Serving The Bakken And Beyond
Proposed Denbury Spacing Unit

Denbury Crosses State Line To Get North Dakota Oil

The ND Industrial Commission gave the okay in August for two unusual drilling units that will cross the North Dakota-Montana state line and will cover 1,021 acres.

Denbury Resources LLC will drill the two wells in Fallon County, and extract oil from the horizontal wells in Bowman County.

The company anticipates an ultimate production (EUR) of 284,000 barrels of crude oil with drilling costs pegged at $3.1 million for each well. Denbury is proposing to drill the wells parallel to the fault that traverses from the SW┬╝ of Sec. 8, T4N-R62E in Fallon County to just west of the southeast corner of Sec. 10.

According to Denbury attorney Lawrence Bender, oil produced from the wells would not be taxed by North Dakota, but North Dakota mineral owners in the unit would receive royalties.

The spacing unit is part of the original Cedar Creek Anticline No. 8-B formed in 1942.