancelled 1,880’ ground; 24759; 33-105-02968; 11/4/2013 ground; 26917; 33-105-03299; 11/1/2013 and 1,250'FEL; Lindahl; N/A*; on confidential status; Marathon Oil 2,383’ ground; 26872; 33-105-03291; 10/29/2013 Jane Nelson 34-24H; SWSE 24-157N-103W; 371’FSL * Note - The geologic target for these wells was not listed in its well Oasis Petroleum Cindy Blikre 41X-2H; LOT1 2-158N-95W; 340'FNL and 2,357’FEL; Strandahl; Bakken; horizontal; 2,471’ file because they are a tight (confidential) hole, but the following Hanover Federal 5300 13-14 9T; NWNE 14-153N- and 1,190'FEL; Lindahl; N/A*; on confidential status; ground; 23549; 33-105-02758; 11/1/2013 fields produce from the Bakken pool; Ambrose, Banks, Big Bend, 100W; 576'FNL and 2,353'FEL; Willow Creek; Bakken; 2,383’ ground; 26870; 33-105-03289; 10/29/2013 Brooklyn, Climax, East Fork, Foreman Butte, Grinnell, Hawkeye, horizontal; 2,181’ ground; 26912; 33-105-03298; Location Resurveyed Heart Butte, Jim Creek, Lindahl, Little Knife, Murphy Creek, North 11/1/2013 Permits renewed Statoil Oil and Gas Fork, North Tioga, Ranch Creek, Robinson Lake and Rough Rider. Continental Resources Melissa 31-30 #2H; SWSE 31-156N-100W; 552'FSL Samson Oil and Gas Topeka 4-12H; SESE 12-155N-98W; 225’FSL and and 1,375'FEL; East Fork; N/A*; on confidential status; —Compiled by Ashley Lindly Rainbow 5-20-17HBK; NENW 29-158N-98W; 1,010’FEL; Brooklyn; N/A*; on confidential status; 1,881’ ground; 24754; 33-105-02963; 11/4/2013 300'FNL and 1,667'FWL; Rainbow; N/A*; on confiden- 2,373’ ground; 24324; 33-105-02878; 10/30/2013 Melissa 31-30 #3TFH; SWSE 31-156N-100W; 552'FSL tial status; 2,247’ ground; 26919; 33-105-03301; PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 17 continued from page 1 designs which expand the volumes of purposes) was about 45.1 million tons in demand through 2016, the group said. frack sand per well. 2012, up 14 percent from that of the pre- Most of the frack sand demand will FRACK SAND DEMAND “Although other operators were slow vious year. occur in the United States. to copy what EOG is doing, there is no The demand for frack sand in the While other countries are showing More proppant, longer laterals doubt a large number will have it figured Bakken has been a boon to sand miners in strong interest in frack sand, few are “The frack sand growth story has less out in 2014,” Filloon said. (Read more at nearby western Wisconsin and southeast expected to register significant demand in to do with an increased number of wells seekingalpha.com) Minnesota, spurring a dash in those states the near term, the report said. drilled and more to do with an increase in to open mines and processing facilities. In the United States, environmental proppant intensity, and longer laterals Growth in sales groups have raised concerns about the coupled with decreased drilling and com- US Silica, the largest publicly traded increased mining of frack sand, citing the pletion times,” Filloon said. “Newer com- frack sand company, said recent growth in Regional demand cooling loss of farmland and the intensive use of pletion styles are creating larger fractures its sales was due to selling more sand in But that regional demand has cooled groundwater for cleaning, sorting and dust closer to the well bore; the greater the relation to the rig count. significantly this year, according to a control. The future effect of these activities void, the larger the volume of proppant “Proppant growth has outpaced rig report in the Winona Daily News. on future sand supplies is yet to be seen. needed.” count growth due to higher service inten- “There’s simply more sand available Not all silica sands can be used for Filloon said frack sand producers will sity and increased horizontal drilling,” the than the industry needs at the moment,” hydraulic fracking. To meet industry spec- benefit as larger fractures need more sand company said in a July presentation, the News said. “Some of the region’s ifications, frack sand needs to be nearly to fill the void, adding that the changes adding that, “Proppant per stage has newly permitted sand mines are idle, as pure quartz, very well rounded, and must could be the start of something bigger, as increased as operators experiment with are loading and hauling facilities, and meet tight size gradation standards. The early results point to much higher produc- and evolve new completion designs.” some operations are stockpiling sand.” sand must also have a high compressive tion per well for roughly the same cost. US Silica said it sold 988,120 tons of Wisconsin is likely to be the hot spot if strength. In November 2012, Filloon said, EOG frack sand in the second quarter of 2013, demand rises going forward because of it Some companies have been working to Resources began to test shorter and wider versus 684,992 tons sold in the second superior rail connections, abundance of process lesser quality sand into fracking fractures; previously, operators were try- quarter of 2012. Revenue for the quarter quality silica, and a relatively friendly products, which — along with less costly ing to create longer fractures in an totaled $77.7 million compared with regulatory stance. imported ceramic proppants — may affect attempt to garner increased shale surface $54.5 million in the same period of 2012. The Wisconsin Department of Natural the supply and demand of frack sand in the area contact deeper into the shale. US Silica said sales volume was also Resources said in a 2012 report that future. being driven by faster pressure pumpers Wisconsin had approximately 60 mining —STEVE SUTHERLIN “The frack sand growth story has and the drilling of more wells per rig as operations involved in extraction of frack pad drilling and other efficiencies take sand and approximately 30 processing less to do with an increased hold. facilities operating or under construction. number of wells drilled and more The company said that because of its Frack sand for the petroleum industry to do with an increase in proppant established market position, some of the has been produced in Wisconsin for more intensity. ...” —Michael Filloon, Seeking pitfalls of the sand business are actually than 40 years, however the demand for Oilfield Improvements® Alpha Bakken Update substantial advantages. It said if sand frack sand has increased exponentially in ULTRA-FLOW® demand spikes substantially, the estab- the past two to three years, the department FIELD-INSTALLED lished producer sees the early benefits said. CENTRALIZERS/ Challenge of longer fractures because of barriers to entry, logistics and “A conservative estimate of Wisconsin PARAFFIN SCRAPERS transportation network challenges, and frac sand mining capacity based on exist- But longer fractures pose challenges, Full-circle Wiping the lead time for competitors to find, per- ing mines, mines under construction, and Filloon said. Longer fractures are farther mit and build new mines. processing plants would be in excess of of Tubing I.D. from the well bore, requiring the operator 12 million tons per year,” the department More Gripping to push proppant over a greater distance. US value more than $1 billion said. “Currently there are approximately Force on Sucker Rods Less proppant is secured in the fractures 20 new mining operations being proposed and this increases crushing and closure of According to a study produced by the More Fluid Flow-by and the impacted counties report consid- those fractures, significantly decreasing U.S. Geological Survey, in 2011, 41 per- Volume erable interest and many mine and pro- estimated ultimate recoveries. Thinner cent of sand produced in the United States Longer Useful LIfe cessing plant proposals are under consid- fractures also have less surface area, he was used as hydraulic fracturing sand and from Longer Vanes eration.” said, which creates greater pressures, well-packing and cementing sand. & Bearing Surfaces The USGS said sales of frack sand which requires more resilient — and Demand rising Positive Wear more expensive — ceramic proppant. increased by 77 percent between 2010 Indicators and 2011. The industry is valued at more Global demand for industrial silica sand EOG’s shorter, wider fractures reduce Amodel with Glass Fill pressure, allowing for the use of all sand than a billion dollars in the United States is projected to grow at 4.8 percent annual- fracks, Filloon said. The increased void alone. ly to 280 million metric tons in 2016, with CALL 1-800-LES WEAR created by this completion design Increased demand for hydraulic frac- a value of $9.2 billion, according to a 2012 (800-537-9327) OR YOUR Oilfield Supply Store requires more proppant. turing sand in support of production of Freedonia Group report. “In some cases, these wells use up to a natural gas from shale gas deposits has The glass market is driving worldwide www.rodguides.com million pounds of sand for every 1,000 led to production capacity upgrades, demand, according to Freedonia. Glass ® feet of lateral,” he said. ongoing permitting and opening of sand accounted for 36 percent of total 2011 Filloon said that Whiting and other numerous new mines, USGS said. U.S. industrial sand usage worldwide and will apparent consumption (of sand for all provide the largest net gain in sand 1902 N. Yellowood Ave. operators were beginning to use similar Broken Arrow, Oklahoma 74012 U.S.A. PHO 918-250-5584 • FAX 918-250-4666 Oilfield Improvements® WHEELED ROD GUIDETM COUPLINGS

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PHO 918-250-5584 • FAX 918-250-4666 18 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 continued from page 12 percent, with the biggest percentage increase coming from Continental has approximately 320,000 net acres of the company’s Montana wells. leasehold in the play, although as in the Bakken, it contin- ANTELOPE PROSPECT Its production from the Bakken system in North Dakota ues to pick up new leases in the region. and Montana increased 51 percent to 94,500 boe per day In the third quarter, SCOOP’s net production averaged mates its operated rig activity will average 20 rigs from the third quarter of 2012. approximately 20,100 boe per day, an increase of 14 per- throughout the balance of 2013, down from 22 rigs as The company reported a profit of $167 million, or 91 cent sequentially and 293 percent above third quarter 2012. expected earlier “due to realized efficiencies.” cents per share, up from $44 million or 24 cents per share “The recent growth was driven by the addition of 11 net Continental plans to drill an additional 350 wells over in the year-ago quarter. Adjusted for one-time expenses, (22 gross) operated and non-operated wells in the play dur- the course of the next four to five years focusing on drilling Continental’s earnings were almost $297 million, or $1.61 ing the third quarter 2013,” per Continental’s capital plan. pads with 20 to 30 wells per location. per share, up from $159 million or 87 cents a share a year The company currently operates 12 rigs in the play with Continental’s Ears Back project at Antelope will dedi- ago. plans to increase to 15 by year-end and plans to complete cate four rigs in 2014 for field development drilling. a total of approximately 41 net (77 gross) wells in the In March, Continental said it planned to eradicate natu- SCOOP continues to grow SCOOP play this year, including both operated and non- ral gas flaring from its operated well sites, or at the least get Continental said it “continues to deliver excellent, operated wells. “as close to zero percent flaring as possible” The company repeatable results” from drilling activity in its Oklahoma “These wells will focus on expanding the proved pro- already has reduced flaring to less than 10 percent in the SCOOP play. ductive extent of the play and de-risking the company’s Bakken, well below the 28-29 percent average cited by the Discovered by Continental and announced in October leasehold. Expected net and gross well count activity has North Dakota Industrial Commission. 2012, the play extends approximately 3,300 square miles been adjusted to account for recent increased cross-unit In its Nov. 6 release, Continental said its oil and natural across several counties in Oklahoma and contains defined activity,” Continental said in its Nov. 6 release. gas production grew almost 38 percent to nearly 142,000 oil and condensate-rich fairways as delineated by more boe a day in the third quarter, almost 71 percent of that than 290 gross wells in the area. being oil. But second to third quarter output was up just 7 continued from page 1 Prentice: U.S. standards vary mate verdict on the Keystone XL pipelines, but to every facet of our energy relationship.” Jim Prentice, now one of Canada’s top bankers after XL IRRITATIONS TransCanada Chief Executive Officer Russ Girling, serving as a senior cabinet minister under Prime Minister speaking on XL during a third-quarter conference call Nov. ing XL would do little to put the brakes on oil sands out- Stephen Harper, told a Calgary forum Oct. 30 that carbon 5, said he has “every confidence” the fifth environmental put because crude-by-rail could almost pick up the standards in various U.S. jurisdictions frustrated him during impact statement due from the U.S. State Department will 830,000 barrels per day, although the Environmental his time in government and remain an issue for Canadian endorse the four previous conclusions that the pipeline Protection Agency countered that higher shipping costs energy companies. would have limited environmental impact and no material on rail would have an impact on the oil sands. He said the U.S. standards are a “real departure from impact on greenhouse gas emissions. The State Department is believed to be questioning free-market principles, they threaten the vitality of our con- He said XL “makes sense today and makes sense for rail executives on supply-chain logistics, market dynam- tinental energy marketplace and, arguably, they violate the many decades to come” after decades of free trade in ener- ics and potential obstacles to the growth of crude-by-rail. spirit and letter” of the North American Free Trade gy between Canada and the U.S. and the fact that 3 million That review is holding up a final verdict on XL, Agreement. bpd of crude currently moves across the border. which has been in limbo for more than five years. Prentice said dozens of U.S. jurisdictions and states have Girling said he has “given up trying to predict” when the developed “so-called low-carbon standards” designed to State Department will reach a verdict, adding that after five Redford wants quid pro quo exclude heavy oil from their markets, while some have years of reviews in the U.S. “there’s nothing left to review.” adopted renewable standards that effectively discriminate Alberta Premier Alison Redford, who is making her fifth Alex Pourbaix, the company’s president of energy and against Canadian exporters of hydro-power. trip to Washington Nov. 11-14 to lobby for XL, said she oil pipelines, said that in the meantime TransCanada is look- He said the proliferation of standards across the U.S. plans to deliver one very clear message to U.S. lawmakers: ing at other pipeline opportunities to move crude from the applies to some forms of energy, but not others, “to some Alberta will not raise its levy on greenhouse gas emissions Bakken formation in North Dakota and in the Texas Gulf kind of oil, but not others and to some pipelines, but not oth- unless the U.S. takes matching steps. Coast region. ers, which is against the spirit and premise on which the She said there “has to be a quid pro quo” when it comes But he said it is “too early to talk definitively” about what world’s largest and most efficient energy marketplace has to putting a price on carbon,” noting that Alberta already those projects might involve. imposes a levy of C$15 per metric ton on carbon emitters been built.” who fall short of the province’s greenhouse-gas reduction Prentice said that if there is a desire for a North American Cheney: Decision ‘foolish’ targets. low-carbon fuel standard, Canada and the U.S. should “get Former U.S. Vice President Dick Cheney, speaking at the Meanwhile, the Canadian government is working with to the table and negotiate one. And if there are environmen- same International Economic Forum of the Americas as Alberta on developing rules to help Canada meet its com- tal implications, we should deal with those, but we should Prentice, said the Obama administration’s decision not to mitment to meet the Copenhagen Accord target of lowering have a standard to every hydrocarbon, every molecule, approve Keystone Xl was “foolish. There is no reason in the GHGs by 17 percent by 2020 from 2005 levels. every barrel of oil that lands or is produced in the continent.” world why this pipeline should not be built.” In a blunt but unspecific warning, Redford said that if He said it is “difficult to overstate the importance to Obama turns down XL “it will have an impact on U.S.- Canada (of the dramatic changes in U.S. light oil produc- Canada relations.” tion), not just as it relates to the U.S. administrations ulti- Advertiser Index Bakken Players

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Abrasives Environ Corp. North Slope Telecom (NSTI)...... 2 Alaska Textiles Fortis Energy Services...... 20 Northern Electric Inc...... 8 Alliance Pipeline...... 5 Four Seasons Equipment Northern Oilfield Services, Inc. Allstate Peterbilt Group Futaris OFS Energy Fund American Association of Railroads (AAR)...... 6 Gray Wireline Petroleum News Bakken Anvil Corporation Guard-All Pierce Leasing Arctic Catering Halcon Resources Plainsman Mfg. Inc. Bakken Solids Control Services HMG Automation, Inc. Polyguard Products Beaver Creek Archaeology Investors First Capital Premier Community Homes Ltd. Border Steel Iseman Homes Quality Mat BTL Liners Kilo Technologies Ltd. Reef Oil & Gas Cancade Company Limited Lister Industries...... 11 Rigid Global Buildings ...... 10 CESI Chemical LT Environmental...... 4 Ritchie Bros. Auctioneers City of Grand Forks, ND...... 10 Lynden...... 3 ShelterLogic ClearSpan Fabric Structures M SPACE...... 4 Spartan Engineering Cruz Energy Services LLC (A CIRI Co.)...... 9 Marmit Plastics...... 17 TenCate ...... 7 CST Storage McAda Drilling Fluids Inc...... 2 Tremcar Inc. Dakota Landing Midwest Industrial Supply...... 20 Trinity Health Occupational Medicine DAWA Solutions Group Miller Insulation Co...... 5 Umiaq Deep Casing Tools MT Rigmat LLC UNICO Inc. E3 Energy and Environmental Experts...... 8 Muth Pump LLC...... 19 Unit Drilling Company Ebeltoft Sickler Netzsch Pumps North America Vactor Manufacturing Engineered Fire & Safety North Dakota Petroleum Council Wanzek Construction PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 19

North Dakota Trust Land Oil and Gas Lease Auction Results – High Bidders by Average Price per Acre Nov. 5, 2013

Average High Bidder County/Counties Tracts Acres Total Paid Price per Acre Northern Energy, Bismarck, N.D. McKenzie, Slope 5 769.73 $2,974,389.00 $3,864.20 Crescent Point Energy U.S. Corp., Denver, Colo. Williams 4 480.00 $1,776,000.00 $3,700.00 Diamond Resources Co., Williston, N.D. Billings, Divide 13 1,038.66 $1,306,727.00 $1,258.09 Globex Oil and Gas Corp., Houston, Texas Golden Valley 2 160.00 $27,200.00 $170.00 Empire Oil Co., Williston, N.D. Billings, Golden Valley, Renville, Ward 17 1,958.97 $780,264.15 $398.30 Trinity Western, St. Paul, Minn. Golden Valley, Slope 9 104.00 $10,360.00 $99.62 Wells Petroleum Inc., Golden, Colo. Ward 1 80.00 $7,600.00 $95.00 Irish Oil and Gas, Inc., Bismarck, N.D. Golden Valley, Slope 2 118.03 $9,724.20 $82.39 Wildcat Oil and Gas LLC, Bismarck, N.D. Golden Valley, Slope 3 320.00 $23,680.00 $74.00 Pacer Energy LLC, Gilette, Wyo. Slope 15 1,520.00 $102,640.00 $67.53 Cody Exploration LLC, Bismarck, N.D. Golden Valley 3 320.00 $4,000.00 $12.50 Total/Average 74 6,869.39 $7,022,584.35 $1,022.30

North Dakota Trust Land Oil and Gas Lease Auction Results – High Bidders by Average Price per Acre per County Nov. 5, 2013

Price per Acre ($) County High Bidder Tracts Acres Total ($) Average Minimum Maximum Diamond Resources Co. 10 798.66 $950,727.00 $1,190.40 $750.00 $1,600.00 Billings Empire Oil Co. 4 640.00 $672,000.00 $1,050.00 $10.00 $20.00 Totals/Ave/Max/Min 14 1,438.66 1,622,727.00 $1,127.94 $10.00 $1,600.00 Diamond Resources Co. 3 240.00 $356,000.00 $1,050.00 $1,300.00 $1,600.00 Divide Totals/Ave/Max/Min 3 240.00 $356,000.00 $1,050.00 $1,300.00 $1,600.00 Globex Oil and Gas Corp. 2 160.00 $27,200.00 $170.00 $90.00 $250.00 Empire Oil Co. 4 640.00 $96,000.00 $150.00 $150.00 $150.00 Wildcat Oil and Gas LLC 1 80.00 $10,400.00 $130.00 $130.00 $130.00 Golden Valley Trinity Western 8 64.00 $5,760.00 $90.00 $90.00 $90.00 Irish Oil and Gas, Inc. 1 80.00 $4,400.00 $55.00 $55.00 $55.00 Cody Exploration LLC 3 320.00 $4,000.00 $12.50 $5.00 $15.00 Totals/Ave/Max/Min 19 1,344.00 $147,760.00 $109.94 $5.00 $250.00 Northern Energy 2 319.73 $2,973,489.00 $9,300.00 $9,300.00 $9,300.00 McKenzie Totals/Ave/Max/Min 2 319.73 $2,973,489.00 $9,300.00 $9,300.00 $9,300.00 Empire Oil Co. 7 518.97 $10,024.15 $19.32 $11.00 $35.00 Renville Totals/Ave/Max/Min 7 518.97 $10,024.15 $19.32 $11.00 $35.00 Irish Oil and Gas, Inc. 1 38.03 $5,324.20 $140.00 $140.00 $140.00 Trinity Western 1 40.00 $4,600.00 $115.00 $115.00 $115.00 Pacer Energy LLC 15 1,520.00 $102,640.00 $67.53 $80.00 $160.00 Slope Wildcat Oil and Gas LLC 2 240.00 $13,280.00 $55.33 $13.00 $140.00 Northern Energy 3 450.00 $900.00 $2.00 $2.00 $2.00 Totals/Ave/Max/Min 22 2,288.03 $126,744.20 $55.39 $2.00 $160.00 Wells Petroleum, Inc. 1 80.00 $7,600.00 $95.00 $95.00 $95.00 Ward Empire Oil Co. 2 160.00 $2,240.00 $14.00 $2.00 $26.00 Totals/Ave/Max/Min 3 240.00 $9,840.00 $41.00 $2.00 $95.00 Crescent Point Energy U.S. Corp. 4 480.00 $1,776,000.00 $3,700.00 $3,700.00 $3,700.00 Williams Totals/Ave/Max/Min 4 480.00 $1,776,000.00 $3,700.00 $3,700.00 $3,700.00 Totals/Average/Minimum/Maximum 74 6869.39 $7,022,584.35 $1,022.30 $2.00 $9,300.00 continued from page 1 core Bakken and Three Forks areas are said the higher-selling leases in the core ing the highest lease price of $9,300 per either in their primary five-year terms or area are the “odd-ball” tracts that for acre for two tracts totaling 319.73 acres in LEASE AUCTION are held by production, i.e., as long as whatever reason were never nominated or McKenzie County. Those two tracts were hydrocarbons are being produced the were initially leased but the leases the only leases offered from McKenzie tion when 689 tracts totaling 54,482.68 lease does not expire. expired and the tracts are re-nominated. County (see charts). acres were leased for an average of “We’re running out of dirt,” he said. Northern Energy picked up leases on $88.65 per acre. “So what we’re offering at the auctions High bidders three other tracts in Slope County. The acreages were in the following are tracts that are either at the fringes of A total of 11 successful bidders Northern’s overall average price per acre counties: Billings (1,438.66), Divide the core Bakken and Three Forks areas or acquired leases in the November auction, (240.00), Golden Valley (1,344.00), are targeting other formations.” Combs with Northern Energy of Bismarck pay- see LEASE AUCTION page 20 McKenzie (319.73), Renville (518.97), Slope (2,288.03), Ward (240.00) and Williams (480.00). As with the August auction, much of the acreage in the 300% INCREASE IN DOWNHOLE ROD PUMP RUN LIFE November auction is not in typical  A prominent California oil company finished a Six Sigma study in January 2013,

Bakken and Three Forks counties. TM on the FARR Plunger and the study showed a 300% increase in median run Trust Land’s take life over other “sand plungers”.

“It was a good sale and we’re extreme- You don’t have to change your current pump shop or pump supplier, request a ly pleased with the outcome,” Minerals FARR Plunger in your next pump. To learn more about the FARR Plunger and TM Management Division Director Drew how it works visit www.muthpump.com. Combs told Petroleum News Bakken, noting that as development of the Bakken See our video comparing a conventional vs. FARR Plunger. Muth Pump LLC. matures, fewer and fewer leases are avail- You will be amazed at the difference the FARR Plunger will make. able. 4606 Resnik Court #206 Combs said most of the leases in the FARR Bakersfield, CA 93313 By , We Make Your Rod Pumps The Best In The Industry! Phone: 661-588-8700 20 PETROLEUM NEWS BAKKEN • WEEK OF NOVEMBER 10, 2013 continued from page 19 LEASE AUCTION NorthDakotaTrustLandsOil&GasLeaseAuctionResults 2008Ͳ2013 was $3,864.20, which was the highest average among the 11 successful bidders 70,000.00 $4,000.00 in the auction (see charts). $3,500.00 Running a close second was Crescent 60,000.00 ($) Point Energy U.S. Corp. which paid an $3,000.00  average of $3,700 per acre for a total of 50,000.00 Acre Auction  480 acres in four separate tracts in  $2,500.00 40,000.00

Williams County. Those were the only per per  Williams County tracts in the auction and  $2,000.00 30,000.00 the only tracts that Crescent Point picked Price $1,500.00  Leased

up in the auction.  s age r

e 20,000.00 Diamond Resources Co. paid the third $1,000.00 highest average lease price of $1,258.09 Acr Ave per acre for a total of 1,038.66 acres in 13 10,000.00 $500.00 tracts, 10 in Billings County and three in Divide County. The leases on the three 0.00 $0.00 Divide County tracts ranged from $1,300 2009 2010 2010 2010 2011 2011 2011 2012 2012 2012 2013 2013 2009 2009 2008 2008 2008 2010 2011 2012 2013 2013 2009 to $1,600 per acre. Those were the only 2008                         Divide County tracts in the auction. Oct Apr Feb Feb Feb Feb Feb Feb Aug Aug Aug Aug Aug Aug Nov Nov Nov Nov Nov May May May May The other winning bids in the auction May ranged from $2 to $250 per acre. Among AcresLeased AveragePriceperAcre($) the other eight successful bidders, the average price per acre they paid for their combined tracts ranged from $12.50 to November 2008. Good examples of these trends are acre, the highest average over six years $398.30 per acre (see charts). As Petroleum News Bakken reported seen in the two most recent auctions. The (see graph). after the August lease auction, historic August auction saw the sharpest contrast But the relationship is not absolute. Reversing the trend auction results indicate an inverse rela- of high acreage and low price over the The highest total acreage leased over the tionship occasionally exists between the last six years (see graph), while the last six years was in February 2012 when The highest average price per acre number of acres offered and the average November auction reversed that trend 69,942.49 acres brought an average price over the last six years through February price. Although there are exceptions, in a with low acreage and a higher average $1,219.38 per acre. 2008 was $3,525.62 in November 2011 number of auctions with high acreage price. when only 5,020.22 acres were leased. —MIKE ELLERD totals the average prices tend to be lower. The most pronounced contrast was in The lowest average was $83.99 per acre Conversely, higher prices are seen in a November 2011 when only 5,050.80 when 24,284.21 acres were leased in number of auctions with low acreages. acres brought an average of $3,525.62 per continued from page 4 areas that we think it’s good. And those continued from page 12 reservation, Stanley said. QEP also had areas where we think it’s good are being a 91 percent average working interest HALCON COMPLETIONS augmented daily by information from other QEP OUTPUT in twelve operated wells waiting on operators, because everybody is solving for completion. ing at … full development of the first bench the same thing.” duction averaged 21,300 barrels of oil of the Three Forks and all the areas that we equivalent per day during the third Infield pilot planned think it’s good. And we’re looking at signif- Third quarter ops quarter of 2013, Stanley said. icant second bench development in those Stanley said QEP has plans to start In the Williston Basin, Halcon has 132 QEP completed and turned to sales drilling an infield pilot program in the Bakken and 39 Three Forks wells on pro- 21 operated wells during the third quar- near future to better understand the duction. It is completing another five ter, including 10 wells at South geology in its own leases. Bakken and three Three Forks wells, and Antelope with an average 24-hour ini- “The geology, even though at has three Bakken and three Three Forks tial production of 3,412 boepd and 11 40,000 feet it looks layer cake, there’s wells being drilled. wells within the Fort Berthold reserva- quite a bit of variability in both the In the third quarter, Halcon spudded a tion with an average 24-hour IP of middle Bakken and in the Three Forks; total of 15 Bakken and seven Three Forks 2,588 boepd. and while pilot programs run by other SAFETY UNDER wells, and put another 12 Bakken and five The Fort Berthold reservation com- operators will give us a hint as to the Three Forks wells on production in the pletions included one Three Forks and applicability on our acreage, the only PRESSURE basin. four Bakken wells at the Buffalo Pad way we’ll know for sure will be Through all of the company’s opera- where QEP has an average working through piloting on our own acreage.” tions, which include operations in the Eagle interest of 88 percent, and three Three He said. Fortis is a leader in high Ford in east Texas and in the Utica/Point Forks and three Bakken wells on two QEP has also increased the amount pressure completions, Pleasant play in Ohio, Halcon’s third quar- additional pads where QEP has an of proppant it uses in its wells. workovers, down-hole ter production averaged 37,707 barrels of average working interest of 93 percent. “Generally, we’ve seen a pretty oil equivalent per day, up 237 percent over South Antelope completions includ- repairs and maintenance, strong correlation between increased the 11,185 boepd in the second quarter of ed two Three Forks and eight Bakken proppant density per stage and initial plugging and abandonment. 2012. The company’s third quarter produc- wells on two four-well pads and one well performance,” Stanley said. “And tion was 83 percent oil, 11 percent natural two-well pad where QEP holds an if initial well performance indicates average working interest of 80 percent. Our award winning team of gas and 6 percent natural gas liquids. ultimate recovery, then we should see Looking forward, Halcon has adjusted “The cost and performance of these experts will use their deep better recoveries over the life of the its 2014 guidance and has set a full-year wells are consistent with or better than well.” experience working under production goal of between 38,000 and our expectations,” Stanley said. At the end of the third quarter QEP the high pressures of the 42,000 boepd. The company puts the mix of —STEVE SUTHERLIN was conducting drilling operations on Marcellus and Utica Shales that output at 80 percent oil, 15 percent nat- ural gas and 5 percent NGLs. eight separate well pads, five in South to get your job done safely Antelope and three in the Fort Berthold and efficiently.

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