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More N. Dakota oil....?
North Dakota Could Have a Huge New Oil Field
2009-07-14 16:04:30.904 GMT
BISMARCK, N.D. (AP) — Dozens of fruitful wells beneath the
rich Bakken shale in North Dakota continue to fuel a hunch among
oilmen and geologists that another vast crude-bearing formation
may be buried in the state's vast oil patch.
Lynn Helms, director of the state Department of Mineral
Resources, said recent production results from 103 newly tapped
wells in the Three Forks-Sanish formation show many that are "as
good or better" than some in the Bakken, which lies two miles
under the surface in western North Dakota and holds billions of
barrels of oil.
"I think it's a big deal and we're pretty fired up about
it," Helms said.
Companies have reported some Three Forks wells recovering
more than 800 barrels daily, considered decent by Bakken
standards.
Denver-based Whiting Petroleum Corp. has drilled two wells
in the Three Forks formation, with one that recorded more than
1,000 barrels of oil a day, said John Kelso, a company
spokesman.
"We are excited about Three Forks but it's early on in the
play," Kelso said. "I do know a lot of companies are redirecting
focus from the Bakken to Three Forks."
Whiting has one Bakken well that recorded more than 4,000
barrels a day last year, thought to be a record for the
formation and about double the highest Three Forks well drilled
to date.
Kelso said Whiting's primary focus at present is on the
Bakken. The company has more than 300,000 acres under lease in
North Dakota.
"With the turbulence in crude oil prices, we've kind of
backed off Three Forks for the Bakken," Kelso said. "We will
very likely get after Three Forks in 2010, depending on oil
prices.
The Bakken formation encompasses some 25,000 square miles
within the Williston Basin in North Dakota and Montana. The U.S.
Geological Survey has called it the largest continuous oil
accumulation it has ever assessed.
The Three Forks-Sanish formation is made up of sand and
porous rock directly below the Bakken shale. But geologists
don't know whether the Three Forks-Sanish is a separate oil-
producing formation or if it catches oil that flows from the
Bakken shale above.
Fort Worth, Texas-based XTO Energy Inc. has reported to the
state that one of its Three Forks wells pulled more than 2,100
barrels a day. An ETO Energy spokeswoman said the company does
not comment on its operations publicly.
State and industry officials are conducting a study to
determine whether the Three Forks is a unique reservoir. The
plan is to compare results from closely spaced wells, one aiming
for the Three Forks, and the other at the Bakken. Researchers
will look at pressure changes in the formations to determine if
they are connected.
Results from the study could be ready later this year,
officials say. It already is spurring some speculation that the
state has billions of barrels more in oil reserves.
"Eventually it could equal the Bakken, which is remarkable,
and that's an understatement," Helms said.
"Is it the same or is it a separate formation? I think
everybody is hoping for the latter," Harms said. "That could
literally double the potential we have — a Bakken 2, if you
will."
Kelso, of Whiting Petroleum, said his company's drilling
activity shows that Three Forks likely is a separate formation.
He said core samples taken from the Bakken and Three Forks show
more hydrocarbons in the latter.
"From the core samples, Three Forks looks better for us
than the Bakken," he said.
Promising production results from the Three Forks could
mean that companies that come up empty in the Bakken could use
existing leases to drill in the same area for Three Forks oil.
"It's another target," LeFever said. "If the Bakken doesn't
pay, maybe the Three Forks will."
Most companies working in the state's oil patch continue to
focus solely on the Bakken, said Ron Ness, president of the
North Dakota Petroleum Council, a Bismarck-based group that
represents about 160 companies.
"I think it's a huge deal," Ness said of the emerging Three
Forks play. "But it is still vastly unknown and overshadowed by
the urgency to develop the Bakken."
Donald Kessel, vice president of Houston-based Murex
Petroleum Corp., said his company was among the first to get a
producing well in the Bakken in North Dakota about four years
ago. The company now has 26 producing wells in the Tioga and
Stanley areas of northwestern North Dakota.
Kessel believes that not all of the Three Forks is laden
with oil.
"Right now, we're doing Bakken, and in those areas it
doesn't look like the Three Forks is going to work," he said.
"With Three Forks, you have got to find a sweet spot where
it develops," Kessel said. "It is not sandwiched like the Bakken
between two shales producing oil."
Oilmen and others had known for years that the Bakken held
oil. High oil prices and demand in the past few years spurred
technology enough to begin tapping it.
Kessel said techniques learned from the Bakken are now
being used at other oil shales in the U.S. and internationally.
But he said advances in technology have slowed with lower oil
prices that have idled drill rigs.
"Technology is not moving at the same pace because there
are fewer well bores to do it at," Kessel said.
State geologist Ed Murphy said researchers will know more
about the characteristics and potential of the Three Forks
formation once more wells are tapped into it.
"One-hundred wells is not that many wells when you're
trying to look at overall trends," Murphy said. "Everyone will
feel a lot safer with 100 or 200 more wells down the road."
Drilling and well completion technology developed for the
Bakken formation likely also could be used in the half-dozen
formations above the Bakken and the dozen or so that reach 4,000
feet below it, he said.
North Dakota Could Have a Huge New Oil Field
2009-07-14 16:04:30.904 GMT
BISMARCK, N.D. (AP) — Dozens of fruitful wells beneath the
rich Bakken shale in North Dakota continue to fuel a hunch among
oilmen and geologists that another vast crude-bearing formation
may be buried in the state's vast oil patch.
Lynn Helms, director of the state Department of Mineral
Resources, said recent production results from 103 newly tapped
wells in the Three Forks-Sanish formation show many that are "as
good or better" than some in the Bakken, which lies two miles
under the surface in western North Dakota and holds billions of
barrels of oil.
"I think it's a big deal and we're pretty fired up about
it," Helms said.
Companies have reported some Three Forks wells recovering
more than 800 barrels daily, considered decent by Bakken
standards.
Denver-based Whiting Petroleum Corp. has drilled two wells
in the Three Forks formation, with one that recorded more than
1,000 barrels of oil a day, said John Kelso, a company
spokesman.
"We are excited about Three Forks but it's early on in the
play," Kelso said. "I do know a lot of companies are redirecting
focus from the Bakken to Three Forks."
Whiting has one Bakken well that recorded more than 4,000
barrels a day last year, thought to be a record for the
formation and about double the highest Three Forks well drilled
to date.
Kelso said Whiting's primary focus at present is on the
Bakken. The company has more than 300,000 acres under lease in
North Dakota.
"With the turbulence in crude oil prices, we've kind of
backed off Three Forks for the Bakken," Kelso said. "We will
very likely get after Three Forks in 2010, depending on oil
prices.
The Bakken formation encompasses some 25,000 square miles
within the Williston Basin in North Dakota and Montana. The U.S.
Geological Survey has called it the largest continuous oil
accumulation it has ever assessed.
The Three Forks-Sanish formation is made up of sand and
porous rock directly below the Bakken shale. But geologists
don't know whether the Three Forks-Sanish is a separate oil-
producing formation or if it catches oil that flows from the
Bakken shale above.
Fort Worth, Texas-based XTO Energy Inc. has reported to the
state that one of its Three Forks wells pulled more than 2,100
barrels a day. An ETO Energy spokeswoman said the company does
not comment on its operations publicly.
State and industry officials are conducting a study to
determine whether the Three Forks is a unique reservoir. The
plan is to compare results from closely spaced wells, one aiming
for the Three Forks, and the other at the Bakken. Researchers
will look at pressure changes in the formations to determine if
they are connected.
Results from the study could be ready later this year,
officials say. It already is spurring some speculation that the
state has billions of barrels more in oil reserves.
"Eventually it could equal the Bakken, which is remarkable,
and that's an understatement," Helms said.
"Is it the same or is it a separate formation? I think
everybody is hoping for the latter," Harms said. "That could
literally double the potential we have — a Bakken 2, if you
will."
Kelso, of Whiting Petroleum, said his company's drilling
activity shows that Three Forks likely is a separate formation.
He said core samples taken from the Bakken and Three Forks show
more hydrocarbons in the latter.
"From the core samples, Three Forks looks better for us
than the Bakken," he said.
Promising production results from the Three Forks could
mean that companies that come up empty in the Bakken could use
existing leases to drill in the same area for Three Forks oil.
"It's another target," LeFever said. "If the Bakken doesn't
pay, maybe the Three Forks will."
Most companies working in the state's oil patch continue to
focus solely on the Bakken, said Ron Ness, president of the
North Dakota Petroleum Council, a Bismarck-based group that
represents about 160 companies.
"I think it's a huge deal," Ness said of the emerging Three
Forks play. "But it is still vastly unknown and overshadowed by
the urgency to develop the Bakken."
Donald Kessel, vice president of Houston-based Murex
Petroleum Corp., said his company was among the first to get a
producing well in the Bakken in North Dakota about four years
ago. The company now has 26 producing wells in the Tioga and
Stanley areas of northwestern North Dakota.
Kessel believes that not all of the Three Forks is laden
with oil.
"Right now, we're doing Bakken, and in those areas it
doesn't look like the Three Forks is going to work," he said.
"With Three Forks, you have got to find a sweet spot where
it develops," Kessel said. "It is not sandwiched like the Bakken
between two shales producing oil."
Oilmen and others had known for years that the Bakken held
oil. High oil prices and demand in the past few years spurred
technology enough to begin tapping it.
Kessel said techniques learned from the Bakken are now
being used at other oil shales in the U.S. and internationally.
But he said advances in technology have slowed with lower oil
prices that have idled drill rigs.
"Technology is not moving at the same pace because there
are fewer well bores to do it at," Kessel said.
State geologist Ed Murphy said researchers will know more
about the characteristics and potential of the Three Forks
formation once more wells are tapped into it.
"One-hundred wells is not that many wells when you're
trying to look at overall trends," Murphy said. "Everyone will
feel a lot safer with 100 or 200 more wells down the road."
Drilling and well completion technology developed for the
Bakken formation likely also could be used in the half-dozen
formations above the Bakken and the dozen or so that reach 4,000
feet below it, he said.
