โ† Back to Daily Permits

๐Ÿ›ข๏ธ K&L Hegstad North W 158-92-3-27-1MBHX

Silver Hill Energy Operating, LLC ยท Mountrail County, ND ยท File #42077 ยท Generated 2026-02-13 12:33

API
330610555301
Target Formation
Middle Bakken
Permit Explained
Yes

๐Ÿ“‹ Permit Cycle Assessment

Permit approval dated 8/1/2025 (dirt work date per APD) is directly conditioned on compliance with Commission Order No. 34299 spacing unit standards and a non-routine completion design (production liner with wet shoe and frac-out capability). Pre-permit documentation confirms: (1) anticollision clearance established 6/30/2025 for directional geometry, (2) detailed engineering design (Stryker planning, 6/30/2025) demonstrates compliance with 150'/1220' setbacks, (3) surface use and offset operator coordination completed 6/16/2025 enabling cross-unit drilling, and (4) mud and facility programs documented in APD responses. Geologic end-of-well report (post-spud, 10/1โ€“10/13/2025) confirms landing in Middle Bakken with gas shows (peak 3,103 units in sidetrack 01 lateral), supporting production potential. The permit action is conditioned on, and operationally justified by, specific casing/completion method, directional feasibility, offset avoidance, and reservoir confirmation.

๐Ÿ” Permit Cycle Signals (5)

Commission Order No. 34299 โ€” Spacing unit approval with setback conditions (150' N/S, 1220' E/W) within 1920-acre DSU; approval conditioned on north setback tied to production liner cemented in lateral with wet shoe and ability to frac out shoe
Direct
๐Ÿ“„ APD Stipulations, Page 1
๐Ÿ“… 2025-08-01 (Inferred confidence)
Permit approval is explicitly conditioned on specific casing design and completion method (wet shoe, frac-out capability). This non-routine completion requirement differentiates this permit from standard horizontal approvals and directly justifies the approval decision.
Cottonwood-Bakken Pool definition established in permit stipulations: 50 feet above Bakken top to above Birdbear Formation top
Supporting
๐Ÿ“„ APD Stipulations, Page 1
๐Ÿ“… 2025-08-01 (Inferred confidence)
Pool definition is a regulatory precondition for spacing unit approval and resource allocation framework. Standard but necessary for permit validity.
Anticollision analysis completed 6/30/2025 confirming safe separation from offset wells, including K&L Hegstad South W 158-92-10-22-1MBHX (minimum separation 20.67 usft) and Clark 16-27H (minimum separation 2,189.77 usft); all separation factors exceed 1.67 sigma threshold
Supporting
๐Ÿ“„ Anticollision Report, Summary table and pages 2-8
๐Ÿ“… 2025-06-30 (Exact confidence)
Pre-permit anticollision documentation demonstrates technical feasibility and compliance with directional constraints. Well executes a sidetrack (ST01) from original lateral to avoid setback/spacing violations; anticollision clearance is a predicate for approval of non-standard drilling geometry.
Directional planning report (Design #2, 6/30/2025) confirms well geometry: KOP 8718' MD, curve landing 9573' MD (9219' TVD), lateral target Middle Bakken at 9220' TVD, horizontal section maintains 90ยฐ inclination within ยฑ1220' FWL and ยฑ150' FNL setbacks
Supporting
๐Ÿ“„ Geologic Well Prognosis and Stryker Directional Planning Report, pages 1-10
๐Ÿ“… 2025-06-30 (Exact confidence)
Engineering design predates and supports permit approval. Demonstrates operator prepared detailed trajectory to comply with spacing unit geometry constraints and Order 34299 setback requirements before drilling commenced.
Affidavit of Surface Use and Damage Agreement (6/16/2025) executed with surface owner; drill-back offset operator notification letter (6/16/2025) confirming Silver Hill Energy Operating, LLC is operator of adjacent spacing unit (158-92-10), waiving offset operator notice requirements per NDIC Order 31848
Supporting
๐Ÿ“„ Affidavit of Surface Use and Damage Agreement and Drill-Back Offset Operator Notification letter, dated 6/16/2025
๐Ÿ“… 2025-06-16 (Exact confidence)
Pre-permit coordination removes regulatory barrier to drill-back drilling into adjacent DSU. Surface use agreement and self-operator waiver are preconditions to approval of multi-well pad with cross-unit geometry.

๐Ÿ“– Historical Context (4)

Sidetrack 01 (ST01) executed in lateral section: original lateral drilled to 16,534' MD (LBS strike depth), then sidetracked from 13,001' MD on 10/8/2025 through 10/13/2025, final TD 25,060' MD in Bakken lateral; gas profile significantly higher in ST01 lateral (avg 613 units, peak 3,103 units) vs. original lateral (avg 234 units, peak 1,512 units)
๐Ÿ“„ Geologic End of Well Report, Table 5 and Sections 5.1โ€“5.2, pages 7โ€“8 ยท ๐Ÿ“… Unknown
Sidetrack execution demonstrates operator response to reservoir quality variation during drilling. Higher gas recovery in ST01 indicates landing point optimization; completion strategy (wet shoe with frac-out) was designed for this multi-lateral architecture. Future workover, completion design, and production management must account for dual-lateral geometry and separate gas profiles.
Oil-based mud (OBM) used in curve and lateral sections; all samples contaminated by OBM showing artificially elevated oil shows; sample cleaning required diesel, mineral spirits, and dishwashing soap before petrographic analysis per standard protocols
๐Ÿ“„ Geologic End of Well Report, Section 2.1, page 3 ยท ๐Ÿ“… Unknown
OBM contamination affects interpretation of hydrocarbon shows and sample quality for future correlation or reanalysis. Wet samples archived at ND Geological Survey Core Library must be noted for OBM origin when used in regional studies. Completion/production strategy should account for OBM residue in wellbore.
Federal mineral interest exists within spacing unit (Section 3-T158N-R92W and Sections 27/34-T159N-R92W); BLM Dickinson office notification issued 7/1/2025 (post-permit approval) requiring operator confirmation of federal permit filing
๐Ÿ“„ Email from Emma Neigum, ND DMR Permitting, to operator, 7/1/2025 ยท ๐Ÿ“… Unknown
Federal permit requirement is outstanding and may impose additional conditions on drilling, completion, or production not captured in state permit file. Operator must maintain compliance with BLM documentation and any federal royalty or operational orders. Non-compliance could affect well operability or revenue distribution.
Filtration container requirement (NDAC ยง 43-02-03-19.2, NDIC Letter 4/9/2014): operator must maintain leak-proof, covered container on-site from spud through completion/flowback for filter disposal; operator certified compliance in APD response
๐Ÿ“„ Operator Statements for NDIC APD, Filtration Containment section; NDIC Letter dated 5/30/2025 (re-issued guidance) ยท ๐Ÿ“… Unknown
Container requirement persists through completion and flowback phases; violation incurs civil penalty up to $12,500/day per NDAC ยง 43-02-03-19.2. Operator must verify on-site container maintained during completion operations (10/15/2025 casing/cementing noted in well summary).

๐Ÿ”ง Operator Pattern

Silver Hill Energy Operating, LLC demonstrates integrated pad development with cross-unit coordination, multi-well drilling from shared surface location, and compliance-first pre-drilling engineering.
K&L Hegstad pad designed as multi-well location with four future well stakes identified on section layout (Future Wells #1โ€“4, see pad layout drawings). Operator self-operates adjacent spacing unit (158-92-10), waiving offset operator notification under Order 31848. Surface use agreement pre-executed (6/16/2025) before permit issuance. Directional planning coordinated between K&L Hegstad North (this well) and K&L Hegstad South W 158-92-10-22-1MBHX (offset well) with anticollision clearance achieved. Mud program, closed-loop system, tank battery specifications, and flame arrestor compliance documented in APD. This indicates operational maturity, multi-well resource planning, and regulatory coordination prior to drilling.
Confidence: High
Well file contains complete permit chain from application through end-of-well. Permit approval date (8/1/2025 dirt work) is anchored in APD header. Pre-permit signals are time-stamped: anticollision analysis (6/30/2025), engineering design (6/30/2025), offset operator coordination (6/16/2025), and APD submission (date stamp visible on application). Post-permit geologic report documents actual spud (9/29/2025) through TD (10/13/2025). Permit stipulations clearly reference Commission Order 34299 and non-routine completion method (wet shoe, frac-out). No contradictions or missing critical dates. Federal minerals notification (7/1/2025) is post-permit but documented. All regulatory citations (NDAC ยง 43-02-03, NDCC ยง 38-08-04) are verifiable. Historical context signals (sidetrack, OBM, filtration, federal interest) are supported by specific document references and are forward-looking (not permit-dependent). High confidence in separation of permit-cycle explanation from historical operational context.