Page 11 - NorthAmOil Week 30 2022
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NorthAmOil                                 NEWS IN BRIEF                                         NorthAmOil








       POLICY                              revenue records, that money can’t be used   selectively pursuing hub-class exploration
                                           until next biennium. As Your News Leader   opportunities. If we can grow it, we want to.”
       North Dakota budgeters              reported Tuesday, the state’s budget is set in   been “selectively rebuilding” its portfolio in
                                                                                  In recent years, Hill said the company has
                                           two-year cycles. That means, it won’t - and
       expect to see record oil tax        can’t - be accessed until the next Legislative   the US Gulf, and since that time has acquired
                                           session.
                                                                                60 new lease blocks in the region for a current
       revenue                             KFYR                                 total of 80 Hess-leased blocks.
                                                                                  Those opportunities are balanced between
       Drivers hate high gas prices. But with high gas                          high return tiebacks – prospects near
       prices come high oil prices, and that could be   COMPANIES               existing production hubs that are relatively
       seen as a good thing for North Dakota.                                   cheap to drill and can be tied in fairly quickly,
         The price for a barrel of oil has been above   Hess encouraged by Huron   but also may have a lower reserves – and
       $90 since about Valentine’s Day. Back when                               hub-class new exploration prospects that often
       the state legislature built the budget in 2021,   well                   contain large reserves but could take five or
       lawmakers expected that number to hold                                   more years to drill, appraise, build and bring
       steady at around $50 per barrel.    Hess Corp. is reportedly “encouraged” by   online.
         Because of oil’s high price tag, the money   drilling operations at its operated Huron well   Hess is planning an appraisal sidetrack on
       the state receives from oil tax revenue has   in the US deepwater Gulf of Mexico, a top   Huron, and the company is enthused over
       skyrocketed, and Office of Management and   company executive said July 27.  the results they have seen there, Hill said. But
       Budget Director Joe Morrissette expects the   The well, drilled in Green Canyon block   he added that even more encouraging is the
       Legislature will have a lot more money than   69 to a depth of nearly 29,000 ft, showed   fact that the well has opened up additional
       predicted once the 2023 session rolls around -   “very encouraging results…particularly for   opportunities in the surrounding areas nearby.
       billions of dollars more.           the Northern Green Canyon basin, where we   “As a result of what we’re seeing at Huron,
         “Essentially, in round numbers, we’ve   have a very competitive leasehold,” said Greg   we see additional prospectivity in that
       been double the actual price of what was   Hill, the company’s COO and president of   Northern Green Canyon area, and we have
       in the budget. So, where we expected to   exploration and production. Hill, quoted in   a very competitive leasehold position there,”
       have oil revenues of around $3.5 billion for   an S&P Global report, offered his views in a   Hill was quoted to say in the S&P Global
       the biennium, we’ll likely have a record of   second-quarter earnings conference call.  report.
       closer to $7 billion for the biennium,” said   Huron had targeted a new Miocene subsalt   Hill declined to provide pre-drill reserve
       Morrissette.                        fairway in the Northern Green Canyon area,   estimates, saying the company does not
         Not all of the money from oil tax revenue   and Hess discovered “high-quality oil in good   release that information. However, he noted
       is the state’s to play with. Some of the money   quality Miocene sands,” Hill said.  that the well is still under evaluation, and
       gets allocated to cities, counties, school   Hill added, “Our objective in the Gulf is to   that more information will be released as the
       districts, and the Three Affiliated Tribes.  add a minimum sustained production cash   company appraises the asset.
         Even though the state is on pace to set oil   flow through tieback opportunities and also   OFFSHORE








































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