montana tech – butte, mt lsmith@mbmgsun.mtech.edu montana tech – butte, mt...

Montana Tech – Butte, MTlsmith@mbmgsun.mtech.edu

Montana Tech – Butte, MTlsmith@mbmgsun.mtech.edu

Larry N. SmithMontana Bureau of Mines and Geology

Larry N. SmithMontana Bureau of Mines and Geology

Montana Horizontal Well Update

Montana Horizontal Well Update

Drilling History276 Wells and Active Permits as of February 1999

0

20

40

60

80

100

120

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Num

ber

of W

ells

Expired Permits (53)

Active Permits (16)

Completed (260)

Drilling Historyby Reservoir

0

20

40

60

80

100

120

Num

ber

of W

ells

Permits (16)

1998-1999 Wells

Pre 1998 Wells

Red River

Sil/Ord

Initial Status276 Horizontal Wells

P&A4.7%

Failed0.4%

Injection0.4%

T/A4.3%

Permitted Injection

0.7%Spudded4.3%

Completed5.8%

Gas0.4%

Producer73.2%

Permit5.8%

Final Status276 Horizontal Wells

Spudded4.3%

Permit5.8%

Gas0.4%

Shut In2.5%

T/A4.3%

Producer65.9%

EOR10.5%

P&A6.2%

Operators276 Wells as of February 1999

0

20

40

60

80

100

120

140A

moc

o

Avi

ara

Bla

ckfo

rd

Che

sape

ake

Cit

atio

n

Col

umbu

s.

Cro

wn

Enr

on

Hal

lwoo

d

K2

Lyc

o

Mer

it

Nor

ther

n

Pan

terr

a

Rig

el

Shel

l Wes

tern

Uni

on O

il

Was

cana

Win

n

Nu

mb

er o

f W

ells

Expired Permits (53)

Active Permits (16)

Completed (260)

Burlington Resources

Shell

Continental Resources Wascana

Production8.63 MMBO produced through Sept./Dec. 1998

3,82

5,93

0

2,50

8,12

2

50,2

57

26,4

14

156,

200

148,

201

493,

647

403,

029

399,

057

219,

980

357,

120

80,1

56

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Amsden

Bakke

n

Cutba

nk

Charle

s

Mad

ison

Miss

ion C

anyo

nNisk

u

Ratclif

fe

Red R

iver

Sil /

Ord

Sawto

oth

Other

BO

Well Cumulative Production206 Wells with Data

0

50,000

100,000

150,000

200,000

250,000

Sep-

88

Sep-

89

Sep-

90

Sep-

91

Sep-

92

Sep-

93

Sep-

94

Sep-

95

Sep-

96

Sep-

97

Sep-

98

Sep-

99

Completion Date

BB

L O

il

Other

Red River

Madison

Nisku

Montana Williston Basin Oil Production

0

2

4

6

8

10

12

14

16

18

20

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

MM

BO

Horizontal Wells

Vertical Wells

Est

imat

ed

Tax Change HighlightsTax Change Highlights

• SB 200– Reduce or Eliminate Property Tax on Class 6 and Class 8 Property

• SB 249– Cap Resource Indemnity Trust Tax Fund and repeal RIGWAT

• SB 430– Exempt Fee for Royalty Payment Admin. from Production Tax

• SB 530– Oil & Gas Production Tax Simplification and Competitiveness

• HB 661 and HB 658– Tax Reductions on Stripper Wells

http://leg.state.mt.us/index.htmhttp://leg.state.mt.us/index.htm