Nordic Sets Private Placement for Bakken Drilling Funds

- Nordic Sets Private Placement for Bakken Drilling Funds

Monday, September 12, 2011
Nordic Oil & Gas Ltd.

Donald Benson, President of Nordic Oil and Gas Ltd. ("the Company" or Nordic"), on Monday announced a new non-brokered private placement offering (the "Offering") of up to 30,000,000 units ("Units") at a price of $0.075 per Unit for gross proceeds of up to $2,250,000. Each Unit of the Offering will consist of one Class A common share of the Company issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) and one-half of one Class A common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.10 per share for a period of 18 months from the date of issuance.

The securities issued pursuant to the Offering are subject to a four-month hold period from the date of issuance. The Company anticipates multiple closings of the Offering in the coming weeks.

Certain finders are expected to assist the Company by introducing potential subscriber(s) to the Offering and, subject to compliance with applicable legislation, will be entitled to receive fees equal to up to 10% of the purchase price of the Units sold pursuant to the Offering, as well as compensation warrants (the "Finder's Warrants") equal to up to 10% of the number of Units sold pursuant to the Offering. Each Finder's Warrant shall entitle the holder thereof to purchase one regular Class A common share of the Company at a price of $0.10 for a period of 18 months from the date of issuance.

All terms of the Offering are subject to the approval of the TSX Venture Exchange.

"It is our intention to use a large portion of the funds raised in this Offering to undertake the drilling of our first exploration well on our Weyburn/Bakken property in southeast Saskatchewan," Mr. Benson stated. "We feel that our Weyburn/Bakken property should be our top priority at this time and we would like to be in position to drill the first well early in the fourth quarter of 2011."

Upon analyzing the seismic shot in the region, Nordic's geophysicist has identified four potential drilling locations on the land. He notes that in addition to the Bakken, the seismic also indicates that both the Midale/Frobisher and Red River zones are prospective as well.

"The offsetting land in the area has been producing from the Midale zone since 1991," Mr. Benson added.

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VAALCO Acquires Bakken Interest in Montana

- VAALCO Acquires Bakken Interest in Montana

Friday, September 09, 2011
VAALCO Energy

VAALCO Energy, Inc. today announced that the Company has entered into a definitive agreement with Magellan Petroleum Corporation to acquire and develop an operating working interest in approximately 23,000 net mineral acres of oil, gas and mineral leases covering the Bakken and deeper formations in the East Poplar Unit and the Northwest Poplar Field in Roosevelt County, Montana. Under the terms of the agreement, VAALCO has paid Magellan $5 million and committed to spend approximately $15 million to drill three wells.

VAALCO has agreed to drill three wells to the Bakken formation and to formations below the Bakken in the Poplar Field. All three wells will be drilled by the end of 2012 and one well will be drilled on or before June 1, 2012. Of these, one well will be drilled horizontally to test the Bakken Formation, one well will be drilled vertically to test the Red River Formation, and the third will be targeted at VAALCO's discretion. Under the terms of the definitive agreement, VAALCO will have a 65% working interest in the Bakken and Deep Intervals within the Poplar Field.

Robert Gerry, Chairman and CEO said, "We are excited to complete this acquisition of additional Bakken Acreage, which we believe will be a powerful source of oil revenues to VAALCO over the next several years. In addition to the potential we see in the Bakken formation, we will also be evaluating deeper objectives in the Three Forks, Nisku and Red River formations. Our seismic studies indicate that there are structures in these deeper objectives that could be the source of prolific production and we are optimistic that we can prove up reserves and create shareholder value."

Magellan will retain its current ownership for all formations above the Bakken, including the currently producing Charles and Tyler formations and will retain the remaining 35% of the Bakken and deeper rights in partnership with VAALCO.

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Gulf Shores Reports Bakken Oil Discovery in Saskatchewan

- Gulf Shores Reports Bakken Oil Discovery in Saskatchewan

Thursday, September 01, 2011
Gulf Shores Resources Ltd.

Gulf Shores reported that the 3-34-14-33W1 well in the Coothill area of Southeast Saskatchewan has been drilled and is being cased as a new Bakken oil discovery.

Gulf Shores Resources Ltd. is paying 60% of the cost of the well to earn a 39% working interest in 160 acres with an option on an additional contiguous 320 acres under the same terms.

The rig will now move to the 9-16-15-32W1 location in the Welwyn area west of the Rocanville Field in Southeast Saskatchewan.

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Sionix to Build Bakken Water Treatment Plant

- Sionix to Build Bakken Water Treatment Plant

Tuesday, August 30, 2011
Sionix Corporation

Sionix Corporation has executed an agreement with Dakota Solutions, Inc. (DSI) for the lease of property in Tioga, North Dakota for the construction and operation of a Waste Water Treatment Facility (WWTF) in the Bakken Shale Formation.

Under the terms of the agreement Sionix plans to design, build, own and operate a WWTF on an 80 acre parcel of leased property near Tioga, ND, the center of drilling operations in North Dakota. Once constructed, this will be the first WWTF of its kind in the Williston Basin. The WWTF will be designed specifically for the treatment of heavily contaminated production, flowback and frac water generated by the rapidly expanding oil and gas drilling activities in the region, and will be equipped with the company's proprietary MWTS products and underlying dissolved air flotation technology. DSI, based in Tioga, North Dakota, owns and operates a fleet of waste hauling tankers for the transport of oil and gas drilling waste water in the Williston Basin region of North Dakota. DSI will transport oil and gas drilling waste to the WWTF as well as treated water back to drillers so that continued draw down on threatened fresh water resources is minimized.

Drilling activities in the energy rich Bakken Shale area of the Williston Basin are in the early stages of development. Drillers in the Williston Basin region of North Dakota currently dispose of their drilling wastes primarily in deep injection wells and continually access fresh water resources for their fracking operations, which is critical to the liberation of energy resources in the shale formation. The Williston Basin has limited availability of fresh water from glacial or bedrock aquifers, ground water resources, and municipal supplies to support drilling operations.

"After months of evaluating available data, we are moving forward with plans to construct and operate a waste water treatment facility in the Bakken Shale Formation," said James R. Currier, Chairman and CEO of Sionix. "We believe the combination of current and projected oil and gas drilling activities, limited availability of fresh water resources, and the absence of a comprehensive waste water treatment and water recycling facility makes this high energy reserve area an ideal location for the installation and operation of a WWTF equipped with our proprietary MWTS. It is expected to provide a critical resource for oil and gas drillers to treat and recycle (millions of gallons of) contaminated production, flowback and frac waste water (daily) without unnecessary stress on limited fresh water resources in the area. We expect the facility will serve not only oil and gas interests but also other industrial, agricultural, commercial and general public demands that require access to the limited public water supplies. With DSI hauling waste water exclusively to the Sionix WWTF, expected contracts with a number of drillers, and anticipated cooperation from local regulators, we believe we will have significant demand for our services."

John Hennessy and Mark Tudahl, co-owners of DSI, commented, "With deep roots, strong family ties, and a life long love for the prairies of North Dakota, we feel this is a great opportunity to preserve and maintain one of the prairies' most vital resources, simply water."

About Sionix Corporation
Sionix designs innovative and advanced Mobile Water Treatment Systems (MWTS) intended for use in energy projects including subterranean fracturing used in oil and gas drilling, government facilities, healthcare facilities, emergency water supplies, housing development projects, and various other industrial processes. These systems can be located adjacent to contaminated water sites or as a pre-treatment for reverse osmosis and other membrane applications. Industries involved in dairy, agribusiness, meat processing, mining, poultry operations, and many others can benefit from Sionix' cost-effective, easily maintained, portable water treatment systems. For more information about the company, go to www.sionix.com.

About Sionix Technology
Using a patented dissolved air flotation (DAF) technology packaged in a mobile shipping container, air bubbles between the size of 1 and 2 microns are injected and float organic contaminants to the surface where 99.95% are skimmed off, and a majority of inorganic contaminants are also captured and removed. This compares to standard DAF units which historically have been limited to using bubble sizes of 50 microns or larger. The size of these bubbles is important because the smaller the bubble, the greater the surface tension. They can then hold together longer and elevate more organic contaminants to the surface for removal.

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Report: Bakken Oil Creates Boon, Challenges for North Dakota

- Report: Bakken Oil Creates Boon, Challenges for North Dakota

Thursday, August 04, 2011
Rigzone Staff
by Karen Boman

The Bakken oil boom has bolstered North Dakota's employment rate and tax revenues, but also has created a number of challenges for state and local government as well as producers operating in the Bakken, according to a report by the Energy Policy Research Foundation.

North Dakota has been an oil producing state for 60 years, but only during the past three years has the Bakken boom made North Dakota the fourth largest oil producing state in the U.S. and one of the largest onshore plays in the country. The success of the Bakken, which the U.S. Geological Survey estimated in 2008 to hold 4.3 billion barrels of technically recoverable reserves, has been largely attributed to advances in oil field technology such as hydraulic fracturing and horizontal drilling. High oil prices, low natural gas prices and ready access to privately held prospects also have contributed to the Bakken's success.

With an unemployment rate of 3.2 percent, the state received $749.5 million in state revenues from crude oil taxes on production and extraction in 2010, and more than $10.1 million in extraction taxes for natural gas last year. The oil and gas industry also spent $1.49 billion in taxable sales and purchases.

However, the influx of drilling activity to the state means that state and local governments face a range of new requirements to support the surge in oil production, especially road repair and construction, the report noted. And while North Dakota enjoys the lowest unemployment rate in the nation, the high wages offered by the oil and gas industry is beginning to make it difficult for local stores, shops and restaurants to keep workers given the opportunities in the petroleum sector.

The rate of services required to support the oil boom also are in short supply, with hotels in petroleum producing regions booked two to three years out and every apartment rented. Many oil companies operate their own "man camps" where employees eat and sleep while they are working. "A challenge for the state is to address the requirements for expanded infrastructure and related services while at the same time address the financial risks of an economic downturn should the rising production prove unsustainable," the report noted.

Limited access to traditional transports on infrastructure such as pipelines means that Bakken production is expensive to deliver to major refining centers and is discounted heavily at the wellhead. Bakken crude sells at a discount to Light Louisiana sweet and even West Texas Intermediate crude, despite its high quality, as transportation costs remain high for shipment to refining centers and major consuming markets. However, new infrastructure developments may soon support higher wellhead values.

Well drilling costs also have increased significantly in the past few years, and are expected to grow further, as rising oil prices have triggered drilling activity in multiple shale plays throughout the U.S. While the cost can vary from company to company depending on a host of factors such as the length of the horizontal lateral, the number of frac stages, and the choice of proppant (sand or ceramic), the cost of drilling and completing an oil well in North Dakota in 2009 was $5.6 million, according to the North Dakota Petroleum Council.

Today, several companies have reported drilling and completing costs of over $10 million per well. The increase is largely due to longer horizontal laterals and more frac stages, but also higher input costs from increased demand in rigs and completion services throughout the country and region.

Constraints on well completion services mean that many companies face a backlog of wells that are awaiting completion. The delay can come from weather related constraints as well as constraints in available frac crews. Projects are currently underway to secure the water supplies needed for hydraulic fracturing activity, but the issue of water supply for both local communities and the oil field will continually be dealt with and debated as drilling increases in the region.

Producers also must overcome severe weather constraints, such as heavy snowfall and temperatures as cold as -40 degrees Fahrenheit in the winter, which can result in well shut-ins. The past few winters have been some of the worst in North Dakota history and are proving to be very challenging for the industry. Additionally, severe spring rains have caused towns to be evacuated due to flooding.

While uncertainties exist about the future of shale oil, "North Dakota is embracing oil development and has thus far provided a regulatory environment that addresses genuine environmental concerns but also embraces the economic benefits of rising oil production," the report said.

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CCS Expands Operations with New Bakken Acquisition

- CCS Expands Operations with New Bakken Acquisition

Monday, August 01, 2011
CCS Corp.

CCS Corporation continues to expand into the United States with the acquisition of KT Hot Oil Company (KT) of Watford City, North Dakota. This is the company's second acquisition this month in the attractive Bakken region shale play and third in the United States. Financial details were not disclosed.

"KT is a well-respected organization with a long history of providing safe and reliable solutions in the basin," said John Gibson, CCS Corporation Chief Executive Officer. "This acquisition will add significant value to our current Bakken operations and builds on CCS's commitment to providing innovative energy and environmental solutions to the oil and gas industry."

KT was founded in 1995 and operates in four key segments: frac water heating, hot oiler services, fluid hauling and salt water disposal wells.

"We are very happy to join the CCS family," said Kent Norbeck, President of KT Hot Oil Company. "I feel the CCS high-performance culture matches well with KT and that we will continue offering our customers with the highest quality services."

KT's 53 employees will join the CCS team and operate under the CCS brand.

Today's acquisition of KT, in addition to last week's purchase announcement of Venture Oilfield Service Inc., further strengthens CCS Corporation's position as one of the leading providers of frac water heating and hot oil services in North Dakota.

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Primary Executes LOI for Southern Alberta Basin Bakken Fairway Lands

- Primary Executes LOI for Southern Alberta Basin Bakken Fairway Lands

Wednesday, July 27, 2011
Primary Petroleum Corp.

Primary Petroleum has agreed to move forward in executing a non-binding Letter of Intent ("LOI") to finalize a Farmout and Joint Operating Agreement (the "Agreement") with a major U.S. based Industry Partner on its 291,000 net acres under lease and option in the Southern Alberta Basin Bakken Fairway of NW Montana.

The completion of the transaction is subject to title and environmental due diligence and final documentation. It is expected to close on or before October 3rd 2011, when specific details of the formal agreement will be disclosed. Primary's current 3D Seismic and vertical drilling program will be ongoing during the due diligence and final documentation negotiation period.

"Primary looks forward to completing this transaction and moving forward with a strong Industry Partner to delineate and prove up our acreage position in the Southern Alberta Bakken Basin in NW Montana," states Mike Marrandino, President & CEO. "The Basin continues to be de-risked by Industry on both sides of the border and Primary is looking forward to the potential of confirming economic hydrocarbons over our lands. The next couple of years will be very exciting for the Company once this transaction is completed as it will enable Primary to fulfill its business objectives of evaluating its acreage with the added technical expertise and financial strength of a strong joint venture partner."

Current Pondera-Teton Work Program

Primary also advised that its current 3D Seismic program is underway on the Dupuyer Creek prospect. It is anticipated that both the Dupuyer Creek and Marias River seismic programs will be completed by the end of August. The seismic crew will then move south to continue with our Deep Creek East and Eureka Lake programs. To-date, the Company has identified three vertical drilling locations on its existing 3D Seismic that it completed in 2008 and is underway with the well site permitting process.

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Kodiak to Offer Shares to Fund Bakken Activity

- Kodiak to Offer Shares to Fund Bakken Activity

Monday, July 18, 2011
Kodiak Oil & Gas Corp.

Kodiak Oil & Gas Corp. today announced that it is commencing an offering of 20,000,000 shares of its common stock in an underwritten public offering. Kodiak expects to grant the underwriters a 30-day over allotment option to purchase up to an additional 3,000,000 shares of Kodiak's common stock.

Kodiak intends to use the net proceeds of the offering to repay debt outstanding under its revolving credit facility, to fund capital expenditures related to drilling, development and infrastructure, principally in the Bakken play located in North Dakota, and for general corporate purposes, including financing the potential acquisition of oil and gas properties in certain core areas, such as the Bakken play.

In connection with the offering, Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers. Copies of the preliminary prospectus supplement and the accompanying prospectus may be obtained by contacting: Credit Suisse Securities (USA) LLC, Prospectus Department, One Madison Avenue, New York, NY 10010, 1-800-221-1037.

The offering is being made pursuant to an effective shelf registration statement filed with the U.S. Securities & Exchange Commission (SEC). A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the SEC and available on its website at http://www.sec.gov.

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Magellan, Vaalco Sign LOI for Bakken Development in Montana

- Magellan, Vaalco Sign LOI for Bakken Development in Montana

Monday, July 18, 2011
Magellan Petroleum Corporation

Magellan Petroleum Corporation signed a letter of intent (LOI) with Vaalco Energy Inc. to begin work on developing the Bakken formation and deeper horizons within the East Poplar Unit and Northwest Poplar Field in Roosevelt County, Montana (Poplar).

The LOI terms remain subject to closing on a definitive Purchase and Sale Agreement ("PSA"). The LOI contemplates a farm-out to VAALCO of an operating working interest in all of the approximately 23,000 net acres of oil, gas and mineral leases covering the Bakken and deeper formations at Poplar.

VAALCO has agreed to acquire 65% in return for cash consideration and for bearing 100% of the cost to drill three wells by the end of 2012. Parties would then move forward together as 65% / 35% owners respectively to further develop the prospects.

Magellan will retain its current ownership for all formations above the Bakken, including the currently producing Charles and Tyler formations where all Poplar proved and probable reserves are located.

William Hastings, President and CEO commented, "After conducting evaluation drilling, coring, and petrography work, we remain very encouraged about a number of prospective horizons at Poplar. Our new partnership with VAALCO is another step, with a strong and experienced partner, toward monetizing this asset and accelerating near-term development and production, not only from the Bakken but also from the Three Forks, Red River and associated deeper formations there in Montana. Given existing oil and gas infrastructure, our summer recompletion/infill program, our shallow gas plans, and, now, our Bakken partnership, we will continue efforts to add value, and perhaps extend, our position in Montana.

Magellan is a US-based energy company principally engaged in the acquisition, exploration, development and production of crude oil and "stranded" natural gas. Magellan's strategy involves the exploitation of already discovered oil and natural gas properties worldwide into non-traditional, growing markets. The company's properties and exploration acreage are located primarily in Australia, the United Kingdom, and the United States.

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Brigham Notes Bakken Well's Early Peak Rate

- Brigham Notes Bakken Well's Early Peak Rate

Monday, June 27, 2011
Brigham Exploration Co.

Brigham announced the successful completion of the Gobbs 17-8 #1H Montana Bakken well at an early 24-hour peak rate of approximately 1,818 barrels of oil equivalent (1,544 barrels of oil and 1.64 MMcf of natural gas) after being fracture stimulated with 36 stages. The Gobbs 17-8 #1H, which is located approximately 16 miles west of the border between North Dakota and Montana in Roosevelt County, represents Brigham's second best early peak rate in Montana, relative to Brigham's Johnson 10-19 #1H which is located just under five miles from the border. Brigham anticipates that it will complete and bring on line to production four additional Montana Bakken wells over the next several months.

Bud Brigham, the Chairman, President and CEO, commented, "Our operations department has delivered another outstanding Montana Bakken well. We believe the Gobbs' result clearly begins to de-risk our Roosevelt County acreage, given that the well is located approximately 17 miles northwest of Brigham's Johnson 10-19 #1H, which came on line at a Montana Bakken well record of 2,962 barrels of oil equivalent per day. Finally, our operational activity in the Williston Basin continues to accelerate, we currently anticipate bringing on line to production a record operated 10 gross, or 5.8 net wells in the month of June, which will positively impact third quarter production and beats our previous record of 6 gross, or 3.9 net wells."

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Samson O&G Acquires Additional Acreage in Bakken Play

- Samson O&G Acquires Additional Acreage in Bakken Play

Friday, June 24, 2011
Samson O&G Ltd.

Samson O&G has agreed to acquire up to 90,000 net acres of oil and gas leases in the Fort Peck Indian Reservation in, Roosevelt County, Montana, from Fort Peck Energy Company LLC (FPEC) for an undisclosed price.

Samson's new Roosevelt Project is being acquired in three tranches:

Tranche 1 is a 20,000 acre block to be acquired immediately upon closing that includes a two well drilling obligation. Tranche 2 is an option to acquire an additional 20,000 acres upon the completion of the initial two wells in Tranche 1. Tranche 3 is a 50,000 acre area covered by an Area of Mutual Interest where Samson and FPEC have agreed to jointly acquire additional leases.

Samson plans to fund its acquisition costs and the drilling of the initial two appraisal wells from its existing cash resources. While Samson's ultimate ownership interest in the three Tranches will vary, depending on FPEC's future decisions whether to back in to an interest in the acquired acreage, Samson will hold at least a 66.66% working interest (53.34% net revenue interest) in all of the acquired acreage.

The Roosevelt Project is located in a technically attractive, but largely undrilled part of the Williston Basin. After exhaustive study, Samson's technical staff has concluded that the area is part of the Bakken continuous oil accumulation with adequate porosity and oil saturation for commercial production. Samson is not alone in reaching such a conclusion as the acreage block is surrounded by leases held by other well-known energy industry participants.

The initial two well drilling program will be initiated as soon as practicable, with a target spud date of September 1st for the first well. Drilling of the second well would be expected immediately following the completion of the first well. Both wells are planned to be drilled as 4,500 foot laterals in the middle Bakken formation and then fracture stimulated using a multi stage, external casing packer completion technique.

Samson has contracted with Halliburton's Consulting and Project Management business line to provide well construction planning, and drilling and completion supervision for the initial two wells. This agreement builds on the existing relationship with Halliburton developed through Samson's Hawk Springs project and brings the considerable expertise of the largest service provider of fracture stimulation completions to Samson's new Roosevelt Project.

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Bakken, Oklahoma Plays Boost PADD 2 Production

- Bakken, Oklahoma Plays Boost PADD 2 Production

Thursday, June 23, 2011
Rigzone Staff
by Karen Boman

BENTEK Energy reports that crude oil production in the U.S. PADD 2 (Midcon) region is on pace to increase 60 percent over the next five years, with continued Bakken drilling activity and emerging oil plays in Oklahoma expected to push oil production in PADD 2 to 1.4 million b/d by 2016.

The Montana and North Dakota Bakken will contribute 418,000 b/d over the five-year period, while the continued development of conventional resources in PADD 2, especially in Oklahoma, contributing 90,000 b/d to the total growth. "This rapid increase in oil production is expected to put additional pressure on the already constrained Cushing market," BENTEK noted.

PADD 2 is home to some of the hottest unconventional oil and rich-gas plays in the U.S. Besides the Bakken, PADD 2 is home to several Oklahoma plays, including the Granite Wash, Cleveland Sandstone, Tonkawa, Cana Woodford, Arkoma Woodford and Mississippi Lime plays.

"Historically, thousands of wells were drilled in the region, often bypassing the oil trapped in these tight, unconventional reservoirs," BENTEK said in its Crude Oil Production Monitor Report for June 2011. "The transfer of shale gas technology has opened the door of opportunity and producers are now employing horizontal drilling and multi-stage fracturing techniques in order to release the once reluctant oil."

The unconventional oil play focus in PADD 2 has pushed the active oil-rig count to a recent high of 528, passing the peak reached in the summer of 2008, mostly due to horizontal rigs moving into PADD 2. The region currently has 313 horizontal rigs drilling, compared to 199 at the peak in summer 2008.

The rapid commercialization of liquids-rich U.S. shale plays has buoyed expectations for domestic U.S. oil production, with a large part of that volume making it way to the oil pipeline hub at Cushing, Oklahoma, Barclays Capital noted in a June 21 report. While production growth from Midcontinent reservoirs is not significant yet, it has been dramatic for the localized market around PADD 2, depressing WTI prices relative to other light, sweet crude oil benchmarks.

"WTI prices recently have widened to discounts of more than $20/bbl versus Brent, unheard of until recent months," Barclays said. Barclays said it sees U.S. Midcontinent crude oil production as the biggest factors influencing WTI differentials over the next few years.

Oil-directed drilling has spread across the Midcontinent, with more drilling in the Permian and Williston basins and expansion in the Anadarko and Eagle Ford basins. The shift to oil drilling has been "steady and relentless", not surprising given current pricing differentials between oil and gas. Barclays said two main constraints, the availability of high horsepower rigs that are capable of drilling horizontally, and the scarcity of oil acreage versus gas acreage, could moderate the pace of growth in the oil rig count.

The key unconventional plays to watch in the early stage of development are the Bakken Shale and the Eagle Ford shale, Barclays said. "We foresee U.S. liquids production from these locations expanding at a rate of 200-250 thousand b/d in the coming years. We would expect to see the bulk of the growth to come from Bakken and Eagle Ford shale areas (around 100,000 b/d and 70,000 b/d) respectively."

While the presence of oil in the Bakken formation in the Williston Basin has been known for years, production did not take off until 2006 due to higher oil prices and advances in drilling techniques. North Dakota's production growth resulted in a record high of 5,200 active wells in March, and the state's oil output had grown to 350,000 b/d, 70 percent of which is Bakken production. The state has seen previous drilling booms in the past, but the current cycle has been the most prolific, thanks to horizontal drilling and enhanced recovery methods, "and is likely to be sustainable for longer, in our view."

Local and state government officials in North Dakota, where 80 percent of the Bakken play lies, welcome the oil and gas industry and the jobs and revenue it brings to the local economy, said Dan K. Eberhart, chief executive officer of Frontier Energy Corp., at Platts' 6th Annual Oil & Gas Shale Developer conference in Houston this week. The Bakken drilling boom has created a renaissance in rural North Dakota, providing revenue that's allowing the state a chance to update schools, traffic lights and other infrastructure.

Oil and gas activity is not only creating job within the sector, but creating demand for more restaurant workers, teachers, park rangers an ancillary services. The state government has had trouble filling government jobs in Williston as workers are attracted to the higher-paying oil and gas jobs, and has moved positions back from Williston, the hub for drilling activity, to Bismarck and Fargo to find workers.

However, the need to transport water, rigs and other supplies to and from drilling sites has pushed the average Bakken well cost to $6.5 million, and the combination of winter snow, heavy rains and heavy truck traffic has taken a significant toll on the state's road system. With vehicles 5,000 to 6,000 times heavier than the roads were designed to handle, roads are breaking down, with buckling and large holes as deep as six feet or more, said Eberhart.

Companies such as Hess have taken initiatives to support the local road system in North Dakota and communicate with local officials on rig movements, Eberhart said. Efforts such as Adopt-A-Road programs are needed, Eberhart said, and oil and gas producers should donate manpower and supplies to help maintain road infrastructure.

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Aux Sable Affiliate Adds Key Assets in Bakken Area

- Aux Sable Affiliate Adds Key Assets in Bakken Area

Friday, June 03, 2011
Aux Sable Liquid Products L.P.

Aux Sable Liquid Products Enbridge, Veresen and Williams Partners announced that Sable, an affiliate of Aux Sable, has executed an agreement with a wholly owned subsidiary of EOG to purchase and operate the Stanley Condensate Recovery Plant and the Prairie Rose Pipeline. The Prairie Rose Pipeline connects the Stanley Plant to the Alliance Pipeline, which delivers high energy dense phase gas to Aux Sable's Channahon, Illinois Plant for processing. The purchase agreement calls for the US $185 million transaction to close in July 2011.

The Stanley Plant commenced operation in February 2010 and will have a capacity of 80 MMcf per day when a current expansion is completed in June 2011. The plant removes the heavier hydrocarbon compounds while leaving the majority of the natural gas liquids in the rich gas delivered into the Prairie Rose Pipeline.

Bakken Shale

The 12-inch diameter, 83-mile Prairie Rose Pipeline also commenced operation in February 2010 and gathers gas from the Stanley Plant and other sources for delivery into the Alliance Pipeline system at Bantry, North Dakota. The pipeline has an estimated capacity of 110 MMcf per day and can be easily expanded to meet additional demand.

"This acquisition represents a significant step forward in the pursuit of our strategic growth objectives in the Bakken area, as it provides key infrastructure assets that will lead to increased deliveries of liquids-rich natural gas to our Channahon facilities," said W.J. (Bill) McAdam, President and Chief Executive Officer of Aux Sable. "With this acquisition, Aux Sable will be able to directly engage in and expand its role as a provider of value-added gathering and processing of natural gas and natural gas liquids from the Bakken play."

"As the largest crude oil producer in the North Dakota Bakken, EOG constructed these facilities when there was little infrastructure in the basin. We believe the time is right to sell these assets to an organization that specializes in gathering and processing, allowing us to focus on our core exploration and production activities in the region. We are pleased that Aux Sable recognized the value of both the Stanley Plant and the Prairie Rose Pipeline and are confident that under their management these facilities will benefit all operators in this part of North Dakota," said Ray L. Ingle, President of EOG's Pecan Pipeline (North Dakota), Inc. subsidiary.

Each of Aux Sable and Sable NGL is owned by Enbridge Inc. (42.7% equity interest), Veresen Inc. (42.7% equity interest) and Williams Partners (14.6% equity interest). Enbridge Inc. and Veresen Inc. each own a 50% interest in the Alliance Pipeline.

"We are pleased with this investment in that it bolsters our already strong position in the Bakken, one of the most prolific energy plays in North America," said Al Monaco, President, Gas Pipelines, Green Energy and International, Enbridge Inc. "The Pecan natural gas infrastructure increases the accessibility of the Alliance gas pipeline to Bakken-area producers and draws additional liquids-rich gas to the Aux Sable NGL fractionation plant near Chicago. The investment complements Enbridge's existing Bakken liquids pipeline systems in North Dakota and Saskatchewan. We look forward to working with producers to maximize the value of their resources in this region."

"This transaction demonstrates Veresen's commitment to execute on our strategic plans by expanding our services and presence in liquids-rich resource plays," said Stephen White, President and CEO of Veresen Inc. "The Pecan assets allow us to leverage our existing infrastructure investments, including Aux Sable and Alliance, and enhance our capacity to provide high-value services both to producers and end users."

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American Eagle Energy Spuds 1st HZ Bakken Well

- American Eagle Energy Spuds 1st HZ Bakken Well

Thursday, May 19, 2011
American Eagle Energy Inc.

American Eagle Energy has spud its first horizontal Bakken development well in the Hardy Field (Bakken Formation) of Southeast Saskatchewan. Proposed merger partner Eternal Energy Corp., as well as Passport Energy Ltd., are working interest partners in the well. The Hardy S 1A4-16-4B4-9-04-21W2 is the initial earning well for the farm-out agreement among the companies.

The new well is located approximately one-half mile west of American Eagle's current Hardy 7-9 producing well (owned equally with Eternal Energy) and has a projected total depth of 3,515 meters with a lateral section in the Bakken Formation of about 1,370 meters. A multi-stage fracture stimulation is planned for the completion of this new well.

Pursuant to the previously announced agreement among the three companies, American Eagle and Eternal Energy will each maintain a 37.5% working interest in the new well, but each will only pay 30.75% of its drilling, completing and equipping costs.

"American Eagle is pleased to be able to secure a rig early in the drilling season so that we can get this development work initiated," stated Richard Findley, the Company's Chief Executive Officer. "This well is an important component of the Company's 2011 capital program, as we continue to build cash flow and a solid reserves position and to develop our significant inventory of Bakken well locations in both the Williston and Southern Alberta Basins."

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FX, American Eagle to Explore Alberta Bakken in NW Montana

FX, American Eagle to Explore Alberta Bakken in NW Montana

Monday, May 09, 2011
FX Energy, Inc.

FX Energy, Inc. on Monday announced the signing of an agreement with American Eagle Energy, Inc., and Big Sky Operating LLC, to jointly explore approximately 75,000 acres in the Alberta Bakken in Northwest Montana. FX Energy's 10,000 acre field in the Southwest Cut Bank Sand Unit will be included in the joint exploration program and the Company will own a one-third interest in the overall project.

The companies plan to drill a minimum of three vertical wells to evaluate the potential of the acreage over the next several months. If the tests confirm the potential that the companies believe exists in the project area, the wells will be drilled horizontally and fracked. The drilling contractor for the wells will be the Company's wholly owned subsidiary FX Drilling Company.

"Since our partners were among the first movers in the Williston Basin Bakken play, their technical expertise is a valuable addition to the joint venture. We expect to drill and test several wells this year and if successful, our acreage position is sufficiently large to accommodate a continuous drilling program for years to come," said Andy Pierce VP of Operations for FX Energy.

FX Energy is an independent oil and gas exploration and production company with production in the US and Poland. The Company's main exploration activity is focused on Poland's Permian Basin where the gas-bearing Rotliegend sandstone is a direct analog to the Southern Gas Basin offshore England.

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TWMA Wins Bakken Contract from Hess, Plans Major Expansion

TWMA Wins Bakken Contract from Hess, Plans Major Expansion

Wednesday, May 04, 2011
TWMA

Oil and gas environmental waste management contractor TWMA has been awarded a multi-million dollar contract by Hess Corporation to process, recover and recycle drilling wastes from their onshore drilling program in North Dakota, USA.

UK-headquartered TWMA will mobilise the market leading TCC RotoTruck processing equipment this month to process drilling wastes at multiple rig locations in the oil-rich Bakken shale, North Dakota.

The waste management agreement is a one-year contract with two one-year extension options.

The firm will create up to 100 jobs in the US over the next 12 months following the new deal with Hess and other recently secured agreements in the region, which includes its first contract in South America with another major operator

To accommodate expansion TWMA will move to a larger base in Houston with engineering facilities to support maintenance and service of equipment operating across the Americas.

The TCC RotoTruck is a pioneering technology solution designed to dispose of hydrocarbon-contaminated drilling wastes in a clean and environmentally friendly manner. It has revolutionized the handling of onshore drill cuttings worldwide.

The TCC RotoTruck is a compact, light and mobile version of TWMA's industry leading TCC RotoMill offshore unit, which is recognized by the UK Government Department of Energy & Climate Change (DECC) as "best available technology'' for treating drilling waste. The mobile truck-mounted unit separates hydrocarbon-contaminated drill cuttings into their constituent parts of water, solids and oil for reuse or recycling.

The technology treats drilling wastes at the source which reduces the volume of wastes and provides major safety and environmental benefits for operators. It also provides significant cost savings through simplified logistics and recovery of valuable drilling fluids through the process, which are then recycled. The technology has an impressive track record worldwide, particularly across the Americas where units have been operating since TWMA entered the US market in 2008. Game-changing technology such as the TCC RotoTruck is driving a step change in the way US operators choose to manage onshore drilling wastes.

US-based Ian Nicolson, vice president of business development Americas, said: "We are delighted to be awarded this contract by Hess to support their onshore drilling programs in North Dakota. There is a lot of interest in our TCC RotoTruck in the US especially since we are the only company in the world offering this type of fully integrated service to the region. We have a field proven track record of improving environmental performance for operators and clients."

He continued: "Our operational cost-advantage is achieved by maximizing the productivity of the equipment and reducing waste transportation costs. We estimate that the annual cost saving to our client for this project is a substantial value."

Greg Manry, onshore Americas drilling manager of Hess, said: "TWMA has unique technology that can help us continue to improve our performance and minimize our environmental footprint. We look forward to working with TWMA and building a long term working relationship with their team of waste management experts."

TWMA is leading the industry in designing, manufacturing and operating technologies that reduce the global environmental impact of onshore and offshore drilling operations. The firm's Americas base is in Houston, Texas. TWMA was formed in 2000 and it employs around 300 people at its bases in the UK, Norway, Americas, North Africa and Middle East.

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Nextraction to Develop Viking, Bakken Oil Properties

Nextraction to Develop Viking, Bakken Oil Properties

Tuesday, April 19, 2011
Nextraction Energy Corp.

Nextraction announced its 2011 plans to develop its light oil projects in Alberta and Montana. The development will include drilling two horizontal wells, the re-completions of existing wells in the Provost Field in Alberta, Canada, acquiring 22 miles of three dimensional (3-D) seismic data and the drilling of the initial well on the Saturn acreage located in the Williston Basin of eastern Montana, USA.

In addition, the Company reported completion of its initial well on the Pinedale Anticline produced at an average rate of 104 barrels of oil equivalent (BOE) while continuing to flow back frac fluids at year-end 2010.

Nextraction's President, Mark S. Dolar stated, "This is a very exciting time for Nextraction. We achieved our goal of establishing production and proving reserves at our Pinedale property and look to build on that base as we plan to increase daily production rates at Provost by drilling new horizontal wells and re-completing existing wells. We will follow the Provost drilling with development on the Saturn acreage. The Provost Field is known for short term payouts and impressive internal rates of return while Saturn contains potential for large scale, long life development." Mr. Dolar continued, "We remain debt free and we have the opportunity to generate significant cash flow and increase our net reserves while maintaining our current share structure."

Plans for development are as follows:

Provost Pool - Alberta, Canada

The Company plans to drill two, 810 meter Viking formation wells, off-setting existing wells with cumulative production of 665,000 barrels of oil. The wells are being licensed to drill horizontal legs of at least 900 meters in length each. The Company also plans to re-complete existing wells on the property to test a zone in the Viking formation that has yet to be tested by implementing new fracing technologies to the zone. Estimated cost for the project is $3 million (net to the Company).

The Company is a 50% interest owner in the project, but receives 100% of the revenue until it receives $1.4 million in production revenue or re-payment (as a loan to its joint venture partner). The Company will fund and operate the drilling of the first two development wells on the property and will receive 50% of the revenue from production. For all subsequent operations, the Company participates as a 50% interest owner.

Saturn Project - Montana, USA

The Company has completed permitting a 22 square mile area for three dimensional (3-D) seismic work and plans to acquire the data in the second quarter. A well is planned to be drilled based on interpretation of the seismic testing on the 35 section property. The Company's expected expenditures for the Saturn seismic program is $900,000 for the 22 square mile acquisition (a 15 square mile program was previously estimated to cost $500,000-$650,000) and estimated cost to drill, core and complete the 2,350 meter test well is $1.2 million.

The Company will look to develop the project as a multi-well program based on appropriate test well data. The properties are being developed under terms of a Seismic Option and Farm-out Agreement. Under the terms of the agreement, the Company will operate the project and fund 75% of the data collection costs for the seismic program. Prior to commencing the first core test well, its partner will have the option to participate as a 25% interest owner. Should the partner participate in the drilling of the well, the before payout interest will be shared 75% by Nextraction and 25% by the partner, after payout interests will be shared 52.5% by Nextraction and 47.5% by the partner. If the partner does not participate in the well, Nextraction will own 100% before payout and 70% after payout.

Pinedale - Wyoming, USA

After an initial 24 hour flow rate of 3 million cubic feet of gas per day from the upper 400 feet of net sand in the Lance and Tertiary formations from the Company's 100% owned Noble 6-24 well, the well produced and flared 8,074 MCFG, 28 Barrels of Condensate and 166 barrels of water/frac fluids from 11 days of production in December, 2010.

The Company became the operator of the project on February 1, 2011. In assuming operations, the Company will have the ability to develop the properties in a more efficient and cost effective manner and assist in lifting fluids from the well. The Company placed an electric compressor on location in mid-March to assist in lifting fluids that are known to produce with the natural gas and condensate on the Anticline. Nextraction predicts that with this compressor, daily production should average in the range of 800-1,000 mcfgpd and 20 barrels of condensate from the unconventional tight sands. Without compressor assistance, the well averages 400 mcfgpd and 8 barrels of condensate. The producing intervals in the well remain over-pressured, which indicates that the well should perform at the anticipated rates once completion fluids are drawn from the well.

To further enhance future drilling locations, the Company has also acquired 3-D seismic and plans to obtain 2-D seismic on the property in this year.

Mr. Dolar commented, "By completing the first well in Pinedale, we have taken great steps toward development of this project. As our knowledge of Pinedale increased, we realized that the use of artificial lift is essential for removing associated water production that flows with the gas and condensate. The decision to place an electric compressor on site to assist in drawing down the water levels and increase gas production from the well also lessens our carbon footprint and assists in our compliance with clean air requirements. As seismic is completed on Pinedale, we will determine the next strategy for development to enhance value to the Company."

Kodiak Charges Ahead in Three Forks, Bakken Development

Kodiak Charges Ahead in Three Forks, Bakken Development

Tuesday, April 19, 2011
Kodiak O&G Corp.

Kodiak O&G provided an interim corporate update.

Interim Operations Update

Kodiak currently operates a two-rig-drilling program in the Williston Basin and anticipates taking delivery of a third rig within the next two weeks. The Company is currently negotiating to contract a fourth rig for delivery in the fourth quarter of 2011. Additionally, Kodiak controls a 40% to 50% working interest in wells being drilled by a non-operated drilling rig as part of its Dunn County, N.D. area of mutual interest with ExxonMobil.

Bakken/Three Forks Development: McKenzie County, N.D. (37,000 gross and 27,000 net acres) - Bakken producer records initial production (IP) rate of 3,042 BOE/d

The Koala #9-5-6-5H well [Kodiak operated – 95% working interest (WI) /78% net revenue interest (NRI)], an 8,967-foot horizontal lateral, was successfully completed in 24 stages in the middle Bakken Formation. During a 24-hour period, the well recorded production of 2,526 barrels of oil (BO) and 3.10 million cubic feet of natural gas (MMcf), or 3,042 barrels of oil equivalent (BOE). Kodiak completed the 24-hour production test utilizing an average 38/64" choke with average flowing casing pressure of 1,800 psi. Since coming online, the well had cumulative production of 7,340 BO and 7.5 MMcf, or 8,590 BOE in the first five days of production while continuing to recover frac load during well flowback.

Three Forks producer records IP rate of 2,327 BOE/d

The first well completed on the pad, the Koala #9-5-6-12H3 [Kodiak operated – 95% WI/78% NRI], a 9,171-foot horizontal lateral, was successfully completed in 22 stages in the Three Forks Formation. During a 24-hour period, the well recorded production of 1,919 BO and 2.45 MMcf, or 2,327 BOE. Kodiak completed the 24-hour production test utilizing a 36/64" choke with average flowing casing pressure of 1,400 psi. Since coming online, the well had cumulative production of 8,251 BO and 10.57 MMcf, or 10,012 BOE in the first nine days of production while recovering the frac load during well flowback. Koala #9-5-6-12H3 production was temporarily curtailed due to surface facility constraints while completion work on the second well on the pad, the Koala #9-5-6-5H, was completed.

The Three Forks well, the Koala #9-5-6-12H3, was drilled 700 feet from the Bakken well, the Koala #9-5-6-5H, in an ongoing effort to evaluate communication between the middle Bakken and the Three Forks Formation. By successfully completing the Koala #9-5-6-12H3 well, Kodiak now demonstrates the productive potential of the Three Forks Formation as an oil-prone reservoir system on this part of its McKenzie County core operating area.

The Company currently has one well, the Koala #3-2-11-14H, awaiting completion in McKenzie County as part of a two-well pad, and is drilling ahead on the Koala #3-2-11-13H well [both Kodiak operated – 50% WI/41% NRI]. These two well bores are being drilled approximately 1,300 feet apart in the middle Bakken in an effort to test well bore density within the drilling unit. These wells are projected to be completed in the second quarter 2011. Once the well is down, the rig will be moved to drill the Koala #2-25-36-15H [Kodiak operated – 66% WI/53% NRI], the first well of a two-well pad.

Bakken/Three Forks Development: Dunn County, N.D. (56,000 gross and 34,000 net acres) - Drilling and Completion Activity

Kodiak currently has two gross wells (1.0 net) which are expected to be completed in the second quarter 2011. Additionally, Kodiak has drilled and is awaiting completion of three gross wells (1.95 net wells) off of an existing four-well pad, and is currently drilling the final well from the pad, the Skunk Creek (SC) #2-24-25-16H [Kodiak operated – 97% WI/79% NRI]. Completion operations are projected to commence on this four-well pad in the third quarter 2011. Once drilling is completed on the four-well pad, the rig will move to the SC #12-10-11-9H well [Kodiak operated – 97% WI/79% NRI], the first of a two-well pad.

On its non-operated portion of lands in Dunn County, Kodiak has participated in the drilling of two gross wells (1.0 net well) that are currently waiting on completion. Two additional wells are currently being drilled from a two-well pad in which Kodiak has a 50% and 44% WI (41% and 36% NRI).

In conjunction with its first quarter 2011 operational and financial results news release expected to be issued after the close of trading on May 5, 2011, the Company intends to furnish a comprehensive operations update, including its per-well tabular data that includes working interest, net revenue interest, lateral length and 30/60/90/180 and 360-day production rates.

Dedicated Fracture Stimulation Team

The Company has formally executed a two-year agreement with its pressure-pumping service company whereby Kodiak will have a dedicated crew for 14 days per month, reconciled on a quarterly basis, commencing in the third quarter 2011.

Management Comment

Commenting on ongoing operations, Kodiak's President and CEO Lynn A. Peterson said, "Our drilling and completion operations in both McKenzie and Dunn counties continue to move forward. We are very pleased with the results from the two-well pad in McKenzie County, our first two operated wells in this area. The well results are important in that we have now demonstrated the productive potential in the Koala project area for both the middle Bakken and Three Forks Formations. Equally important is that we have drilled these high-working-interest wells in a manner that will allow us to evaluate communication between the two formations, as we obtain additional production history.

"The execution of a formal agreement with our pumping service company should provide continued improvement in the timing of our well completions. Utilization of pad drilling allows for successive completions improving our efficiencies through reduced time for equipment mobilization and demobilization between wells. We look forward to expanding this agreement to include more days as we move into the second half of the year and bring our fourth drilling rig under contract."

Borrowing Base Re-determined at $75 Million

Kodiak also announced that is has completed its semi-annual re-determination of its borrowing base under its $200 million senior secured revolving line of credit facility with Wells Fargo Bank, N.A. As a result, the Company's borrowing base has been increased to $75 million from the previously available $50 million. There are currently no borrowings under the facility and Kodiak is in compliance with the financial covenants under the credit facility.

"The increase in our borrowing base is reflective of our continued success in the Williston Basin," said James Henderson, Kodiak's Chief Financial Officer. "Our cash balances, operating cash flow and expanded revolving line of credit provide the Company with liquidity and balance sheet flexibility as we execute on growth-oriented development drilling in 2011 and into 2012."

Nextraction to Develop Viking, Bakken Oil Properties

Nextraction to Develop Viking, Bakken Oil Properties

Tuesday, April 19, 2011
Nextraction Energy Corp.

Nextraction announced its 2011 plans to develop its light oil projects in Alberta and Montana. The development will include drilling two horizontal wells, the re-completions of existing wells in the Provost Field in Alberta, Canada, acquiring 22 miles of three dimensional (3-D) seismic data and the drilling of the initial well on the Saturn acreage located in the Williston Basin of eastern Montana, USA.

In addition, the Company reported completion of its initial well on the Pinedale Anticline produced at an average rate of 104 barrels of oil equivalent (BOE) while continuing to flow back frac fluids at year-end 2010.

Nextraction's President, Mark S. Dolar stated, "This is a very exciting time for Nextraction. We achieved our goal of establishing production and proving reserves at our Pinedale property and look to build on that base as we plan to increase daily production rates at Provost by drilling new horizontal wells and re-completing existing wells. We will follow the Provost drilling with development on the Saturn acreage. The Provost Field is known for short term payouts and impressive internal rates of return while Saturn contains potential for large scale, long life development." Mr. Dolar continued, "We remain debt free and we have the opportunity to generate significant cash flow and increase our net reserves while maintaining our current share structure."

Plans for development are as follows:

Provost Pool - Alberta, Canada

The Company plans to drill two, 810 meter Viking formation wells, off-setting existing wells with cumulative production of 665,000 barrels of oil. The wells are being licensed to drill horizontal legs of at least 900 meters in length each. The Company also plans to re-complete existing wells on the property to test a zone in the Viking formation that has yet to be tested by implementing new fracing technologies to the zone. Estimated cost for the project is $3 million (net to the Company).

The Company is a 50% interest owner in the project, but receives 100% of the revenue until it receives $1.4 million in production revenue or re-payment (as a loan to its joint venture partner). The Company will fund and operate the drilling of the first two development wells on the property and will receive 50% of the revenue from production. For all subsequent operations, the Company participates as a 50% interest owner.

Saturn Project - Montana, USA

The Company has completed permitting a 22 square mile area for three dimensional (3-D) seismic work and plans to acquire the data in the second quarter. A well is planned to be drilled based on interpretation of the seismic testing on the 35 section property. The Company's expected expenditures for the Saturn seismic program is $900,000 for the 22 square mile acquisition (a 15 square mile program was previously estimated to cost $500,000-$650,000) and estimated cost to drill, core and complete the 2,350 meter test well is $1.2 million.

The Company will look to develop the project as a multi-well program based on appropriate test well data. The properties are being developed under terms of a Seismic Option and Farm-out Agreement. Under the terms of the agreement, the Company will operate the project and fund 75% of the data collection costs for the seismic program. Prior to commencing the first core test well, its partner will have the option to participate as a 25% interest owner. Should the partner participate in the drilling of the well, the before payout interest will be shared 75% by Nextraction and 25% by the partner, after payout interests will be shared 52.5% by Nextraction and 47.5% by the partner. If the partner does not participate in the well, Nextraction will own 100% before payout and 70% after payout.

Pinedale - Wyoming, USA

After an initial 24 hour flow rate of 3 million cubic feet of gas per day from the upper 400 feet of net sand in the Lance and Tertiary formations from the Company's 100% owned Noble 6-24 well, the well produced and flared 8,074 MCFG, 28 Barrels of Condensate and 166 barrels of water/frac fluids from 11 days of production in December, 2010.

The Company became the operator of the project on February 1, 2011. In assuming operations, the Company will have the ability to develop the properties in a more efficient and cost effective manner and assist in lifting fluids from the well. The Company placed an electric compressor on location in mid-March to assist in lifting fluids that are known to produce with the natural gas and condensate on the Anticline. Nextraction predicts that with this compressor, daily production should average in the range of 800-1,000 mcfgpd and 20 barrels of condensate from the unconventional tight sands. Without compressor assistance, the well averages 400 mcfgpd and 8 barrels of condensate. The producing intervals in the well remain over-pressured, which indicates that the well should perform at the anticipated rates once completion fluids are drawn from the well.

To further enhance future drilling locations, the Company has also acquired 3-D seismic and plans to obtain 2-D seismic on the property in this year.

Mr. Dolar commented, "By completing the first well in Pinedale, we have taken great steps toward development of this project. As our knowledge of Pinedale increased, we realized that the use of artificial lift is essential for removing associated water production that flows with the gas and condensate. The decision to place an electric compressor on site to assist in drawing down the water levels and increase gas production from the well also lessens our carbon footprint and assists in our compliance with clean air requirements. As seismic is completed on Pinedale, we will determine the next strategy for development to enhance value to the Company."

Brigham Exceeds Records at ND, Montana Bakken Wells

Brigham Exceeds Records at ND, Montana Bakken Wells

Wednesday, April 13, 2011
Brigham Exploration Co.

Brigham announced that its Sorenson 29-32 #2H Bakken well produced a North Dakota Bakken record 5,330 barrels of oil equivalent during its early 24-hour peak flow back period. Brigham also announced that its Johnson 30-19 #1H Bakken well, which is located in Richland County, Montana, produced a Montana Bakken record early 24-hour peak flow back rate of approximately 2,962 barrels of oil equivalent. Brigham announced the completion of four additional North Dakota Bakken wells and, as a result, has completed 56 consecutive long lateral high frac stage wells in North Dakota at an average early 24-hour peak flow back rate of approximately 2,884 barrels of oil equivalent. Finally, Brigham provided an update on its drilling and completion activities in the Williston Basin.

 

Record North Dakota Bakken Well

Brigham announced that the Sorenson 29-32 #2H produced a North Dakota Bakken record 5,330 barrels of oil equivalent (4,661 barrels of oil and 4.01 MMcf of natural gas) during its early 24-hour peak flow back period. The Sorenson 29-32 #2H, which is located in Brigham's Ross project area in Mountrail County, North Dakota, supplants Brigham's Sorenson 29-32 #1H as the record initial rate Bakken well. To date, based on publically available information, Brigham has the four highest initial rate Bakken wells and seven of the top 10 initial rate Bakken wells in the Williston Basin.

The Sorenson 29-32 #2H represents Brigham's first infill well completion in its Ross project area and was drilled, on average, approximately 1,720' from the Sorenson 29-32 #1H well, which was completed in April 2010. The Sorenson 29-32 #2H was completed with 38 frac stages.

The Sorenson 29-32 #2H and the Cvancara 20-17 #1H, which produced approximately 4,402 barrels of oil equivalent during its early 24-hour peak flow back period, were the first wells drilled and completed using Brigham's smart pad design. The smart pad design allows wells to be drilled from the same pad and simultaneously fracture stimulated. It is estimated that approximately 10% to 20% in cost savings can be achieved with implementation of smart pad drilling and completion techniques.

 

Record Montana Bakken Well

Brigham announced that the Johnson 30-19 #1H, which is located in Richland County, produced approximately 2,962 barrels of oil equivalent (2,684 barrels of oil and 1.67 MMcf of natural gas) during its early 24-hour peak flow back period. The well was completed with 36 fracture stimulation stages, and based on publically available information, is the record initial rate Bakken well in Montana.

 

North Dakota Operated Well Result Update

Brigham has now completed 56 consecutive long lateral high frac stage wells in North Dakota with an average early 24-hour peak flow back rate of approximately 2,884 barrels of oil equivalent.

 

Williston Basin Operated Drilling and Completion Update

Brigham's accelerated development of its acreage in North Dakota and Montana is proceeding with four operated rigs drilling in Rough Rider, two operated rigs drilling in Ross and one operated rig drilling in Montana. Brigham's eighth dedicated operated rig is expected to arrive in May.

In North Dakota, Brigham will spud its second Three Forks well in its Rough Rider project area in Williams County before the end of the month. An additional Three Forks well is anticipated to be spud in early summer in McKenzie County.

In Montana, Brigham recently completed drilling operations on the Beck 15-10 #1H, which is located in Roosevelt County, and will drill three consecutive additional wells in Montana, two of which are in Roosevelt County and one in Richland County. Later this month, Brigham will begin the fracture stimulation of the Voss 21-11H, which was purchased from another operator who drilled and completed the well in August 2007 with a single fracture stimulation. Brigham successfully removed the old liner from the wellbore and replaced it with a new liner with swell packers. Brigham expects to use 28 fracture stimulation stages to complete the Voss 21-11H.

Brigham currently has two wells flowing back, two wells fracing and 15 wells waiting on completion.

Later this month, Brigham expects to add additional fracture stimulation capacity thereby providing access to two fully dedicated frac crews focused on completing Brigham operated horizontal wells in the basin. At that time, Brigham estimates that it will be capable of fracture stimulating and bringing on line to production a minimum of eight wells per month due to the efficiencies gained by simultaneous stimulations.

 

Management Comments

Bud Brigham, the Chairman, President and CEO, commented, "Our team continues to deliver outstanding operational results with record setting Bakken wells in North Dakota and Montana. The impressive results of the Sorenson 29-32 #2H, which was drilled approximately one year after the Sorenson 29-32 #1H, clearly demonstrates the substantial net asset value attributable to our infill drilling locations."

Bud Brigham continued, "The extremely positive results of our Johnson 30-19 #1H, which is located in Richland County, further de-risks part of our Montana acreage for the Bakken. Our de-risking should continue based on the results of the fracture stimulation of the Voss 21-11H, which is expected to occur later this month. Plans are to continue to work towards de-risking larger parts of our Montana acreage by drilling a total of four additional wells over the next several months."

Bud Brigham concluded, "Importantly, our acceleration in the Williston Basin continues to be on schedule as we expect to begin operating two fully dedicated frac crews this month and expect our next dedicated operated rig to arrive in May. Our core acreage position combined with our operational expertise and accelerated development is anticipated to set us up for a very positive 2011 in terms of net asset value growth. Looking ahead, given the remarkably consistent results associated with our 56 consecutive long lateral high frac stage completions in North Dakota, it's likely that we will no longer release individual well early 24-hour peak rates, except in certain circumstances, such as where results provide specific information with respect to de-risking our non-core acreage and the resulting net asset value accretion."