New Oil production for the United States: Thunder Horse

The British Petroleum offshore oil rig Thunder Horse started production on June 14, 2008 This is US domestic oil in the gulf of Mexico. It will be producing 250,000 barrels of oil per day in 2009.

Thunder Horse page at BP.com

The new production is still not enough as the CIBC is predicting $200 per barrel of oil and $7 per gallon in the USA by 2010.

While Americans are already driving 11 billion fewer miles than they did last year, a decline of 4.3%, they still drive today about 30% more than they did before the OPEC oil shocks. The elasticity of driving to gasoline prices is estimated to be around the 0.06. That means a 10% rise in gasoline prices will eventually lead to a 0.6% reduction in miles driven. Using that rule of thumb, the 280% cumulative rise in gasoline prices between 2004 and our target $7 per gallon target price should induce more than 15% reduction in miles driven on American roads.

This would be predicted to apply a hit to the US economy.

At a minimum, once the worst of the housing shock passes, the Fed will be forced to raise real interest rates back to zero in order to prevent an improving economy from allowing wages and other prices to catch up to oil. With CPI trending at an energy- and food-driven 4%, that will entail 200 basis points in tightening to get to a 4% funds rate by the end of next year. As a result of our upward revised call for both oil and interest rates, we’ve chopped our US growth forecast for 2009 from just over 2% as of two months ago, to little over 1%, no better than this year’s housing-blunted performance. The US economy has managed to avoid feeling the full brunt of oil prices over the last few years, but 2009 will be the year that its luck runs out

Thunder Horse’s actual “production profile” hinges on “well performance” and “how fast we are able to drill and connect new wells,” BP spokesman Ronnie Chappell cautioned.

The Thunder Horse field is located in Mississippi Canyon Blocks 776, 777 and 778, in the Boarshead Basin, 125 miles south-east of New Orleans. It is the largest field in the Gulf of Mexico and lies at a water depth of 6,000ft. The field was discovered in 1999. BP operates the development (75% interest), with co-venturer ExxonMobil owning the balance. The reservoir consists of Upper Miocene turbidite sandstones 6,000m beneath the seabed in 1,900m of water. Pressures exceed 1,200bar and temperatures reach 135°C

Norway Alvheim; Volund; Vilje had first oil June 9, 2008 as well.
Marathon Oil believes the Alvheim; Volund; Vilje output will be at 75,000 bpd in early 2009

FURTHER READING
Other oil megaprojects for 2008

Russia's Yuzhno-Khylchuyuskoye "YK" for July 2008 start to get 150,000 bpd in 2009
Russia's Vankorskoye for October 2008 to get 420,000 bpd peaking in 2017
Brazil Marlim Sul Mod 2 P-51 for August 2008 to get 180,000 bpd
Brazil Marlim Leste P-53 for August 2008 to get 180,000 bpd
Brazil Marlim Leste (FPSO Cidade de Niteroi) Dec 2008 for 100,000 bpd
Canada's Horizon Oil Sands Project (Phase I) for Sept 2008 start to get 110,000 bpd

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Saudi Arabia oil: Background on Zuluf, Safaniyah, Berri, Khurais and Shaybah the sources of increased production

The increased production fields have rectangles around the name. Information from the EIA Saudi Arabia Country report Click on the picture for a larger version.

Saudi Arabia will increase production capacity to 12.5 million barrels a day of oil by the end of next year [2009] and could add a further 2.5 million barrels a day if needed, from some new giant fields, Naimi said.

The further daily capacity includes 900,000 barrels from the Zuluf field, 700,000 barrels from Safaniyah, 300,000 barrels from Berri, 300,000 barrels from Khurais and 250,000 barrels from Shaybah, Naimi said.

``Saudi Arabia is prepared and willing to produce additional barrels of crude above and beyond the 9.7 million barrels per day, which we plan to produce during the month of July, if demand for such quantities materializes and our customers tell us they are needed,'' Naimi said.

Saudi Arabia's capacity will be 12.5 million barrels a day by the end of 2009 and may rise to 15 million after that if necessary, he said

The market needs between 3 million and 4 million barrels a day of spare oil production capacity, compared with the 2 million barrels a day currently available, Bodman said. OPEC says the world's spare capacity is about 3 million barrels a day, with two- thirds of that in Saudi Arabia.

Safaniyah, by far the largest offshore oilfield in the world, was found in 1951 by Texaco (which in 1937 was the first to join SoCal - now Chevron - in Saudi Arabia as a 50% partner in Aramco. But now Taxaco is part of Chevron).

Safaniyah has over 15 bn barrels of proven oil reserves recoverable at relatively low cost. The oil is heavy, 27[degrees] API with 2.93-2.96% sulphur, and much of Safaniyah's 1.5m b/d capacity has been mothballed. Like most other offshore fields in the north-east, the oil is reservoired in Cretaceous sandstones and carbonates mainly at a depth of 5,100 ft.

Berri, found in 1964 by Mobil, is an onshore and offshore giant. It has over 10 bn barrels of 32-34-39 deg. API oil recoverable at relatively low cost. The field produces from several formations of Upper and Mid-Jurassic age, lying mostly at a depth of 8,300 feet. Its capacity has been raised from less than 700,000 b/d in 1990 to 1.15m b/d.

Berri crude oils are blended with lighter grades mostly produced from Abqaiq and the field's system can take crude oils from Qatif. The export blend is Arabian Extra Light, 38 deg. API with about 1% sulphur.

From the EIA country report: Shaybah contains an estimated 14.3 billion barrels of premium grade 41.6o API sweet (nearly sulfur-free) Arab Extra Light crude oil, with production as of November 2006, at around 550,000 bbl/d from 141 wells. It is the largest oil field in the world that has been developed in the past two decades. According to Oil Minister Naimi (October 1999), the development of Shaybah showed that "the cost of adding...capacity - that is, all the infrastructure, producing and transportation facilities - necessary to produce one additional barrel of oil per day in Saudi Arabia is, at most, $5,000 compared to between $10,000 and $20,000 in most areas of the world."

-The Shaybah complex includes three gas/oil separation plants (GOSPs) and a 395-mile pipeline to connect the field to Abqaiq, Saudi Arabia's closest gathering center, for blending with Arab Light crude (Berri and Abqaiq streams). In addition to oil, Shaybah has a large natural gas "cap" (associated gas), with estimated reserves of 25 trillion cubic feet (Tcf). Gas production of 880 million cubic feet per day (MMcf/d) is re-injected. It is reported that possible gas recovery project could be implemented within 5 or 6 years, potentially for use in petrochemical production.

-The Khurais fields (including Abu Jifan and Mazalij) west of Ghawar, will increase Saudi production capacity (of Arab Light) by 1.2 million bbl/d at a cost of $3 billion. Once online, Saudi Arabia will be the only oil producer to have two “super giant” fields, that which produce more than 1 million bbl/d of crude oil. This is to involve installation of four GOSPs, with a capacity of 200,000 bbl/d each, at Khurais, which first came online in the 1963, but was mothballed by Aramco some three-decades later. Aramco plans to drill at least 300 exploration wells with 23 rigs.


Click on the picture for a larger version.


Recent Saudi Oil Production was as low as 8.6 million bpd in 2007

FURTHER READING
Oil megaprojects from around the world

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North Dakota Bakken oil increasing 5000-7000 barrels per day each month, Saskatchewan's Bakken oil increasing too

The state (North Dakota's) Industrial Commission reports that North Dakota oil wells pumped an average of 150,578 barrels a day in April. The previous high of 147,774 barrels a day was set in August 1984. North Dakota reported 5700 more barrels of oil per day in March, 2008 March production was 143738 bopd versus February 138013 bopd.

Crescent Point Energy Trust (TSX:CPG.UN) is increasing its Bakken oil in Saskatchewan, Canada spending by $200-425 million. Crescent Point is raising its production guidance by five per cent and its distributions to investors by 15 per cent.

The Calgary-based trust said Monday the increases were due to "significant growth" in its southeast Saskatchewan Bakken resource play, better-than-expected drilling and production results in its core areas, and higher than anticipated commodity prices.

The capital budget is being increased by 89 per cent to advance development at Bakken and add production at a rate of about $25,000 per barrel of oil equivalent.

Crescent Point now expects to exit 2008 with production greater than 37,500 boe per day, and is upwardly revising its 2008 average production forecast by five per cent to 36,250 boe daily.

From the Business Week article:

North Dakota surpassed Kansas in 2006 to become the eighth-largest oil-producing state in the nation, and soon will surpass Wyoming to become seventh among oil-producing states, said Ron Ness, president of the North Dakota Petroleum Council.

North Dakota produced 45 million barrels of oil last year, up about 5 million barrels from 2006, Ness said.

Production this year likely will exceed the record of 52.6 million barrels set in 1984, said Lynn Helms, the director of the state Department of Mineral Resources.

FURTHER READING
More North Dakota oil statistics

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US Navy may get more nuclear powered

Research and development work on adapting the design of the Ford (CVN-78) class aircraft carrier nuclear power plant for use in a new Navy cruisers CG(X) and could be extended to amphibious assault vessels.

Congress in 2007 passed the National Defense Authorization Act for 2008, an annual piece of legislation that tells the Pentagon how it should spend its budget. Under the act all future aircraft carriers, submarines and battle cruisers have to be built with a nuclear power system at their heart.

The National Defense Authorization Bill for 2009, which the Senate has still to pass, aims to shift the process up a gear by adding various types of amphibious assault ships to the list of those that must be powered by nuclear reactors in the future. Amphibious ships come in various forms, from those that incorporate a dock for landing craft, to undersized aircraft carriers for helicopters and vertical take-off aircraft - or a mixture of both. The vessels' position in combat can also vary - from a "stand-off" over-the-horizon location to being moored to a pier in a combat zone.

Equipping such ships with nuclear reactors would have another advantage in military operations, says Wright. "Assault ships are carrier escort vehicles and will no longer be holding up a carrier task force's progress by having to be refuelled every three to five days," she says.

There was a 2007 study on the use of more nuclear power in the United States Navy


A potential advantage of nuclear power postulated by some observers is
that a nuclear-powered ship can use its reactor to provide electrical power for use
ashore for extended periods of time, particularly to help localities that are
experiencing brownouts during peak use periods or whose access to electrical power
from the grid has been disrupted by a significant natural disaster or terrorist attack. The Navy has stated that the CG(X) is to have a total power-generating capacity of about 80 megawatts (MW). Some portion of that would be needed to operate the reactor plant itself and other essential equipment aboard the ship. Much of the rest might be available for transfer off the ship. For purposes of comparison, a typical U.S. commercial power plant might have a capacity of 300 MW to 1000 MW. A
single megawatt can be enough to meet the needs of several hundred U.S. homes,
depending on the region of the country and other factors.

The Navy is looking to install radar requiring 30 or 31 megawatts of power onto its new Cruiser.

A nuclear-powered CG(X) could cost roughly 32% to 37% more than a conventionally powered CG(X). The Navy estimates that building the CG(X) or other future Navy surface ships with nuclear power could reduce the production cost of nuclear-propulsion components for submarines and aircraft carriers by 5% to 9%, depending on the number of nuclear-powered surface ships that are built.20 Building one nuclear-powered cruiser every two years, the Navy has testified, might reduce nuclear-propulsion component costs by about 7%.

At a crude oil cost of $74.15 per barrel (which was a market price at certain points in 2006), the life-cycle cost premium of nuclear power is:
— 17% to 37% for a small surface combatant;
— 0% to 10% for a medium sized surface combatant; and
— 7% to 8% for an amphibious ship.

Newly calculated life-cycle cost break-even cost-ranges, which supercede the break-even cost figures from the 2005 NR quick look analysis, are as follows:
— $210 per barrel to $670 per barrel for a small surface combatant;
— $70 per barrel to $225 per barrel for a medium-size surface combatant; and
— $210 per barrel to $290 per barrel for an amphibious ship. In each case, the lower dollar figure is for a high ship operating tempo, and the higher dollar figure is
for a low ship operating tempo.

A 2006 Navy study states that for a medium-size surface combatant that is larger than the DDG-1000, an additional cost of about $600 million to $700 million would equate to a procurement cost increase of about 22%. If building a Navy surface combatant or amphibious ship with nuclear power rather than conventional power would add roughly $600 million to $700 million to its procurement cost., then procuring one or two nuclear-powered CG(X)s per year, as called for in the Navy’s 30-year shipbuilding plan, would cost roughly $600 million to $1,400 million more per year than procuring one or two conventionally powered CG(X)s per year, and procuring a force of 19 nuclear-powered CG(X)s would cost roughly $11.4 billion to $13.3 billion more than procuring a force of 19 conventionally powered CG(X)s. For purposes of comparison,the Navy has requested a total of $13.7 billion for the SCN account for FY2008.

UPDATE: The United States navy has 280 active ships The Aircraft carriers (12 current, 2 under construction, 2 planned) and submarines (70 now, 5 under construction or ordered, at least 9 more planned) in the US navy are nuclear powered already.

The US has 10 amphibious assault ships (helicopter carriers) and 11-18 amphibious transport docks.

Amphibious assault ships (small aircraft carriers for marines)
* Tarawa class (3 in commission, 2 decommissioned)
* Wasp class (7 in commission, 1 under construction)

Amphibious transport docks (200 meters long versus 173 meters for a cruiser)
* Austin class (9 in commission, 2 decommissioned, 1 converted to an auxiliary command ship)
* San Antonio class (2 in commission, 3 under construction, 4 more planned)

The US Navy has 22 cruisers and 52 destroyers with 3 under construction, 7 more planned.

Dock Landing ships
* Whidbey Island class (8 in commission)
* Harpers Ferry class (4 in commission)


So 32-50 ships in the amphibious and cruiser categories could become nuclear powered at about 2 at a time over 16-25 years from 2015-2040.

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Iraq Oil production could increase by 400,000 bpd by the end of 2008

Following up on Iraq Oil status Oil production and output holding steady at higher levels that started in May. Iraq will produce up to 2.9 million bpd by the end of 2008, Hussein al-Shahristani Iraqi Oil Minister 2.9 million bpd would be an increase of about 400,000 bpd from levels at the end of May, 2008 2.53 million bpd.

Starved of access to oil and gas prospects by governments who increasingly favour development by their state oil companies, Western oil companies are eager to invest in Iraq, home to the world's third biggest oil reserves. However, the security situation and an uncertain legal framework have deterred the majors from making significant investment.

Major oil companies have all turned in their proposals for oil service deals and some will be signed this month. Shahristani had warned that Baghdad might drop the oil service contracts, worth about $500 million a piece, if the majors failed to sign deals by June. Five of the deals under discussion are with Royal Dutch Shell (nyse: RDSA), Shell in partnership with BHP Billiton (nyse: BBL), BP (nyse: BP), Exxon Mobil (nyse: XOM) and Chevron (nyse: CVX) in partnership with Total . Iraq is also in talks with a consortium of Anadarko (APC.N), Vitol and Dome for a sixth contract on the Luhais field.

Dow Jones news reports the Iraqi oil ministry is planning to announce the first round of tenders to develop its vast oil fields, which are among the world's largest, at the end of June or the beginning of July, an Iraqi oil official said Monday.

"Iraq is going to announce the first round of tenders to develop super giant oil fields in southern and northern Iraq either at the end of June or the beginning of July," the official told Dow Jones Newswires by telephone from Baghdad.

The official named seven oil fields and two gas fields that would be included in the first tender announcement. They are North Rumaila, South Rumaila, Zubair, West Qurna, and Buzurgan in southern Iraq and Kirkuk and Bai Hassan in northern Iraq. The two gas fields are Akkaz in western part of the country and Mansouriya in the east.

Over the last few months, the ministry has been working to prepare contract models for these fields, the official said. The ministry has signaled that more restrictive service contracts may be used to develop these fields, rather than controversial production-sharing contracts.

The official said the ministry would hold a news conference to announce these new tenders.

Iraq is currently in the final stages of striking what are called Technical Services Contracts, or TSCs, with oil majors to help boost crude oil production in the country's largest producing fields.

Iraqi oil sources said these TSCs could be signed as early as June. Each would last two years and could be extended for another year.

Oil Minister Hussein al-Shahristani has threatened to cancel these TSCs if they aren't signed in June. The TSCs are designed to boost Iraq's crude oil production from producing oil fields.

Iraq wants to boost production by 600,000 barrels a day in six producing oil fields in northern and southern Iraq. They are Kirkuk in the north, West Qurna 1, Zubair, Missan, Rumaila and Luhais in the south.

FURTHER READING
State Department Iraq Weekly Report for June 11, 2008

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United States might finally build a new oil refinery in 2013

The first new oil refinery in the United States in thirty years is one step closer.

Union County residents voted 58 percent to 42 percent Tuesday to endorse the rezoning of almost 3,300 acres of pristine farm land north of Elk Point for the oil refinery. Texas-based Hyperion Resources requested the rezoning for the $10 billion refinery, billed as a potential step toward national energy independence.

It will process 400,000 barrels of oil per day (mostly from Canada's oilsands) and will likely be in operation in 2013.

North Dakota reported 5700 more barrels of oil per day in March, 2008 MArch production was 143738 bopd versus February 138013 bopd.

Reece Energy Exploration Corp. rose to a third-straight record in Toronto after saying it found oil in the first well it drilled in the Bakken area in Saskatchewan



http://news.google.com/news?hl=en&tab=in&ned=us&ie=UTF-8&ncl=1219754152

FURTHER READING
Previous coverage of North Dakota's Bakken Oil

Daily North Dakota drilling and production reports (after 6 months on confidential list)

North Dakota oil statistics

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Updates on World Oil Production and Demand

IEA (International Energy Agency) weekly oil report was issued June 10. Global oil product demand is expected to average 86.8 mb/d in 2008, 80 kb/d below last month’s estimate, following the reduction of price subsidies in several non-OECD countries. Global growth is cut even more steeply by 230 kb/d to +0.9% or +800 kb/d when historical upward revisions to 2006 and 2007 data are factored in.

Global oil supply rebounded by 490 kb/d in May to average 86.6 mb/d, lifted by higher OPEC crude supply. The rise however comes after extensive downward revisions to 1Q08 non-OPEC production and lower biofuels and NGLs for the rest of this year. Despite this, a recovery in non-OPEC output is forecast for the second half of 2008.

World Oil Demand is still larger than supply by 1 million b/d.

The US EIA (Energy Information Administration) posted their May, 2008 International Petroleum Monthly on June 9, 2008.

In thousands of barrels per day. Oil Production.

Time Period       USA P. Gulf OAPEC  OPEC  World      
2008 January..E 8,624 23,979 25,121 36,594 85,530
     February E 8,625........24,208 36,885 85,827
     March...PE 8,664 24,219 25,361 36,784 85,730
2008 3Mth AvgPE 8,638........24,134 36,751 85,693

The Persian Gulf countries are Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates. Production from the Kuwait-Saudi Arabia Neutral Zone is included in Persian Gulf production.
OAPEC: Organization of Arab Petroleum Exporting Countries: Algeria, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, and the United Arab Emirates.
OPEC: Organization of the Petroleum Exporting Countries: Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

FURTHER READING
The Full IEA Oil Market Report. 60 page PDF.

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Hyperion uranium hydride nuclear battery update

It is 1.5 meters or 4 feet 9 inches across.

The Hyperion Power Generation "nuclear battery" is a self contained, automated, liquid metal nuclear reactor. The company has venture capital funding.

Each HPM provides 70 MW thermal energy or 25 MW electric energy via steam turbine for seven to ten years. This amount of energy provides electricity for 20,000 average American-style homes or the industrial or infrastructure equivalent. Each module will cost $25 to $30 million. This works out to a cost of $1000-1200/KW, but the company has quoted $1400/Kw. A couple of delivery dates starting in 2013 are available. 2012 has been targetted as the time when the first units will be deployed.

Nextbigfuture has previously examined the patent for this reactor and the primary initial application which would be providing cheaper and more effective heat for oilsand and oil shale oil extraction. Over 2 trillion barrels of oil is available in Canada and the United states in the form of oilshale or oilsand.


Hyperion offers a 70% reduction in operating costs (based on costs for field-generation of steam in oil-shale recovery operations), from $11 per million BTU for natural gas to $3 per million BTU for Hyperion. The possibility of mass production, operation and standardization of design, allows for significant savings. They expect an initial market of 4000 units, which would provide 100GW of power. This is equal to the current nuclear power generated in the USA. There will be 10-40 times less nuclear waste because the units have 50% burnup of the nuclear fuel.

Currently about 1100 cubic feet of natural gas is needed to extract one barrel of oil from the Alberta oilsands. This could decline to 900 cubic feet with more efficient processes. One cubic foot of natural gas is about 1000 BTU. So 900,000 to 1.1 million BTU are needed to extract one barrel of oil from the oilsands.


Other benefits:
Water not used as coolant; cannot go “supercritical” or get too hot.

No mechanical parts in the core to malfunction

Sealed module, never opened on site
The uranium hydride reactor could also have a large impact on space travel.

FURTHER READING
Canadian researchers have considered using conventional nuclear reactors to provide steam for oilsands oil recovery.

A 728 MWe (gross) nominal electric output ACR-700 design generates 1983 MW (thermal). The CANDU reactor can be adapted to provide steam of 2-6 MPa.
An ACR700 would provide in one configuration 140MWe (net), 420,000 barrels/day/steam and supply pressure of 2.2 MPa. The production rate of bitumen using this steam would depend on the steam/oil ratios required in the SAGD wells. For steam/oil ratios of 212.4-224 degrees celsius the bitumen production rates would be 168,000-210,000 bbl/day. The project would achieve a 10% advantage in steam cost even if natural gas were at USD3.25/mmbtu. The twin 2.2 GWe reactor proposal would generate 507,000 to 634000 bbl/day in a similar configuration with similar assumptions.

The Uranium hydride batteries can provide heat at many smaller oil properties so less piping would be necessary. The uranium hydride reactors would also be more portable and could be moved from project to project.

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Canada's natural gas and CO2 stimulated oil

Encana is the largest natural gas company in Canada and is active in the Horn River and Montney natural gas fields in British Columbia. Encana has proven reserves of 13.3 trillion cubic feet of natural gas.

Horn River wells are currently producing in the order of 3 to 5 million cubic feet a day per well. Encana plans to drill 50 to 100 wells per year into this formation.
EnCana claims the initial discovery at Horn River may have 6 trillion cubic feet of gas.

Encana also has sequestered 10 million tons of CO2 and could go to at least 30 million tons with full development in Weyburn. They use the CO2 to enhance oil recovery to 50%. They get 14,000 barrels a day from the Weyburn field.

The Encana portion of the Montney has 500 million cf to 1 billion cf a day long-term potential. [35.3 cubic feet in one cubic metre, so that amount would be 14.16 million to 28.3 million cubic metres/day, 3-6% of Canada's total natural gas production] They currently are getting 120 million cf/day. Well rates in the Montney are very consistent between 5 and 10 million cubic feet a day. Encana's production from their portion of the Montney could be 6-12% of Canada's total current natural gas production.

New natural gas finds in Canada:
- Ootla, about 60 miles from Fort Nelson in northeastern British Columbia, may hold 9 trillion to 16 trillion cubic feet of gas. Horizontal wells test flowed at rates of 8.8 million cubic feet, 6.1 million cubic feet and 5.3 million cubic feet of gas a day.
- Montney find in BC (50-80 trillion cf)
- the Horn River basin (12+ trillion cf.)
- Quebec Utica Shale based on some of the Canadian-based research on the play to date the size of the resource is being estimated between 24 and 30 trillion cubic feet of natural gas.
- Smaller but significant find of 1.6 tcf in Southern Ontario

The total new reserves are 97 tcf to 140+ tcf. If they were developed with production rates proportional to Encana's efforts then they would provide 8 bcf/day to 22 bcf/day. The current projection if for Canada to produce 15 bcf/day in 2009 [5.5 tcf per year]. So these new finds appear likely to reverse the decline in Canada's natural gas producton.


EOG Resources could have 6 trillion cubic feet of natural gas reserves in their portion of the Horn River Basin. They have not released new test well data.

FURTHER READING
Nextbigfuture's initial article about Canada's natural gas

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Iraq oil status and possible increases in 2009 and 2010

The US state department reports Iraq oil production for second week of May, 2008 at 2.52 million bpd. (slide 22 of the 35 slide report)


Iraq exporting 1.88-2.04 million bpd, since Sept 2007. The May, 2008 projection is for 2.04 million bpd.

Vitol, Anadarko, and Dome oil companies have formed a consortium currently negotiating with the GOI for a technical service contract. The GOI has been working with other companies on five short-term technical service contracts, each with an approximate value of $500 million. This sixth contract would involve the Luhaisoilfield located in southern Iraq. The deal would increase production at Luhaisfrom 50,000 barrel per day (bpd) to an estimated 150,000 bpd. The GOI hopes that the completion of all deals will result in an increase in output of 600,000 bpd, translating into a more than 25% increase in the country’s daily production over a two year span.

According to Dow Jones, Iraq’s crude oil exports are significantly higher in 2008 than they were at this point in 2007; oil exports have risen 22%. An average of 1.92 million bpd have been exported from Iraq this year, with the bulk (approximately 1.5 million bpd) coming from southern Iraq

FURTHER READING
Global supply statistics [increasing to new highs] and recent T Boone Pickens oil predictions

The latest oilfield, the Bakken, largest in the lower 48 states. Part of it is in Canada

Global oil megaprojects

Prior to the Iraq war with Iran in 1980, Iraq had a production capacity of 3.6 million bpd. That was reduced to 3.2 million before the first Gulf War in 1990 and to 2.7 million barrels per day before the start of the most recent conflict.

With a stable political and civil environment, Iraq has the potential to produce four million bpd in the near term, if necessary investments are made in repairing and modernizing facilities, and up to six million. Added to it are the prospects of five undeveloped fields in southern Iraq -- Bin Umar, Majnoon, Nasiriyah, West Qurna and Ratawi -- that have the potential to pump three million bpd.

On April 9, U.S-based IHS Inc. unveiled full details of Iraq Atlas -- the first and only detailed analysis of oil reserves, production and upstream opportunities in the Middle Eastern state. The study -- which came in the wake of a year-long fact-finding mission by geologists and petroleum engineers covering 435 undrilled prospects and non-commercial discoveries and 81 producing fields and commercial discoveries -- concluded Iraq has (conventional) reserves of up to 116 billion barrels -- third in the world after Saudi Arabia and Iran. That equation could easily change. According to the Atlas, if discoveries in Iraq's Western province are an indication, the pecking order may well be reversed -- Baghdad with potential oil reserves of 215 billion barrels, could race ahead of Canada at 193 billion.

"We estimate that there could potentially be another 100 billion barrels in the Western Desert areas," said Mohamed Zine, IHS regional manager for the Middle East. "It (the desert) is widely regarded as being substantially underexplored, with only one commercial discovery largely because Iraq has had a surplus of oil to date and little incentive for exploration."

Baghdad hopes to pump an average of 2.6 million to 2.7 million bpd over 2008.

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Some of T Boone Pickens oil predictions are wrong

T Boone Pickens has made various predictions about oil on MCNBC

"Eighty-five million barrels of oil a day is all the world can produce, and the demand is 87 million," he said. "It's just that simple. It doesn't have anything to do with the value of the dollar."

target=blank>Pickens founded BP Capital and has a 46% interest in the company which runs two hedge funds, Capital Commodity and Capital Equity, both of which invest primarily in oil and natural gas.

Pickens is also investing in wind energy

Pickens says that world oil production will not exceed 85 million bpd. The EIA says that Feb 2008, the world production is at 85.921 million bpd. March and April had 300,000 bpd increase from Saudi Arabia and 42,000 bpd increases in Brazil.

The IEA statistics for total world oil production rose to 87.47 million b/d in February, up from 87.29 million b/d in January, the IEA said, thanks to higher volumes from the Americas and the former Soviet Union.

It would appear by end of 2008, Thunder Horse (Gulf of Mexico deepwater oil rig) will come online in 2008 and produce 250,000 bpd sometime in 2009. More additions in Saudi Arabia in July. More increases in Brazil up to 500,000-600,000 bpd more by end of 2008.

I predict that Pickens is wrong on the production peak.
I predict that the May, 2008 EIA numbers will be 86+ million bpd. (Not April because of the UK strike and other issues in April)
I predict that the Sept, 2008 EIA numbers will be 87+ million bpd.

On the Oilsands
Pickens claimed that the oilsand development would be hindered by a shortage of welders and personnel.


When asked about Canadian Oil sands, he said he had $500 million invested in this segment. He has been there ten years. I pointed out that he has probably made five times on his investment and he agreed. He owns Canadian Oil Sands (CNQ) and Suncor (SU). I then asked him if he was worried about the fact that the Canadian government is going to raise taxes. He said that governments always tax profitable businesses. Chesapeake Energy (CHK) and SandRidge (SD) were two explorers that he mentioned.

Encana is projecting growth in their holdings in the Alberta oilsands from 35,000 barrels a day net to EnCana today to 100,000 next year (2009), to 200,000 by 2012 and to 400,000 barrels a day by 2016.

A third-quarter [2008] startup of the massive Horizon oilsands project will deliver 110,000 barrels per day (bpd) in the first phase. Construction to increase capacity to 250,000 bpd is already underway.

Pickens forecasts $150 a barrel price for oil in 2008

"The only way I see that oil doesn't continue to rise [is] if we had a global recession." he said. "That will happen at some point, but I don't see the Chinese stumbling until after the Olympics."

Pickens says natural gas is the only American resource that can reduce oil imports. He claims the effective use of natural gas could reduce oil imports by 40 percent. [Wind and solar can free up natural gas to replace 40% of oil use in the US within 10 years.] He dismissed ethanol as an alternative.

Prices could rise that high because of a weak dollar, supply/demand imbalance, and any hickup in production (like the Nigerian unrest that is blocking 500,000 to 1 million bpd).

Using nuclear power, wind and solar to free up natural gas would be part of a reasonable energy plan.

Read More...

Summary only...

Montana's Bakken oil

From a 15 slide pdf presentation by Tom Richmond on Montana's Bakken oil.

Nextbigfuture has already provided detailed coverage of Bakken oil in North Dakota and Saskatchewan

Oil companies in Montana
A breakdown by share of production in 2005. The major companies are Continental Resources, Headington Oil, Burlington Resources, Enerplus Resources USA and Encore Operating LP. Montana's Bakken oil is in Richland and Fallon counties.



Some history of Continental Resources' Montana Bakken production.



In 2006, Elm Coulee was producing about 53,000 barrels of oil per day from more than 350 wells. Ultimate production is expected to exceed 270 million barrels, with some estimates as high as 500 million barrels. Production at Elm Coulee has more than doubled the oil output of the state of Montana


An excellent presentation by Bill Walker and others from Headington Oil.




FURTHER RESEARCH

Montana oil well information is available online.

Scanning through the Montana state oil information it appears that 2007 and 2008 have been relatively flat or slightly declining from the 55,000 bpd level of 2006 for Elm coulee.
24 to 30 million barrels of oil per month for the state. About 80,000 to 100,000 bpd.

Montana's oil and gas board.

A list of links at the Montana oil and gas site for other oil and gas information across the USA

Montana's high fossil fuel scenario.

Great Falls Tribune article from April 2008 discussing the Bakken oil field, Elm Coulee and companies drilling there.

Read More...

Summary only...

No peak yet, New high for World Oil supply, 293,000 more barrels of oil per day

World Oil production figures from the Energy Information Administration (EIA) International Petroleum monthly for February 2008 reached a new high of 85.921 million barrels of oil per day. 36.881 million barrels of oil per day from OPEC in February. 74.657 million barrels of oil per day world oil production including lease condensate which is up from 74.431 millions barrels of oil per day in January, 2008.

This was an increase from the January, 2008 figure of 85.628 million barrels of oil per day.

When the April figures are released in two months, there will be an additional 42,000 barrels of oil per day from new offshore production from Brazil.

This 42 thousand bpd difference was the outcome of new wells going online at the P-52 and P-54 platforms, both in Roncador, at the P-35, in Marlim, and at the PPM-1, in Pampo. Production being kicked-off at FPSO-Cidade de Rio das Ostras, on March 31, in the Badejo field, also in the Campos basin, contributed to this mark as well.

Petrobras’ daily production capacity is expected to grow an additional 500,000 barrels in 2008, when four more platforms kick-off their operations, three of which in the Campos Basin and one in the Espírito Santo Sea. Furthermore, the five platforms that started producing in 2007 are also slated to reach their maximum capacities during the year.

Saudi Arabia started production at the Khursaniyah field in April, 2008 and it should be producing 300,000 bpd in May, 2008. It should be pumping 500,000 barrels a day in 2009.




FURTHER READING
Megaprojects for oil for 2008 and 2009

Read More...

Summary only...

Bakken oil study North Dakota only and independent of USGS, Active Companies and list of new 2008 producing wells

The southern play is related to the map trends that are seen in Montana and carrying them over into North Dakota. This activity is currently concentrated around McKenzie County. The northern play is related to the interval that has been producing from the middle member for a number of years. The few wells, primarily along the northern Nesson anticline, have limited production from perforations in the middle member. The Bakken in these wells was not the primary target; that was deeper usually the Devonian Winnipegosis. The Bakken was generally a bailout zone, perforated because the wells were reaching their economic limit or had no other production. [pictures and captions from a North Dakota state presentation made in Regina]

NOTE: As of May 2, 2008, I, Brian Wang, do not own any of these stocks directly. I have some mutual funds but I do not know what stocks are held there.

This article provides information on companies, links to North Dakota state reports and presentation and North Dakota released wells and initial production from each well.

This article indicates exactly how fast the Bakken is playing out. 5000 to 9000 barrels of oil per day per month in North Dakota are being added. This does not include Montana, Saskatchewan and South Dakota or Manitoba. Since the end of 2007, 23000 barrels of oil per day more oil from North Dakota (138,000 bopd total)increase to the end of February, 2008. [Most, 80-90%, from the Bakken.] A simple projection would be that 100,000 barrels per day could be added in 2008. On the positive side : Drilling activity is increasing. The summer should have more activity. On the negative side: there is the decline rate of wells, average new wells may not be as good as January and February. I will monitor and write updates as the 2008 and later information rolls in.

I focused on Saskatchewan in a separate article. Initial production has tended to decrease an average of 60% of initial production [decline rate].

Wells stay confidential for 6 months. ND also releases its actual monthly production from 3 months ago.

Sometimes during quarterly earnings reports companies will pre-release well production info generally if they have good news, like to 3000 barrels per day from two new wells from EOG / Enron Oil and Gas). In the further reading section I have and will add links to quarterly earnings transcripts for relevant oil companies. I will have the quarterly earnings call transcipts for more companies involved in ND Bakken as they become available.

Looking at only the North Dakota portion of the Bakken oil field

UPDATE: Welcome instapundit readers.

The Bakken shale formation in North Dakota holds up to 167 billion barrels of oil but only about 1 percent of it can be recovered using current technology, a new North Dakota state Department of Mineral Resources study says.

DETAILED INFORMATION
Here is a link to the daily drilling activity report for North Dakota It lists wells permited, completed, dry and released from confidential status.

Here was a big list of released from confidential status. Wells stay on the confidential list for 6 months after they are completed.

EOG Resources, Marathon Oil, Headington Oil, Continental Resources, Hess Corporation, Petro Hunt has several wells.

Some of the smaller players with poor well production might not be using the latest and best horizontal multiple fracturing methods or some may just be drilling into poorer parts of the formation.

Just from the April 28, 2008 well information release 9411 barrels of oil per day.

WELL                                                 BOPD 
#16469 - EOG Resources, Herbert 1-26H, Mountrail Co. 1267 
#16637 - EOG Resources, Long 1-01H, Mountrail Co.    1058 
#16776 - Hunt Oil, Bowman 1-18H, Bowman Co.           864 
#16713 - EOG Resources, Austin 1-02H,  Mountrail Co.  781 
#16751 - Marathon Oil, Reiss 34-20H, Dunn Co.         524 
#16664 - Headington Oil, Basaraba 44X-27, Billings Co 485 
#16730 - Burlington Resources, 11-14H,  McKenzie Co.  456 
#16704 - Marathon Oil, Darcy 34-32H, Dunn Co.         398 
#16729 - Marathon Oil Co., Vihon 44-8H,  Dunn Co.     348 
#16694 - Hess Corp, Ha-Mogen-152-95, McKenzie Co.     348 
#16750 - Sinclair Oil , Uran 1-22H, Mountrail Co.     337 
#16749 - Headington Oil, Ekren 44X-5,  Williams Co.   312  
#16451 - Marathon Oil , Gerald Tuhy 21-4H, Dunn Co.   225 
#16683 - Burlington Res, Federal Jorgenson 14-5H,Dunn 224 
#16748 - Samson Res, Sparks 4-162-98H, Divide Co.     197 
#16725 - Petro-Hunt, Gordon Hall 29C-3-1H, Divide Co. 119 
#16663 - Petro-Hunt, Torgerson 15B-2-2H Mountrail Co. 117  
#16560 - Samson Res, Hanisch 28-163-98H H, Divide Co.  58 
#16737 - Continental Res, McGinnity 1-15H, Divide Co.  53
                                                     8171 

14% of the new oil production in North Dakota was not in the Bakken for the April release. The above list removed wells for the Red River, Madison and Devonian. About 1300 bopd.

After the jump more wells from

March 13, 2008 had a large release of well production information


Bakken North Dakota Isopach. Distribution of the Middle Member throughout North Dakota and Montana. Note the prominent trend in the isopach coming in from Richland County, MT and the depositional center just to the east of the Nesson Anticline.

WELLS                                                   BOPD  
#16578 - EOG Resources, Risan 1-34H, Mountrail Co.       817 
#16635 - EOG Resources, Sampson 1-12H, Mountrail Co.     581 
#16715 - Marathon Oil, Kevin Buehner 11-18H, Dunn Co.    463 
#16656 - Headington Oil, Hazel 44X-22,Williams Co.       411 
#16695 - Hess Corp, Ha-Chapin-152-95 3229H-1,McKenzie Co 392 
#16726 - Marathon Oil, Benz 24-21H, Dunn Co.             278 
#16699 - Continental Res., Jones 11-33NH,  Bowman Co.    277 
#16572 - Encore Operating, Sadowsky 44-1H, Dunn Co.      261 
#16724 - Continental Res, Spry 21-13NH, Bowman Co.       232 
#16702 - Continental Res, Sophia 44-12SH, Bowman Co.     228 
#16676 - Murex Petroleum, Ryan Thomas 27-34H,Williams Co 223
#16701 - Headington Oil, Ramberg State 14X-15,Williams   192
#16744 - Tracker Resource Dev, LLC, Trampe 1-1H, Dunn Co 163
#16703 - Burlington Res, Kelly 44-2H, Dunn Co.           144 
#16738 - Zenergy, Ft. Buford 1-16H, Williams Co.         125 
#16710 - Hess Corp, BL-Wallentinson-156-95, Williams Co. 110 
#16677 - Marathon Oil, Beck 24-8H, Dunn Co.              101 
#16642 - Continental Res, Jorgensen 21-4 SH, Bowman Co.   54 
#16428 - Summit Res., Summit State 26-34, Billings Co.    22 
#16712 - Hess Corp, NSCU P-715AH, Bottineau Co.           17 

                                                  bopd  5091

Feb 11, 2008 another big well information day

#16484 - EOG Resources, Wenco 1-30H, Mountrail Co.        1670
#16691 - Continental Resources, Inc., Lamb 11-24NH, Bowman Co. 614
#16542 - Whiting O&G Corporation, Lindvig 11-13, McKenzie Co. 560
#16598 - Continental Res, Kid Creek 44-29NH,  Bowman Co. 519
#16571 - Burlington Res, Lillibridge 11-23H,McKenzie Co. 476
#16647 - Burlington Res, Corral Creek 34-33H, Dunn Co.         439
#16611 - Marathon Oil Company, Carlson 21-29H, Dunn Co.         428
#16629 - Whiting O&G Corporation, Solberg 32-2, Williams Co. 420
#16439 - Marathon Oil, Hecker 21-5H, Dunn Co.                 373
#16689 - Helis O&G, L.L.C., Linseth 4-8H, McKenzie Co.   373
#16678 - Encore Operating, L.P., Truchan 11X-33H, Dunn Co. 315
#16653 - Prima Exploration, Inc., Paradox 11-30H, Burke Co. 285
#16502 - Encore Operating, TR Madison Unit 21-14H, Billings Co. 276
#16610 - Hess Corp, BB-Olson-150-95 0817H-1, McKenzie Co. 267
#16670 - Continental Res, Jean Nelson 1-35H, Mountrail Co. 266
#16634 - Petro-Hunt, L.L.C., Wold 31D-4-3H,Burke Co.      187
#16638 - Zenergy, Inc., Charbonneau 1-14H,  Williams Co. 143
#16723 - Zavanna, LLC, Brushy Bill 1-19H, Williams Co.         140
#16679 - BTA Oil Producers, 20401 JV-P Nelson Williams Co. 138
#16420 - Summit Res, Williamson Federal 2-26, Golden Valley Co. 102
#16568 - Samson Resources Co, Holm 33-163-98H, Divide Co. 102
#16529 - Continental Res., Spry 11-13NH, Bowman Co.         100
#16681 - FH Petroleum Corp., Marie 24-28, Golden Valley Co. 72
#16706 - Hess Corporation, BLSU D-405,  Williams Co.         56
#16609 - Continental Resources, Inc., Jost 1-20H, McKenzie Co. 38
#16617 - Hess Corp, Bl-Heen-156-95 2227H-1, Williams Co. 38
#16688 - Hess Corp, NSCU M-717AH, Bottineau Co.           34
#16692 - BTA Oil Prod, 20401 JV-P Gohrick 43-17, Williams Co. 32
#16641 - Continental Res, Jorgensen 21-4 NH, Bowman Co.         25
#16655 - Hess Corporation, BLDU B-305, N, Williams Co.    11
#16697 - Primewest Petroleum Price 5H, Williams Co.         10
                                                  BOPD 8509

Jan 4, 2008 another big well information release day.

North Dakota's Bakken oil is increasing at about 6000-7000 barrels of oil per day per month. The trend is for another 50,000-60,000 barrels of oil per day to be added this year (2008) For North Dakota's Bakken oil production.


Another process that affects the Bakken section is hydrocarbon generation. The Bakken is a rich source rock with TOC values ranging up to 40%. This map shows the maturity of the Bakken as a source rock. Areas of intense generation are found in McKenzie and the eastern portion of Richland Counties.


NORTH DAKOTA STATE STUDY
Current technology could lead to the recovery of about 2.1 billion barrels in North Dakota's the "middle Bakken" formation, where oil-producing rock is sandwiched between layers of shale about 10,000 feet under the ground. Helms said the federal [USGS] study focused on the performance of wells currently working in the Bakken, while the state "went back and looked at the rock."

Ron Ness, president of the North Dakota Petroleum Council, said it costs more than $5 million to drill a Bakken well, and dozens are currently producing.

"What industry is mostly concerned with is to find - economically - what is going to work in the Bakken," Ness said. "What we have right now is one big scientific experiment going on out there."

The U.S. Geological Survey estimated that up to 4.3 billion barrels of oil could be recovered from the Bakken shale formation in North Dakota and Montana, using current technology.

That report was done independently of the state study, Murphy said.

"Their numbers also include Montana, ours only includes North Dakota," he said.

The federal report found up to 2.6 billion barrels could be recovered in North Dakota, compared with the state's estimate of 2.1 billion barrels, Murphy said.

FURTHER READING
The Bakken oilfield in context. This article reviews the oil megaprojects around the world. The Middle east, Russia, Khazakistan, Brazil are still the bigger players. The USA should have a deep oil rig, Thunder horse, coming online in 2008 and it should reach 250,000 barrels of oil per day sometime in 2009.

The confidential well list for North Dakota

A discussion on which stocks to invest in to take advantage of the Bakken oil development

EOG, BEXP, CLR , WLL and NOG, perhaps even others like HESS

EOG Resources, Inc. (EOG)
Whiting Petroleum Corp. (WLL)
Brigham Exploration Co. (BEXP)
Northern Oil and Gas, Inc. (NOG)
Continental Resources (CLR)
Marathon Oil (MRO)
HES corporation Q1 2008 earnings call transcript

On the Bakken, we [HESS] currently have net 410,000 acres or so. We're still in the business of acquiring more acreage provided it makes economic sense. We have 50 operated wells in the Bakken. We expect production in 2008 to be around 8,000 barrels a day. We're running six rigs. By the end of the year we'll go up to eight, and by 2009 we'll go up to 10.

Individual well rates with rates being the average of the first 30 days of production range from about 100 barrels a day to 400 barrels a day. We see some variation in the reservoir quality in an aerial sense. We're doing a lot of work to model the subsurface, to understand the geology better, and we're also continuing to do work to optimize completion practices, particularly fracing technology.

EOG Resources Q1 2008 May 2, 2008 earnings call transcript

Our 8-rig North Dakota Bakken development is proceeding as anticipated and is still averaging 100% direct after-tax reinvestment rates of return. We're consistently making very good wells.

Austin 8-26H well that was completed at the end of February had an initial production rate of 3,060 barrels of oil per day. Recently, we completed the Austin 6-15H well that had an initial production rate of 3,630 barrels of oil per day. These are the two best wells in the field today, and I will note that those are probably two of the best wells in recent history in the Bakken play in North Dakota in its entirety.

Within the Parshall field, very strong initial production rates are now routine, similar to our frequency of monster wells in the Johnson County. The more drilling we do, the more confident we are regarding our net 80 million barrel reserve estimate for this asset.

The upside to this estimate will be determined in three possible ways: First, by extending the field limits and step-outs really; second, by a possible 320-acre downspacing; and the third, by secondary recovery. The field is currently being drilling on 640 acre spacing, and we are currently completing our first 320-acre downspace well.

We will need several months of production history from the well in order to determine the impact to any increase in reserve recovery versus acceleration. I expect that by yearend, we'll have a definitive idea regarding the Bakken reserve side.

EOG currently has 320,000 net acres in the entire Williston Basin and the field that we always talk about, partial field including those 3000 barrel a day, Austin wells, really only it comes to about a 110,000 of those 320,000 acres. So, answer to your first question is absolutely, yes. We believe that there are other perspective areas within the Williston Basin that we have currently leased and we will be testing in the future for oil prospects.

[On the USGS 3.7 billion barrel estimate] The USGS estimate is the entire shale will work to the tune of maybe 25,000 total locations, wells to be drilled, and that's where we think it's perhaps a little optimistic. The shale may not be intact...Parshall is such a sweet spot because of fracture density in the facies of the rock and that will probably not be true in very many other places in the Williston Basin. So, in summary, I'd say that the overall number is not incorrect; it's just perhaps optimistic.

On the North Dakota state site the Austin 8-26H well is still listed as confidential. #16885 NWNW 26-154-90 and won't be released by the state until Aug 14, 2008. But obviously EOG is talking about it. They seem to hold the information confidential for 6 months.

16954 EOG RESOURCES, INC. AUSTIN 6-15H SWSE 15-T154N-R90W 10/8/2008

Continental Resources Q1 2008 earnings call transcript.

[Continental Resources] has increased our 2008 CapEx budget for drilling, land and seismic by $167 million, which is 27% higher than the budget approved last November. $65 million of this increase is allocated to the Bakken play in Montana and North Dakota where we have a dominant operating position.

Finally, even as we are successful in one area, we must be engaged and prepared to take new positions of significance in other resource plays as a potential in mergers. This is what Continental has accomplished in the Bakken and the Woodford, and is committed to achieve elsewhere in the United States. We are prepared to talk today about a play in Western Oklahoma and Texas Panhandle, some of you have called our stealth play.

We began 2008 with 13 operated drilling rigs. We now have 22, and we expect to reach 30 by yearend. As a result of this increased activity, we expect our 2008 production exit rate will be about 43,000 barrels of oil equivalent per day, or about 42% higher than average rate for the first quarter just ended.

Continental recognizes potential early in the development of play and began leasing back in 2002. As a result Continental is the largest producer and controls the largest acreage position in the Williston Bakken play today, with approximately 487,000 net acres under lease. And we continue to build our position with 66,000 of acres added so far this year.

Continental is also one of the most active operators participating in one-third of the 74 Bakken wells currently drilling in the play.

We will be increasing that count to 12 in May and 13 during the third quarter with the additional rigs being deployed in North Dakota. There are also three additional rigs operated by ConocoPhillips that are drilling on the company's behalf within the 50-50 area of mutual interest in North Dakota.

Drilling results had been inline with our expected average recovery of 300 Mboe gross from our 320 acre infilled and 640 tri-lateral drilling in Montana as well as our 1,280-acre drilling along with Nesson Anticline in North Dakota.

During the quarter, we completed 18 gross, 8.1 net wells. And as detailed in the press release, you can see some of our more recent completions with 7-day initial production rate ranging from 348 to 609 barrels of oil equivalent per day. The average 7-day initial production rate for all wells completed so far this year has been 340 barrels equivalent per day.

Whiting Petroleum Q1 Earnings Call transcript

[Whiting] continues to generate excellent results from our Bakken drilling program in North Dakota where we recently brought in the Maynard Uran Trust No. 11-24 with an initial production rate of 2,132 BOEs per day. We own an 84% working interest and a 68% net revenue interest in this well.

Turning to our Bakken play, our net production from the middle Bakken formation in the Sanish and Parshall fields of North Dakota, totaled 3,344 barrels of oil per day during the first quarter of 2008. This represents a 92% increase in that same volume number over the fourth quarter of 2007. Net production from these fields in March rose to 4,153 barrels of oil per day or 9.9% of March's 41,800 BOEs per day.

In our Sanish field, in Montreal County, we completed the Maynard Uran Trust 11-24H on April 23, flowing 1,923 barrels of oil and 1.3 million cubic feet of gas per day from the Middle Bakken formation at a vertical depth of approximately 10,300 feet. On an equivalent basis, this equates to the previously stated 2,132 BOEs per day.

The triple lateral was drilled on a 1,280 acre spacing unit and penetrated more than 20,000 feet of horizontal pay. Whiting holds an 84% working interest and 68% net revenue interest in this new producer and of course we are the operator. We are currently drilling or completing 6 wells in the Sanish field, 4 operated, 2 non-operated, and one well is waiting for the lateral to be drilled.

We are also completing a 100% working interest well in the northern portion of the neighboring Parshall field. This well is known as the Lee State 44-16H well. We expect to have as many as 9 rigs working in the area by year-end 2008.

In 2008, we plan to drill approximately 36 operated wells in the Sanish with an average working interest of 81%. We expect most of these to be single-lateral wells drilled on 1,280-acre spacing units. Ultimately, we may drill two single-lateral wells per 1,280-acre spacing unit. Along with some potential in-fill drilling, we estimate we could have up to 230 total well locations in