Oil Activity Increasing In Region

While the increased oil activity in North Dakota has garnered recent headlines, activity is slowly increasing in the Big Sky State as well.

Production experienced a 48,000 barrel per day increase in North Dakota during the month of November. Rig counts were as high as 32 in December.

“We’re still seeing some drilling activity,” Alan Olson, executive director of the Montana Petroleum Association said.

Kraken Oil and Prima Exploration are each active in Richland County and the southeastern part of Roosevelt County.

Olson noted that advances now allow for three or four wells from a single pad during a 30-day period. It used to take that long for only one well.

“With oil prices coming up, it will definitely pick up interest,” Olson said.

He noted the price for central Montana crude has increased $11 a barrel since the start of the month. The price was $77.56 on Friday, Jan. 21.

Olson is excited that helium prospecting has increased in north central Montana, north of Chester and Shelby. Olson noted that helium can attract 10 times the price of natural gas.

“There has been some interest there for the last few years,” Olson said.

Overall, the outlook for natural resources in Montana appears much better than a year ago.

“We’re optimistic,” Olson said.