Marathon Oil's Bakken production helped drive the company's North American E&P segment income to $529 million in 2013, compared to $382 million in 2012.
The approximately ~38% increase was primarily due to higher liquids volumes from the Eagle Ford, Bakken and Oklahoma resource basins.
Read more:Marathon Oil Plans to Spend $1-Billion in the Bakken in 2014
Marathon Q4 2013 Production and 2014 Bakken Budget
[ic-l]Marathon Oil averaged approximately 40,000 net boe/d of production in the Bakken during the fourth quarter. That's approximately a ~5% increase from 38,000 net boe/d in the third quarter of 2013.
In 2014, Marathon will spend $1 billion of its $3.6 billion budget in North America in the Bakken. As a result, Bakken production is expected to grow to a little less than 50,000 boe/d.
Marathon Oil's average Bakken production by commodity is as follows:
- 90% crude oil
- 4% NGLs
- 6% Natural Gas
Marathon Hits Q4 2013 Production Target
In the fourth quarter, the company reached total depth on 15 gross wells and brought 22 gross wells to sales, hitting its year-end exit rate estimate of 40,000 boe/d.
“During 2013... our strong year-over-year net production growth in the top U.S. liquids resource plays — 136 percent in the Eagle Ford, 34 percent in the Bakken and 68 percent in the Oklahoma resource basins — demonstrated our ability to drive superior operating results,” said Lee M. Tillman, Marathon Oil’s president and CEO.”
The company improved it's average time to drill a well in the Bakken by 16% compared to a year prior, averaging 15 days spud to total depth. Drilling and completion costs have decreased approximately 10% compared to the fourth quarter 2012.
Marathon Highlights for 2013
- ~5% increase in production from Q3 (38,000 boe/d) - Q4 (40,000 boe/d)
- North American E&P income Up ~38% from 2012 to $529 million thanks to unconventional drilling
- 16% faster rate to drill a well than Q4 2012 (approx. 15 days)
- Drilling and completion costs decreased 10%
- Marathon sets capital budget in Bakken at $1 billion in 2014
Read more at Marathon.com