A Look into Dunn County (ND): Permitting Drops to Zero and C&J Gains Market Share

A Look into Dunn County (ND): Permitting Drops to Zero and C&J Gains Market Share

Drilling deeper into activity in North Dakota we take a look at how Dunn county has tolerated the oil price slump. Operators like ConocoPhillips (NYSE: COP), Marathon (NYSE: MRO), HRC Operating, and ExxonMobil (NYSE: XOM) are still active. Since the start of the year, there have been few completions with 9 in January and only one in February.

energent-dunn-county-bakken-activity-chart

Permitting Tumbles to Zero

Permit activity has slowed from a peak of 51 permits in October of 2014 to most recently 16 in the month of February. In the past 60 days, ConocoPhillips has permitted a total of 14 wells along with Marathon permitting 12 wells. As of last week there were zero permits issued in Dunn with North Dakota as a whole having only 6 permits issued.

energent-dunn-county-drilling-permit

C&J Breaks into Dunn County

Looking back at 2015, C&J did not completed a single frac job, yet started 2016 with 7 jobs in January for ExxonMobil. Two major players have held almost 70% of the market in the last year with Halliburton holding 43% of the market and Schlumberger having 26%. The next closest service company had only 9% of the market in the last year.

dunn-county-OFS-market-share-chart

CLR Hold Largest Inventory of DUCs in Dunn County

As of today in Dunn county has an inventory of 142 uncompleted wells, an increase from last months North Dakoda DUC Analysis where there were just under 125 DUCs. The inventory of uncompleted wells is comprised of operators like Continental, XTO Energy, HRC Operating and Oxy USA who hold 60% of the DUCs in the county. Dunn currently has 6 rigs running as of last weeks BHI Land Rig count compared to 13 rigs one year ago and 25 rigs two years ago.

energent-dunn-duc-plot

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