Page 11 - NorthAmOil Week 13 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

ExxonMobil considers expanding

gas-to-bitcoin pilot to four countries

NORTH DAKOTA EXXONMOBIL is reportedly considering The Bakken has high levels of associated gas
expanding its North Dakota gas-to-bitcoin pilot production and the pilot helps ExxonMobil to
to the Qua Iboe terminal in Nigeria and Argen- minimise flaring. Meanwhile for the cryptocur-
tina’s Vaca Muerta shale play, as well as fields in rency miners, the arrangement provides them
Guyana and Germany. The super-major is also with cheap gas to fuel their operations.
mulling launching a pilot project in Alaska, While making clear their preference for an
according to sources familiar with the matter aggressive transition away from fossil fuels,
that were cited by Bloomberg last week. several environmental groups have conceded
Under the North Dakota pilot programme, that such pilot projects represent a positive step
excess natural gas is burned off from oil wells forward, since they find a use for gas that would
to power cryptocurrency-mining operations. otherwise be flared.
The project was launched in January 2021 and Exxon is not the only oil producer consider-
expanded in July. It uses up 18mn cubic feet ing gas-to-bitcoin projects. In February, Cono-
(509,760 cubic metres) per month of associated coPhillips revealed that it is also supplying gas
gas production that otherwise would have either from its Bakken operations to a bitcoin mining
been flared owing to a lack of takeaway capacity. company.
ExxonMobil has a deal with Crusoe Energy Both ExxonMobil and ConocoPhillips were
Systems to take gas from a well pad in North among the founding members of the OOC Oil &
Dakota’s Bakken play to power mobile gener- Gas Blockchain Consortium in 2019. The group
ators used to run on-site bitcoin mining serv- of energy companies aim to establish “key block-
ers, according to an unnamed source quoted chain standards, frameworks and capabilities”
by Bloomberg. within the industry.™

NEWS IN BRIEF

UPSTREAM oil price. To put the well performance in DOWNSTREAM
perspective, the 30-day proved forecast curve
Kolibri Global Energy case initial production rate (IP30) utilised Motiva Enterprises signs
by our third-party engineering firm for our
Barnes 7-3H well currently reserve report is 388 boepd or 37% of what $160mn agreement with
the Barnes 7-3H is currently producing.
producing over 1,000 boepd The initial 30-day type curve utilised by the Kyndryl to enable its digital
Company’s management assumes a 472 boepd
Kolibri Global Energy is providing an update IP30 rate, and the best well we have in the transformation and cloud
on the Barnes 7-3H well (98.07% working field had a 630 boepd IP30 rate.
interest), in its Tishomingo field in Oklahoma. “Since we are only halfway through the journey
The Barnes 7-3H well has averaged over 30-day initial production time period, there
920 Barrels of oil equivalent per day “boepd” can be no assurance as to what the Barnes Kyndryl, the world’s largest IT infrastructure
(730 barrels of oil per day “bpd”) for the last 7-3H well’s 30-day initial rate or ultimate services provider, today announced it has
14 days with current production of about productivity will be. Based on the current signed a five-year, $160mn agreement with
1,050 boepd (830 bpd). The Company has performance, we anticipate that the well will Motiva Enterprises, owner of North America’s
achieved these results utilising a controlled end up with an IP30 rate that is much higher largest refinery, under which Kyndryl will
flowback on the well to optimize long-term than the reserve report proved forecast case, streamline Motiva’s IT services, accelerate its
production and recoveries. well above our KEI type curve and has a good cloud journey, and lay the foundation for its
Wolf Regener, president and CEO, chance of being around the current 14-day enterprise-wide digital transformation.
commented: “We are beyond thrilled about average. The current production from this As businesses across the global economy
the early performance of the Barnes 7-3H well well has doubled our production in the field. continue to grapple with the ripple effects of
as it is exceeding even our most optimistic “We are in discussions with several pandemic-induced supply chain disruption,
forecasts. Since the production from the subcontractors and anticipate beginning enterprises within the oil and gas sector are
Barnes 7-3H is not hedged, the Company completion operations for the Barnes 8-4H under more pressure than ever to ensure the
is generating netbacks of over $55 per BOE sometime in the first three weeks of April.” smooth delivery of the energy that keeps
from the production assuming a $100/barrel KOLIBRI GLOBAL ENERGY, March 31, 2022 commerce physically moving. Business

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