Marathon Accelerates Activity in The Bakken and Other US Domestic Plays

Marathon's Bakken and Three Forks Acreage Map

Marathon’s Bakken and Three Forks Acreage Map

Marathon is continuing to ramp up its presence in US domestic shale plays, with increased activity expected in the Bakken Shale through the end of 2014. In a company statement in late March 2014, officials revealed that Marathon hit its target of a 28-rig program across the Eagle Ford, Bakken and Oklahoma-Woodford Shale plays at the end of January.


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WPX Energy Sets Its Bakken Capital Budget at $580-600 Million in 2014

Additional Operated Rig Coming and Will Drill 62 Gross Wells in the Williston Basin in 2014
WPX Energy Rockies Asset Map

WPX Energy Rockies Asset Map | Click to Enlarge

WPX Energy will spend between $1.420-$1.523 billion in 2014, with $580-600 million directed to Bakken and Three Forks targets in the Williston Basin.

WPX is planning to add a rig to bring its operated total to five in 2014.

The company expects the added rig will allow the company to drill 62 gross operated wells, or 25% more than the ~50 wells the company drilled in 2013.

Also read: Halcon Lowers Its 2014 Capital Budget & Holds Production Guidance [Read more…]

Emerald Acquires Bakken Acreage in the Wiliston Basin for $74.6 Million

Emerald acreage deal includes leases producing 350 boe/d
Click to Enlarge

Click to Enlarge

Emerald Oil acquired 20,800 net acres in the Williston Basin for $74.6 million in two separate deals in early January.

The company now controls 85,000 net acres in the area.

With the closing of this deal, Emerald is now the operator for 75% of its acreage. The company’s purchase includes Bakken and Three Forks producing properties and an undeveloped leasehold in McKenzie and Williams counties in North Dakota. Without valuing production of 350 boe/d, the company paid a little more than $3,500/acre.

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Kodiak Sets 2014 Capital Budget at $940 Million – Expects 45% Growth

Expecting 18-month Payout on Polar Area Downspacing Pilots
Kodiak Oil & Gas Williston Basin Map

Kodiak Oil & Gas Williston Basin Map | Click to Enlarge

Kodiak Oil & Gas’ 2014 capital budget has been set at $940 million. That’s down from approximately $1 billion in 2013.

Kodiak expects to spend $890 million drilling and completing ~100 net wells to production 45%.

$50 million is budgeted for infrastructure build-out and acreage acquisitions. [Read more…]

Marathon Oil Plans To Spend $1 Billion in the Bakken in 2014

Initial Production From Wells Has Gotten Better Every Year Since 2008
Marathon Oil Bakken Initial Production Improvement

Marathon Oil’s Initial Production Rate Improvement in the Bakken | Click to Enlarge

Marathon Oil plans to spend $1 billion of its $3.6 billion budget in North America in the Bakken in 2014.

As a result, the company’s production is expected to grow from a little less than 40,000 boe/d in 2013 to a little less than 50,000 boe/d in 2014. [Read more…]

Continental’s Bakken & Three Forks Density Test Yields Almost 15,000 boe/d

Planning Full Field Development With 20-30 Well Pads in the Antelope Area
Continental Resources Hawkinson Bakken Three Forks Density Test

Continental Resources Hawkinson Bakken & Three Forks Density Test | Click to Enlarge

Continental set a record with third quarter production of 141,900 boe/d. Bakken production grew 7% and accounted for 94,500 boe/d of the total.

Continental operated 20 rigs in the Bakken region during the quarter and grew gross production to almost 120,000 boe/d (94,500 boe/d net). That’s 51% higher than the third quarter of 2012 and even more impressively, Montana production grew 17% over the second quarter. [Read more…]

Marathon Oil’s Bakken Production Holds Flat in Q3 – Drilling Faster

The Three Forks Accounts for More Than 20% of Company Production in the Region
Marathon Oil Bakken Map

Marathon Oil Bakken Acreage Map | Click to Enlarge

Marathon Oil’s Bakken production held flat at 38,000 boe/d in the third quarter as the company shut in production to complete adjacent wells. Compared to the third quarter of 2012, production is up 27%.

Flat production from one quarter to the next isn’t a knock on Marathon, it’s going to happen with the expanded use of pad drilling. Unless operators stagger their pad drilling perfectly (near impossible), we’ll see lumpy production additions going forward. [Read more…]

Oasis Petroleum Is Testing Bakken & Three Forks Well Spacing

Oasis, Continental and Others Looking to Determine Optimal Well Spacing in the Region
Bakken & Three Forks Well Spacing Tests

Bakken & Three Forks Well Spacing Tests | Click to Enlarge

Oasis Petroleum believes the company can drill four Middle Bakken and four Three Forks wells on each 1,280-acre unit, but the future might be more dense drilling than they currently suggest.

Oasis is testing up to seven wells per formation in the Bakken and the first bench of the Three Forks (TFS 1). [Read more…]

Magnum Hunter Resources Provides Second Quarter Bakken Update

Wet Weather Delays Oneok Gas Gathering System
Magnum Hunter Bakken Shale Map

Magnum Hunter Resources Bakken Shale Map | Click to Enlarge

Mangnum Hunter Resources participated in bringing on 19 gross (5.5 net) Bakken wells in the second quarter of 2013. At the end of the quarter 20.4 gross (11.4 net) wells were in some stage of drilling or being completed.

Magnum Hunter also noted midstream delays brought on by wet weather. A Oneok gathering system expected to be online in April did not accept gas until the last week of June. The gas gathering system is being built in an effort to conserve natural gas production in the area. In total, the project will connect ~300 wells in the area over the next year. [Read more…]

Hess’s Bakken Drilling Days & Well Costs Down

Drilling & Completion Costs Down To $8.6 Million From $13.4 Million
Hess Bakken Drilling By County

Hess Bakken Drilling By County | Click To Enlarge

Hess is spending less in 2013, but it might simply be spending it smarter. The company only spent $535 million developing its Bakken acreage in the first quarter. Honestly, it’s still a big investment, but down over $300 million from the first quarter of 2012 when Hess spent $852 million in the area. [Read more…]