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Slawson, PetroShale pick up Williams Co. acreage, now operate North Stockyard
Australia-based Samson Oil and Gas announced on Aug. 15 that it’s selling half of its equity position in undeveloped acreage in its North Stockyard project in south-central Williams County to Slawson Exploration and its non-operating partner PetroShale Inc.
Later, on Aug. 19, PetroShale announced its participation in the deal and said Slawson will take over operatorship of the project and will complete one well currently being drilled and proceed with a planned drilling program with a dedicated rig that is expected to drill three to four gross wells in the project by year’s end. The deal also includes a share of a saltwater gathering and disposal system.
Samson Oil and Gas said Slawson has contracted with its driller, Frontier Drilling, and is mobilizing that rig to the project’s Tofte 2 pad to commence drilling two middle Bakken wells. Samson said Slawson has indicated intentions to pursue 160-acre infill development in the project, targeting both the middle Bakken and the first bench of the Three Forks formation.
Slawson files infill apps Slawson is making good on its intentions and recently submitted applications to the North Dakota Industrial Commission to increase well densities on existing spacing units in the Stockyard Creek field. The applications are on the commission’s hearing docket scheduled for Aug. 29.
In those applications, Slawson is seeking authority to drill up to six Bakken pool wells on each of three existing 640-acre spacing units in the Stockyard Creek field. Neither Slawson nor Samson Oil and Gas have any active wells in the Stockyard Creek field according to Oil and Gas division records, but the records indicate that Zavanna LLC, the former operator, had one Bakken pool well on each of the 640-acre units.
Two of Zavanna’s Stockyard Creek wells, the Rodney 1-14H and Earl 1-13H, went on production in June 2011 with 24-hour initial production, IP, rates of 489 and 850 barrels of oil per day, respectively. Through June 2013, the Rodney well was pumped for 735 days yielding 114,506 barrels for an average of 155.79 bpd. The Earl has produced 183,340 barrels over 667 days through June for an average of 274.87 bpd.
The third Zavanna well, the Everett 1-15H, went on production in January 2012 with a 24-hour IP of 705 bpd. Over 424 total days of pumping, the well produced a total of 93,283 barrels through June for an average of 200.01 bpd.
Other Slawson infilling In addition to increasing well density in the Stockyard Creek field, Slawson is looking to increase densities on existing spacing units in McKenzie and Mountrail counties. In the Bully field in east-central McKenzie County, Slawson is seeking authority to drill up to seven wells on an existing 1,280-acre unit where Slawson currently has one confidential well.
Slawson is also asking to drill up to seven wells on a 1,280-acre unit in the East Tioga field in northwest Mountrail County. Slawson currently has two wells on that spacing unit, both of which are also on confidential status.
Samson O&G’s other assets Samson Oil and Gas is still active on other acreage in North Dakota, and in August submitted applications to the Industrial Commission seeking authorization to drill up to seven Bakken pool wells on each of two existing standup 1,280-acre spacing units in the Rainbow field in northeast Williams County.
Samson Oil and Gas said it eventually expects to receive authorization to drill up to 14 wells on the two spacing units. Eight of those wells will target the middle Bakken, and the other two will be first bench Three Forks wells.
—Mike Ellerd
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PN Bakken: Keep your Samsons straight
Samson Oil and Gas is not to be confused with Tulsa-based Samson Resources, a privately held independent oil and gas development company that has been active in the Williston Basin since the late 1970s. Currently Samson Resources holds approximately 75,000 acres in the company’s Ambrose focus area in north-central Divide County. North Dakota Oil and Gas Division records indicate that Samson Resources currently has 86 active wells in the state with another 58 on confidential status. Most are in the Ambrose and West Ambrose fields in the north-central area of Divide County just below the Canadian Border.
Samson Resources plans to drill approximately 40 gross operated wells in 2013, and in August the company submitted applications to the North Dakota Industrial Commission asking that multiple spacing units be created in Ambrose and Blooming Prairie fields where it wants to drill multiple wells in each (see related story on page 1).
In December 2012, Samson Resources closed on a $650 million sale of approximately 116,000 net acres primarily in Divide and Williams counties to Continental Resources. At the time, production from those acreages was approximately 5,600 barrels of oil equivalent per day. Samson Resources has maintained its holdings in northern Divide County
Samson Resources has other Rocky Mountain operations in Powder River, Green River and San Juan basins as well as Mid-Continent and East Texas operations. Samson Resources is a subsidiary of Samson Investment Co., although in late 2011, most of the investment company’s holdings, including those in North Dakota, were acquired by the private equity firm KKR & Co. in a deal worth a reported $7.2 billion.
—MIKE ELLERD
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