File #42722 | Phoenix Operating LLC | Divide County
API
3302301771
Target Formation
Bakken-Three Forks Petroleum System (Middle Bakken target)
Permit Explained
Yes
Permit Cycle Assessment
The permit approval (2026-02-19) is justified by Commission Order No. 34436, which establishes setback conditions directly tied to non-routine well geometry and completion design. The north setback (150' vs. standard) is explicitly conditioned on the production liner design with wet shoe and frac-out capability. The backbuild order waiver (2026-02-05) precedes approval and addresses off-spacing trajectory entry via cross-unit notification exemption based on offset operator relationship (Phoenix Energy). The permit contains substantive technical documentation (directional survey, casing/cementing program, mud program, cuttings disposal plan) that supports the approval conditions. No material gaps exist between permit issuance date and contemporaneous justification.
Permit Cycle Signals (4)
Commission Order No. 34436 issued; approval conditioned on 150' setback from north/south boundaries and 1220' setback from east/west boundaries within 1920-acre spacing unit (Sections 1, 12, 13, T160N, R98W) (2026-02-19)
Setback conditions directly condition the permit approval and constrain wellbore placement. North setback justified by production liner cemented in lateral with wet shoe and ability to frac out shoe.
Production liner with wet shoe and ability to frac out toe installed; liner top of cement at liner top; designed to enable fracture-out completion strategy (2026-02-06)
Wet shoe design with frac-out capability is explicitly cited in permit stipulations as basis for north setback relaxation (150' vs. standard). This non-routine completion feature differentiates the permit and justifies reduced setback.
Backbuild Order Waiver letter dated 2026-02-05 notifying NDIC that CANDY FERRARI and GINA FERRARI wells will enter Bakken Petroleum System outside target spacing unit; Phoenix Energy is offset operator and no additional cross-unit notification required (2026-02-05)
Waiver addresses off-spacing trajectory geometry and cross-unit wellbore entry. Letter precedes permit approval by 14 days and establishes that offset notification requirements (per NDIC Orders 31848 & 31973) are satisfied via Phoenix Energy operator status, conditioning approval of multi-well pad design.
Closed mud system with no cuttings pit required; all drill cuttings to be collected in metal containers and hauled to licensed disposal facility (Smoky Butte Environmental, LLC, Fortuna, ND) (2026-02-19)
Standard Bakken-era condition; not waived. Included because explicitly referenced in permit and coupled with contemporaneous disposal contractor designation in drilling plan.
Historical Non-Routine Signals (3)
Skabo-Bakken Pool definition established via permit stipulations: interval from 50 feet above top of Bakken Formation to 100 feet below top of Three Forks Formation. Pool designation applies to spacing unit and future completions. (2026-02-19)
Pool definition is structural constraint on all future completions and commingling decisions within the spacing unit. Affects subsequent wells on pad (GINA FERRARI 1H-LL, 2H, 4H, 5H, 6H-LL and CANDY FERRARI wells) and establishes regulatory boundaries for production accounting and unitization.
Operator certification that changes to casing point depth, Total Depth, or completion technique within Bakken-Three Forks Petroleum System require prior NDIC approval; any intentional deviation in surface casing portion prohibited (2026-02-19)
Constraint persists throughout well lifecycle. Any material modification to wellbore design or completion strategy requires pre-approval. Affects future sidestep, sidetrack, or recompletion decisions and creates ongoing reporting obligation.
Filter sock disposal requirement (effective June 1, 2014 statewide): operator must maintain covered, leak-proof, placard container on-site from spud through completion and flowback phases. Filter socks must be hauled to authorized disposal facility per NDAC 43-02-03-19.2. (2014-06-01)
Continuing operational mandate applicable to all North Dakota wells. Affects pad-wide waste management and creates daily operational compliance requirement during drilling, completion, and flowback operations for this well and all co-located wells on CANDY FERRARI pad.
Historical Operator Profile
Total Wells:N/A
Active Wells:N/A
Notable Patterns:None identified
Confidence Assessment
Level: High Rationale: Well file contains complete permit record with explicit approval basis (Commission Order No. 34436), contemporaneous directional plan, drilling/cementing design, and pre-approval backbuild waiver addressing trajectory geometry. Permit approval date (2026-02-19) is definitive. All stipulation conditions are clearly articulated in regulatory language and tied to specific well design features (wet shoe, setbacks, mud system, cuttings disposal). NDIC letter (2014-06-01) and backbuild waiver (2026-02-05) provide independent supporting documentation. No material ambiguities in permit-cycle sequence or justification. Operator submissions and approver signature (Nathaniel Erbele, Petroleum Engineer) are explicit and dated.