Kodiak doubles production primarily in Williston basin
Denver, Colo.-based Kodiak Oil & Gas reported average daily sales volumes of 21,700 boe/d for first-quarter 2013, which represents a 105% increase over sales volumes of 10,578 boe/d for first-quarter 2012. Crude accounted for 88% of first-quarter 2013 sales volumes. The company, which owns and controls approximately 154,000 net acres in the Williston basin, completed 20 gross (14.6 net) operated wells and participated in the completion of 13 gross (3.4 net) non-operated wells during first-quarter 2013. According to its April 15 announcement, the company expects to complete 27 gross (23 net) operated wells during second-quarter 2013. Kodiak's drilling operations continue with seven operated rigs. Four of these are drilling in its Polar project area in southern Williams County, two rigs are active in its McKenzie County-based Smokey project, and one rig continues to drill in Dunn County, ND.
Pioneer rail project under way in North Dakota
Dakota Plains recently announced its expansion of the Pioneer project in New Town, ND, which is slated for completion in fourth-quarter 2013. The 192-acre site will feature two 8,300-ft loop tracks each with a capacity of 120 car unit trains, a 10 tank car load out building, two 90,000-bbl storage tanks, 10 truck stations, and five pipeline interconnections. The expansion also will allow the facility's four existing 2,500-ft tracks to be used for inbound supplies. The loop's interior will be used as an industrial space with 90 plus acres available for build out. Initially completed in 2009, the company again expanded the site in 2011 to accommodate a capacity of 160 onsite tank cars. The facility is connected to Canadian Pacific's Class 1 Railway.
Bakken crude to supply East Coast refinery
PBF Energy has signed an agreement with Continental Resources to supply the refiner with Bakken crude, which will be delivered by rail to its refinery in Delaware City, Del. The deal further improves Continental's standing as the largest producer and leaseholder in the Bakken. The company has supply arrangements with refiners on the West Coast, Gulf Coast, and now the East Coast. PBF also has opened a new office in Oklahoma City, Okla. to focus on sourcing North American crude oil and feedstocks for its refineries.
Dakota Prarie refinery to process Bakken crude
Construction of the Dakota Prairie Refinery began on March 26, 2013. Developer MDU Resources Group Inc. and Calumet Specialty Products Partners LP broke ground on the 318-acre site just west of Dickinson, ND. The new diesel refinery project is expected to take 20 months for construction and it will process 20,000 b/d of Bakken crude once completed. The project is expected to employ 400 to 500 employees during peak construction and will employ about 100 people once the refinery is operational. Other MDU Resources companies involved in the project include Fidelity Exploration & Production Co., which will supply some of the facility's crude oil; WBI, which will supply natural gas service to operate the facility; and Montana-Dakota Utilities, which will supply the facility's electricity.
Middle Bakken well bests company record
GMX Resources Inc. announced in March that it had reached total depth on its Fairfield 21-16-2H in Billings County, ND. The well was drilled to total depth in 21 days, achieving a company record that was 8 days faster than any previously drilled wells. The well is planned as a 9,850-ft horizontal lateral and will be fractured simultaneously with its Fairfield State 21-16-1H-RE drilled in January. Production is expected early in the second quarter, the company said.