North Dakota Bakken Oil Production by Company

page Hamm recommends Oklahoma 7 follow North Dakota’s example

Vol. 3, No. 6 • www.PetroleumNewsBakken.com Publication of record for the Bakken oil and gas industry Week of May 25, 2014 • $2.50

l MOVING HYDROCARBONS Inside: Bakken O&G Directory Don’t blame Bakken NDPC study of Bakken crude shows consistent findings to other flammable liquids By MAXINE HERR to confirm that Bakken crude does not For Petroleum News Bakken significantly differ from other crude oils and poses no greater risks than

akken crude does not pose any MAXINE HERR other flammable liquids authorized for Bgreater risk than other transporta- rail transport.” tion fuels, according to a recent study The study, conducted by Turner, initiated by the North Dakota Petroleum Mason and Co., sampled and tested Council, NDPC. At an opening session crude from 15 well sites and seven rail of the Williston Basin Petroleum loading facilities in the Bakken. More than 150 samples were taken from Conference in Bismarck, North Dakota, JEFF HUME on May 20, Continental Resources’ Jeff March 25 to April 24 to test density, Hume presented preliminary results of a study vapor pressure, the temperatures in which the that shows Bakken crude is consistent throughout crude can ignite or become vapor and its sulfur the basin and comparable to other light, sweet weight. The study showed that Bakken crude has AKKE crudes. NDPC Vice President Kari Cutting said in a statement, “This is the third independent study see BAKKEN CRUDE page 20 BOIL & GAS DIRECTORY Vol. 3, No. 1 Released May 2014 N A biannual supplement l DRILLING & COMPLETION Overlapping popularity The Bakken Oil & Gas Directory is a biannual marketing publication for contracted advertisers in the weekly Petroleum News Bakken, the publication of record for the Bakken oil and gas industry. Statoil asks NDIC for 41 new 2,560-acre DSUs; Continental asks for five 5,120s By MIKE ELLERD Crescent Point enters 2Q Petroleum News Bakken Statoil is also seeking authorization to in bullish mood drill one horizontal Bakken pool well on tatoil Oil and Gas leads in new drill spacing or near the section lines between the Crescent Point Energy is combining its proprietary geo- Sunit applications that the North Dakota existing 640-, 960-, 1,280- and 1,600- logical knowledge from North Dakota and southern Industrial Commission will consider in hearings acre units that comprise the various Saskatchewan, along with bolstering its landholdings, as it on May 28 and 29. Norwegian-based Statoil filed proposed 2,560s. builds a new core operating resource play, company execu- two applications asking the Industrial tives told a first-quarter conference call. Commission to create 41 overlapping 2,560-acre Chief Executive Officer Scott Saxberg told analysts that spacing units in the Big Butte, Alger, Robinson Eighteen of the 2,560s Statoil is requesting are his company is “especially excited” about a Flat Lake Lake and Banks fields in McKenzie, Mountrail in the Banks field, most of which lies in north- Torquay discovery that is “fast becoming another large-scale and McKenzie counties. Statoil is also seeking central McKenzie County with a small portion resource play for the province of Saskatchewan.” authorization to drill one horizontal Bakken pool extending under Lake Sakakawea into south-cen- He said that in less than 12 months, Crescent Point has well on or near the section lines between the tral Williams County. The remaining 23 spacing increased its net Torquay production from zero to 5,100 bar- existing 640, 960, 1,280 and 1,600-acre units that units are spread across the Big Butte, Alger and rels of oil equivalent per day, after adding 11.2 million boe comprise the various proposed 2,560s. see DRILL SPACING page 19 of proved plus probable reserves last year in the Torquay and Bakken formations. The company said its wells in the area have “high rates of l MOVING HYDROCARBONS see BULLISH 2Q page 18 EPA issues final Arrow permit With concerns resolved, FERC By KAY CASHMAN OKs Sandpiper The permit will be effective on June 15, Petroleum News Bakken The Federal Energy Regulatory allowing 30 days for anyone who “filed Commission has finally cleared a path n May 16 the U.S. Environmental Protection comments on the proposed permit or for an Enbridge subsidiary to provide O Agency’s Region 8 office issued the final air participated in the public hearing” to Bakken producers with another 225,000 quality permit to construct a new natural gas com- petition EPA’s appeals board to review barrels per day of takeaway capacity by pressor station proposed by Arrow Midstream any condition of the permit decision ratifying a tariff structure for the Holdings LLC as part of an expansion of its crude, Sandpiper pipeline. gas and produced water gathering system primarily of the permit decision. The decision released May 16 came a on the Fort Berthold Indian Reservation in western year after FERC denied an application North Dakota’s Dunn and McKenzie counties. At the end of March Arrow handled approxi- by Enbridge to set tolls for the $2.5 bil- mately 50,000 barrels of oil per day, 23,000 million TONY CLARK Arrow Midstream Holdings is a wholly owned lion project to carry Bakken crude over subsidiary of Crestwood Midstream Partners. cubic feet of gas, and 17,000 barrels of water, and 400 miles from North Dakota to Minnesota. The “final synthetic minor permit” was issued was connected to approximately 300 wells, antici- The regulator said it has agreed to committed rates for pri- “pursuant to the Tribal Minor New Source Review pating an annual growth rate of about 100 wells. ority and non-priority service along with uncommitted rates Program at 40 CFR Part 49 (MNSR).” By 2015, expansions are expected to increase and apportionment principles, saying the uncommitted rates The permit will be effective on June 15, allowing crude oil throughput capacity on the Arrow system would be recovered through cost-based charges for the 30 days for anyone who “filed comments on the proin northern Dunn and southeastern McKenzie counties to 125,000 bpd, natural gas throughput to 100 see SANDPIPER OK page 9 posed permit or participated in the public hearing” to petition EPA’s appeals board to review any condition see ARROW PERMIT page 9 2 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 contents Petroleum News Bakken ON THE COVER DRILLING & COMPLETION Don’t blame Bakken 5 Oxy upping Dunn County well densities NDPC study of Bakken crude shows Crescent Point infilling Williams and Divide DSUs; consistent findings to other flammable liquids Emerald increasing well counts on 15 units; Overlapping popularity EOG looking for 14 wells on a 320 Statoil asks NDIC for 41 new 2,560-acre LEGAL COLUMN DSUs; Continental asks for five 5,120s 7 Hamm advocates following ND example EPA issues final Arrow permit Oklahoma operators speak out against raising Crescent Point enters 2Q in bullish mood production tax for horizontal wells; oil executive With concerns resolved, FERC OKs Sandpiper favors enlarging spacing units BAKKEN STATS MERGERS & ACQUISITIONS 10 Bakken Commentary: Our apologies to Petro-Hunt 9 Triangle gains hefty acreage in core basin 10 Looking for a rig report? MOVING HYDROCARBONS 10 Bakken producers’ stock prices 4 Crude study: no additional Bakken risks 11 Top 50 North Dakota Bakken oil producers, March AFPM’s evaluation determined Bakken crude oil 11 Montana well permits and completions, May 2-15 characteristics within normal range for light 12 North Dakota oil permit activity, May 13-19 crudes in regard to rail transport 13 North Dakota Bakken oil production by company, March NATURAL GAS 14 IPs for ND Bakken wells, May 13-19 4 NDIC gives itself wiggle room to put new production SIDEBAR, Page 14: Top 10 Bakken wells by IP rate curtailment rules in place 15 North Dakota well operator transfers, April 12-May 16 6 Flaring appeal limited to four counties

COMPANY UPDATE With new ﬂaring rules on the horizon, several operators 3 Testing the western edge of the Spyglass seek permission to ﬂare their wells in extreme northwest North Dakota American Eagle puzzled by a Three Forks well on MT/ND border as other operators also begin operations within Divide County What's the big attraction? 7 DeeThree building Alberta Bakken stake

Vo l. 1, No. 25 • A. an industry institution www.P etroleumN ewsBak ken.com page Baytex pri A w mary work C.P eekly n 6 Fork in Three . await ewspaper fo s; despite sa s SK’s f r industry le set record irst un and gov it in 2 ernment 0 yrs P R O D U C T I O N 8 Samson O&G NPV estimates double March 24, 2013 B. quality, accurate reporting ND rig Hit 188 rigs cou March nt 15; oil output up BY should exceed MIKE ELLERD For Petrol 850,000 bopd in 2015 eum News C. attractiv Bakken h has bee ile h arsh n incre e, readable design win asing WNorth ter weath March. in pe D akota in Ja er smacked rcent dro nuary, causin The p in its daily g record hi state’s drillin oil pro a 4 .2 coun gh rig g rig ducti t is 218 wh upward count on, the nu ich was s. As of Ma has been mber of rig the ing in th rch 15, 1 inching No s operatin e state 88 rigs we rth Dak g in Lynn . 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How e 184 e divisi o rilling per ever, th n was th mits M O V I e rig count e 370 is N G H sued in Y D R O CA R B O N see COU NT page 16 Cr escent Poi Rail nt E Saskatch nergy is ewan gove eagerly ruffles in 20 y rnmen a wait ears, ope t to allo ing a d TC single ning the d w the pr ecision exec: operatin oor for ovince’s f by the rail h pipeliner oper g un mult irst “ as ‘ve ating co its, requ iple own unitizatio ry imp Ba sts, whil iring each ers in poo n” ortan sed on i e sharin to cont ls to cre t role’ i m ts initial g in the ribute to ca ate n mov ore two success, t profits b pital a BY GAR ing oil, -mile ho he mid- ased on nd Y PARK but d completed, rizontal wells range pro their sta For irtier, m and is this ducer pl kes. Petroleum ore d cost of confide year, on ans to dr News Ba Capital/S angero similar w nt they top of t ill six kken ociete us ells drill can be drilled he four fill Genera probable and possible reserves for Australia-based ﬁrm ed across t fo already he incr a “v le that he bo r about eas ery alth To advertise in Petroleum News Bakken ing oug rder in N half talk importa h rail orth Dakota. the Tprovide that rail nt role,” can a la can “pretty there Crescent extends alterna rger, more simple are some tive to p d urable facts” to crud ipelines “For ever consider. e shows for shipp y mile you For Cr horizons fe signs of ing of oil by move a escent Po athers. ruffling rail, you e barrel innov int Energ some greenh mit three ative play y, recogn Alex ouse gas times the un ers in Ba ized as o Pourbaix using es than locking th kken-typ ne of the mo and o , president of a pipelin you do e value of e plays, o st il pipelin energy e and yo by combinatio its Cana ne of the told es w ith T of m agnitu u have an n of wa dian res keys to a New ransCana de highe order Th terfloodin ource asse York da, some so r risk e mid-ran g and unitiz ts lies in February conferen rt of inc of having sio ge produ ation a he did no ce in ident, leak o call Susan Crane at 907-770-5592, Bonnie n cer . t w “From r by the is now e “slagging ant to be that pe spill. pro Saskatche agerly awaitin ” rail, seen as point rspective vince’s fir wan go g a de embark then pro that if y , I make st “unitiz vernment ci- on a sho ceeded to ab ou’re actu the for multip ation” in to allo serv rt, sharp ALEX PO out the e ally conc le owne 20 y ears w that ice. critique of URBAIX nvironm erned requir rs in pools to , opening the movem ent, for long ing each create s the door He told ent of oil, -haul wh to contrib ingle ope the eve to se you very ile sharin ute to ca rating un nt sponso e that oil much wa g in the pro pital and its, red by F Pourbaix move by nt Neil Smi fits base operating irstEnergy no ted th pipeline.” th, chief d on their costs, G O V E R N M at the U.S optimistic operating stakes. E N T . Departm that gov officer, sa ent of next s ernment id Cresce see ix month approva nt Point is PIPELINE s for the l will occ R page 12 Yonker at 425-483-9705, or Renee Garbutt first unit ur within and will the Ga be followe s d b y flaring see CRESCE Krings stuck NT page 1 tad dissects Is Apache pulling out 3 causes; s at 29% olutions are co Bakken BY M mpre fringe? of IKE ELLERD ssion, loops, For Petroleu pigging In a Fe m News Ba , incen b. 14 pres kken tives its fou s confer larin rth quarter ence to di g of natural Bakken Hunter pad at 907-522-9469. earn scuss gas results, A ings and FJanuary in North pache productio held stea Da CORRECTION Exe Corp. Ch n it has be dy at 29 kota in align s cutive airman en fo percent, with Oneok Officer G. and Chief news r the last three right where Apache Steven is that flari mon In pipe is in the p Farris sa n ng isn’t ths. The g a move th approx rocess id either is it going up; the ood its at would imately $2 of identifyin going dow bad ne Divide eliminate izatio billion in g In the M n. ws is Hu County o flaring in ns to b e c “asset rat arch Dire nter LLC perations wo ompleted ional- North D ctor’s C is reco , B akken uld not e in 2013 akota P ut press con order to nfiguring laborate ,” but he Kri ipeline Auth ference p erfectly well pad are; just on where ngstad loo ority D , new g align th s in that Apac those ass 2 ked at roo irector Jus as gatherin em with Specula he is look ets 9 percen t causes tin be g pipel Oneok’s tion h ing to sell t of natura for the fla connecte ines so the as begun them th The pre l gas pro ring of d to gas sa wells can about th is year. ss confere duced in productio les befo e 300,00 Indu nce is he the state. n. re they go 0-plus n e strial Co ld by the Nort In into t acres Res mmission h Dako February ources , Departm ta of , Bakken H , Oil and G ent of M Magnum unter, a see INSID authority as Division ineral Hunter, subsidia ER page 12 . and the pipe to the N submitte ry line orth Dak d applicat requestin ota Indust ions g 13 n rial Comm and ew 640-a ission 10 n ew cre spac Subscribe at: see 1,28 ing u n FLARING 0-spacing its page 14 units in the see HUNTER LeResche page 15 4 www.PetroleumNewsBakken.com

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The Difference Is Our People! PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 3 l COMPANY UPDATE Testing the western edge of the Spyglass American Eagle puzzled by a Three Forks well on MT/ND border as other operators also begin operations within Divide County

from the same time last year, but down 12 high rate of return wells at low capital cost. By MAXINE HERR “We’ve known for years the low- For Petroleum News Bakken percent from the last quarter due to Colby said American Eagle may acquire cost wells and flat decline curves extremely cold weather. “That negatively another 5,000 to 7,000 acres in the heart of n unusually high water cut and some in the Spyglass make for great impacted our first quarter production, but the Bakken. A chemical emulsion issues have well economics.” our operations have been able to recover to Well costs were higher than projected, brought fluctuating oil rates for American —Brad Colby, American Eagle Energy 2,250 boepd now,” Colby said. “So we around $6 million, but Lantz said that price Eagle’s test well in Flat Lake East field expect good growth and we have confi- has tempered a bit as some wells are being dence we will exit 2014 with over 3,000 drilled quickly. The company is interested along the North Dakota and Montana bor- in 2014 for approximately $94 million. It der in northwest Divide County. boe per day.” to see the results of its long-lateral La Plata will also participate in non-operated wells The Haugen well, which targets the Production volumes are expected to State well in which it used new sleeves in in its Spyglass area with total well develop- Three Forks formation, gained much of the return to normal levels during the second the initial completion resulting in a slightly ment costs of $100 million. attention in a May 14 first quarter confer- quarter with higher working interests that higher cost. “We are currently producing approxi- ence call with analysts. The well has pro- now average 68 percent in the Spyglass American Eagle is a Denver-based mately 2,250 barrels of oil equivalent per duced 60 to 192 barrels of oil estimated per area following the acquisitions completed exploration and production operator day and are completing wells that should be day, boepd, so the company is still evaluat- in March. Colby said he is encouraged to focused on acquiring acreage and develop- additive to second quarter results,” Colby ing the well to determine the how much of see other operators beginning to acquire ing wells in the Williston Basin. It ranked said. “The remainder of our 2014 develop- a prospect the Three Forks really is along acreage in the Spyglass area. “We’ve 26th among the top 50 Bakken oil produc- ment plan continues to focus on higher that western edge. known for years the low-cost wells and flat ers in North Dakota in March for operated, working interest wells in central and east- “There is nothing unusual about the decline curves in the Spyglass make for non-confidential wells with an average ern Spyglass.” proppant flowback,” said Tom Lantz, great well economics,” Colby said. He daily output of 3,629 barrels. l American Eagle reported first quarter American Eagle’s chief operating officer. cited an April press release from Crescent 2014 production of 148,048 boe, averaging “So the only distinction out there is the Point in which the company announced 1,645 boepd. Production was up 69 percent water salinities are slightly higher, about 10 acquisitions within the Spyglass, touting a percent higher than other parts of the field. But we’re doing some further analysis on that and will find out how significant that is and how much that’s affecting oil fluctuations.” American Eagle found the upper Three Only pay for the speed you need... Forks to be slightly thicker than expected, but said it still looks very similar to what Dynamic Routing!մ the company has seen on other wells, giv- ing no indication of why it should be showing production fluctuations. Lantz said the At Lynden, we understand that plans change but deadlines don’t. That’s why we proudly offer company will review additional rock sam- our exclusive Dynamic Routing system. Designed to work around your unique requirements, ples to see if there is a change in mineralo- gy that would explain the emulsion prob- Dynamic Routing allows you to choose the mode of transportation — air, sea or land — to lem. control the speed of your deliveries so they arrive just as they are needed. With Lynden, you “If there is, we may find some compati- bility issues and then we can adjust our only pay for the speed you need! frack fluids,” he said. “We’ll do more science work on the Haugen well and see if there’s anything we can determine from that to adjust anything on the completion side.” The Haugen well produced an average of 91 boepd during the first 20 days of production with a water cut in excess of 90 percent. Other wells produce better than expected Meanwhile, initial results from a well in the north central portion of the Spyglass acreage confirmed the expected quality that was established by two offset wells east and south of it. This Tangedal short-lateral well showed 30-day initial production at 363 boepd from the Three Forks, which put it above the type curve used in the company’s year-end reserve report. Another well on the western edge, the Taylor, produced 358 boepd from the Bakken, up 43 boepd from what was projected. “Both wells have continued to perform with relatively flat production curves and give us confidence with our well develop- ments schedule that focuses on developing wells with higher working interest in central Spyglass, while continuing to develop infill wells in eastern Spyglass, and moving development west with supportive well details,” President and Chief Executive Officer Brad Colby said. American Eagle has two drilling rigs in the Spyglass area, has already spud two gross operated wells in the second quarter, and is completing four gross wells with plans to drill and complete two more. It expects to bring six gross operated wells into production each quarter. The company plans to drill a mix of 16 www.lynden.com 1-888-596-3361 net Three Forks and middle Bakken wells 4 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014

l MOVING HYDROCARBONS NATURAL GAS NDIC gives itself wiggle room to put new Crude study finds production curtailment rules in place The North Dakota Industrial Commission has the option to delay its decision on new field orders that could curtail production in the Williston Basin. The com- no additional mission signed an order on May 14 that would allow another 90 days to review the information following an April 22 hearing in which it received comments about amending the current field rules to restrict oil production and impose pro- visions in order to reduce the amount of flared gas. In the May 14 order, the commission said, “The issues in this case are of such Bakken risks complexity that additional time is necessary for the commission to render a decision.” Department of Mineral Resources spokeswoman Alison Ritter told Petroleum AFPM’s evaluation determined Bakken crude oil characteristics News Bakken that Director Lynn Helms still plans to present the orders to the within normal range for light crudes in regard to rail transport commission at its June meeting scheduled for July 1, but this continuance allows the commission the option of pushing it to the July 29 meeting if more consider- By MIKE ELLERD properly classified as a flammable liquid.” ation is needed. Since North Dakota Century Code states that an order must be Petroleum News Bakken The evaluation found that Bakken given within 30 days following a hearing, the order would have needed to be crude, along with other light crude oils, can delivered much earlier. esults of a comprehensive evaluation contain higher concentrations of dissolved “It keeps us in accordance to the statute,” Ritter said. “It helps us get a timely of the characteristics of Bakken flammable gases, i.e., light end gases from order, but also more time to look at gas capture plans.” R crude oil commissioned by an association methane through pentanes, but did not find As part of new flaring policy put in place by the commission, operators will of U.S. crude oil refiners at the request of evidence that percentage of dissolved gases need to submit gas capture plans with all drilling permits starting June 1. The the U.S. Department of Transportation in Bakken crude is sufficient to warrant plans must include an affidavit signed by a gas gatherer to show the operator has were released May 15 and found that creation of a new DOT hazard classifica- provided the necessary information in order for the midstream company to set up Bakken crude “does not pose risks signifi- tion. a business plan to meet capture demands. cantly different than other crude oils or The operator will also need to share what alternatives it will employ to capture other flammable liquids authorized for rail Hydrogen sulfide and corrosivity the gas that is not able to be put into a pipeline. transport.” The evaluation also looked at the hydro- Ritter said since the monthly application hearings are slated for the end of June That conclusion was based on survey gen sulfide content of Bakken crude and as well, so the commission will have time to review related information from questions to members of the American with one exception found concentrations those meetings prior to making a decision. Fuel and Petrochemical Manufactures, were “extremely low” and were below the —MAXINE HERR AFPM, along with analytical data on some Occupational Safety and Health 1,400 samples of Bakken crude oil. While Administration’s short-term exposure limit the results indicate classification of Bakken for exposed workers. And while the excep- crude as a flammable liquid based on both tional case had unusually high hydrogen DOT and international requirements, com- sulfide concentrations, the evaluation parison of Bakken data with data on other established that existing transportation and CORRECTION crudes found “Bakken crude oil is within workplace safety regulations adequately the norm with respect to the hazard charac- address high hydrogen sulfide concentra- LeResche teristics of a light crude oil,” a finding that tions when they exist. In a story in the May 18 issue, “BLM considers more than just economics,” the does not support allegations that Bakken Furthermore, the evaluation found that last name of one of the people quoted was misspelled. crude poses unique transport hazards. Bakken crude does not corrode steel at a Bob LeResche of Wyoming’s Powder River Basin Resource Council was At the center of the controversy has rate that would classify it as a corrosive liq- incorrectly identified as Bob Loresh. been a contention that Bakken crude is uid. “Data and experience indicate there to Petroleum News Bakken apologizes for the error. more volatile, and hence more dangerous, be no basis for classifying Bakken crude than other crude oils commonly transport- oil as having a corrosivity risk as defined ed in the U.S. The AFPM evaluation found by DOP Hazardous Materials that Bakken crude may well have a higher Regulations.” content of dissolved flammable gasses, but so also do other light crude oils, and the AFPM’s view www.PetroleumNewsBakken.com percentage of those gasses in Bakken crude Charles Drevna, president of AFPM, would not warrant Bakken crude to be clas- Kay Cashman PUBLISHER & EXECUTIVE EDITOR ADDRESS said in a May 15 statement the associa- sified differently from its current DOT haz- tion’s report “was aimed at specifically Mike Ellerd EDITOR-IN-CHIEF P.O. Box 231647 ard class. addressing the characteristics of Bakken Anchorage, AK 99523-1647 Ray Tyson CONTRIBUTING WRITER Reid vapor pressure crude and concludes that its characteristics Gary Park CONTRIBUTING WRITER (CANADA) are no different than other light crude oils,” Vapor pressure, or more specifically, Eric Lidji CONTRIBUTING WRITER NEWS adding that AFPM believes the data assem- MIKE ELLERD Reid vapor pressure, RVP, is a surrogate for bled in the report better inform government Rose Ragsdale CONTRIBUTING WRITER 406.551.0815 volatility, i.e., the higher the RVP, the regulators in reviewing all aspects of safe Steve Sutherlin CONTRIBUTING WRITER [email protected] greater the propensity for a liquid to evap- crude-by-rail transport. Maxine Herr CONTRIBUTING WRITER orate and accumulate vapors above the liq- “Rail safety is a shared responsibility uid surface. For flammable liquids, the Jannelle Steger Combs LEGAL COLUMNIST CIRCULATION and AFPM and our members are commit- higher the RVP, the lower the flammable ted to doing our part,” Drevna said. “But, Mary Mack CEO & GENERAL MANAGER 907.522.9469 temperature and the more hazardous the new specifications must be based in data [email protected] Raylene Combs BAKKEN ADVERTISING EXECUTIVE liquid becomes. showing the benefits are real and that the Ashley Lindly RESEARCH ASSOCIATE In the case of Bakken crude, the AFPM new design will not adversely impact our study determined that the maximum vapor Mark Cashman RESEARCH ASSOCIATE ADVERTISING ability to provide the fuels and other prod- 907.522.9469 pressure observed based on data collected ucts Americans depend on every day.” l Keith Bayley RESEARCH ASSOCIATE [email protected] was 61 percent below the vapor pressure Susan Crane ADVERTISING DIRECTOR threshold limit for liquids under the HMR, Bonnie Yonker AK / NATL ADVERTISING SPECIALIST “demonstrating that Bakken crude oil is FAX NUMBER Steven Merritt PRODUCTION DIRECTOR 907.522.9583 Marti Reeve SPECIAL PUBLICATIONS DIRECTOR Tom Kearney ADVERTISING DESIGN MANAGER NORTHWEST LININGS & GEOTEXTILE

Heather Yates BOOKKEEPER & CIRCULATION MANAGER PRODUCTS, INC. Renee Garbutt CIRCULATION SALES Several of the individuals Northwest Linings has over 41 years of experience in the Oil & Shane Lasley IT CHIEF listed above are Gas industry, supplying & installing geomembrane liners for tanks, Dee Cashman RESEARCH ASSOCIATE independent contractors pits, pads, secondary containment, landfills, and ponds. In OWNER: Petroleum Newspapers of Alaska LLC (PNA) addition, we supply geotextiles, geogrids, erosion blankets, straw Petroleum News Bakken • Vol. 3, No. 6 • Week of May 25, 2014 logs, gabions, and other geosynthetics throughout the United th Published weekly. Address: 5441 Old Seward, #3, Anchorage, AK 99518 21000 77 Ave S States. (Please mail ALL correspondence to: P.O. Box 231647 Anchorage, AK 99523-1647) Kent, WA 98032 Subscription prices in U.S. — $98.00 1 year, $176.00 2 years • Canada — $185.95 1 year, $334.95 2 years P: 253-872-0244 ³Helping to Protect the Environment´ Overseas (sent air mail) — $220.00 1 year, $396.00 2 years F: 253-872-0245 POSTMASTER: Send address changes to Petroleum News, P.O. Box 231647 Anchorage, AK 99523-1647. Visit us at: www.northwestlinings.com PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 5

l DRILLING & COMPLETION Oxy upping Dunn County well densities Crescent Point infilling Williams and Divide DSUs; Emerald increasing well counts on 15 units; EOG looking for 14 wells on a 320

By MIKE ELLERD County. Slawson Exploration wants to drill Whiting Oil and Gas wants to Petroleum News Bakken Whiting Oil and Gas wants to drill up to up to 11 wells on each of two nine Bakken wells on all of the 1,280s in drill up to nine Bakken wells on xy USA filed applications with the existing 960-acre units in the two Williams County spacing zones, one all of the 1,280s in two Williams ONorth Dakota Industrial Stockyard Creek field in south- in the Dollar Joe field and the other in the County spacing zones, one in the Commission in May seeking the commis- central Williams County. Ray field, contiguous fields in the south- Dollar Joe field and the other in east region of the county. sion’s permission to drill up to 14 Bakken the Ray field, contiguous fields in pool wells on each of 18 existing 1,280- Tulsa-based Samson Resources is ask- Sinclair Oil wants permission to drill up the southeast region of the county. acre drill spacing units, DSUs, in three to seven wells on an existing 640-acre unit ing the commission for authorization to contiguous fields in southwest Dunn in the Little Knife field in western Dunn drill up to seven Bakken pool wells on County. With those applications, Oxy County. each of two existing 1,280s in the In the Rattlesnake Point field in western USA is looking to drill a maximum total of SM Energy is asking to drill up to 11 Blooming Prairie field in north-central Dunn County, Continental Resources is 252 Bakken pool wells, the lead in the Bakken pool wells on an existing 1,280 in Divide County. seeking authorization to drill up to 14 number of infill wells requests that the the Poe field in northwest McKenzie MDU Resources subsidiary Fidelity Bakken pool wells on an existing 2,560 Industrial Commission will consider dur- County, and up to 10 wells on a 1,280 in Exploration and Production is seeking and up to seven wells on an existing 1,280 ing hearings on May 28 and 29. Nine of the Camp field in north-central McKenzie authorization to drill multiple Bakken pool in the neighboring Jim Creek field. those units are in the Manning field; five County. wells on a number of existing spacing In the Traux field in south-central are in the Fayette field; and the other four In the Spotted Horn field in far eastern units of varying sizes in the Sanish field in Williams County, Hess wants to drill up to are in the Willman field. McKenzie County, QEP Energy wants to southern Mountrail County. Fidelity wants two Bakken pool wells on an existing Calgary-based Crescent Point Energy drill up to 10 wells on an existing 1,280. to drill up to six wells on two 640s, up to 2,560. l filed applications to drill up to eight wells Kodiak Oil and Gas seeks permission five wells on one 1,280 and up to 10 on on each of 28 existing 1,280-acre spacing to drill up to 10 wells on a 1,280 in the another, up to seven on a 1,920, and up to DSUs in nine fields in Williams and South Fork field in northeast Dunn 12 on a 2,560. Divide counties, a total of 228 wells on those 28 units. In addition, Crescent Point wants to drill up to eight wells on an existing Williams County 640-acre spacing 20” Pipe. 21,000 FFeeet, UUnused. Sealed Bid Auction. unit. Of the 28 spacing units that Crescent Point is looking to infill, 26 are in central Unused Pipe.pe. 20 inch diameterr,, ..3753 WT Williams County, and of those 26, eight Unused Pipe Bends. 20 inch diametererr, .050 WT are in the Winner field, five are in the Ellisville field and five are in the Little Muddy field with two each in the Blue These items are being sold as one lot through sealed bid auction. Material is located in Fairbanks, Alaska. Ridge, and Dublin fields, and one each in Bid packets, MTR’s (material test reports), and sale terms can be downloaded at www.1stStrike.com the Church, New Home and Wheelock or contact 1stStrike at [email protected] for an emailed Bid packet. fields. The Divide County 1,280s are in the All bid packets must be submitted by July 11, 2014. Alkabo field in northwest Divide County and in the Wildrose field in southeast Divide County. Emerald infilling 15 existing 1,280s Emerald Oil filed applications seeking authorization to drill up to seven Bakken pool wells on each of 15 existing 1,280- acre spacing units, 13 in southwest McKenzie County and two in east-central Williams County for a maximum of 105 wells on those 15 spacing units. Five of the McKenzie County spacing units are in the MonDak field, and two are in each of the neighboring Cinnamon Creek, Poker Jim, Pierre Creek and Winter Butte fields. The two Williams County spacing units are in the neighboring Ray and Wheelock fields. EOG’s Dunn infilling EOG Resources wants to drill up to 14 wells on an existing 320-acre unit in the Mandaree field in northwest Dunn County, the highest density application being con- sidered in the May hearings. In the Antelope field in eastern McKenzie County, EOG seeks to drill “multiple” wells on one 320-acre unit and one 640-acre unit and on two 1,280s. In the neighboring Clarks Creek field, EOG wants to drill multiple wells on each of four separate spacing units ranging in size from 1,280 to 2,560 acres. And in the neighboring Spotted Horn field, EOG looks to drill multiple wells on two 1,280s and one 2,560. Other new well apps Slawson Exploration is requesting authorization to drill up to 11 wells on each of two existing 960-acre units in the Stockyard Creek field in south-central Williams County. wwww..1stStrike.co.1stStrike.com Liberty Resources wants to drill up to 13 wells on an existing 1,280 in the [email protected] McGregor field in northeast Williams County. 907-978-1209 6 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 l NATURAL GAS Flaring appeal limited to four counties With new flaring rules on the horizon, several operators seek permission to flare their wells in extreme northwest North Dakota

By MAXINE HERR Williams County. In the eastern section of NDIC is expected to vote on new These longer-term applications For Petroleum News Bakken Williams County, Whiting Oil and Gas field rules on July 1 that would set has submitted a request to produce oil at filed with the commission seek ells in Divide County dominate up potential production an unrestricted rate and flare gas at its exemptions from the one-year Wthe application requests for flaring curtailment in order to bring wells in Dollar Joe and Ray fields. flaring limit for wells in which exemptions that will be heard by the flaring under control and hit the These longer-term applications filed connections to gas gathering North Dakota Industrial Commission, 90 percent capture target by the with the commission seek exemptions facilities are economically from the one-year flaring limit for wells NDIC, on May 28 and 29. year 2020. infeasible. North Plains Energy is the only opera- in which connections to gas gathering tor submitting a short-term application in facilities are economically infeasible. which it is asking for authority to produce Skabo, Ambrose, Whiteaker, Musta and Under North Dakota Century Code, after can grant an exemption from the one-year its wells at a maximum efficient rate West Ambrose fields. Baytex also flaring for one year, an operator is obli- flaring limit that allows an operator to beyond the 60 days allowed under com- requests unrestricted flaring in the Burg gated to do one of the following: cap the continue flaring gas without an obligation mission field rules, and flare those wells field on the border of Divide and well, equip the well with an electrical to pay royalties and taxes. But, to get such until December 2014 in the Smoky Butte Williams counties. Several of these appli- generator that utilizes at least 75 percent an exemption, an operator has to demon- field on the southern edge of the county. cations are continued from previous hear- of the gas, equip the well with a system strate “to the satisfaction of the commis- Baytex Energy and Hunt Oil want the ings. Hunt Oil is asking to flare its wells that intakes 75 percent of the gas for ben- sion” that it is uneconomical to connect commission to allow the flaring of gas in Alexandria, Smoky Butte, and Writing eficial consumption or equip the well with the well or equip it for beneficial use, and and unrestricted production of oil from Rock fields. Hunt Oil also wants the com- some other type of value-added process- that there is no market for the gas. wells that are not connected to a gathering mission to allow the company to flare gas ing system that reduces either the flaring Fidelity Exploration and Production is facility as there is no market for the gas. at its wells in Green Lake field in the volume or intensity by over 65 percent. seeking this exemption as well, asking the Baytex is seeking this approval in the northern part of Williams County, and two However, the Industrial Commission commission to allow the company to flare Scorio wells in Zahl field, also in the gas at its wells in the Heart River and Zenith fields just southwest of Dickinson in Stark County. In addition, Fidelity filed a separate case to allow flaring specifically for the Pavel well in Zenith field. In its application, the company said due to the location of the well and low volumes of gas produced from the Pavel 14-23H well, it is economically infeasible to connect to a gas gathering facility, there is no market for the gas and equipping the well with an electrical generator to produce electricity from the gas is not economically feasible. XTO Energy has submitted an application to allow flaring for wells in northwest Mountrail County. It also requests unrestricted production of oil from wells until those can be connected to gas gathering infrastructure. The 15 applications to allow flaring come just days before a new policy becomes effective on June 1 to require gas capture plans with each drilling application in an effort to reduce flaring in the state. NDIC is expected to vote on new field rules on July 1 that would set up potential production curtailment in order to bring flaring under control and hit the 90 percent capture target by the year 2020. Continental given more time to gather gas volumes Continued from last month’s hearing, Continental Resources is submitting applications with the commission requesting an order that determines the amount of royalties and taxes owed on the natural gas flared from numerous Williston Basin wells. Under NDIC rules, operators can flare the gas from its wells for one year and be exempt from paying royalties and taxes during that time. However, when that period is over, the operator must pay them. Continental determined a number of its wells have flared beyond the one- year period and is asking the commission to determine the volumes and value of the gas flared so it can pay the appropriate royalties and taxes. At the April hearings, Continental had information on the gas volumes for many of its wells, but not all, so the commission asked for each case to be continued to the May hearings to allow Continental time to gather the information for every well. The commission felt once all the information was presented, the cases could likely be consolidated. l PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 7

l LEGAL COLUMN Hamm advocates OK following ND example Oklahoma operators speak out against raising production tax for horizontal wells; oil executive favors enlarging spacing units By JANNELLE STEGER COMBS operators have indi- Legal Column overlapping 2,560-acre units to attempt For Petroleum News Bakken cated that the to obtain production along the section process is cumber- Forks 1,280-acre units. lines and diminish the impact of set- ontinental Resources Inc. CEO some and does not The commission, meanwhile, has backs on how much oil can be retrieved. CHarold Hamm is asking Oklahoma fit technological even found that primary spacing units Some operators are even proposing ini- legislators to change a 40-year-old state advances like hori- can sometimes be extremely large. The tial 2,560-acre units to maximize recov- law that restricts most oil and gas spacing zontal drilling. 30,883-acre Corral Creek-Bakken Unit ery from the outset. units to 640 acres. Hamm has stated that proposed by Burlington Resources Inc., Reviewing the historical actions of extending the lateral leg into a second Comparison to a unit of ConocoPhillips, was adopted by the commission and the North Dakota section would double production while North Dakota JANNELLE STEGER the commission in December 2011. That Legislature, the more nimble approach to only increasing costs by 30 percent. Oil By contrast, COMBS Dunn County unit was unique because spacing has allowed North Dakota to companies in Oklahoma were primarily North Dakota’s of its location near Little Missouri River adapt more readily to new technology, concerned with the production tax hike spacing is set by North Dakota Century State Park and because Burlington even with only 90 days in the legislative set to take effect for horizontal wells in Code, N.D.C.C. Section 38-08-07. owned 50 percent of the minerals and session every two years. While set spac- 2015. Instead of adhering to a set number of the federal government owned 10 pering requirements like those in Oklahoma Several operators also have expressed acres like the Oklahoma law, spacing is cent. At the Industrial Commission meet- may provide uniformity, the shale revo- concerns that the temporary tax rate of 1 determined based on where the proposed ing approving that unit, North Dakota lution has excelled where the legal percent would jump to 7 percent next unit is necessary to prevent waste, avoid Gov. Jack Dalrymple pointed out that the framework is more adaptable, like in l year and restrict production in the drilling of unnecessary wells and/or circumstances of the Corral Creek- North Dakota. Oklahoma. Vertical wells in the state protect correlative rights. The statute Bakken Unit were unique and that any already face the 7 percent rate. provides much leeway for the North future applications for these types of Oklahoma’s budget shortfall is putting Dakota Industrial Commission to set mega-units would be closely scrutinized pressure on the legislators there to reme- standards for units and to deviate from and might not be approved. dy the deficit by increasing the tax on those standards when appropriate. In January, QEP Energy Co. peti- horizontal wells, too. The commission has not shied away tioned and was granted a 25,000-acre Talks on oil production tax reform led from larger spacing units. While 640- unit known as the Grail-Bakken Unit in ® to a spacing discussion with Hamm. acre units occur throughout the Williston McKenzie County. Dalrymple, who is Oilfield Improvements ® Oklahoma statute 52-87.1 limits units to Basin, the 1,280-acre spacing unit has chairman of the Industrial Commission, ULTRA-FLOW 640 acres, plus tolerances and variances become the norm. Still, there are current voted against the unit. In March, QEP FIELD INSTALLED for horizontally drilled oil wells. The efforts by various operators to down- withdrew its request for the mega-unit. CENTRALIZERS/ Oklahoma Corporation Commission has space from the traditional Bakken/Three The Industrial Commission has fur- PARAFFIN SCRAPERS provided for larger units at times, but ther developed its spacing units, with Full-circle Wiping of Tubing I.D. l COMPANY UPDATE More Gripping Force on Sucker Rods More Fluid Flow-by Volume DeeThree building Longer Useful Life from Longer Vanes & Bearing Surfaces SAFETY UNDER Positive Wear Indicators Alberta Bakken stake Amodel with Glass Fill PRESSURE CALL 1-800-LES WEAR By GARY PARK DeeThree said the gas reinjection (800-537-9327) OR YOUR For Petroleum News Bakken Oilfield Supply Store EOR scheme continued to exceed Fortis is a leader in high www.rodguides.com algary-based junior DeeThree its expectations. pressure completions, C Exploration is quietly establishing a ® core area in the Alberta Bakken, adding DeeThree said the gas reinjection EOR workovers, down-hole 45,000 acres this year and planning four scheme continued to exceed its expecta- repairs and maintenance, exploration wells over the balance of 2014 tions. plugging and abandonment. 1902 N. Yellowood Ave. that it believes have the potential to “mate- The pilot, consisting of one central gas Broken Arrow, Oklahoma 74012 U.S.A. rially increase” the size of that resource. injection and 10 producing wells, started PHO 918-250-5584 • FAX 918-250-4666 The company said the land additions in last July. the Ferguson area are in addition to an Our award winning team of “With more history and positive ® agreement executed with an unidentified Oilfield Improvements response from the producing wells, the pilot experts will use their deep ® senior producer to earn a 100 percent work- WHEELED ROD GUIDE continues to demonstrate the potential to experience working under COUPLINGS ing interest in up to 22,000 acres on trend significantly increase ultimate recoveries,” with its existing Alberta Bakken produc- it said. the high pressures of the tion. As a result, DeeThree is expanding its Marcellus and Utica Shales For Deviated, Directional and DeeThree said in its first quarter report gas reinjection pipeline infrastructure and Horizontal Wells that the transaction represents the majority has ordered a gas injection compressor to get your job done safely block of remaining available land between Used Successfully for Over which will increase injection capacity to 4 and efficiently. 27 Years by Over 90% of its original Alberta Bakken discovery well million cubic feet per day. Major Oil & Gas Companies and an existing pool that has been delineat- By mid-2014, the company expects to in Over 40 Countries — ed to exceed 44,800 acres. reinject a significant portion of its Alberta Inc. Magazine Top 100 Onshore and Offshore It will give it a 100 percent working Bakken gas in three different injectors Wheels are Field-replaceable interest in a contiguous land base of about located throughout the pool. Energy Company 128,000 acres of Alberta Bakken rights that The company board has approved an Call stretch 30 miles between production in what increase in this year’s capital budget to 800-537-9327 it defines as its primary Alberta Bakken C$270 million from C$230 million. or Your Oilfield development and exploration fairway. DeeThree remains on target to reach its Call Edward Shelton, VP Supply Store The company said it drilled four 100 per- production guidance for the year of 11,500- Business Development cent working interest Alberta Bakken hori- 11,700 barrels of oil equivalent per day and zontal wells in the first quarter, including exiting the year at 13,000-13,500 boe per www.rodguides.com three infill producers and a third well for its day, factoring in its two other core operating 917-239-3471 gas reinjection enhanced oil recovery areas in northwestern Alberta’s Peace River [email protected] ® scheme. Arch and west-central Alberta’s Brazeau, The three infill wells successfully tested which are prospective for natural gas, light down spacing in different areas of the pool crude and natural gas liquids. l fortisenergyservices.com with an average final test rate of 595 barrels 1902 N. Yellowood Ave. Broken Arrow, Oklahoma 74012 U.S.A. per day of oil and 235 million cubic feet per PHO 918-250-5584 • FAX 918-250-4666 day of gas. 8 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 l COMPANY UPDATE Samson O&G NPV estimates double Ryder Scott report leads to upward revision of proven, probable and possible reserves for Australia-based independent

By STEVE SUTHERLIN For Petroleum News Bakken EXPECTED NET PROD. GROWTH (BOEPD) ustralia-based Samson Oil and Gas said a new third party reserves esti- 2,500 A SAMSON OIL & GAS’ mate regarding its Bakken acreage has led the company to double its estimates of proved net present value to $47.722 million, up from $23.612 million in April 2013, after accounting for production 2,000 during the 11 month period. As of March 31, a Ryder Scott Co. report estimated the company’s proved reserves to be 1.805 million barrels of oil equivalent, Samson said in a May press 1,500 release. B Probable reserves were estimated by O Ryder Scott to be 1.09 mmboe valued at E $12.8 million, while possible reserves P were estimated to be 0.80 mmboe valued D HIGHER EQUITY RAINBOW 1,000 at $7.1 million. WELLS Valuations are based on a discount rate of 10 percent and utilize the SEC pricing model, the company said. RAINBOW TWO WELL PAD DRILLING Proving up 500 NORTH STOCKYARD THREE FORKS FOUR WELL The probable reserves are largely PAD DRILLING those associated with the first bench of the Three Forks formation in its North COMPLETION OF NORTH STOCKYARD BAKKEN Stockyard project, Samson said. Two DRILLING new wells are being drilled into the 0 bench in May. Slawson Exploration is Jul-2014 Jul-2015 Jul-2016 Jan-2014 Jan-2015 Jan-2016 Jun-2014 Jun-2015 Jun-2016 Oct-2014 Oct-2015 Oct-2016 Apr-2014 Apr-2015 Apr-2016 Sep-2014 Sep-2015 Sep-2016 Feb-2014 Feb-2015 Feb-2016 Dec-2016 Dec-2014 Dec-2015 Aug-2014 Aug-2015 Aug-2016 Nov-2014 Nov-2015 Nov-2016

the operator. Mar-2014 Mar-2015 Mar-2016 May-2014 May-2015 May-2016 The Bootleg 4-14-15TFH, well was drilled to the kickoff point at 10,862 feet and was drilling the curve at 11,224 feet which will give them the ability to com- reserves are associated with the Three measured depth, Samson said in a May At its Rainbow project, one pete with Bakken well production in Forks Bench 1 in the Rainbow field,” 19 operational advisory, adding, “When township north from North North Stockyard, Terry Barr, Samson Samson said. “Whilst Samson believes the curve is landed in the Three Forks, 7 Stockyard, Samson hopes to CEO said Feb. 18 in a presentation at that there is sufficient local evidence that inch casing will be set and lateral drilling upgrade its possible reserves in Enercom in San Francisco. the Three Forks Bench 1 will be produc- will follow.” the Three Forks as well with a “The longer lateral actually just tive in this field, it does not yet qualify as The Bootleg 5-14-15TFH well was Continental-operated drilling reflects the slightly inferior rock quality proven.” drilled to a measured depth of 11,675 feet that we see in the Three Forks compared The Rainbow probable reserves are program slated to begin in and “7 inch casing landed and set in the to the Bakken,” he said. subject to a single well drilling commit- Three Forks.” summer. ment to be met prior to December 2014, The North Stockyard probable Slawson operated after which the reserves are held by pro- reserves are held by production, Samson Forks is producing adequately in this At North Stockyard, Samson holds a duction, Samson said. said. area.” 30 percent operating interest and a 23 Samson is targeting a June spud date To qualify as proved, the Three Forks Samson expects that its initial Bootleg percent net revenue interest. The project for its first Continental-operated well in first bench has to be evidenced as eco- wells will be successfully completed and is in the Stockyard Creek field in south- the Rainbow project, Barr said. nomically productive in an immediately that the initial Three Forks wells will be central Williams County. Slawson Sixteen wells are planned at Rainbow, adjacent drilling area, Samson said. moved from probable to proved devel- Exploration and its joint venture non- with eight wells targeting the middle “There are three producing competitor oped producing reserves, with the bal- operating partner PetroShale Inc. Bakken and eight wells targeting the first wells in the Sections immediately adja- ance of the probable reserves moving to acquired half of Samson’s equity posi- bench of the Three Forks, he said. The cent and to the north of Samson’s proved undeveloped. tion in undeveloped Stockyard Creek company’s short-term objective is to drill acreage, but the production data from The North Stockyard project has so acreage in 2013. one Bakken well and one Three Forks these wells are being held in confidence far been targeting the Bakken. Four Slawson-operated middle- well. and therefore don’t qualify as evidence,” The Three Forks wells will feature Bakken wells on production in Stockyard Samson has two spacing units in Samson said. “However, presentations longer 7,200-foot laterals versus 6,550- Creek turned in 24-hour initial produc- 2,560 gross acres at Rainbow, with 23 by this competitor suggest that the Three foot laterals for the middle Bakken, tion rates of 501, 556, 1,078 and 1,323 percent equity in the Continental operat- barrels. ed unit, and 53 percent equity in a second Slawson is operating 16 wells in unit to be drilled later, Barr said. Stockyard Creek; four wells are on As the Rainbow wells come online in active status, two wells drilling, and 10 February 2015, Samson expects its pro- What's the big attraction? wells on confidential status, according duction to climb to 1,500 boepd, riding a to North Dakota Department of Mineral predicted production surge in October Resources Oil and Gas Division records. from Three Forks wells at North Family-owned, Wichita-based inde- Stockyard. A. an industry institution pendent Slawson is one of the top oil “We will see Samson’s production

Vol. 1, No. page Baytex p 25 • www.Pet rimary work roleumNewsB in Three akken.com 6 Forks; desp growth over the course of the next two ite A wee sale set record kly newspaper fo producers in the Williston Basin, known r industry and C.P. a government waits SK’s Marc B. quality, accurate reporting firs h 24, t unit in 2 P R O D U 2013 0 yrs C T I O N years grow quite healthily from this ND rig count as an innovator and technology leader in Hit 188 rigs March 15; up C. attractive, readable design oil output should exceed 850,000 BY MIKE ELLERD bopd in 2015 For Petro leum News Bakke has bee investment in both North Stockyard and n n increasing in March. exploring the vertical and horizontal hile h arsh win ter weather sm The rec WNorth Dakota in J acked ord high rig percen anuary, causin count is 2 t drop in its daily g a 4.2 18 which was sta oil produc numb the te’s d rilling rig tion, the er of rigs operat count has No ing in upwards. As of been inching rth Dakota o D. 93 percent market saturation March 15 n May 29, ing in th , 188 rigs were op 2012. e state. North Dak erat- Rainbow,” Barr said. ota’s to Lynn Helms, sa p oil official, In February ys if the rig co , the North extents of the Bakken petroleum system. that level, pr unt stays arou Dakota Oil oduction sho nd and Gas barrels uld exceed the LYNN HELMS Divisio of oil per da 850,000 n issu ed th y projected by 185 e biennium. the state for f drilling permi rom the 218 that ts, down North D were issued in akota’s rig cou from the 154 January but u 183, down nt in February that were issu p two from the was The ed in Decembe at 185 rigs tha record high n r. ing in January t were oper- issu umber of drilli Barr said that in order to keep produc- and d ed ng o own one fro by the divisi permits perating in Dec m the 184 on was the 3 ember. Howev 70 issued in er, the rig count M O V I N G H Y D R O se CAR B O N e COUNT page 16 Rail ruffles tion on an upward trajectory in 2016, it Crescen Another pot of gold? t Poi nt E Sa nergy is ea pipeliner skatch gerly a TC ewan government waiting a d exec: rai in 20 to allow ecision by l has ‘very years, openin the provinc the importan single g the door fo e’s first “uniti t role’ in mo operating r multiple ow zation” ving oil, op units, requir ners in pools but dirtier erating cost ing each to c to create BY GARY , more dan s, while sharin ontribute to ca PARK gerous Based on it g in the profit pital and Capital/S To advertise in Petroleum News Bakken s initial s base For Petr oci mor success, the mi d on their oleum News Ba ete Genera e two-mile h d-range pro stakes. kken fill le that althoug co orizontal well ducer plans to a “v ery h rail can mpleted, and s this year, on drill six important is confident top of the f he incr role,” there cost of similar w they can be dri our already easing talk “pretty are some will seek to acquire more acreage in the ells lled that r simp drilled across t for about ha pro ail can le facts” to he border in lf the T vide a larg consider. N er, orth Dakota. altern more d urable “For every mile ative to p ipe you move a lines for ship of oil by rail, barrel At its Rainbow project, one township crude shows ping you emit three Crescent signs of ruffling greenhou times the extends feathers. some se gases than horizons using you do b y For Cre Alex a pipeline and scent Point Ene Pourbaix, pre you have an ord innov rgy, recognized and sident of ener of m agnitude er ative players in as one of the mo oil p ipeline gy higher risk of call Susan Crane at 907-770-5592, Bonnie B s w ha unlo akken-type pla st ith T ransCana some sort of ving cking the value ys, one of the k told a New da, incident, leak o area. of eys Yo r sp com its Canadian res to rk conference “From th ill. bination of wa ource assets lies February he di in at perspective, terflooding and in a d not want to b point t I make the The mid-r unitization. “slaggin e seen as hat if you’re actu ange producer g” rail, then ab ally concerned north from North Stockyard, Samson is n pro out sion b y t ow eagerly aw embark ceeded to A the environm he Saskatche aiting a deci- on a short, sha LEX POURBAIX ent, for long-h provin wan governm se rp critique of th movement of o aul ce’s first “unitiz ent to allow t rvice. e il, you very mu ation” in 20 hat to see that ch want for multiple ow y ears, opening He to ld oil move by p ners in pools to the door the event spon Pourbaix no ipeline.” requiring create single o sored by FirstE ted that t he U each to contribu perating units, nergy .S. Department while s te to capital an of “We would expect to add acreage to haring in the d operating co GOV ERN M Yonker at 425-483-9705, or Renee Garbutt pro sts E N N fits based on their , T see PIPELINER pag eil Smith, chief stakes. e 12 operating offic optimistic that g er, said Cresce hopes to upgrade its possible reserves in overnment ap nt Point is next six m proval will o onths for the first ccur within the Gas unit and will flaring stuck be followed b y Kringstad at 29% see CRESCE dissects cau NT page 13 ses; solutions are our portfolio in this area and that growth comp Is Apache ression, loops, pi pulling BY MIKE ELLERD gging, incentive Fo s at 907-522-9469. out r Pe Bakken of troleum News Ba the Three Forks as well with a fringe? kken Bakken laring Hunter In a Feb. 14 pres of natural gas pads s conferenc Ja in North Da k align its fourth qu e to discuss F nuary held steady ota in with Oneok arter earnings it ha at 29 percent, r pipe results, Ap and production s been for the ight where In ache Corp. Ch last three month a move that wo Exe airman and Ch news is that flari s. The good uld eliminate will continue; it’s just that we don’t have cu ief n it fla tive Officer G. g isn’t going up; th s Divide County ring in Apa Steven Farris neither is it goin e bad news is operations che is in t he p said g down. Hunter LLC , B akken rocess of In the M is reconfigurin approximat identifying arch Directo order to g well pads in Continental-operated drilling program ely $2 b r’s Cut p p erfec illion in “asset rat North Dak ress conferen tly align them izations to b e c ional- ota Pipeline Auth ce, new gas ga with Oneok’s ompleted in 2 Kringstad ority Director thering pipelines so would not 013,” but he looked at roo Justin be conn the wells c elaborate on 29 t causes for th ected to gas sa an are; where those ass percent of natu e flaring of pr les before they just that Apach ets ral gas produ oduction. go into l e is lookin The pre ced in the Speculatio g to sell them th ss conference is state. In F n has begun is year. Indus held by the Nort ebruary, Bakken any more acres at this point,” he said. about th trial h Dako Hun e 300,000-plu Commission, ta of Magn ter, a subsidiary Subscribe at: s net acres Res Department um Hunter, ources, Oil an of Mineral to submitted applic d Gas Division the North Da ations authority. and the pipelin kota Industrial slated to begin in summer. e C see INSIDER page requesting ommission 12 13 n ew 640-ac and 10 new re spacing u nits 1,280-spacing see units in t he FLARING page 14 see HUNTER page 15 www.PetroleumNewsBakken.com “A similar situation exists for the possible reserves category where these PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 9 continued from page 1 Lodge, North Dakota, and Clearbrook, tion.” “an attempt to double the price of trans- Minnesota, plus 375,000 bpd from The decision is seen as benefitting portation while receiving a risk-free guar- SANDPIPER OK Clearbrook to Superior, Wisconsin. Canadian producers by limiting the vol- anteed rate of return.” Enbridge has rated Sandpiper as a key ume of U.S. crude that can flow into Others agued that the Enbridge plan upstream expansion and the downstream element of its light market program that is export pipelines used by Alberta oil sands would force shippers to shoulder the full extension. designed to provide 1.7 million bpd of producers by delivering U.S. Bakken extent of increased costs if Sandpiper was Sandpiper, to be operated by North pipe transportation to new markets. crude to those pipelines. not filled to capacity. Dakota Pipeline Co., is part of a $6.2 bil- FERC Commissioner Tony Clark, who A number of companies involved in FERC turned down the initial proposal lion Enbridge initiative to expand several was previously chairman of the North shipping crude out of the Bakken had ini- by rejecting the letters of support of its pipelines by 2016 and access light Dakota Public Services Commission, said tially opposed Enbridge’s proposed Enbridge filed representing only 15 of oil markets in the eastern United States Sandpiper gave FERC the chance to dis- Sandpiper tolls. more than 200 shippers that the company and Canada. cuss the type of projects “that are being EnWest Marketing told FERC that indicated could use the system. It is scheduled to come on stream in developed and may be developed to deal “the amount of (Sandpiper) capacity was —GARY PARK early 2016, running parallel to Enbridge’s with shale oil takeaway needs, not just in not necessary in view of rail and pipeline existing 210,000 bpd Bakken system, the Bakken, but other parts of the country alternatives,” while WPX Energy adding 225,000 bpd between Beaver as we seek expanded crude oil produc- Marketing accused Enbridge of staging

continued from page 1 approximately 485 miles of pipelines com- MERGERS ACQUISITIONS prised of approximately 150 miles of crude & ARROW PERMIT oil pipelines; 170 miles of natural gas pipelines and 165 miles of produced water mcfd and water throughput to 40,000 bpd. Triangle gains hefty acreage in core basin pipelines in approximately 150 miles of According to Doug Lee, senior vice Triangle Petroleum announced its acquisition of approximately 46,000 net rights of way. The system currently has five president of operations, Arrows system “is a acres in the Williston Basin in North Dakota and Montana for a combined $120 compressor stations in operation as well solution to the needs of producers to move million on May 14. The properties currently produce about 1,175 barrels of oil as two water pump stations and one crude natural gas, crude oil and produced water equivalent per day, boepd. The Denver-based company received bank commit- oil pump station.” l from well pads to market. Arrow purchases ments to fully finance two separate deals in Williams County, North Dakota, and natural gas and crude oil and takes owner- Sheridan County, Montana. Net proved reserves are 4.45 million boe. ship of produced water at the well pad. The The transactions are expected to close by June 30, but Triangle said the acqui- products are then transported through sitions have no material impact on the first two quarters of the company’s fiscal year 2015 which runs from Feb. 1 to July 31, 2014. The acquisitions should provide approximately 9 percent greater boepd by the second half of fiscal year 2015 ending Jan. 31, 2015. The acquisitions will bring the company’s total property in the Williston Basin QEP Resources is a leading to 135,237 net acres with more than 91,000 acres within the core area of the independent crude oil and Bakken. natural gas exploration and Triangle’s development plan includes drilling six middle Bakken and four production company with Three Forks wells per spacing unit. Triangle announced its fiscal year 2014 results operations in some of the most in April and said it planned to spend $510 million in the Williston Basin in fiscal proliﬁc resource plays in the year 2015 with $415 million targeted to its drilling program. At that time, Triangle continental United States. President and Chief Executive Officer Jon Samuels told analysts that he believed the second quarter of fiscal 2015 would be the best quarter in the company’s history. —MAXINE HERR A Proud Past—A Bright Future NYSE: QEP www.qepres.comwww.qepres.com 10 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 BAKKENStats ● BAKKEN COMMENTARY Our apologies to Petro-Hunt

KAY CASHMAN Halcon has top IP in the Otter field in Williams County, Dakota from a deal with Sequel Energy with 2,706 bbl. LLC. Petroleum News Bakken HRC Operating (Halcon Resources) Those wells were in McKenzie, took the No. 1 position in the Top 10 In last week’s Top 50 North Dakota Enduro transfers McHenry wells Divide, Williams, Burke, Golden Valley, Bakken wells by IP rate with 3,719 bar- Bakken oil producers Petro-Hunt was Billings and Dunn counties. rels of oil in its first 24 hours online for The North Dakota well operator trans- accidentally omitted. Adjacent is the cor- All but two of the wells were complet- this week, which included active wells fers chart for the period of April 12 to rected Top 50 list, which was for the lated in conventional formations with only that were filed as completed with the state May 16 shows just one company transfer- est month reported, March. two completed in the Bakken formation of North Dakota from May 13-19 in the ring operatorship of wells. With 19,614 barrels per day, Petro- — one a horizontal well in McKenzie Bakken petroleum system, as well as On May 14 Enduro Operating LLC Hunt ranks as the 16th largest Bakken County and the other a vertical hole in active wells that were released from tight- transferred 14 vertical wells to Sedalia system oil producer in North Dakota for Burke. hole (confidential) status during the same Energy LLC. They all targeted the the month, minus production from confi- Enduro entered the Williston Basin in period. Madison formation in the Pratt field of dential wells, which is not public infor- 2012 with the acquisition of assets from The well was the Fort Berthold 148- McHenry County, which is in north-cen- mation. Michigan-based Ward Williston Oil Co. 95-27B-34-5H in the Eagle Nest field in tral North Dakota. Our apologies to Petro-Hunt — and to Those assets included 162 wells on Dunn County. As reported in the Nov. 10 edition of 5DQFK 2LO, an Oklahoma general part- approximately 30,000 acres in Renville The No. 2 well also belonged to Petroleum News Bakken Enduro recently nership, which was bumped from the list (97) and Bottineau (39) counties. ● Halcon — the Miller 157-101-12D-1-2H acquired 138 wells in western North with 2 bpd.

Looking for a rig report? Bakken producers’ stock prices Closing prices as of May 21 along with those from previous Wednesday North Dakota The best list for North Dakota is updated daily by the North Dakota Oil and Gas Company Exchange Symbol Closing price Previous Wed. Division at www.dmr.nd.gov/oilgas/riglist.asp Abraxas Petroleum Corporation NASDAQ AXAS $5.03 $5.10 American Eagle Energy Corporation NYSE AMZG $5.93 $5.80 Arsenal Energy USA, Inc. TSE AEI $7.79 $7.77 Saskatchewan Baytex Energy USA Ltd NYSE BTE $41.61 $41.65 Weekly drilling activity report from the government of Saskatchewan: Burlington Resources Co., LP (ConocoPhillips) NYSE COP $78.53 $78.53 www.economy.gov.sk.ca/Daily-Well-Bulletin-Weekly-Drilling-Reports Continental Resources, Inc. NYSE CLR $139.39 $134.72 Crescent Point Energy US Corporation TSE CPG $44.39 $43.93 Manitoba Denbury Onshore, LLC NYSE DNR $16.87 $17.09 Weekly drilling activity report from the government of Manitoba: Emerald Oil, Inc. NYSEMKT EOX $6.32 $6.50 www.manitoba.ca/iem/petroleum/wwar/index.html Enerplus Resources USA Corporation NYSE ERF $21.70 $21.73 EOG Resources, Inc. NYSE EOG $104.16 $103.90 Fidelity Exploration & Production (MDU) NYSE MDU $33.11 $34.20 Halcon Resources NYSE HK $5.68 $5.90 Hess Corporation NYSE HES $89.30 $89.02 Kodiak Oil and Gas (USA), Inc. NYSE KOG $12.69 $12.33 Legacy Reserves Operating LP NASDAQ LGCY $28.04 $27.56 Marathon Oil Company NYSE MRO $35.95 $36.58 Mountain Divide, LLC (Mountainview Energy) CVE MVW.V $0.44 $0.49 Newfield Production Company NYSE NFX $35.66 $34.16 Northern Oil and Gas NYSE NOG $15.03 $15.01 Oasis Petroleum North America NYSE OAS $50.46 $48.78 Oxy USA, Inc. (Occidental Petroleum) NYSE OXY $97.59 $97.38 PetroShale Inc. CVE PSH $1.32 $1.25 QEP Energy Company NYSE QEP $31.13 $30.89 Resolute Natural Resources Company, LLC NYSE REN $8.11 $7.73 Samson Resources Company (KKR & Co) NYSE KKR $23.41 $23.10 SM Energy Company NYSE SM $78.03 $74.37 Statoil Oil and Gas LP NYSE STO $30.34 $31.24 Triangle USA Petroleum Corporation NYSE TPLM $10.30 $9.30 Whiting Oil and Gas Corporation NYSE WILL $72.80 $72.09 WPX Energy Williston, LLC NYSE WPX $21.49 $21.01 XTO Energy, Inc. (ExxonMobil) NYSE XOM $102.03 $102.29 PHOTO COURTESY CONTINENTAL RESOURCES

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Top 50 North Dakota Bakken oil producers March 2014 Company BPD* 1 Continental Resources Inc. 87,192 29 Abraxas Petroleum Corp. 3,230 2 Hess Corp. 77,712* 30 Emerald Oil, Inc. 2,870 3 EOG Resources, Inc. 72,449 31 Crescent Point Energy U.S. Corp. 2,008 4 Whiting Oil and Gas Corp. 72,043 32 Sinclair Oil and Gas Co. 1,769 5 Burlington Resources Oil and Gas LP (ConocoPhillips) 53,933* 33 Petrogulf Corp. 1,627 6 Statoil Oil & Gas LP 49,973 34 Denbury Onshore, LLC 1,041 7 XTO Energy Inc. (ExxonMobil) 45,727 35 True Oil LLC 791 8 Marathon Oil Co. 45,251 36 Arsenal Energy USA Inc. 679 9 Oasis Petroleum North America LLC 41,979 37 Mountain Divide, LLC (Mountainview Energy) 624 10 Kodiak Oil and Gas (USA) Inc. 40,411 38 Armstrong Operating, Inc. 545 11 Halcon Resources 32,383 39 Thunderbird Resources LP 510 12 QEP Energy Co. 28,991 40 North Plains Energy, LLC 388 13 WPX Energy Williston 27,765 41 Bakken Hunter, LLC 238 14 Slawson Exploration Co. Inc. 23,331 42 Windsor Energy Group, LLC 169 15 SM Energy Co. 21,108 43 Rim Operating, Inc. 157 16 Petro-Hunt 19,614 44 Legacy Reserves LP 109 17 Newfield Production Co. 17,924 45 SHD Oil & Gas, LLC 71 18 Oxy USA Inc. (Occidental Petroleum) 15,781 46 Wesco Operating 51 19 Enerplus Resources USA Corp. 13,728 47 Texakota, Inc. 49 20 Fidelity Exploration and Production Co. (MDU) 10,251 48 Petro Harvester Operating Co., LLC 33 21 Triangle USA Petroleum Corp. 9,725 49 Tracker Resource Development LLC 28 22 Hunt Oil Co. 9,573 50 Pride Energy, an Oklahoma General Partnership 24 23 Murex Petroleum Corp. 7,503 Note: Hess-owned Hess Bakken Investments production was added to Hess' separate production, so their total output determined their rank- 24 Zavanna LLC 6,787 ing. And ConocoPhillips-owned Burlington production was added to ConocoPhillips' separate production. 25 Samson Resources Co. (KKR & Co.) 6,144 Information derived from the preliminary March 2014 Oil & Gas Production Report published by the North Dakota Industrial Commission, Department of Minerals’ Oil and Gas Division. This is oil produced by wells operated by these companies; it does not identify the percentage 26 Baytex Energy USA Ltd. 4,702 of oil from the Bakken petroleum system (including Bakken, Three Forks, Pronghorn, Sanish, etc.) that is owned by each company AND it does not include production from wells operated by others, in which these companies might hold an interest. It also does not include Bakken 27 American Eagle Energy Corp. 3,629 system oil production from wells on confidential status and the figures are rounded to the nearest whole. 28 Sequel Energy, LLC 3,483

Montana well permits and completions May 2—15, 2014

53E; 341’FNL and 994’FWL; 13,909’; Bakken; Richland; ABBREVIATIONS & PARAMETERS LEGEND 8/2/2013; 252 BOPD With a few exceptions, the Montana weekly oil activity report includes horizontal well activity in the Bakken Well name; field; SHL location; SHL footages; PD; petroleum system in the eastern/northeastern part of the state within the Williston Basin. It also includes PBHL location; PBHL footages; PBHL depth; BHL Whiting Oil and Gas the Heath play and what is referred to as the South Alberta Bakken fairway in northwestern/west-central location; BHL footages; BHL depth; pool; county; Berry 24-32-1H; Wildcat; SESW 32-25N-58E; 310’FSL Montana, which is at least 175 miles long (north-south) and 50 miles wide (east-west), extending from date approved; IP date; BOPD and 2,310’FWL; N/A; N/A; N/A; N/A; NWNW 29-25N- southern Alberta, where the formation is generally referred to as the Exshaw, southwards through 58E; 276’FNL and 646’FWL; 20,710’; Bakken; Richland; Montana’s Glacier, Toole, Pondera, Teton and Lewis & Clark counties. The Southern Alberta Bakken, under 11/5/2013; 881 BOPD evaluation by several oil companies, is not part of the Williston Basin. Re-issued locations Christiansen 34-11-5H;Wildcat; SWSE 11-25N-58E; 325’FSL and 1,880’FEL; N/A; N/A; N/A; N/A; SWSE 2- Following are the abbreviations used in the report and what they mean. Continental Resources 25N-58E; 4,420’FNL and 1,907’FEL; 15,972’; Bakken; Goslin 1-6H; Wildcat; NENW 6-21N-58E; 275’FNL and NWNE 2-25N-58E; 285’FNL and 1,993’FEL; 20,110’; BHL: bottomhole location | BOPD: barrels of oil per day 2,235’FWL; N/A; SESW 6-21N-58E; 200’FSL and Bakken; Richland; 10/23/2013; 938 BOPD IP: initial production | PBHL: probable bottomhole location 1,980’FWL; 14,780’; N/A; N/A; N/A; Bakken; Richland; Christiansen 34-11-6H; Wildcat; SWSE 11-25N-58E; PD: proposed depth | SHL: surface hole location | TD: total depth 5/1/2014; N/A 325’FSL and 1,835’FEL; N/A; N/A; N/A; N/A; NWNE 2- Olson 1-12H; Wildcat; SWSE 12-25N-51E; 285’FSL 25N-58E; 280’FNL and 1,321’FEL; 20,150’; Bakken; and 1,880’FEL; N/A; NWNE 12-25N-51E; 200’FNL and And public land survey system abbreviations: Richland; 10/23/2013; 784 bbl 1,980’FEL; 13,162’; N/A; N/A; N/A; Bakken; Richland; Christiansen 34-11-7H;Wildcat; SWSE 11-25N-58E; FNL = from north line | FEL = from east line | FSL = from south line | FWL = from west line 5/1/201; N/A 325’FSL and 1,790’FEL; N/A; N/A; N/A; N/A; SESE 2- 25N-58E; 619’FSL and 608’FEL; 16,084’; Bakken; NENE New locations Oasis Petroleum North America Completions 2-25N-58E; 288’FNL and 693’FEL; 20,450’; Bakken; Federal Brewer 2759 44-9 5B; Wildcat; SESE 9-27N- Richland; 10/31/2013; 699 BOPD Continental Resources 59E; 255’FSL and 1,191’FEL; N/A; SLSE 21-27N-59E; Continental Resources Skov 31-27-4H; Wildcat; NWNE 27-25N-59E; 280’FNL Bettsye 2-8H; Wildcat; NWNW 8-23N-54E; 315’FNL 200’FSL and 0’FEL; 21,237’; N/A; N/A; N/A; Bakken; Audrey HSL; Wildcat; SWSW 6-23N-56E; 265’FSL and and 1,460’FEL; N/A; N/A; N/A; N/A; SESE 34-25N-59E; and 595’FWL; N/A; SWSW 8-23N-54E; 200’FSL and Roosevelt; 5-07-2014; N/A 285’FWL; N/A; N/A; N/A; N/A; NENE 36-24N-55E; 307’FSL and 650’FEL; 20,280’; Bakken; Richland; 660’FWL; 14,315’; N/A; N/A; N/A; Bakken; Richland; 231’FNL and 18’FEL; 20,279’; Bakken; Richland; 11/1/2013; 960 bbl 5/9/2014; N/A Whiting Oil and Gas 8/13/2013; 268 BOPD Bettsye 3-8H; Wildcat; NWNW 8-23N-54E; 315’FNL Hunter 21-26-1H; Wildcat; NENW 26-25N-58E; —Compiled by Ashley Lindly and 640’FWL; N/A; SESW 8-23N-54E; 200’FSL and 315’FNL and 2,030’FWL; N/A; SWSW 35-25N-58E; Slawson Exploration 1,980’FWL; 14,907’; N/A; N/A; N/A; Bakken; Richland; 240’FSL and 660’FWL; 20,636; N/A; N/A;N/A; Bakken; Python 3-4MLH; Wildcat; SWSW 4-23N-53E; 279’FSL 5/9/2014; N/A Richland; 5/2/2014; N/A and 350’FWL; N/A; N/A; N/A; N/A; SESE 4-23N-53E; 714’FSL and 175’FEL; 13,941’; Bakken; NWNW 4-23N- Subscribe at: PetroleumNewsBakken.com 12 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 North Dakota oil permit activity May 13—19, 2014

Marathon Oil 152N-95W; 395'FNL and 368'FEL; Antelope; N/A**; Roggenbuck 4-9HX; SWSW 33-151N-92W; 300'FSL LEGEND Boldt 14-22TFH; NENW 27-146N-94W; 270'FNL and on confidential status; 2,250’ ground; 28375; 33-053- and 392'FWL; Van Hook; N/A*; on confidential status; The county name is on the upper line, the 2,218'FWL; Bailey; N/A*; on confidential status; 05934; 5/13/2014 2,032’ ground; 27428; 33-061-02916; 5/19/2014 type of permit issued is on the second line, 2,319’ ground; 28356; 33-025-02536; 5/13/2014 and company names are next, followed by Davis 24-22H; NENW 27-146N-94W; 271'FNL and Newfield Production Renville Co. individual wells with data in this order: well 2,268'FWL; Bailey; N/A*; on confidential status; Loomer 150-99-2-11-4H; NWNE 2-150N-99W; name; location; footages; field; geological target; well bore type; elevation; NDIC file 2,319’ ground; 28357; 33-02-02537; 5/13/2014 300'FNL and 1,375'FEL; Tobacco Garden; N/A*; on Permits issued number; API number; date permit shows on Frank 24-22TFH; NENW 27-146N-94W; 271'FNL and confidential status; 2,091’ ground; 28378; 33-053- Enduro Operating NDIC website. 2,368'FWL; Bailey; N/A*; on confidential status; 05936; 5/14/2014 MRP 18-34; SWSE 18-162N-85W; 660'FSL and 2,323’ ground; 28359; 33-025-02539; 5/13/2014 Loomer 150-99-2-11-5H; NWNE 2-150N-99W; 1,980'FEL; Mouse River Park; N/A**; on confidential Abbreviations May 34-22TFH; NENW 27-146N-94W; 271'FNL and 300'FNL and 1,330'FEL; Tobacco Garden; N/A*; on status; 1,760’ ground; 28400; 33-075-01466; Following are the abbreviations used in the 2,418'FWL; Bailey; N/A*; on confidential status; confidential status; 2,092’ ground; 28377; 33-053- 5/16/2014 report and what they mean: 2,324’ ground; 28360; 33-025-02540; 5/13/2014 05935; 5/14/2014 MRP 25-41; NENE 25-162N-86W; 790'FNL and FNL = From North Line | FEL = From East Line Reidun 21-27TFH; NENW 27-146N-94W; 271'FNL 588'FEL; Mouse River Park; N/A**; on confidential FSL = From South Line | FWL = From West Line and 2,318'FWL; Bailey; N/A*; on confidential status; Oasis Petroleum North America status; 1,775’ ground; 28362; 33-075-01464; 2,321’ ground; 28358; 33-025-02538; 5/13/2014 Wade Federal 00 41-30 4T; LOT4 30-153N-100W; 5/13/2014 1,263'FSL and 240’FWL; Baker; Bakken; horizontal; MRPSU 29-44; SESE 29-162N-85W; 750'FSL and Bottineau Co. XTO Energy (ExxonMobil) 2,052’ ground; 28394; 33-053-05943; 5/15/2014 810'FEL; Mouse River Park; N/A**; on confidential Ernest 31X-19H; NWNE 19-148N-97W; 282'FNL and status; 1,763’ ground; 28361; 33-075-01463; Permits issued 2,251'FEL; Haystack Butte; N/A*; on confidential sta- Whiting Oil and Gas 5/13/2014 Enduro Operating tus; 2,464’ ground; 28397; 33-025-02549; 5/15/2014 Gunder T. 21-30H; NENW 30-151N-101W; 550'FNL MMU 5-22-H1; SENW 5-161N-83W; 1,600'FNL and Ernest Federal 31X-19G; NWNE 19-148N-97W; and 1,481'FWL; Lonesome; Bakken; horizontal; 2,231’ Welter Consulting 2,275'FWL; Mohall; N/A**; on confidential status; 342'FNL and 2,251'FEL; Haystack Butte; N/A*; on ground; 28398; 33-053-05945; 5/16/2014 Miller 31-3; NENW 31-159N-86W; 951'FNL and 1,587’ ground; 28389; 33-009-02381; 5/15/2014 confidential status; 2,464’ ground; 28396; 33-025- Gunder T. 21-30-2H; NENW 30-151N-101W; 2,233'FWL; Wildcat; N/A; on confidential status; 02548; 5/15/2014 550'FNL and 1,526'FWL; Lonesome; Bakken; horizon- 1,905’ ground; 28388; 33-075-01465; 5/15/2014 Divide Co. tal; 2,231’ ground; 28399; 33-053-05946; 5/16/2014 Location resurveyed Slope Co. Permits issued HRC Operating (Halcon Resources) XTO Energy (ExxonMobil) Continental Resources Fort Berthold 148-95-26B-35-3H; NENW 26-148N- McCoy 44X-23D; SESE 23-151N-98W; 330'FSL and Permits issued Flameback 1-21H; SWSE 21-162N-96W; 295'FSL and 95W; 70'FNL and 2,190’FWL; Eagle Nest; Bakken; hor- 1,100'FEL; Siverston; N/A*; on confidential status; Armstrong Operating 1,958'FEL; Juno; N/A*; on confidential status; 2,205’ izontal; 2,446’ ground; 27456; 33-025-02439; 2,049’ ground; 28380; 33-053-05938; 5/14/2014 First Creek 1; SWNE 12-135N-101W; 2,130'FNL and ground; 28382; 33-023-01216; 5/14/2014 5/14/2014 McCoy 44X-23G2; SESE 23-151N-98W; 360'FSL and 1,840'FEL; Wildcat; N/A; on confidential status; 2,781’ Flicker 1-28H1; SWSE 21-162N-96W; 295'FSL and Fort Berthold 148-95-26B-35-4H; NENW 26-148N- 1,100'FEL; Siverston; N/A*; on confidential status; ground; 28376; 33-087-00363; 5/14/2014 2,003'FEL; Juno; N/A*; on confidential status; 2,205’ 95W; 55'FNL and 2,216’FWL; Eagle Nest; Bakken; hor- 2,050’ ground; 28379; 33-053-05937; 5/14/2014 ground; 28383; 33-023-01217; 5/14/2014 izontal; 2,445’ ground; 27458; 33-025-02441; McCoy 44X-23H; SESE 23-151N-98W; 270'FSL and Williams Co. 5/15/2014 1,100'FEL; Siverston; N/A*; on confidential status; Permits cancelled Fort Berthold 148-95-26B-35-5H; NENW 26-148N- 2,049’ ground; 28381; 33-053-05939; 5/14/2014 Permits issued American Eagle Energy 95W; 40'FNL and 2,242’FWL; Eagle Nest; Bakken; hor- Lundin Federal 31X-9D; NWNE 9-149N-97W; Kodiak Oil and Gas Lorelei 2-1-163-101; LOT2 1-163N-101W; 295’FNL izontal; 2,444’ ground; 27460; 33-025-02443; 142'FNL and 1,975'FEL; North Fork; N/A*; on confi- P Wood 154-98-1-27-15-1H3; NENE 27-154N-98W; and 2,289’FEL; Colgan; Bakken; horizontal; 2,263’ 5/15/2014 dential status; 2,206’ ground; 28392; 33-053-05941; 213'FNL and 350'FEL; Truax; Bakken; horizontal; ground; 27544; 33-023-01159; 5/15/2014 Fort Berthold 148-95-26B-35-8TFH; NENW 26- 5/15/2014 2,111’ ground; 28385; 33-105-03520; 5/14/2014 148N-95W; 25'FNL and 2,268’FWL; Eagle Nest; Lundin Federal 31X-9H; NWNE 9-149N-97W; P Wood 154-98-1-27-16-1H; NENE 27-154N-98W; Dunn Co. Bakken; horizontal; 2,443’ ground; 27459; 33-025- 158'FNL and 1,950'FEL; North Fork; N/A*; on confi- 213'FNL and 410'FEL; Truax; Bakken; horizontal; 02442; 5/15/2014 dential status; 2,203’ ground; 28391; 33-053-05940; 2,114’ ground; 28387; 33-105-03522; 5/14/2014 Permits issued 5/15/2014 P Wood 154-98-1-27-34-16H; NENE 27-154N-98W; Burlington Resources Oil and Gas Marathon Oil Lundin Federal 31X-9G; NWNE 9-149N-97W; 213'FNL and 380'FEL; Truax; Bakken; horizontal; (ConocoPhillips) Hecker 21-5H; LOT 3 5-144N-96W; 502'FNL and 108'FNL and 2,025'FEL; North Fork; N/A*; on confi- 2,113’ ground; 28386; 33-105-03521; 5/14/2014 CCU Pullman 1-8-7TFH; SESW 18-147N-95W; 2,087'FWL; Murphy Creek; Bakken; horizontal; 2,510’ dential status; 2,204’ ground; 28393; 33-053-05942; P Wood 154-98-1-27-35-13H3; NENE 27-154N- 350'FSL and 1,855'FWL; Corral Creek; N/A*; on confi- ground; 16439; 33-025-00608; 5/14/2014 5/15/2014 98W; 213'FNL and 320'FEL; Truax; Bakken; horizontal; dential status; 2,579’ ground; 28352; 33-025-02532; 2,109’ ground; 28384; 33-105-03519; 5/14/2014 5/13/2014 McKenzie Co. Location resurveyed P Wood 154-98-4E-26-35-14H; NWNW 26-154N- CCU Pullman 2-8-7MBH; SESW 18-147N-95W; Triangle USA Petroleum 98W; 255'FNL and 872'FWL; Truax; Bakken; horizon- 350'FSL and 1,900'FWL; Corral Creek; N/A*; on confi- Permits issued Rowe 150-101-1-12-2H; LOT4 1-150N-101W; tal; 2,097’ ground; 28409; 33-105-0356; 5/19/2014 dential status; 2,580’ ground; 28353; 33-025-02533; Burlington Resources Oil and Gas 200'FNL and 1,144'FWL; Rawson; Bakken; horizontal; P Wood 154-98-4E-26-35-14H3; NWNW 26-154N- 5/13/2014 (ConocoPhillips) 2,270’ ground; 23618; 33-053-04333; 5/16/2014 98W; 255'FNL and 872'FWL; Truax; Bakken; horizon- CCU Pullman 3-8-7MBH; SESW 18-147N-95W; Shenandoah 44-36MBH ULW; SESE 36-153N-96W; Rowe 150-101-1-12-4H; LOT4 1-150N-101W; tal; 2,097’ ground; 28408; 33-105-03525; 5/19/2014 350'FSL and 1,990'FWL; Corral Creek; N/A*; on confi- 315'FSL and 615'FEL; Keene; N/A**; on confidential; 200'FNL and 1,109'FWL; Rawson; Bakken; horizontal; P Wood 154-98-4E-25-35-14HA; NWNW 26-154N- dential status; 2,583’ ground; 28355; 33-025-02535; 2,319’ ground; 28414; 33-053-05949; 5/19/2014 2,270’ ground; 23620; 33-053-04335; 5/16/2014 98W; 255'FNL and 812'FWL; Truax; Bakken; horizon- 5/13/2014 Shenandoah 44-36TFH; SESE 36-153N-96W; tal; 2,102’ ground; 28406; 33-105-03523; 5/19/2014 CCU Pullman 3-8-7TFH; SESW 18-147N-95W; 315'FSL and 660'FEL; Keene; N/A**; on confidential; Mountrail Co. P Wood 154-98-4E-26-35-14HB; NWNW 26-154N- 350'FSL and 1,945'FWL; Corral Creek; N/A*; on confi- 2,320’ ground; 28413; 33-053-05948; 5/19/2014 98W; 255'FNL and 842'FWL; Truax; Bakken; horizon- dential status; 2,581’ ground; 28354; 33-025-02534; Permits issued tal; 2,100’ ground; 28407; 33-105-03524; 5/19/2014 5/13/2014 Continental Resources EOG Resources CCU Pullman 5-8-7MBH; SESW 18-147N-95W; Harrisburg 1-34H1; SWSE 34-153N-101W; 230'FSL Parshall 30-1820H; LOT3 18-152N-90W; 2,000'FSL Hess Bakken Investments II 450'FSL and 2,355'FEL; Corral Creek; N/A*; on confi- and 1,495'FEL; Indian Hill; N/A*; on confidential sta- and 550'FWL; Parshall; Bakken; horizontal; 1,880’ SC-Barney- 154-98-1819H-5; NENE 18-154N-98W; dential status; 2,551’ ground; 28364; 33-025-02542; tus; 2,186’ ground; 28405; 33-053-05947; 5/16/2014 ground; 28402; 33-061-03110; 5/16/2014 400'FNL and 866'FEL; Truax; N/A*; on confidential 5/13/2014 Parshall 31-1820H; LOT3 18-152N-90W; 2,000'FSL status; 2,413’ ground; 28410; 33-105-03527; CCU Pullman 5-8-7TFH; SESW 18-147N-95W; Hess Bakken Investments II and 450'FWL; Parshall; Bakken; horizontal; 1,881’ 5/19/2014 450'FSL and 2,400'FEL; Corral Creek; N/A*; on confi- AN-Brenna- 153-94-3130H-5; LOT1 3-152N-95W; ground; 28404; 33-061-03112; 5/16/2014 SC-Barney- LE-154-98-1819H-1; NENE 18-154N- dential status; 2,550’ ground; 28363; 33-025-02541; 395'FNL and 500'FEL; Antelope; N/A**; on confiden- Parshall 143-1820H; LOT3 18-152N-90W; 2,000'FNL 98W; 400'FNL and 833'FEL; Truax; N/A*; on confiden- 5/13/2014 tial status; 2,256’ ground; 28370; 33-053-05929; and 500'FWL; Parshall; Bakken; horizontal; 1,880’ tial status; 2,414’ ground; 28411; 33-105-03528; CCU Pullman 6-8-7MBH; SESE 18-147N-95W; 5/13/2014 ground; 28403; 33-061-03111; 5/16/2014 5/19/2014 361'FSL and 390'FEL; Corral Creek; N/A*; on confi- AN-Brenna- 153-94-3130H-6; LOT1 3-152N-95W; Parshall 153-1820H; LOT1 18-152N-90W; 980'FNL dential status; 2,557’ ground; 28369; 33-025-02547; 395'FNL and 467'FEL; Antelope; N/A**; on confiden- and 400'FWL; Parshall; Bakken; horizontal; 1,910’ *Note - The geologic target for these wells was not listed in its well 5/13/2014 tial status; 2,254’ ground; 28371; 33-053-05930; ground; 28401; 33-061-03109; 5/16/2014 file because they are tight (confidential) holes, but the following CCU Pullman 6-8-7TFH; SWSE 18-147N-95W; 5/13/2014 fields produce from the Bakken pool; Bailey, Corral Creek, 450'FSL and 2,310'FEL; Corral Creek; N/A*; on confi- AN-Brenna- 153-94-3130H-7; LOT1 3-152N-95W; Whiting Oil and Gas Haystack Butte, Indian Hill, Juno, Siverston, Tobacco Garden, dential status; 2,552’ ground; 28365; 33-025-02543; 395'FNL and 434'FEL; Antelope; N/A**; on confiden- Rohde 42-1TFH; SENE 1-153N-92W; 2,400'FNL and Truax, and Van Hook. 5/13/2014 tial status; 2,252’ ground; 28372; 33-053-05931; 275'FEL; Sanish; Bakken; horizontal; 2,346’ ground; CCU Pullman 7-8-7MBH; SESE 18-147N-95W; 5/13/2014 28390; 33-061-03108; 5/15/2014 **Note - The geologic target for these wells was not listed in their 361'FSL and 300'FEL; Corral Creek; N/A*; on confi- AN-Brenna- 153-94-3130H-8; LOT1 3-152N-95W; well file because they are a tight (confidential) hole, but the dential status; 2,554’ ground; 28367; 33-025-02545; 395'FNL and 401'FEL; Antelope; N/A**; on confiden- Location resurveyed Antelope field produces from the Sanish field, the Keene field pro- 5/13/2014 tial status; 2,251’ ground; 28373; 33-053-05932; WPX Energy Williston duces from the Bakken/Three Forks pool, Mohall and Mouse River CCU Pullman 7-8-7TFH; SESE 18-147N-95W; 5/13/2014 Lucy Evans 29-32HA; NWNW 29-151N-94W; Park fields produce from the Madison pool. 361'FSL and 345'FEL; Corral Creek; N/A*; on confi- AN-Brenna- LE-153-94-3130H-1; LOT1 3-152N- 264'FNL and 1,373'FWL; Antelope; N/A**; on confidential status; 2,557’ ground; 28368; 33-025-02546; 95W; 395'FNL and 368'FEL; Antelope; N/A**; on con- dential status; 2,203’ ground; 28100; 33-053-05805; —Compiled by Ashley Lindly 5/13/2014 fidential status; 2,250’ ground; 28374; 33-053-05933; 5/19/2014 CCU Pullman 8-8-7TFH; SESE 18-147N-95W; 5/13/2014 Roggenbuck 4-9HA; SWSW 33-151N-92W; 250'FSL 361'FSL and 255'FEL; Corral Creek; N/A*; on confi- AN-Evenson- LW-152-95-1003H-2; SWSW 10- and 394'FWL; Van Hook; N/A*; on confidential status; dential status; 2,553’ ground; 28366; 33-025-02544; 152N-95W; 525'FNL and 685'FEL; Antelope; N/A**; 2,032’ ground; 27429; 33-061-02917; 5/19/2014 5/13/2014 on confidential status; 2,303’ ground; 28395; 33-053- Roggenbuck 4-9HW; SWSW 33-151N-92W; 200'FSL 05944; 5/15/2014 and 395'FWL; Van Hook; N/A*; on confidential status; AN-Mogen Trust- LW-153-94-3229H-2; LOT1 3- 2,032’ ground; 27430; 33-061-02918; 5/19/2014 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 13

North Dakota Bakken oil production by company March 2014

Derived from the preliminary March 2014 Oil & Gas Production Report published by the North Dakota Industrial Commission, Department of Minerals’ Oil and Gas Division. Note this is the oil produced by wells operated by these companies; it does not identify the percentage of oil LEGEND from the Bakken petroleum system (including Bakken, Three Forks, Pronghorn, Sanish, etc.) that is owned by each company AND it does not Field – pool – county – total monthly oil production. include production from wells operated by others, in which these companies might hold an interest. It also does not include Bakken system Monthly total for all fields. oil production from wells on confidential status. Consequently, it usually differs from what each company reports for production. The daily Daily average for all fields. average for the individual companies was derived from dividing the total production by the number of days in -ARCH, versus the numberof Numbers represent barrels of oil days wells were actually producing and rounded to the nearest whole.

The operator names used in this chart are exactly as they appear in the Oil and Gas Division records, but some of the companies and/or their Bakken assets might be owned by others. The ones we have identified include Burlington Resources Oil & Gas Company, LP, which is owned by ConocoPhillips; Fidelity Exploration & Production, owned by MDU; HRC Operating, owned by Halcon Resources; Mountain Divide, owned by Mountainview Energy; Oxy USA, owned by Occidental Petroleum; Samson Resources Company, owned by KKR & Co.; and XTO Energy, Inc., owned by ExxonMobil. Please let us know if you see others by emailing Ashley Lindly at [email protected].

Edge – Bakken – McKenzie 3,130 If you add up all the oil produced by the operators of wells in North Dakota, average Bakken production in February Elidah – Bakken – McKenzie 22,541 was approximately 951,340 barrels of oil per day, which excludes wells on confidential status. These numbers compare Elk – Bakken – McKenzie 7,241 to total North Dakota oil production of 977,051 bpd in March as released by the North Dakota Industrial Commission, Elkhorn Ranch – Bakken – Billings 2,566 approximately 94 percent (914,003 bpd) of which came directly from the Bakken system, including wells on confidential Ellisville – Bakken – Williams 1,775 status, with the remaining6 percent coming from the other systems, such as the largely vertical wells in the Tyler, Elm Tree – Bakken – McKenzie 126,638 Mission Canyon, Duperow and Red River plays. The State of North Dakota does not release detailed production infor- Epping – Bakken – Williams 16,887 mation for wells on confidential status, so Petroleum News Bakken is unable to include that data in its monthly compa- Fairfield – Bakken – Billings 3,031 ny breakdown, including its Top 50 list. The daily average for the individual companies was derived from dividing the Fancy Buttes – Bakken – McKenzie 2,150 total production by the number of days in March, versus the number of days wells were actually producing, and round- Forthun – Bakken – Divide 3,580 ed to the nearest whole. Frazier – Bakken – Divide 22,462 Glade – Bakken – Billings 239 Glass Bluff – Bakken – McKenzie 3,155 Abraxas Petroleum Jim Creek – Bakken – Dunn 1,321 Hamlet – Bakken – Divide16,791 Demores – Bakken – Billings 399 Johnson Corner – Bakken – McKenzie 37,382 Hamlet – Bakken – Williams 79,733 North Fork – Bakken – McKenzie 12,291 Keene – Bakken/Three Forks – McKenzie 253,841 Hanson – Bakken – Williams 7,474 Pershing – Bakken – McKenzie 87,106 Killdeer – Bakken – Dunn 5,071 Hardscrabble – Bakken – Williams 4,655 Roosevelt – Bakken – Billings336 Little Knife – Bakken – Dunn 28,865 Hayland – Bakken – Divide36,197 Lone Butte – Bakken – Dunn 12 Haystack Butte – Bakken – Dunn 4,604 Monthly total: 100,132 Mondak – Bakken – McKenzie 0 Haystack Butte – Bakken – McKenzie 6,600 Daily average: 3,230 Morgan Draw – Bakken 570 Hebron – Bakken – Williams 26,300 Murphy Creek – Bakken – Dunn 28,976 Indian Hill – Bakken – McKenzie 9,267 American Eagle Energy North Fork – Bakken – McKenzie 10,416 Jim Creek – Bakken – Dunn 56,403 Colgan – Bakken – Divide 101,660 Pershing – Bakken – McKenzie 32,473 Juno – Bakken – Divide 15,046 Wildcat – Bakken – Divide 10,825 Pierre Creek – Bakken – McKenzie 407 Kimberly – Bakken – Divide 1,113 Sand Creek – Bakken – McKenzie 26,328 Last Chance – Bakken – McKenzie 6,017 Monthly total: 112,485 Twin Valley – Bakken – McKenzie 4,202 Last Chance – Bakken – Williams 14,619 Daily average: 3,629 Union Center – Bakken – McKenzie 77,258 Leaf Mountain – Bakken – Burke 0 Westberg – Bakken – McKenzie 150,132 Lindahl – Bakken – Williams 56,518 Armstrong Operating Wildcat – Bakken – McKenzie 867 Little Knife – Bakken – Dunn 14,710 Patterson Lake – Lodgepole – N/A 15,474 Willmen – Bakken – Dunn 934 Little Knife – Bakken – McKenzie 886 Versippi – Lodgepole – N/A 1,423 Lone Tree Lake – Bakken – Williams 16,688 Monthly total: 1,668,193 Long Creek – Bakken – Williams 31,820 Monthly total: 16,897 Daily average: 53,813 Mary – Bakken – McKenzie 1,273 Daily average: 545 Mondak – Bakken – McKenzie 3,570 Carl H. Nordstrand Murphy Creek – Bakken – Dunn 52,866 Arsenal Energy Pierre Creek – Bakken – McKenzie 91 New Home – Bakken – Williams 7,190 Stanley – Bakken – Mountrail 21,064 Noonan – Bakken – Divide 4,228 Daily average: 3 North Tioga – Bakken – Burke 13,549 Daily average: 679 North Tioga – Bakken – Williams 29,984 Charger Resources North Tobacco Garden – Bakken – McKenzie 81,584 Bakken Hunter Pierre Creek – Bakken – McKenzie 0 Northwest McGregor – Bakken – Williams 15,410 Ambrose – Bakken – Divide10 Oakdale – Bakken – Dunn 189,329 Bounty School – Bakken – Divide3,652 Condor Petroleum Oliver – Bakken – Williams 68,295 Crosby – Bakken – Divide 2,328 Hayland – Bakken – Divide 204 Park – Bakken – Billings 4,770 Paulson – Bakken – Divide 1,394 Stoneview – Bakken – Divide0Patent Gate – Bakken – McKenzie 6,243 Pembroke – Bakken – McKenzie 4,573 Monthly total: 7,384 Daily average: 7 Pershing – Bakken – McKenzie 9,265 Daily average: 238 Pleasant Valley – Bakken – Williams 9,240 ConocoPhillips Poe – Bakken – McKenzie 2,702 Baytex Energy Dickinson – Lodgepole – N/A 3,352 Rainbow – Bakken – Williams 1,905 Ambrose – Bakken – Divide46,623 Duck Creek – Lodgepole – N/A 0 Ranch Coulee – Bakken – McKenzie 3,315 Blooming Prairie – Bakken – Divide 17,888 West Dickinson – Lodgepole – N/A 377 Ranch Creek – Bakken – McKenzie 870 Bluffton – Bakken – Divide 3,248 Rattlesnake Point – Bakken – Dunn 26,754 Burg – Bakken – Divide 3,520 Monthly total: 3,729 Rosebud – Bakken – Williams 2,960 Burg – Bakken – Williams 535 Daily average: 120 Ross – Bakken – Mountrail 496 Frazier – Bakken – Divide 4,462 Saddle Butte – Bakken – Billings 2,733 Garnet – Bakken – Divide 4,564 Continental Resources Sadler – Bakken – Divide 13,724 Lone Tree – Bakken – Williams 2,045 Alkali Creek – Bakken – Mountrail 38,100 Sauk – Bakken – Divide 4,565 Lone Tree Lake – Bakken – Williams 3,802 Antelope – Sanish – McKenzie 92,174 Sauk – Bakken – Williams 38,475 Moraine – Bakken – Divide 803 Avoca – Bakken – Williams 10,228 Siverston – Bakken – McKenzie 2,513 Musta – Bakken – Divide1,645 Baker – Bakken – Williams 90,374 South Boxcar – Bakken – McKenzie 5 Plumer – Bakken – Divide2,685 Baker – Bakken – McKenzie 862 South Meadow – Bakken – Williams 2,101 Skabo – Bakken – Divide 4,874 Banks – Bakken – McKenzie 162,220 Squaw Gap – Bakken – McKenzie 3,446 Smoky Butte – Bakken – Divide 2,872 Barta – Bakken – Billings 5,474 Squaw Gap – Bakken – Williams 7,249 West Ambrose – Bakken – Divide 8,535 Battleview – Bakken – Williams 3,703 St. Anthony – Bakken – Dunn 2,288 Whiteaker – Bakken – Divide36,787 Baukol Noonan – Bakken – Divide 1,398 St. Demetrius – Bakken – Billings16,392 Wildcat – Bakken – Williams 870 Bear Creek – Bakken – Dunn 24,413 Stoneview – Bakken – Burke 11,119 Beaver Creek – Bakken – Golden Valley 5,031 Stoneview – Bakken – Divide 60,777 Monthly total: 145,758 Beaver Creek Bay – Bakken – Mercer 0 Stoneview – Bakken – Williams 9,025 Daily average: 4,702 Beaver Lodge – Bakken – Williams 12,460 Temple – Bakken – Williams 4,150 Bell – Bakken – Stark 2,299 Todd – Bakken – Williams 4,120 BTA Oil Producers Bicentennial – Bakken – McKenzie 704 Ukraina – Bakken – Billings 4,064 Bicentennial – Bakken – Golden Valley 214 Big Gulch – Bakken – Dunn 5,494 Upland – Bakken – Divide 38,089 Elkhorn Ranch – Bakken – Billings51Blacktail – Bakken – Billings 1,501 Viking – Bakken – Burke 10,458 Pierre Creek – Bakken – McKenzie 158 Bluffton – Bakken – Divide8,644 West Capa – Bakken – Williams 2,781 Border – Bakken – Burke 6,164 Westberg – Bakken – McKenzie 5,650 Monthly total: 423 Border – Bakken – Divide0Whitetail – Bakken – Billings 3,360 Daily average: 14 Brooklyn – Bakken – Williams 147,817 Wildcat – Bakken – Billings 2,868 Bully – Bakken – McKenzie 3,006 Wildcat – Bakken – McKenzie 960 Burlington Resources Oil and Gas (ConocoPhillips) Burg – Bakken – Williams 7,224 Wildcat – Bakken – Williams 10,163 Bailey – Bakken – Dunn 7,630 Cabernet – Bakken – Dunn 7,474 Wildrose – Bakken – Divide 14,388 Banks – Bakken – McKenzie 3,493 Camel Butte – Bakken – McKenzie 1,304 Willow Creek – Bakken– Williams 3,790 Bennett Creek – Bakken – McKenzie 239 Camp – Bakken – McKenzie 71,291 Winner – Bakken – Williams 3,156 Blooming Prairie – Bakken – McKenzie 145,182 Catwalk – Bakken – Williams 4,456 Bully – Bakken – McKenzie 5,835 Cedar Coulee – Bakken – Dunn 26,389 Monthly total: 2,702,946 Cabernet – Bakken – Dunn 5,267 Charlie Bob – Bakken – McKenzie 201 Daily average: 87,192 Camel Butte – Bakken – McKenzie 6,884 Charlson – Bakken – McKenzie 0 Charlson – Bakken – McKenzie 89,147 Chimney Butte – Bakken – Dunn 137,510 Crescent Point Energy Clear Creek – Bakken – McKenzie 73,186 Corinth – Bakken – Williams 30,256 Blue Ridge – Bakken – Williams 4,915 Corral Creek – Bakken – Dunn 352,169 Corral Creek – Bakken – Dunn 48,699 Church – Bakken – Williams 2,132 Croff – Bakken – McKenzie 134,381 Crazy Man Creek – Bakken – Williams 83,784 Colgan – Bakken – Divide 3,171 Crooked Creek – Bakken – Dunn 1,469 Demores – Bakken – Billings456 Dublin – Bakken – Williams 2,425 Dimmick Lake – Bakken – McKenzie 4,467 Dimmick Lake – Bakken – McKenzie 7,036 Ellisville – Bakken – Williams 7,219 Elidah – Bakken – McKenzie 41,005 Dollar Joe – Bakken – Williams 90,296 Little Muddy – Bakken – Williams 8,475 Fayette – Bakken – Dunn 2,496 Dolphin – Bakken – Divide 60,446 New Home – Bakken – Williams 8 Hawkeye – Bakken – McKenzie 83,115 Dutch Henry Butte – Bakken – Stark 10,600 Haystack Butte – Bakken – McKenzie 53,173 East Fork – Bakken – Williams 49,842 see ND PRODUCTION page 14 14 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 IPs for ND Bakken wells May 13—19, 2014

This chart contains initial production rates, or IPs, for active wells that were filed as completed with the state of North Dakota from May 13-19, 2014 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, May 13-19. 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 stands for initial pro- 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. duction, in this chart it’s the first 24 hours); IP oil flow rate (barrels); IP natural Some of the companies, or their Bakken petroleum system assets, have been acquired by others. In some of those cases, the current owner’s name is in gas (thousands of cubic feet, mcf); IP water (barrels) parenthesis behind the owner of record, such as ExxonMobil in parenthesis behind XTO Energy. If the chart is missing current owner’s names, please contact Ashley Lindly at [email protected].

IPs for completed North Dakota wells Williams; Bakken; horizontal; 19,825; 2/9/2014; 2,706 bbl; 1,498 mcf; Top 10 Bakken wells by IP rate 1,194 bbl 26341; Miller 157-101-12D-1-3H; Otter; SESE 12-157N-101W; N/A; Continental Resources Williams; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 25157; Tallahassee 3-16H; Baker; SENE 16-153N-101W; 2SEC; McKenzie; HRC Operating (Halcon Resources) Bakken; horizontal; 18,434; 4/23/2014; 314 bbl; 261 mcf; 596 bbl 25209; Fort Berthold 148-95-27B-34-5H; Eagle Nest; Dunn; 3,719 bbl 26342; Miller 157-101-12D-1-2H; Otter; Williams; 2,706 bbl Kodiak Oil and Gas 25158; Tallahassee 2-16H; Baker; SENE 16-153N-101W; 2SEC; McKenzie; 25601; P Scanlan 153-98-16-9-11-16H3; Truax; SESE 9-153N-98W; 2SEC; Bakken; horizontal; 18,127; 4/25/2014; 657 bbl; 527 mcf; 610 bbl QEP Energy Williams; Bakken; horizontal; 21,390; 4/4/2014; 1,461 bbl; 2,625 mcf; 26234; Moberg 2-18TH; Grail; McKenzie; 2,524 bbl 1,725 bbl Hess Bakken Investments II 26378; P Vandeberg 154-99-1-1-12-15H3; Stockyard Creek; LOT1 1- 26071; BL-Iverson 155-95-1819H-5; Beaver Lodge; NWNE 18-155N-95W; 154N-99W; N/A; Williams; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 2SEC; Williams; Bakken; horizontal; 19,544; 4/12/2014; 860 bbl; 1,454 Burlington Resources Oil and Gas (ConocoPhillips) 26438; CCU William 44-20MBH; Corral Creek; Dunn; 2,405 bbl 26377; P Vandeberg 154-99-1-1-12-15H; Stockyard Creek; LOT1 1-154N- mcf; 402 bbl 99W; N/A; Williams; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 26112; EN-Chamley 156-93-0508H-2; Baskin; NENW 5-156N-93W; 2SEC; Marathon Oil 26376; P Vandeberg 154-99-1-1-12-16H3; Stockyard Creek; LOT1 1- Mountrail; Bakken; horizontal; 22,175; 4/27/2014; 800 bbl; 650 mcf; 190 154N-99W; N/A; Williams; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A bbl 26727; Herb 14-35H; Killdeer; Dunn; 2,403 bbl 26350; SC-Berner- 157-99-1918H-1; Lone Tree Lake; NWNE 30-157N- Marathon Oil 99W; 2SEC; Williams; Bakken; horizontal; 20,590; 4/13/2014; 726 bbl; 598 QEP Energy 26235; Moberg 3-18BH; Grail; McKenzie; 2,270 bbl 26727; Herb 14-35H; Killdeer; SWSW 35-146N-95W; 4SEC; Dunn; mcf; 834 bbl Bakken; horizontal; 20,485; 4/9/2014; 2,403 bbl; 1,224 mcf; 1,827 bbl HRC Operating (Halcon Resources) Statoil Oil and Gas 24984; Jack Cvancara 19-18 6H; Alger; Mountrail; 2,154 bbl Petro-Hunt 25209; Fort Berthold 148-95-27B-34-5H; Eagle Nest; SESW 22-148N- 26265; Van Hise Trust 153-95-28D-21-4H; Charlson; SESE 28-153N-95W; 95W; 2SEC; Dunn; Bakken; horizontal; 20,618; 4/12/2014; 3,719 bbl; N/A; McKenzie; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 3,034 mcf; 1,694 bbl Burlington Resources Oil and Gas (ConocoPhillips) 26437; CCU Corral Creek 11-28TFH; Corral Creek; Dunn; 2,124 bbl 26266; Van Hise Trust 153-95-28D-21-5H; Charlson; SESE 28-153N-95W; 26439; CCU Four Aces 14-21TFH; Corral Creek; Dunn; 2,084 bbl N/A; McKenzie; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A Marathon Oil 26267; Van Hise Trust 153-95-28D-21-6H; Charlson; SESE 28-153N-95W; 26017; Zimmerman 21-26TFH; Killdeer; SWSE 23-146N-95W; 2SEC; N/A; McKenzie; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 2SEC; Dunn; Bakken; horizontal; 21,234; 4/4/2014; 1,591 bbl; 1,757 mcf; Statoil Oil and Gas 24985; Jack Cvancara 19-18 7TFH; Alger; Mountrail; 1,831 bbl 2,727 bbl QEP Energy 26234; Moberg 2-18TH; Grail; SESW 18-149N-95W; SEC; McKenzie; Oxy USA (Occidental Petroleum) Note: This chart contains initial production rates, or IPs, from the adjacent IP chart for active wells that were filed as completed with the state of North Dakota from Bakken; horizontal; 16,108; 11/16/2013; 2,524 bbl; 3,645 mcf; 1,575 bbl 26748; Wittinger 4-8-5H-143-95; Murphy Creek; NENW 17-143N-95W; 26235; Moberg 3-18BH; Grail; SESW 18-149N-95W; SEC; McKenzie; May 13-19, 2014 in the Bakken petroleum system, as well as active wells that were N/A; Dunn; N/A; on confidential status; N/A: N/A; N/A; N/A; N/A Bakken; horizontal; 15,888; 11/18/2013; 2,270 bbl; 3,188 mcf; 927 bbl released from tight- hole (confidential) status during the same period. The well oper- *Note – The geologic target for the above Wittinger 4-8-5H-143-95 well was not listed in ator’s name is on the upper line, followed by individual wells; the NDIC file number; Samson Resources (KKR & Co.) its well file because it is on tight (confidential) hole, but the Murphy Creek field produces well name; field; county; IP oil flow rate in barrels of oil. 26916; Comet 2635-8H; Ambrose; NENE 26-163N-99W; N/A; Divide; from the Bakken pool. Bakken; horizontal; N/A; N/A; N/A; N/A; N/A Continental Resources Statoil Oil and Gas 26977; Ellison 1-21AH1; Stoneview; SESW 21-161N-94W; 2SEC; Burke; Statoil Oil and Gas 24984; Jack Cvancara 19-18 6H; Alger; SESW 19-155N-92W; 2SEC; Bakken; horizontal; 18,470; N/A; N/A; N/A; N/A 25776; Bugs 27-22 #7H; Poe; NWNW 34-151N-100W; N/A; McKenzie; Mountrail; Bakken; horizontal; 20,027; 4/16/2014; 2,154 bbl; 1,550 mcf; 26403; Raleigh 2-20H1; Dollar Joe; NWSW 20-155N-97W; N/A; Williams; Bakken; horizontal; N/A; N/A;N/A; N/A; N/A 4,676 bbl Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 25777; Lloyd 34-3 #3H; Sandrocks; NWNW 34-151N-100W; N/A; 24985; Jack Cvancara 19-18 7TFH; Alger; SESW 19-155N-92W; 2SEC; 26795; Snider 1-21H1; Ukraina; SWSE 21-141N-98W; 2SEC; Billings; McKenzie; Bakken; horizontal; N/A; N/A;N/A; N/A; N/A Mountrail; Bakken; horizontal; 20,245; 4/20/2014; 1,831 bbl; 1,120 mcf; Bakken; horizontal; 19,579; 3/26/2014; 493 bbl; 368 mcf; 554 bbl 26971; Ross-Alger 6-7 7TFH-R; Alger; LOT4 31-156N-92W; N/A; 3,497 bbl Mountrail; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A Cornerstone Natural Resources IPs for ND wells released from confidential status 26670; Martinsen D-3427-6191; Little Butte; SESE 34-161N-91W; N/A; Whiting Oil and Gas Burke; Bakken; horizontal; N/A; N/A; N/A; N/A;N/A 24348; Redmond Federal 11-28PH; Fryburg; NENW 28-140N-100W; American Eagle Energy 2SEC; Billings; Bakken; horizontal; 20,930; 11/20/2013; 136 bbl; 71 mcf; 27544; Lorelei 2-1-163-101; Colgan; LOT2 1-163N-101W; N/A; Divide; Emerald Oil 739 bbl Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 25849; Caper 5-22-15H; Sanish; SESE 22-149N-102W; N/A; Mountrail; 24347; Redmond Federal 31-28PH; Fryburg; NENW 28-140N-100W; 25037; Lynda 15-32-164-101; Colgan; SWSE 32-164N-101W; 2SEC; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 2SEC; Billings; Bakken; horizontal; 21,230; 11/19/2013; 547 bbl; 568 mcf; Divide; Bakken; horizontal; 13,755; 2/7/2014; 535 bbl; 163 mcf; 791 bbl 1,591 bbl EOG Resources Bakken-Hunter 25853; Wayzetta 34-2829H; Parshall; SESW 28-153N-90W; 2SEC; WPX Energy 23355; Pacer 3427-2MBH; Ambrose; LOT4 3-163N-99W; N/A; Divide; Mountrail; Bakken; horizontal; 16,164; 12/6/2013; 1,203 bbl; 24 mcf; 698 26146; Alfred Old Dog 19-18HY; Reunion Bay; NENW 30-150N-93W; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A bbl 2SEC; Dunn; Bakken; horizontal; 21,359; 4/1/2014; 1,223 bbl; 0 mcf; 25663; Wayzetta 37-1617H; Parshall; SESW 16-153N-90W; 2SEC; 1,389 bbl Burlington Resources Oil and Gas (ConocoPhillips) Mountrail; Bakken; horizontal; 16,641; 12/4/2013; 219 bbl; 21 mcf; 239 26437; CCU Corral Creek 11-28TFH; Corral Creek; SWSW 21-147N-95W; bbl XTO Energy (ExxonMobil) U; Dunn; Bakken; horizontal; 21,284; 4/12/2014; 2,124 bbl; 2,776 mcf; 26457; Broderson 31X-27D; Siverston; NWNE 27-150N-98W; N/A; 224 bbl Fidelity Exploration and Production (MDU) McKenzie; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 26439; CCU Four Aces 14-21TFH; Corral Creek; SWSW 21-147N-95W; U; 25782; Justine 25-36H; Green River; NWNE 25-140N-98W; 2SEC; Stark; 26879; FBIR Guyblackhawk 24X-27A; Heart Butte; SESW 27-149N-92W; Dunn; Bakken; horizontal; 20,750; 4/16/2014; 2,084 bbl; 3,378 mcf; 164 Bakken; horizontal; 20,260; 1/14/2014; 150 bbl; 67 mcf; 125 bbl N/A; Dunn; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A bbl 26878; FBIR Guyblackhawk 24X-27F; Heart Butte; SESW 27-149N-92W; 26436; CCU Powell 41-29MBH; Corral Creek; SWSW 21-147N-95W; N/A; HRC Operating (Halcon Resources) N/A; Dunn; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A Dunn; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 25598; Fort Berthold 147-94-2B-11-3H; McGregory Buttes; SESW 35- 26438; CCU William 44-20MBH; Corral Creek; SWSW 21-147N-95W; U; 148N-94W; N/A; Dunn; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A —Compiled by Ashley Lindly Dunn; Bakken; horizontal; 20,800; 4/27/2014; 2,405 bbl; 3,520 mcf; 168 26294; Fort Berthold 148-94-35C-26-4H; McGregory Buttes; SESW 35- bbl 148N-94W; N/A; Dunn; Bakken; horizontal; N/A; N/A; N/A; N/A; N/A 26342; Miller 157-101-12D-1-2H; Otter; SESE 12-157N-101W; 2SEC;

continued from page 13 Eagle Operating Tree Top – Bakken – Billings83 Spiral – Bakken – Burke 47 ND PRODUCTION Monthly total: 334 Daily average: 2 Daily average: 11 Wheelock – Bakken – Williams 567 Wildcat – Bakken – Williams 0 Earthstone Energy Enduro Operating Wildrose – Bakken – Divide 1,210 Fertile Valley – Bakken – McKenzie 128 Hay Draw – Bakken – McKenzie 0 Winner – Bakken – Williams 15,936 Stoneview – Bakken – Divide0 Daily average: 4 Monthly total: 62,249 Enerplus Resources Daily average: 2,008 Emerald Oil Antelope – Sanish – McKenzie 12,460 Boxcar Butte – Bakken – McKenzie 41,314 Beicegel Creek – Bakken – McKenzie 0 Denbury Onshore Charbonneau – Bakken – McKenzie 28,676 Eagle Nest – Bakken – Dunn 6,872 Eland – Lodgepole – N/A 19,918 Foreman Butte – Bakken – McKenzie 7,324 Eagle Nest – Bakken – McKenzie 21,067 Livestock – Lodgepole – N/A 0 Mondak – Bakken – McKenzie 10,506 Four Bears – Bakken – McKenzie 945 Statium – Lodgepole – N/A 11,900 Pierre Creek – Bakken – McKenzie 1,146 Heart Butte – Bakken – Dunn 26,916 Subdivision – Lodgepole – N/A 457 Mandaree – Bakken – Dunn 104,165 Monthly total: 88,966 McGregory Buttes – Bakken – Dunn 99,677 Monthly total: 32,275 Daily average: 2,870 Moccasin Creek – Bakken – Dunn 15,940 Daily average: 1,041 South Fork – Bakken – Dunn 31,678 Encore Energy Partners Spotted Horn – Bakken – McKenzie 97,422 Ice Caves – Bakken – Billings 189 Squaw Creek – Bakken – Dunn 3,931 North Tioga – Bakken – Burke 62 see ND PRODUCTION page 15 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 15 continued from page 14 Bailey – Bakken – Dunn 462 Marmon – Bakken – Williams 98,874 Banks – Bakken – McKenzie 6,035 McGregory Buttes – Bakken – Dunn 162,742 ND PRODUCTION Baskin – Bakken – Mountrail 9,113 Otter – Bakken – Williams 22,390 Baukol Noonan – Bakken – Divide 215 Pembroke – Bakken – McKenzie 1,775 Wildcat – Bakken – Dunn 4,509 Bear Creek – Bakken – Dunn 1,872 Spotted Horn – Bakken – McKenzie 6,287 Beaver Lodge – Bakken – Williams 52,412 Strandahl – Bakken – Williams 50,155 Monthly total: 425,582 Big Butte – Bakken – Mountrail 79,989 Tyrone – Bakken – Williams 11,481 Daily average: 13,728 Big Gulch – Bakken – Dunn 106,284 Wildcat – Bakken – Williams 14,614 Blooming Prairie – Bakken – McKenzie 361,816 EOG Resources Capa – Bakken – Williams 19,833 Monthly total: 1,003,864 Alger – Bakken – Mountrail 33,741 Cedar Coulee – Bakken – Dunn 22,446 Daily average: 32,383 Antelope – Sanish – McKenzie 29,057 Cherry Creek – Bakken – McKenzie 43,558 Clarks Creek – Bakken – McKenzie 240,793 Clear Water – Bakken – Mountrail 13,695 Hunt Oil Clear Water – Bakken – Burke 10,453 Cottonwood – Bakken – Mountrail 792 Alexandria – Bakken – Divide 39,471 Clear Water – Bakken – Mountrail 87,510 Crazy Man Creek – Bakken – Williams 6,360 Antelope Creek – Bakken – McKenzie 7,151 Cottonwood – Bakken – Mountrail 9,594 Davis Buttes – Bakken – Stark 2,500 Bailey – Bakken – Dunn 5,778 Eightmile – Bakken – Williams 1,545 Dollar Joe – Bakken – Williams 19,349 Bear Butt – Bakken – McKenzie 13,151 Ft. Buford – Bakken – Williams 6,075 East Fork – Bakken – Williams 1,591 Bluffton – Bakken – Divide 4,553 Hebron – Bakken – Williams 2,192 East Tioga – Bakken – Mountrail 1,030 Buffalo Wallow – Bakken – McKenzie 1,494 Kittleson Slough – Bakken – Mountrail 39,772 Elk – Bakken – McKenzie 600 Bully – Bakken – McKenzie 890 Lake Trenton – Bakken – Williams 1,167 Ellsworth – Bakken – McKenzie 20,360 Clear Water – Bakken – Mountrail 6,866 Little Butte – Bakken – Burke 916 Elm Tree – Bakken – McKenzie 9,887 Ellsworth – Bakken – McKenzie 2,072 Mandaree – Bakken – Dunn 8,006 Enget Lake – Bakken – Mountrail 1,083 Frazier – Bakken – Divide16,970 Painted Woods – Bakken – Williams 34,027 Forthun – Bakken – Burke 3,160 Lake Ilo – Bakken – Dunn 9,131 Parshall – Bakken – Mountrail 1,330,238 Glass Bluff – Bakken – McKenzie 5,748 Little Tank – Bakken – McKenzie 7,548 Rosebud – Bakken – Williams 7,897 Hawkeye – Bakken – McKenzie 141,379 Musta – Bakken – Divide5,687 Ross – Bakken – Mountrail 45,262 Hofflund – Bakken – Williams 64,482 Parshall – Bakken – Mountrail 70,727 Round Prairie – Bakken – Williams 22,338 Jim Creek – Bakken – Dunn 1,416 Red Wing Creek – Bakken – McKenzie 3,559 Sixmile – Bakken – Williams 4,954 Juniper – Bakken – McKenzie 5,297 Ross – Bakken – Mountrail 39,153 Spotted Horn – Bakken – McKenzie 227,308 Kittleson Slough – Bakken – Mountrail 719 Sather Lake – Bakken – McKenzie 9,361 Squaw Creek – Bakken – McKenzie 16,336 Lake Ilo – Bakken – Dunn 0 Sioux Trail – Bakken – Divide 7,509 Squaw Gap – Bakken – Williams 1,970 Larson – Bakken – Burke 2,151 Werner – Bakken – Dunn 16,559 Stanley – Bakken – Mountrail 16,005 Little Knife – Bakken – Dunn 156,327 Wolf Bay – Bakken – Dunn 22,926 Thompson Lake – Bakken – Burke 11,666 Little Knife – Bakken – McKenzie 800 Zahl – Bakken – Williams 6,198 Van Hook – Bakken – Mountrail 55,254 Lone Butte – Bakken – Dunn 2,922 Vanville – Bakken – Burke 676 Lone Tree Lake – Bakken – Williams 26,438 Monthly total: 296,754 Wildcat – Bakken – Williams 1,166 Long Creek – Bakken – Williams 3,301 Daily average: 9,573 Manitou – Bakken – Mountrail 61,653 Monthly total: 2,245,918 Manning – Bakken – Dunn 1,462 Jettison Daily average: 72,449 Marmon – Bakken – Williams 7,110 Little Knife – Bakken – Billings16 Midway – Bakken – Williams 1,056 Stonieview – Bakken – Burke 377 Evertson Operating Murphy Creek – Bakken – Dunn 40,025 Ray – Bakken – Williams 249 New Home – Bakken – Williams 1,498 Monthly total: 393 Oliver – Bakken – Williams 8,817 Daily average: 13 Daily average: 8 Parshall – Bakken – Mountrail 2,511 Pleasant Valley – Bakken – Mountrail 7,058 Kodiak Oil and Gas Fidelity Exploration and Production (MDU) Rainbow – Bakken – Williams 5,566 Banks – Bakken – McKenzie 80,068 Alger – Bakken – Mountrail 14,787 Ranch Coulee – Bakken – McKenzie 2,270 Big Stone – Bakken – Williams 5,157 Dickinson – Bakken – Stark 22,733 Ray – Bakken – Williams 35,201 Bully – Bakken – McKenzie 4,478 Dutch Henry Butte – Bakken – Stark 12,618 Robinson Lake – Bakken – Mountrail 350,643 Corinth – Bakken – Williams 8,861 Green River – Bakken – Stark 7,095 Ross – Bakken – Mountrail 53,831 Cow Creek – Bakken – Williams 6,510 Heart River – Bakken – Stark 20,658 Sandrocks – Bakken – McKenzie 4,228 East Fork – Bakken – Williams 74,080 Lehigh – Bakken – Stark 58 Sather Lake – Bakken – McKenzie 8,171 Epping – Bakken – Williams 85,035 New Hradec – Bakken – Stark 6,449 Saxon – Bakken – Dunn 0 Glass Bluff – Bakken – McKenzie 63,296 Sanish – Bakken – Mountrail 138,079 Short Creek – Bakken – Burke 820 Grinnell – Bakken – McKenzie 5,382 Stanley – Bakken – Mountrail 92,280 Siverston – Bakken – McKenzie 12,044 Heart Butte – Bakken – Dunn 69,090 Zenith – Bakken – Stark 3,011 Sorkness – Bakken – Mountrail 4,363 Mandaree – Bakken – Dunn 16,391 South Meadow – Bakken – Williams 2,678 Moccasin Creek – Bakken – Dunn 74,646 Monthly total: 317,768 South Tobacco Garden – Bakken – McKenzie 21,959 Pembroke – Bakken – McKenzie 132,182 Daily average: 10,251 Spencer – Bakken – Ward 369 Poe – Bakken – McKenzie 87,737 Stanley – Bakken – Mountrail 2,492 Ranch Creek – Bakken – McKenzie 3,626 Filco Timber Creek – Bakken – McKenzie 8,000 Sand Creek – Bakken – McKenzie 1,157 Charlson – Bakken – McKenzie 3 Tioga – Bakken – Mountrail 5,930 South Fork – Bakken – Dunn 39,385 Rough Rider – Bakken – McKenzie 15 Tioga – Bakken – Williams 39,823 Springbrook – Bakken – Williams 8,916 Truax – Bakken – Williams 129,460 Stockyard Creek – Bakken – Williams 76,359 Monthly total: 18 Westberg – Bakken – McKenzie 5,804 Truax – Bakken – Williams 290,046 Daily average: 0.58 Wheelock – Bakken – Williams 39,280 Twin Buttes – Bakken – Dunn 87,647 White Earth – Bakken – Mountrail 6,272 Tyrone – Bakken – Williams 26,747 Gadeco Wildcat – Bakken – Burke 853 Wildcat – Bakken – McKenzie 2,905 Epping – Bakken – Williams 296 Wildcat – Bakken – McKenzie 1,410 Wildrose – Bakken – Divide 3,033

Daily average: 10 Monthly total: 2,409,071 Monthly total: 1,252,731 Daily average: 77,712 Daily average: 40,411 Galaxy Oil Hamlet – Bakken – Divide43HRC Operating (Halcon Resources) Legacy Reserves Sauk – Bakken – Williams 42 Antelope – Sanish – McKenzie 250,225 Ash Coulee – Bakken – Billings 317 Climax – Bakken – Williams 27,047 Buckhorn – Bakken – McKenzie 94 Monthly total: 85 Dublin – Bakken – Williams 6,865 Elkhorn Ranch – Bakken – Billings 673 Daily average: 3 Eagle Nest – Bakken – Dunn 130,539 Roosevelt – Bakken – Billings 1,165 Ellisville – Bakken – Williams 3,279 South Boxcar – Bakken – McKenzie 229 Hess Bakken Investments II Fertile Valley – Bakken – McKenzie 0 Squaw Gap – Bakken – McKenzie 913 Alger – Bakken – Mountrail 100,905 Four Bears – Bakken – McKenzie 189,291 Alkali Creek – Bakken – Mountrail 174,329 Good Luck – Bakken – Williams 10,854 Monthly total: 3,391 Antelope – Sanish – McKenzie 62,032 Little Muddy – Bakken – Williams 6,382 Daily average: 109 Antelope Creek – Bakken – McKenzie 3,726 Lone Tree Lake – Bakken – Williams 11,064 Marathon Oil Antelope – Sanish – McKenzie 27,409 Bailey – Bakken – Dunn 293,768 Big Bend – Bakken – Mountrail 17,690 North Dakota well operator transfers Chimney Butte – Bakken – Dunn 33,630 Deep Water Creek Bay – Bakken 40,254 April 12–May 16, 2014 Four Bears – Bakken – McKenzie 2,036 Jim Creek – Bakken – Dunn 730 Killdeer – Bakken – Dunn 62,803 LEGEND Lake Ilo – Bakken – Dunn 12,111 Date of well operator transfer Lost Bridge – Bakken – Dunn 25,620 McGregory Buttes – Bakken – Dunn 36,272 Well(s) transferred from Moccasin Creek – Bakken – Dunn 12,410 Well(s) transferred to Murphy Creek – Bakken – Dunn 200,258 NDIC well file number — well name — well type — geological target — field — IP (initial production) test date — IP oil rate in barrels Murphy Creek – Lodgepole – Dunn 507 Reunion Bay – Bakken – McKenzie 74,450 — location — county Reunion Bay – Bakken – Williams 469,481 Saxon – Bakken – Dunn 1,140 Strandahl – Bakken – Williams 12,024 May 14, 2014 158N-80W; McHenry Co. Van Hook – Bakken – Mountrail 46,441 From: Enduro Operating, LLC #12645 - Norsby 6; vertical; Madison; Pratt; 7/3/1989; 12 bbl; NENW 8- Werner – Bakken – Dunn 6,409 To: Sedalia Energy, LLC 158N-80W; McHenry Co. Wildcat – Bakken – McLean 0 #05419 - Kitzman 2; vertical; Madison; Pratt; 8/16/1976; 36; SENW 5- #12828 - Norsby 7; vertical; Madison; Pratt; 7/14/1990; 47 bbl; NWNW 8- Wolf Bay – Bakken – Dunn 26,256 158N-80W; McHenry Co. 158N-80W; McHenry Co. Zahl – Bakken – Williams 1,290 #13385 - Norsby 8; vertical; Madison; Pratt; 12/22/1992; 55 bbl; NWNE 8- #12448 - Norsby 4; vertical; Madison; Pratt; 7/16/1988; 35 bbl; NWSW 5- 158N-80W; McHenry Co. 158N-80W; McHenry Co. Monthly total: 1,402,789 #02670 - Herdt-BND WSW; vertical; Madison; Pratt; 6/24/1960; 96 bbl; #07938 - Arthur Hetland 1; vertical; Madison; Pratt; 11/1/1980; 57 bbl; Daily average: 45,251 NENE 6-158N-80W; McHenry Co. SWSE 31-159N-80W; McHenry Co. #03584 - Norsby 3; vertical; Madison; Pratt; 6/12/1964; 110 bbl; NESW 5- #12449 - Norsby 5; vertical; Madison; Pratt; 9/1/1988; 53 bbl; SESW 5- MBI Oil and Gas 158N-80W; McHenry Co. 158N-80W; McHenry Co. Rough Rider – Bakken – McKenzie 123 #03315 - Norsby 1; vertical; Madison; Pratt; 2/1/1963; 76 bbl; SWSW 5- #03396 - Kitzman - Bank of North Dakota 2; vertical; Madison; Pratt; Tree Top – Bakken – Billings0 158N-80W; McHenry Co. 7/7/1963; 103 bbl; SWNW 5-158N-80W; McHenry Co. #03251 - Herdt Estate 1; vertical; Madison; Pratt; 10/23/1962; 360 bbl; Daily average: 4 NESE 6-158N-80W; McHenry Co. —Compiled by Ashley Lindly #03696 - Norsby 2; vertical; Madison; Pratt; 10/7/1964; 40 bbl; SWSE 5- 158N-80W; McHenry Co. #13254 - Watne 7-1; vertical; Madison; Pratt; 1/28/1992; 48 bbl; NENE 7- see ND PRODUCTION page 16 16 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 continued from page 15 Wildcat – Bakken – McKenzie 11,754 Blooming Prairie – Bakken – Divide 18,825 Wildcat – Bakken – Mountrail 3,111 Candak – Bakken – Divide 1,969 ND PRODUCTION Wildcat – Bakken – Williams 2,044 West Ambrose – Bakken – Divide 31,572 Willow Creek – Bakken – Williams 118,168 Wildcat – Bakken – Divide762 Missouri River Royalty Juniper – Bakken – McKenzie 14 Monthly total: 1,301,337 Monthly total: 190,463 Manitou – Bakken – Mountrail 245 Daily average: 41,979 Daily average: 6,144

Monthly total: 259 Oxy USA (Occidental Petroleum) Samuel Gary Jr. and Associates Daily average: 8 Cabernet – Bakken – Dunn 58,118 West Tioga – Bakken – Williams 545 Crooked Creek – Bakken – Dunn 9,502 Mountain Divide (Mountainview Energy) Dimond – Bakken – Burke 26,115 Daily average: 18 Fortuna – Bakken – Divide16,274 Fayette – Bakken – Dunn 137,605 Wildcat – Bakken – Divide 3,069 Hungry Man Butte – Bakken – Billings 4,415 Sequel Energy Little Knife – Bakken – Billings 8,553 Bull Moose – Bakken – McKenzie 3,236 Monthly total: 19,343 Little Knife – Bakken – Dunn 17,890 Cinnamon Creek – Bakken – McKenzie 1,619 Daily average: 624 Manning – Bakken – Dunn 58,160 Cottonwood – Bakken – Burke 203 Murphy Creek – Bakken – Dunn 85,729 Cottonwood – Bakken – Mountrail 462 Murex Petroleum Russian Creek – Bakken – Dunn 15,805 Fertile Valley – Bakken – McKenzie 3,477 Alexander – Bakken – McKenzie 3,745 Saddle Butte – Bakken – Billings 3,256 Hay Draw – Bakken – McKenzie 294 Beaver Lodge – Bakken – Williams 15,640 Simon Butte – Bakken – Dunn 6,787 McGregor – Bakken – Williams 64,595 Fortuna – Bakken – Divide 31,722 Snow – Bakken – Billings 2,729 North Tioga – Bakken – Burke 324 Glass Bluff – Bakken – McKenzie 5,519 St. Anthony – Bakken – Dunn 14,178 North Tioga – Bakken – Divide 4,369 Lonesome – Bakken – McKenzie 5,177 Vanville – Bakken – Burke 3,285 Pierre Creek – Bakken – McKenzie 6,671 McGregor – Bakken – Williams 14,139 Wildcat – Bakken – Dunn 0 Stoneview – Bakken – Burke 108 Midway – Bakken – Williams 14,079 Willmen – Bakken – Billings 832 Stoneview – Bakken – Divide 1,465 Rawson – Bakken – McKenzie 5,488 Willmen – Bakken – Dunn 36,243 Temple – Bakken – Williams 21,158 Sandrocks – Bakken – McKenzie 8,240 Sanish – Bakken – Mountrail 52,856 Monthly total: 489,202 Monthly total: 107,981 Stanley – Bakken – Mountrail 48,073 Daily average: 15,781 Daily average: 3,483 Temple – Bakken – Williams 120 Tioga – Bakken – Williams 1,720 Peregrine Petroleum Partners SHD Oil and Gas West Bank – Bakken – Williams 15,320 Buckhorn – Bakken – Billings 151 Deep Water Creek Bay – Bakken – McLean 2,207 West Capa – Bakken – Williams 1,709 Covered Bridge – Bakken – McKenzie 89 West Tioga – Bakken – Williams 1,310 Fertile Valley – Bakken – McKenzie 227 Daily average: 71 Writing Rock – Bakken – Divide 7,729 Monthly total: 467 Siana Oil and Gas Monthly total: 232,586 Daily average: 15 Johnson Corner – Bakken – McKenzie 175 Daily average: 7,503 Petro-Hunt Daily average: 6 Newfield Production Charlson – Bakken – McKenzie 145,943 Banks – Bakken – McKenzie 3,649 Clear Creek – Bakken – McKenzie 210,893 Sinclair Oil and Gas Bear Den – Bakken – McKenzie 40,385 East Fork – Bakken – Williams 3,085 Bully – Bakken – McKenzie 2,451 Fertile Valley – Bakken – Divide 4,034 East Tioga – Bakken – Burke 2,731 Little Knife – Bakken – Dunn 13,584 Hanks – Bakken – Williams 2,870 East Tioga – Bakken – Mountrail 14,501 Lone Butte – Bakken – Dunn 1,242 Haystack Butte – Bakken – Dunn 2,036 Keene – Bakken/Three Forks – McKenzie 2,099 Lone Butte – Bakken – McKenzie 7,658 Haystack Butte – Bakken – McKenzie 8,606 Kittleson Slough – Bakken – Mountrail 4,910 Mary – Bakken – Dunn 310 Keene – Bakken/Three Forks – McKenzie 20,866 Little Knife – Bakken – Billings 2,249 Parshall – Bakken – Mountrail 3,211 Lost Bridge – Bakken – Dunn 4,858 Little Knife – Bakken – Dunn 16,993 Ranch Creek – Bakken – McKenzie 698 Pembroke – Bakken – McKenzie 7,184 North Tioga – Bakken – Burke 124,841 Robinson Lake – Bakken – Mountrail 8,353 Sand Creek – Bakken – McKenzie 30,580 Powers Lake – Bakken – Mountrail 1,194 Sanish – Bakken – Mountrail 17,341 Sandrocks – Bakken – McKenzie 20,690 Stockyard Creek – Bakken – Williams 49,392 Siverston – Bakken – McKenzie 144,534 Stoneview – Bakken – Divide968 Monthly total: 54,848 South Tobacco Garden – Bakken – McKenzie 46,816 Union Center – Bakken – McKenzie 28,242 Daily average: 1,769 Tobacco Garden – Bakken – McKenzie 68,696 Westberg – Bakken – McKenzie 149,639 Monthly total: 608,041 Slawson Exploration Daily average: 19,614 Alger – Bakken – Mountrail 14,945 Monthly total: 555,643 Arnegard – Bakken – McKenzie 1,894 Daily average: 17,924 Petro Harvester Operating Baker – Bakken – McKenzie 6,079 Little Butte – Bakken – Burke 348 Bicentennial – Bakken – McKenzie 0 North Plains Energy Thompson Lake – Bakken – Burke 677 Big Bend – Bakken – Mountrail 201,307 Sioux Trail – Bakken – Divide 10,334 Boxcar Butte – Bakken – McKenzie 862 Smoky Butte – Bakken – Divide 1,706 Monthly total: 1,025 Bully – Bakken – McKenzie 5,344 Daily average: 33 Cabernet – Bakken – Dunn 2,291 Monthly total: 12,040 Cedar Coulee – Bakken – Dunn 55 Daily average: 388 Petrogulf Charbonneau – Bakken – McKenzie 2,124 Antelope – Sanish – Mountrail 50,434 East Tioga – Bakken – Mountrail 10,571 Oasis Petroleum North America Elk – Bakken – McKenzie 1,792 Alger – Bakken – Mountrail 81,965 Daily average: 1,627 Ellsworth – Bakken – McKenzie 2,312 Alkali Creek – Bakken – Mountrail 13,971 Elm Tree – Bakken – McKenzie 42,660 Assiniboine – Bakken – McKenzie 8,228 Phillip D. Armstrong Kittleson Slough – Bakken – Mountrail 12,110 Baker – Bakken – McKenzie 42,686 Charlson – Bakken – McKenzie 69 Mondak – Bakken – McKenzie 6,062 Banks – Bakken – McKenzie 35,999 Elm Tree – Bakken – McKenzie 80 Murphy Creek – Bakken – Dunn 4,772 Black Slough – Bakken – Burke 5,193 North Fork – Bakken – McKenzie 22,599 Bonetrail – Bakken – Williams 14,330 Monthly total: 149 North Tobacco Garden – Bakken – McKenzie 4,290 Bull Butte – Bakken – Williams 48,422 Daily average: 5 Painted Woods – Bakken – Williams 3,391 Camp – Bakken – McKenzie 134,392 Parshall – Bakken – Mountrail 6,407 Camp – Bakken – Williams 2,611 Pride Energy, an Oklahoma General Partnership Pleasant Hill – Bakken – McKenzie 6 Church – Bakken – Williams 3,029 Cartwright – Bakken – McKenzie 425 Ross – Bakken – Mountrail 14,817 Cottonwood – Bakken – Burke 75,638 Elkhorn Ranch – Bakken – Billings 315 Sanish – Bakken – Mountrail 60,854 Cottonwood – Bakken – Mountrail 72,018 Squaw Gap – Bakken – McKenzie 0 Saxon – Bakken – Dunn 2,538 Cow Creek – Bakken – Williams 25,691 Squaw Gap – Bakken – McKenzie 785 Crazy Man Creek – Bakken – Williams 22,265 Monthly total: 740 Stockyard Creek – Bakken 48,277 Dore – Bakken – McKenzie 12,498 Daily average: 24 Tobacco Garden – Bakken – McKenzie 4,433 Dublin – Bakken – Williams 2,942 Trailside – Bakken – McKenzie 1,680 Eightmile – Bakken – McKenzie 38,461 QEP Resources Van Hook – Bakken – Mountrail 236,875 Eightmile – Bakken – Williams 2,314 Blooming Prairie – Bakken – McKenzie 23,727 Wildcat – Bakken – Williams 848 Elidah – Bakken – McKenzie 5,088 Croff – Bakken – McKenzie 34,151 Winter Butte – Bakken – McKenzie 288 Elk – Bakken – McKenzie 7,458 Deep Water Creek Bay – Bakken – McLean 58,466 Foothills – Bakken – Burke 6,363 Grail – Bakken – McKenzie 389,853 Monthly total: 723,268 Foreman Butte – Bakken – McKenzie 28,740 Heart Butte – Bakken – Dunn 357,539 Daily average: 23,331 Ft. Buford – Bakken – Williams 5,472 Spotted Horn – Bakken – McKenzie 17,766 Glass Bluff – Bakken – McKenzie 7,926 Squaw Gap – Bakken – Williams 5,736 SM Energy Gros Ventre – Bakken – Burke 75,648 Van Hook – Bakken – Mountrail 4,821 Alexandria – Bakken – Divide16,996 Harding – Bakken – McKenzie 1,442 Wildcat – Bakken – Dunn 6,667 Ambrose – Bakken – Divide 11,357 Hebron – Bakken – Williams 4,313 Baker – Bakken – McKenzie 5,285 Indian Hill – Bakken – McKenzie 6,629 Monthly total: 898,726 Banks – Bakken – McKenzie 1,098 Lake Trenton – Bakken – Williams 6,968 Daily average: 28,991 Bear Den – Bakken – McKenzie 39,692 Leaf Mountain – Bakken – Burke 337 Bicentennial – Bakken – Golden Valley 1,672 Lucy – Bakken – Burke 13,043 Ranch Oil Bicentennial – Bakken – McKenzie 2,171 Marmon – Bakken – Williams 3,440 Antelope – Sanish – McKenzie 625 Camp – Bakken – McKenzie 7,764 Missouri Ridge – Bakken – Williams 18,075 Westberg – Bakken – McKenzie 0 Cartwright – Bakken – McKenzie 2,108 Mondak – Bakken – McKenzie 6,609 Charlson – Bakken – McKenzie 68,499 Nohly Lake – Bakken – McKenzie 4,588 Daily average: 20 Colgan – Bakken – Divide 65,043 North Tioga – Bakken – Burke 4,061 Croff – Bakken – McKenzie 37,968 North Tobacco Garden – Bakken – McKenzie 5,608 Renegade Petroleum Devils Pass – Bakken – McKenzie 43 Painted Woods – Bakken – Williams 22,614 Wildcat – Bakken – Renville 0 Dimmick Lake – Bakken – McKenzie 1,547 Pronghorn – Bakken – McKenzie 4,464 Elk – Bakken – McKenzie 6,440 Rawson – Bakken – McKenzie 2,698 Resource Drilling Elkhorn Ranch – Bakken – Billings 275 Robinson Lake – Bakken – Mountrail 56,303 Clear Water – Bakken – Mountrail 0 Ft. Buford – Bakken – Williams 11,927 Rosebud – Bakken – Williams 18,788 Garnet – Bakken – Divide 8,311 Sand Creek – Bakken – McKenzie 1,444 Rim Operating Indian Hill – Bakken – McKenzie 11,254 Sanish – Bakken – Mountrail 64,214 Clayton – Bakken – Burke 462 Mondak – Bakken – McKenzie 1,620 Siverston – Bakken – McKenzie 19,300 Little Butte – Bakken – Burke 2,678 Musta – Bakken – Divide 7,257 Sorkness – Bakken – Mountrail 10,760 Rennie Lake – Bakken – Burke 695 Phelps Bay – Bakken – McKenzie 3,611 Squaw Gap – Bakken – Williams 44,421 South Coteau – Bakken – Burke 1,023 Pierre Creek – Bakken – McKenzie 300 Strandahl – Bakken – Williams 892 Poe – Bakken – McKenzie 107,004 Todd – Bakken – Williams 10,552 Monthly total: 4,858 Rough Rider – Bakken – McKenzie 1,421 Trenton – Bakken – Williams 7,556 Daily average: 157 Siverston – Bakken – McKenzie 135,776 Tyrone – Bakken – Williams 47,124 Sixmile – Bakken – Williams 5,209 Tyrone – Lodgepole – Williams 669 Samson Resources (KKR & Co.) Subscribers to view the entire chart, please visit: Ambrose – Bakken – Divide 137,335 http://bit.ly/1hNLG3U PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 17 Need to stretch your dollar? Advertise 12x in Petroleum News Bakken, competitive rates with lots of complimentary extras, including:

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Nam pe Nikiski Offi ) 522-2541 nec u turpis just ce: PO Box 771452 s. Morbi e P.O. Box 834 E amet ero Pipel 9 agle River, AK 99 ine Maintenan Nikiski, AK 577 ce 99635 Contact: Sue Ahr Phone: ens, Owner (907) 776-5185 Phone: (907) 6 Arenero Mare Fax: 94-7583 • Fax: (9 n (907) 776-8105 E-mail: delta 07) 694-7584 6000 A St. Pr [email protected] udhoe Bay Office: Website m Anchorag : www.deltappum e, AK 99518 Pouch 340103 Delta p.com Contact P Pumps and Equ : Tom Ulrich, vice Prudhoe Bay, AK dis ipment is a full lin Phone president 99734 tributor for pump e : (907) 562-5420 Phone: (907 s, pump parts, an Fa ) 659-8093 • Fax: lated equipment. d re- A x: (907) 562-542 Serving (907) 659-8489 We also handle 6 Alaska for sign, co system de- E-mail: Al more than 38 yea mplete fabrication KKE aska@amarinecor rs. assistan , installation p.com ce, and Website: www.a some repairs. 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Box 49 [email protected] Flo Fluor Corporation wline has three- Kotzebue is a 100-year old pipe insulation, fa , AK 995 500 company ( Fortune tion, and corrosio brica- Cont ranked #148) and n coating facilitie act: Shelly Woznia world’s larg is one of the s encom- ni k, Corporate Commu est engineering, cations Mgr. - constructio procurement, n, maintenance agem and project man ent companies. Fl - uor has 42,000 em-

LISTINGS SECTION

Contact Susan Crane, Phone 907-770-5592 | Raylene Combs, Phone 509-290-5903 | Renee Garbutt, Phone 907-522-9469 | Bonnie Yonker, Phone 425-483-9705 18 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 continued from page 1 BULLISH 2Q TORQUAY DISCOVERY: PRO FORMA CANERA return, in part due to significantly lower capital costs relative to similarly drilled wells in North Dakota.” • Extension of the North Dakota Saxberg said 45 net wells and capital spending of more than C$200 million are Three Forks play planned for 2014. • >880 net sections of Torquay The announcement in April of an potential land agreement to acquire privately held CanEra Energy contributes more than • >280 net sections in delineated core 166,000 net acres of land with Torquay area potential to Crescent Point’s portfolio in • 5,200 boe/d production the Flat Lake area, plus production of 10,000 boe per day. • 36 net wells drilled to date “The Torquay is a great addition to our • 480 net low-risk, high rate-of-return portfolio of high-quality resource plays,” locations(1) Saxberg said. “It is at an early stage of delineation and we are excited about the • $3.35 MM all-in well cost on a 1-mile potential scale and economics of the CanEra Lands Bakken wells horizontal play.” Crescent Point Lands Torquay wells • >$73.00/boe operating netbacks(2) Once the C$1.1 billion deal closes, Flat Lake Torquay Type Well Economics(4): Crescent Point will have exposure to • 45 Torquay wells planned for 2014 more than 563,000 net acres with Torquay Production Production Type Well (bbl/d) (bbl/d) NPV @ Rate of Payout • Large OOIP with potential for potential. 1st Month Avg st EUR 1 Year Avg. 10% Return (Months) significant reserve and production Waterflood expansion 175 mbbls 220 119 $4,430 91% 14 growth(3) The company reported that it drilled 78 275 mbbls 356 198 $8,669 297% 7 (72.9 net) oil wells in the Viewfield Bakken resource play and continues to refine its one-mile, 25-stage cemented It said that volumes positively affected injection wells and the volumes affected program stacks up against the two largest liner completion technique and its water- by waterfloods have grown to more than by waterfloods in the play over the next pools in Western Canada, the Weyburn flood program in the play, which it said 15,000 barrels per day and plans are in the two years. Midale pool and the Pembina Cardium are “driving strong rates of return.” works to double both the number of water Crescent Point said its own waterflood see BULLISH 2Q page 20 Oil Patch Bits

LT Environmental celebrates perfect safety record and safety plans for all field work and conducts bi-weekly safety LT Environmental Inc., a full service environmental and engineering firm, was recently meetings, daily safety tailgate recognized for its successful safety program. On April 29 the company completed 1,000 meetings, ongoing safety drills, days without an Occupational Safety & Health Administration, OSHA, reportable incident. web-based training for its employ- LTE employees celebrated the “1,000 day” milestone with a safety award wall plaque, ees, and more. LTE takes safety along with food and commemorative tee-shirts. even further by promoting fitness Zero work-related injuries and illnesses for a consecutive 1,000 days is exceptional for and supporting overall personal COURTESY LT ENVIRONMENTAL LT COURTESY environmental firms. It takes an experienced collaborative team to complete multiple proj- health of its employees. ects safely. “Safety is the most important “Our safety record of zero incidents is a reflection of our commitment of our employees value at LTE; it’s part of our mission to do great work safely,” said Tom Murphy, president of LT Environmental. “We have built statement and part of our corpo- an outstanding safety workplace culture not only to make safety a top priority every day rate culture,” said Jeff Citrone, director of health and safety compliance for LT but to support our clients in achieving their safety goals.” Environmental. “We know that 1,000 days is an important milestone as we continue to Safety is a requirement for all LTE employees. The company develops site-specific health lead the path toward safe work environments.” Bakken Players

ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS ADVERTISER PAGE AD APPEARS Abrasives Environ Corp. Northern Oilfield Services Inc. Alaska Textiles Fortis Energy Services...... 7 Northwest Linings & Geotextile...... 4 Alliance Pipeline Four Seasons Equipment Oilfield Improvements ...... 7 American Association of Railroads (AAR) Futaris Pacific Torque Anvil Corporation Halcon Resources Petroleum News Bakken...... 17 Archer Wireline HMG Automation, Inc. PetroShale Arctic Catering...... 2 Investors First Capital Plainsman Mfg. Inc. Bakken Solids Control Services Kilo Technologies Ltd. Polyguard Products Beaver Creek Archaeology Lister Industries QEP Resources...... 9 Brock White LT Environmental Quality Mat BTL Liners Lynden...... 3 R360 CESI Chemical M SPACE Ritchie Bros. Auctioneers City of Grand Forks, ND Marmit Plastics ShelterLogic ClearSpan Fabric Structures McAda Drilling Fluids Inc. Cruz Energy Services LLC (A CIRI Co.) Midwest Industrial Supply Spartan Engineering CST Storage Miller Insulation Co. TenCate Dakota Landing...... 20 MT Rigmat LLC Trinity Health Occupational Medicine DAWA Solutions Group Muth Pump LLC...... 20 Umiaq Deep Casing Tools Netzsch Pumps North America Unit Drilling Company Deister, Ward & Witcher, Inc. North Dakota Petroleum Council Vactor Manufacturing E3 Energy and Environmental Experts North Slope Telecom (NSTI) Wanzek Construction Engineered Fire & Safety Northern Electric Inc. Willbros PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 19 continued from page 1 DRILL SPACING NDIC Oil Fields With Spacing Applications - May 2014

Robinson Lake fields in western and cen- 85 tral Mountrail counties. ¤£ Continental seeks 5,120s BLOOMING PRAIRIE RENVILLE Continental Resources filed applica- DIVIDE tions for the creation of five overlapping BURKE 5,120-acre units and one overlapping 2,560 in various fields in Divide, McKenzie and Williams counties. STONEVIEW Two of the 5,120s are in the Elm Tree WARD field in northeast McKenzie County and NORTH TIOGA on those Continental wants to drill up to TEMPLELINDAHL COTTONWOOD six Bakken pool wells. BATTLEVIEW The other three 5,120s along with the MCGREGOR 2,560 are spread across the Stoneview, North Tioga, Lindahl and Battleview fields in northeast Williams and south- RAY west Divide counties. Continental wants BIG BUTTE 2 WEST BANK to drill up to two Bakken pool wells on WILLIAMS ¤£ the 5,120 and one on the 2,560. ALGER DOLLAR JOE MANITOU XTO and Whiting STONY CREEK MOUNTRAIL ¤£1804 Behind Statoil in the number of 2,560s WILLISTON WILLISTON ALKALI CREEKROBINSON LAKE requested is ExxonMobil subsidiary XTO ¤£1804 ROBINSON LAKE Energy which is asking the commission CHARLSON SANISH to create 12 overlapping 2,560-acre units ELM TREE across the Lost Bridge and Little Knife KEENE fields in northwest Dunn County and is BANKS NEW TOWN also seeking authorization to drill one CAMP horizontal Bakken pool well across the BIG BEND POE section lines within the proposed 2,560s. 200 Whiting Oil and Gas filed an applica- ¤£ BLUE BUTTES tion seeking the creation of 10 overlap- VAN HOOK ping 2,560-acre units, all in the contigu- SPOTTED HORN ous Dollar Joe, Ray and or West Bank MCKENZIE CROFFGRAIL Fort Berthold Reservation SQUAW CREEKMANDAREE fields in southeast Williams County and is MCLEAN seeking authorization to drill one well on BOXCAR BUTTE each. LOST BRIDGE SOUTH BOXCARRED WING CREEK Hess MONDAK BURNING MINE ¤£85 Filing as Hess Bakken Investments II, Hess Corp. is asking that the commission create 10 overlapping 2,560s and one overlapping 1,280 in various fields in DUNN McKenzie, Mountrail and Williams coun- LITTLE KNIFE ties. MERCER In the Capa field in southeast Williams £200 County, Hess wants one 2,560 and one ¤ 1,280 along with authorization to drill one horizontal Bakken pool well on each. GOLDEN VALLEY BILLINGS FAYETTE In southwest Mountrail County, Hess is seeking four 2,560s in the Alger field MANNING where the company wants to drill one horizontal well on three of the units and two wells on the fourth. In the Manitou 0420 0 and Alkali Creek fields Hess is asking the Miles commission to create one 2,560 in each Data Source: North Dakota Industrial Commission ® and authorize the drilling of one well on each. Mountrail and northeast McKenzie coun- wells on each. to drill up seven Bakken pool wells on the In the Robinson Lake field, also in ties, Oasis is asking for two 2,560s. Oasis WPX Energy Williston is asking the 1,280s and up to 11 wells on the 1,920. southeast Mountrail County, Hess is ask- wants authorization to drill one or more commission to create one overlapping One of the 1,280s is in the MonDak field ing for the creation of two 2,560s and per- wells on one of the units. On the other, 2,560-acre unit in the Mandaree field that in western McKenzie County along the mission to drill two wells on each. Oasis wants to either drill up to three hor- spans the county line between northwest- Montana border. Two others are just to And in the Blue Buttes field in far east- izontal wells without regard to 250-foot ern Dunn and far eastern McKenzie coun- the east in an area surrounded by the ern McKenzie County Hess wants a 2,560 setbacks on the 2,560 or drill one well on ties. The company wants to drill up to 28 Boxcar Butte, South Boxcar and Burning created in order to drill one well. the 2,560 and one each on the two 1,280s Bakken pool wells on that unit. mine fields. The fourth 1,280 along with making up the 2,560. In the neighboring Spotted Horn field, the 1,920 are in the Spotted Horn field in Oasis and Oxy Oxy USA wants five 2,560s created in WPX Energy is seeking creation of an far eastern McKenzie County. Oasis Petroleum filed applications the Manning field in southwest Dunn overlapping 1,280 where it wants to drill True Oil is asking for the establish- asking the commission to create nine County, and in the neighboring Fayette up to 14 Bakken pool wells. WPX Energy ment of two laydown 1,280-acre units in overlapping 2,560s in the Cottonwood, field, Oxy wants four new 2,560s. The is also asking for the establishment of a the Red Wing Creek field in central Alger and Alkali Creek fields in Burke, company also wants permission to drill 1,920 in the Van Hook field in western McKenzie County and permission to drill Mountrail and McKenzie counties. up to two Bakken pool wells on each of McLean County and permission to drill up to four horizontal Bakken pool wells At the north end of the Cottonwood the new units. up to 12 Bakken pool wells. Most of the on each. True is also asking the commis- field in Burke County, Oasis is asking for Van Hook field lies in the Van Hook sion for relief from the 1,220-foot setback two 2,560s and authorization to drill one Highest density apps peninsula in southwest Mountrail County, policy for the initial well to be drilled on or more horizontal Bakken pool wells on EOG Resources is seeking the highest but a portion extends east under Lake each unit. each. At the south end of the field in density among the May spacing unit Sakakawea into western McLean County Mountrail County, Oasis is asking for two applications by asking that a 640-acre where WPX Energy is seeking the 1,920- Other Bakken spacing unit apps more 2,560s, one of which would extend unit be created in the Mandaree field in acre unit. SM Energy is asking for five overlap- south into the Alger field. And Oasis northwestern Dunn County on which to In addition to the 2,560s, Oasis is also ping 2,560s, all in McKenzie County. wants authorization to drill one or more drill up to 32 Bakken pool wells. asking for a 1,920-acre spacing unit in the Two of the units are in the Charlson and wells on each. In the neighboring Squaw Creek field, Cottonwood field where it wants to drill Keene fields in northeast McKenzie, two Also in the Alger field, Oasis is asking EOG is asking the commission to create up to 16 horizontal Bakken pool wells. are in the Camp field in the northwest for the establishment of three overlapping one 640, one overlapping 960 and one Emerald Oil filed applications seeking region of the county and one is in the Poe 2,560s and permission to drill one or overlapping 2,560 where the company the creation of four 1,280- and one 1,920- field in the north-central area of the coun- more wells on each. wants to drill “multiple” Bakken pool acre units in various fields in McKenzie In the Alkali Creek field in southwest and Mountrail counties and authorization see DRILL SPACING page 20 20 PETROLEUM NEWS BAKKEN • WEEK OF MAY 25, 2014 continued from page 1 tical samples of the oil. Hume noted that “There was no spiking at the rail sta- Next steps even the oil that was transported across tions — no hot spots — as that was an Hume said the study results will allow BAKKEN CRUDE the country stayed consistent with the allegation,” he said at a press conference the industry to establish a new crude oil locally delivered samples. following his presentation. “That's not benchmark in addition to improving pack- low corrosivity, did not change signifi- “You would think the difference would occurring.” ing and classification standards. An idea is cantly in transit and may be hauled safely be that sample you hauled all the way to for tank cars to carry a “BKN” stamp so using existing DOT-III rank cars. The Louisiana, that it would evaporate or Rail cars contents are easily identified as carrying tests proved consistent with what something would have gotten out of that Though the Bakken crude study indi- Bakken crude. American Petroleum Institute, API, mem- sample container and it would have a cates that the liquid can safely be trans- “If we establish a Bakken benchmark, bers recently shared with the U.S. higher initial boiling point, but that wasn't ported within the current design of DOT- it ensures that everything we do, that Department of Transportation, DOT. the case,” Hume said. III cars, regulators are considering newer, everything that is shipped out of here is “It is essential to separate fact from fic- Each site was tested seven times, and thicker cars more resistant to puncturing. the same. If it has a BKN brand on it, it is tion as we work to enhance the safe trans- one rail shipping location pulled data from But Cutting said they would be heavier in that range,” he said. “All the stakehold- portation of crude oil,” said API President August 2013 to March 2014 to observe and reduce rail car capacity. ers … will know exactly what’s going for- and CEO Jack Gerard. “Multiple studies seasonal differences. “There is a maximum weight that the ward and what they’re getting. Nothing have now debunked the idea that Bakken “They had a slight 3psi (vapor pres- tracks can handle, so as you make it heav- has been spiked or blended into it and crude is meaningfully different than other sure) increase in winter, but this is real ier, you'll reduce capacity so then you'll you’re getting the real deal.” crudes. This data will allow industry and common and what we should see,” Hume have more rail cars on the tracks,” Cutting The NDPC plans to develop some stan- regulators to base actions on science said. The crude averaged 11.7 psi in the said. “Adding more steel where you'll gain dards and provide a final report of the rather than speculation.” tests, with a maximum of 14.4 psi, and a thicker shell may not be the answer to study at the end of June. l Bakken remains stable as it travels DOT-III tank cars are designed to accept not having a breach of that rail car.” vapor pressures up to 100 psi. Inspections She said the key to improving safety Three separate labs, two in North were also conducted to check for any tam- will be to focus on track maintenance, Dakota and one in Louisiana, tested iden- pering of contents at rail stations. staff training and train speeds. continued from page 18 Shaunavon waterflood pilot. tanks with 120,000 barrels of total capac- ket for Uinta Basin crude beyond the Salt Based on results to date, Crescent ity that will facilitate railcar loading at its Lake City refining market. BULLISH 2Q Point calculates that decline rates in the Dollard crude-by-rail terminal. The permanent rail-loading site in two Shaunavon projects are up to 10 per- Saxberg said several zones in the Uinta Utah is now fully operational, with capac- pool, that are producing about 30,000 bpd cent. Basin in Utah will be targeted over the ity of about 10,000 bpd and the capability and 60,000 bpd respectively. second half of 2014 as new technology is to raise volumes in the future. It said waterfloods “are expected to Shaunavon wells moved into the area. Based on its strong performance, ultimately lower production declines The company drilled 40 net wells in He said initial production rates are including 100 percent success from 214 (which it estimates are as much as 10 per- the Shaunavon in the quarter and is plan- “very high” and reserves are “pretty gross (173.6 net) wells, where drilling cent less than areas not under waterflood) ning 142 wells for 2014, while continuing strong,” but costs are “higher than we and development spending was about 10 and improve rates of return on adjacent to refine its cemented liner completion would like.” percent below budget, Crescent Point is producing oil wells.” technology, which it is confident will lead But the company said it hopes the test- targeting average production for 2014 of In Saskatchewan’s Lower Shaunavon to technical reserve additions on its ing of new completion techniques will 134,000 boe per day, with cash flow from resource play, Crescent Point expanded booked drilling inventory and existing increase fracture stimulation efficiency, operations of C$2.4 billion. its waterflood program in the first quarter production wells. production rates and ultimate recoveries. —GARY PARK and now has 21 water injection wells During the quarter, Crescent Point Crescent Point said rail operations in operating which it hopes to double this completed construction of two oil storage Utah have allowed it to broaden the mar- year, while applying to expand its Upper continued from page 19 Liberty Resources wants the commis- ping 2,560 in the Spotted Horn field in far Bottineau County. There are 43 quarter- sion to create three overlapping 2,560s in eastern McKenzie County to drill one sections in that field. DRILL SPACING the Temple and McGregor fields in north- Bakken pool well. In addition, QEP wants Kodiak Oil and Gas is asking for a east Williams County in order to drill one a 1,920-acre unit that would span portions zone of individual 320-acre spacing units ty. The company wants to drill one hori- horizontal Bakken pool well on or near of the Grail and Croff fields, also in east- consisting of four sections in the Epping zontal well on each of the new units. the section lines of the existing 1,280s ern McKenzie County along with author- field in south-central Williams County on Samson Resources wants four overlap- comprising the two proposed 2,560s. ity to drill one or more horizontal Bakken which to drill multiple horizontal ping 2,560s and one 1,280 in the Slawson Exploration is asking for two pools wells. Madison pool wells. Blooming Prairie field in north-central new 1,280s and one new overlapping Zavanna wants one 1,920 in the Stony Marathon Oil filed an application Divide County. The Tulsa-based company 2,560 in the Sanish and Big Bend fields in Creek field and two 1,920s in the Stony requesting the creation of two 1,280-acre wants to drill one horizontal Bakken pool southwest Mountrail County along with Creek and/or Williston fields in south- spacing units in Slope County and allow- well on or near the section lines between permission to drill one Bakken pool well central Williams County and authoriza- ing the drilling of one Tyler formation the existing 640s and 1,280s in the new on one of the 1,280s and two wells on the tion to drill “multiple” wells on each. well on each. North Dakota Department 2,560s. On the new 1,280, the company other 1,280 and the 2,560. Slawson is also of Mineral Resources Oil and Gas wants to drill up to seven Bakken pool asking the commission to change a previ- Legacy activity apps Division records indicate Marathon has wells. ous order issued on the 81 new spacing Noah Energy filed an application seek- three wells registered in Slope County, units Slawson requested in April redefin- ing permission to drill one horizontal one listed as dry, one as confidential and ing one 2,560 and one 1,280. Madison Pool well in each quarter-sec- one as active. The active well was tested QEP Energy is requesting one overlap- tion in the North Hass field in northwest on April 3 with a 24-hour initial production of 88 barrels of oil, no natural gas and 153 barrels of water. Williston Exploration is asking for either an 80-acre or, alternatively, a 160- acre unit in the portion of the Rocky Ridge field that lies in northeast Billings County in order to drill a lateral off of an existing vertical well completed in the Heath pool. l

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