Apache Daniels County latest info

Found this article...thought I would share.

http://www.petroleumnews.com/pntruncate/496786999.shtml

Also found this: Application for Permanent spacing units. There is a bunch to look thru here. The two I found regarding Apache are near the bottom.

http://bogc.dnrc.mt.gov/PDF/June2013Docket.pdf

So with this current information, What does it mean to the layman other than they applied for spacing units and pulled the water tanks? It appears like they are still not in any hurry to do much as soon winter will be upon us and it will be 2014.

It looks to me like they are making the 1st Lindley pad a permanent setup and are putting it into production and they are applying for another temporary spacing unit nearby to drill another hole. I think apache liked what they found and judging by the gushers they drilling to the south in Roosevelt county, I think apache is in Daniels county to stay. Just my uneducated biased opinion based on a gut feeling.

Regarding the June 2013 notice of public hearing referenced above by Billy Bob, can any of you more experienced observers provide insight into what the "continued" dockets (Docket 715-2012, Docket 112-2013) for Apache Western Development in Daniels County mean?

It sort of looks like they "extended" something or left something on hold?

BTW, Billy Bob? Did not mean to imply you are inexperienced... I would of course be interested in any insights you have about what the continued dockets stuff means. (This is only the second such document I've read. It's Greek to me.)

There would be no reason to apply for a permanent spacing order for a well if they didn't find anything. I think the Lindley 19-9h-B well is capable of producing.

From general experience with several kinds of hearings, things that may involve an actual discussion get continued while things that everyone is in agreement with are handled.

No offense taken. I am inexperienced in the oil field and my only knowledge is what I have read on the internet. Thanks for your input.

I talked with a person at the state oil and gas commission. It was stated these dockets are just a continuation from previous times , until apache decides what to do. Not a new action item . they will either appear or disappear from the next meeting cycle depending upon a decision. IE; my take on the conversation: not promising at the present time.

If you are looking for some kind of hope to hang your hat on. I talked with another person this am that said GE was going to enter the fracing business. He thought the shale in different area's of the bakken needed specialized fracing technique according to the location , and the hardness and permeability of the shale . GE was supposed to be developing a new technique as compared or in competition to haliburton. All greek to me , but if your looking for hope bout any hat rack offers promise.

Thank you, Lee, for your comments. :-) Thank you (again) to Billy Bob and thank you, too, to RW...

Rumor is from my sources connected to north Eastern mt is that the mother load has been uncovered in Sheridan county and the preparations are being made for a 1000 man man camp to move in.

I read this morning Apache sold some of its business in the Gulf of Mexico. They said at their quarter report they were going to sell some . No mention of daniels county.

I happened to fall upon a bit of info regarding oil prospects in Daniels county. Now doing business as Apache Western Oil, or Apache Western Exploration. Here is a link to the latest scoop in the Bakken Explorers 2013:

http://www.petroleumnews.com/pntruncate/382684690.shtml

Gee! thats sounds great. Are your sources people working in oil and gas or locals or what?

-Toby

Billy Bob Jim Bob said:

Rumor is from my sources connected to north Eastern mt is that the mother load has been uncovered in Sheridan county and the preparations are being made for a 1000 man man camp to move in.

I assume these bits of info from last week aren't good news. (The parts about intent to abandon.) In any event, here's the well info available from state web site. This first able shows the Lindley 24 well:

25-019-21148-00-00 Intent to Abandon 9/20/2013
25-019-21148-00-00 Supplementary Well History 4/11/2013 Well TA'ed pending further evaluation
25-019-21148-00-00 Date Well Spudded 8/31/2012 Patterson 344
25-019-21148-00-00 Correction or Modification to Permit 8/31/2012 Location move; change to MD
25-019-21148-00-00 Permit to Drill, Horizontal 7/17/2012

This table shows one of the Hayworth well:

25-019-21150-00-00 Intent to Abandon 9/20/2013
25-019-21150-00-00 Supplementary Well History 4/11/2013 Well TA'ed pending further evaluation
25-019-21150-00-00 Date Well Spudded 10/21/2012 Patterson 344
25-019-21150-00-00 Permit to Drill, Horizontal 10/1/2012

This table shows other Hayworth well:

25-019-21151-00-00 Intent to Abandon 9/13/2013
25-019-21151-00-00 Intent to Temporarily Abandon 5/28/2013 Temporarily abandon while evaluating plan
25-019-21151-00-00 FracFocus Filing 1/9/2013 FFOC Filing
25-019-21151-00-00 Miscellaneous 12/27/2012 Directional survey received
25-019-21151-00-00 Pre-Frac Filing 12/7/2012 Sundry notice
25-019-21151-00-00 Date Well Spudded 10/25/2012 Patterson 344
25-019-21151-00-00 Permit to Drill, Horizontal 10/17/2012

This last table shows the Lindley 19 well:

25-019-21149-00-00 Intent to Abandon 9/13/2013
25-019-21149-00-00 Intent to Temporarily Abandon 5/28/2013 Temporarily abandon while evaluating plans
25-019-21149-00-00 FracFocus Filing 11/15/2012 FFOC Filing
25-019-21149-00-00 Pre-Frac Filing 10/24/2012 sundry notice
25-019-21149-00-00 Correction or Modification to Permit 9/26/2012 Change in target formation and horizontal intercept; PBHL remains same
25-019-21149-00-00 Date Well Spudded 9/3/2012 Patterson 344
25-019-21149-00-00 Correction or Modification to Permit 8/31/2012 Location move; change to MD
25-019-21149-00-00 Permit to Drill, Horizontal 7/17/2012

BTW, the website address you use to look this stuff up is:

http://www.bogc.dnrc.mt.gov/webapps/dataminer/Wells/Wells.aspx

Also, the news looks maybe a little bit different for the Wesco wells? Maybe?



Stephen L Nelson said:

BTW, the website address you use to look this stuff up is:

http://www.bogc.dnrc.mt.gov/webapps/dataminer/Wells/Wells.aspx

Also, the news looks maybe a little bit different for the Wesco wells? Maybe?

I may be trying to read between the lines but the way I understand it is that apache doesn’t have to disclose production because none of this oil was ever produced into permanent facilities. I think apache liked what they found and the fact that apache has as many as 8 years to exercise its options in this acreage I would say that they are going to temporarily abandon much of it until the infrastructure is in place to move large quantities of oil out of Daniels county.

I should also add that in an interview Bedingfield said he “was pleased with the results” of the first Lindley well. Did he lie? Was he pleased that it was crappy results? I doubt it.

Billy Bob Jim Bob,

I was focusing on the change in status the first and second weeks of Sept from "temporarily abandoned" to "abandoned." And I guess I was really mostly asking the experienced oil and gas industry observers if this change was significant...

One thing that would nice obviously for those of us who are curious would be if at the November 7 third quarter earnings call, either Apache management provides some information about their Daniels County activities or if some enterprisingly equity analyst asks if there's any news on their Daniels county wells!

And certainly it would be great to get some good news. But to my mind, the change from 'temporarily abandoned" to "abandoned" sounds pretty significant.

A final, somewhat cynical comment (sorry)... Apache has sold lots of stuff over the last quarter. Probably some of that stuff has produced gains that'll boost their profits for the year and the quarter. I would think that if one was going to write off, say, a $200M or $300M investment in Daniels County as a loss, this quarter would be quarter to do that (because Apache would get to net big gains with little losses). So (and I guess here's the cynical part) if Apache does not write off Daniels County in the third quarter, I would think that's hopeful even in spite of them say abandoning the first wells.

Steve

P.S. Know that I fervently hope your optimism is well-founded and that my, er, pessimism is unfounded!