ND Oil Production Jumps; Three-Mile Wells In Burke County
North Dakota’s oil production jumped up by over 36,000 BOPD as operators are moving outside the “core areas” including Burke County, where ND Dept. of Mineral Resources director Lynn Helms said he was “surprised that someone took a major risk”.
Helms was referring to recent action by Liberty Resources LLC of Denver to drill a three-mile horizontal well in Burke County with an expected recovery of 620,000 barrels of oil.
Burke County also pulled in higher than expected bonuses at the ND state oil and gas lease sale in August. In that sale, bidding averaged $391 an acre, with Northern Energy Corp. of Bismarck posting the highest bonus of $551 an acre.
The latest figures from the ND DMR show the state now has a record number of producing wells at 14,080 with daily oil production in August reaching 1,084,690 BOPD, 36,591 BOPD higher than July, which came in at 1,048,099.
Natural gas production was also a new record high of 1,894,239 Mcf a day, topping July by 47,109 Mcf a day.
In August operators completed 63 wells in August, compared to 95 in July with 863 wells waiting on completion. The inactive well count rose by 20 to 1,498.
The drilling rig count in August and September averaged 56. “Operators have shifted from running the minimum number of rigs to incremental increases and decreases as WTI oil price moves between $40 and $50 a barrel,” Helms said.