QEP Resources Bakken & Three Forks Production Surpasses 21,000 boe/d

QEP Resources Fort Berthold Bakken Well Results

QEP Resources Bakken and Three Forks production grew a little less than 1,000 boe/d in the third quarter to average 21,300 boe/d.

QEP brought 21 operated wells to production with impressive initial production rates. Ten wells in the South Antelope area came online with a 24-hour initial production (IP) rate of 3,412 boe/d and 11 wells in the Fort Berthold area came online with IPs of 2,588 boe/d. Many of those wells were drilled and completed on mult-well pads.

Production didn't grow quite as much as expected due to midstream bottlenecks and shut-ins required by drilling operations. I suspect we'll see relatively strong growth in the fourth quarter.

At the end of the third quarter, QEP had drilling operations active on eight well pads (3 at South Antelope and 5 at Fort Berthold). QEP also has an interest in 24 outside operated wells being drilled and is awaiting completion on 22 operated and non-operated wells.

“In the Williston Basin, we brought on 21 new QEP-operated wells in the third quarter compared to a total of 27 operated completions in the first half of the year. Production results from our South Antelope wells continue to confirm our pre-drill EUR expectations. Despite some delayed well completions — in part due to bottlenecks in third-party downstream crude oil systems — and shut-ins of existing wells for offset completions, we expect to grow oil production at an enviable rate of 60 percent over 2012.”

— Chuck Stanley, CEO

On QEP's Fort Berthold acreage alone, the company estimates potential for 420 gross Bakken and Three Forks wells at 160-acre spacing. EURs in the Bakken range from 400-650 mboe and wells in the Three Forks are expected to yield 350-600 mboe. That equates to resource potential of 121-202 million barrels of oil equivalent (net) from QEP's Fort Berthold assets alone.

Read the full press release at qepres.com

Kodiak Oil & Gas Grows Bakken Production More Than 50% in Q3

Kodiak Oil & Gas Williston Basin Map

Kodiak Oil & Gas grew production more than 50% to 35,400 boe/d in the third quarter. That compares to a little more than 23,000 boe/d in the second quarter and almost 16,000 boe/d in the third quarter of 2012.

Kodiak completed 29 gross (24.5 net) operated wells and participated in 37 gross (6.6 net) non-operated completions during the quarter.

The company plans to continue utilizing seven rigs and has two dedicated completion crews running through the end of the year. Production at the end of the year is expected to grow to ~42,000 boe/d.

“We believe the third quarter of 2013 was a transformational quarter for Kodiak. In addition to accelerated growth in production and reserves, we successfully brought our two down-spacing pilot programs onto full production.”

— Kodiak's CEO, Lynn A. Peterson

Downspacing Test In McKenzie County Proves Successful

Kodiak also released results from the company's first high density downspacing test in McKenzie County. The company drilled six wells targeting the Bakken, three wells targeting the Middle Three Forks, and three wells targeting the Upper Three Forks. The wells are approximately 800 ftt apart and target an approximate 210 acre drainage area.

The wells came online at almost 2,000 boe/d in the first 24 hours and averaged just under 800 boe/d over the first 30 days. The best well produced almost 1,100 boe/d from the Bakken and the worst well produced a little less than 400 boe/d from the Middle Three Forks in the first 30 days.

Halcon Completes Company Record Bakken Well At Fort Berthold

Halcon Resources Bakken Acreage Map

Halcon Resources ran seven rigs and spud 16 wells in the Bakken during the second quarter. A total of ten wells were brought online and new completion methods are proving successful. The average well completed in the Fort Berthold area had an average initial production (IP) rate of more than 2,000 boe/d. Completion rates improved by more than 50% across the area in the quarter.

The two most recent completions came online at more than 3,000 boe/d and a company record was set with an IP of 3,317 boe/d.

Halcon has 150,000 net acres in the Williston and plans to run six rigs through the remainder of the year. The company has 149 Bakken & Three Forks wells producing, 18 wells being completed, and seven wells being drilled.

Halcon expects downspacing tests to provide more details related to effective drainage of the Bakken and Three Forks. The company is also testing the application of slick water fracks across areas of its holdings. Tests are ongoing through 2013.

The company also published higher than expected operating costs due to weather and associated delays in North Dakota during the quarter.

You can read the company's full press release at halconresources.com

QEP Resources Bakken Well Pad Surpasses 15,000 Barrels Per Day!

QEP Resources Bakken Three Forks Acreage Map

QEP Resources Bakken production was down in the first quarter due to the company's transition to pad drilling. That was quickly reversed as the company brought its first four well pad online on its South Antelope acreage in the second quarter.

The four wells had a 24-hr, initial production rate that eclipsed 15,000 boe/d or 3,929 boe/d per well after processing when added together. That's after QEP produced just 17,000 boe/d in the first quarter of 2013.

The first two wells actually eclipsed 4,500 boe/d each and that is from the first two wells the company has drilled in the area. QEP Resources acquired its South Antelope acreage from Helis for $1.3 billion in late 2012.

“I am pleased with QEP`s strong operational results this quarter and I am encouraged by the very strong well results from our first operated multi-well pad on the South Antelope Acquisition,” commented Chuck Stanley, Chairman, President and CEO of QEP Resources. “As anticipated, it has taken some time to transition to pad development, where multiple wells are drilled and cased before completion activity commences.”

QEP operates 8 rigs targeting the Bakken and Three Forks in the region.

Watch for lumpy production rates as operators shift to pad drilling. This is perfect example of how significant volumes can come online all at once.

Read the full operations update at qepresources.com

Halcon Bakken Well Surpasses 3,000 Boe/d On Fort Berthold Reservation

Halcon Resources Bakken Acreage Map

Halcon Resources is running eight rigs across a 135,000 acre position in the Bakken and continues to implement drilling & completion modifications.

The latest changes look to be paying dividends. The three most recent wells completed on the Fort Berthold Reservation had an average initial production of 2,648 boe/d (78% oil). That's a 38% improvement over wells completed in the first quarter of 2013.

The following completion modifications have been made on recent Bakken wells:

• Plug and perf completions
• Ceramic proppant
• Higher proppant volume per lateral foot
• Increased stage density
• Utilizing simultaneous zipper fracks

“The most impressive well was completed on the reservation at a rate of 3,060 boe/d (90% oil). That’s a Halcon record.”

A second well is being completed on the same pad and is producing more than 2,700 boe/d with just 67% of the lateral contributing. Additional frac plugs will be drilled out and production will likely increase.

Three Forks Wells Improving

Engineering changes are improving Three Forks well performance as well. The past four wells have come online at more than 2,800 boe/d (86% oil) or a 77% improvement from first quarter wells.

Halcon is testing 660-ft spacing in the Bakken and is also participating in Continental Resources' Rollefstad Unit that will test the upper three benches of the Three Forks.

The company has seen well costs average $10 million and is targeting well costs of $9 million by year-end 2013.

Marmon Area Bakken Wells Improving Too

Two recent wells in the Marmon area are projected to have EURs of 462,000 boe or 91% higher than previous wells. New completion designs will likely change the way the Bakken is developed in many areas of the Williston Basin. Well costs in this area are already down to $9.5 million are expected to fall to $9 million as well.

Halcon has 137 wells producing, 14 wells awaiting completion, and 8 wells being drilled across the Williston Basin.

In other areas, Halcon also announced plans to spend more on Eagle Ford development outside of the traditional fairway. Read the company's full operations update at halconresources.com