Drilling Activity in Williams County, ND

Oil and Gas Leasing Help
1

Is there any activity expected in the far NW WILLIAMS CO?

2

Spencer:

Part of the area that you are referring to would be the Grenora Field. This field appears to have approx. 9 active wells and several p&a'd wells. I believe that over the next few years, some activity will develope in this area but currently, there are so many acres not HBP in or near "hot" areas. One problem is the lack of rigs in the area vs. the number of acres yet to be drilled. The mineral owners in this area should be able to maintain leases as the area could everntually hold suprises in more than one zone.

3

I have been hearing, the oil companies are planning to stack rigs as the price of oil for ND Sweet was in the mid 50's last month. I heard Marathon is stacking rigs and Contenial was planning to cut drilling by 20%.. Sounds like the oil drillers are cutting back to get better pricing.

4

Joe:

I have heard the same about both areas (MT and ND). I know that Marathon is currently involved in the Sheridan County area with two wells being currently drilled and two permits near this area. I would guess that the lease expiration dates plays a major role in these decisions. The leases which are expiring late next year will probably be put on the back burner for a while but the leases which are located within "proven" areas, will most likely be drilled prior to the lease expiration.

Joe Jackson said:

I have been hearing, the oil companies are planning to stack rigs as the price of oil for ND Sweet was in the mid 50's last month. I heard Marathon is stacking rigs and Contenial was planning to cut drilling by 20%.. Sounds like the oil drillers are cutting back to get better pricing.

5

Jo,

What do you think a price level would be to encourage new drilling?



charles s mallory said:

Joe:

I have heard the same about both areas (MT and ND). I know that Marathon is currently involved in the Sheridan County area with two wells being currently drilled and two permits near this area. I would guess that the lease expiration dates plays a major role in these decisions. The leases which are expiring late next year will probably be put on the back burner for a while but the leases which are located within "proven" areas, will most likely be drilled prior to the lease expiration.

Joe Jackson said:

I have been hearing, the oil companies are planning to stack rigs as the price of oil for ND Sweet was in the mid 50's last month. I heard Marathon is stacking rigs and Contenial was planning to cut drilling by 20%.. Sounds like the oil drillers are cutting back to get better pricing.

6

Also, what constitutes a "proven area" in this instance, Joe?



Spencer N Oland said:

Jo,

What do you think a price level would be to encourage new drilling?



charles s mallory said:

Joe:

I have heard the same about both areas (MT and ND). I know that Marathon is currently involved in the Sheridan County area with two wells being currently drilled and two permits near this area. I would guess that the lease expiration dates plays a major role in these decisions. The leases which are expiring late next year will probably be put on the back burner for a while but the leases which are located within "proven" areas, will most likely be drilled prior to the lease expiration.

Joe Jackson said:

I have been hearing, the oil companies are planning to stack rigs as the price of oil for ND Sweet was in the mid 50's last month. I heard Marathon is stacking rigs and Contenial was planning to cut drilling by 20%.. Sounds like the oil drillers are cutting back to get better pricing.