File #13487 | Nance Petroleum Corporation | McKenzie County
API
33-053-02422
Target Formation
Middle Bakken Dolomite
Permit Explained
Yes
Permit Cycle Assessment
The permit for the Cinnamon Creek 14-9HR sidetrack re-entry is explained by contemporaneous documentation. The April 27, 2005 NDIC hearing (Case No. 8522) amended spacing orders for the Cinnamon Creek Field immediately preceding the May 10, 2005 permit approval. The operator testified at that hearing regarding fracture orientation strategy and the rationale for the proposed N67E lateral azimuth to avoid parallel drilling to regional fracture trends (N52E). Director's Order No. 10010, issued May 10, 2005, approved the horizontal re-entry with a 500-foot setback condition from the spacing unit boundary, reflecting the operator's stated well geometry and the amended spacing unit definition. The June 13, 2005 Notice of Intent explicitly justified the sidetrack as necessary to expose additional Bakken formation without relying on fracture stimulation, which had been unsuccessful on other NPC Bakken horizontals in McKenzie County. The June 15, 2005 Stripper Well determination confirmed the well's economic status as a qualifying Bakken property. All permit conditions and approvals are tied directly to the operator's technical submissions, hearing testimony, and pool-specific regulatory amendments contemporaneous with the approval date.
Permit Cycle Signals (5)
Director's approval of horizontal re-entry with 500' setback condition from spacing unit boundary (Order No. 10010) (2005-05-10)
Permits the sidetrack lateral with explicit setback constraint tied to well geometry and directional path; condition directly conditions the approval and future operations
April 27, 2005 NDIC hearing (Case No. 8522) amended spacing orders for Cinnamon Creek Field; operator testified on lateral orientation rationale relative to regional fracture trends (N67E azimuth) (2005-04-27)
Regulatory hearing directly preceded permit approval by 13 days; spacing rule amendment conditioned on fracture orientation and drainage concerns specific to this re-entry; operator's technical justification for azimuth tied to pool geology and existing lateral performance
Fracture stimulation unsuccessful on other NPC Bakken horizontals in McKenzie County; operator rationale for drilling additional sidetrack lateral to expose formation without fracture stimulation (2005-06-13)
Contemporaneous operational justification for sidetrack geometry; directly explains permit condition allowing second lateral without fracture work; tied to economic viability determination at permit approval
Stripper Well Property determination issued June 15, 2005 for Bakken Pool (Well File 13487) with average production 7.8 barrels/day during 2003 qualifying period (2005-06-15)
Issued 5 days after permit approval; confirms well qualifies as stripper property for Bakken pool; establishes economic baseline contemporaneous with re-entry approval; may condition future tax treatment and operational requirements
Confidential status granted for all pre-production data until November 10, 2005 per May 10, 2005 order (2005-05-10)
Condition tied to permit approval; restricts data availability during permit execution period; reflects competitive sensitivity of recompletion project data
Historical Non-Routine Signals (4)
Original horizontal well (Cinnamon Creek 14-9H MOI) drilled 1993 by Meridian Oil Inc.; completed in Bakken; produced 85 barrels oil, 80 MCF gas from initial test; well transitioned to pumping unit production 06/18/93 (1993-03-22)
Establishes baseline Bakken lateral performance and completion history. Original well produced 83 MBO cumulatively before re-entry decision, creating drainage and pressure depletion baseline referenced in operator's May 6, 2005 letter justifying sidetrack azimuth and economic case for additional lateral
Roughrider recompletion attempted January-May 1995 on original well; acidized and tested Roughrider zone 9380-9384'; economics evaluation determined recompletion uneconomic; well returned to Bakken production (1995-05-01)
Demonstrates operator's historical experience with recompletion economics on this wellbore. Sets pattern of evaluating secondary zones and determining economic viability before committing to completion. Informs operator's 2005 decision to drill sidetrack lateral rather than rely on fracture stimulation of shorter primary lateral
Change of operator from Burlington Resources Oil & Gas Company LP to Nance Petroleum Corporation effective December 3, 2002 (Form 15, Notice of Transfer of Oil and Gas Wells) (2002-12-03)
Operator continuity change 2.5 years before re-entry permit. NPC assumed operating responsibility under Bond 6160846, 6160847, 6041871. Affects responsibility for well integrity, directional control, and compliance with original well specifications during re-entry planning and execution
Director's Order No. 238 (January 13, 1993) established Cinnamon Creek-Bakken Pool spacing with Zone I (160 acres/vertical well), Zone II (320 acres/horizontal well), and Zone III (640 acres/section). Section 9 designated Zone III with allowance for two horizontal wells per spacing unit; 660-foot setback requirement for all portions of wellbore not isolated by cement (1993-01-13)
Original spacing and setback rules governing well from spud through 2005 re-entry. Permits two horizontal wells in Section 9 but requires 660-foot setback. Modified by April 27, 2005 hearing decision (Case 8522) referenced in May 6, 2005 operator letter. Sets structural framework for re-entry geometry constraints
Historical Operator Profile
Total Wells:N/A
Active Wells:N/A
Notable Patterns:None identified
Confidence Assessment
Level: High Rationale: File contains explicit contemporaneous documentation of permit approval conditions (Order No. 10010, May 10, 2005) tied to operator's technical submissions (directional plan, May 2005 Notice of Intent), regulatory hearing testimony (April 27, 2005 Case No. 8522), and economic justification (June 2005 Stripper Well determination and June 13, 2005 sidetrack approval letter). Operator letters explicitly reference hearing testimony, spacing rule amendments, and fracture performance data from other NPC wells as direct justification for re-entry geometry and lateral strategy. Approval conditions (500-foot setback) directly tied to directional survey and well geometry specifics. Historical context clearly separated and does not obscure permit-cycle signals.