Whiting Sells Bakken Assets for $500 Million

September 10, 2017 Elizabeth Alford

RimRock Oil and Gas gains a foothold in the Bakken with purchase of Williston assets from Whiting.

Whiting Petroleum has announced it closed last week on the sale of Bakken Shale assets in Dunn and McLean Counties for $500 million. Details of the sale include:

29,637 net acres
29 non-operated drilling spacing units
17 operated units
Net daily production from the properties averaged 7,785 BOE/d for 2017 Q2
Lease operating expense averaged approximately $12.60 per BOE for the 12 months ending June 30, 2017

Whiting's CEO, James K. Volker said the company will use to proceeds of the sale to pay down $500 million in debt.

“The Fort Berthold properties represent only approximately 7% of Whiting’s second quarter total production. The sale provides Whiting additional liquidity to develop its industry-leading properties across the Williston Basin, where the Company estimates it has 4,850 future gross drilling locations.”

— James J. Volker, Whiting's Chairman, President and CEO

Continental Touts Bakken Innovation

August 10, 2017 Elizabeth Alford

Continental Resources reports its Bakken team doubled their rate of return during the second quarter while achieving impressive efficiency gains.

North Dakota Owed Millions in Royalties

During an earnings call this week, Continental executives claim their leadership among U.S. energy companies due to their quality assets and low-cost operations.

Continental reported a net loss of $63.6 million for the second quarter of 2017 at the same time that production increased 6%. The company will increase its capital expenditures for 2017 to between $1.75 billion and $1.95 billion.

Bakken Shale Highlights for Q2

During the second quarter, Continental reported that the rates of return for typical Bakken wells doubled to 82%. The company's Bakken assets set several milestones during the quarter as a result of the 'dedication and ingenuity' of their employees. Bakken Q2 highlights include:

Generated over $2 million of added revenue during the first six months
Net production averaged 119,861 Boe per day
100 gross (38 net) operated and non-operated Bakken wells
205 gross operated DUCs
19 completions with avg. 24-hour IP rate of 1,606 Boepd
Drilling costs in the Bakken are 26% lower than 2016 average

“In 2017 our Bakken team has doubled our rate of return and reduced the payout period by 50%, based on our new type curve. This is a step-change improvement in Bakken economics.”

— Gary Gould, Senior VP of Production and Resource Development

Hess Cuts Budget for Remainder of 2017

August 2, 2017 Elizabeth Alford

The Hess Corporation plans to cut $100 million from its 2017 budget, despite increased Bakken production.

Halcón Resources Corporation to sell Bakken Assets

Hess announced its second quarter results last week that included and a net loss was $449 million. Total production dipped and exectutives

“With regard to the Bakken, we have an industry-leading strategic position with more drilling locations in the core of the play than any other operator. We are currently operating four rigs at 60-stage fracs and increased proppant levels should deliver production growth of approximately 10% a year over the next several years. With our productivity and technology improvements, we now forecast virtually the same production growth with four rigs that would’ve taken six rigs a year ago. We will decide whether to add two additional rigs as originally planned based on an improvement in crude oil prices and the results of our enhanced completions.”

— John Hess, CEO

For the full year 2017, we forecast Bakken production to average approximately 105,000 barrels of oil equivalent per day at the high end of our previous guidance of 95,000 barrels to 105,000 barrels of oil equivalent per day due to strong performance by our Bakken team and results of our new completions.

Second Quarter Highlights

Net production in the Bakken averaged 108,000 boepd, compared to 106,000 boepd for 2016 Q2
Overall net production was 294,000 boepd compared to 313,000 boepd for 2016 Q2
Announced plan to sell company interests oil recovery assets in the Permian Basin

E&P capital and exploratory expenditures are projected to be $2.15 billion, down from original guidance of $2.25 billion

North Dakota Owed Millions in Royalties

July 25, 2017 Elizabeth Alford

North Dakota is in a hot dispute with oil and gas companies and industry leaders over improper deductions on royalties owed to the state.

Who Owns Mineral Rights Under North Dakota Lake?

The North Dakota Department of Trust Lands wants to collect millions of dollars in oil and gas royalties that it believes were improperly withheld by oil and gas companies that do business with the state. The agency found the discrepancy during a recent audit of 19 companies from 2012 through 2014. 10 of those audited were found to have errors, according to Bismark Tribune.

“The bottom line is the companies would like to be able to take deductions because that helps them collect a smaller royalty. But my responsibility and the board’s is to ensure that the lease terms are followed and that we collect for the Common Schools Trust Fund and the other trust funds what they’re entitled.” - Land Commissioner Lance Gaebe

Getting to the bottom of the issue is being hindered because oil companies are hesitant to provide the necessary information. Industry leaders such as The North Dakota Petroleum Council are also pushing back through comments to the board and backing legislative action.

Halcón Resources Corporation to sell Bakken Assets

July 14, 2017 Elizabeth Alford

Halcón Resources Corporation announced this week that it plans to sell Bakken assets.

Halcón Resources Exits the Eagle Ford

Houston-based Halcón will sell a major part of its North Dakota operations in order to shift focus to the Permian Basin. The sale included operated assets in the Williston Basin to an affiliate of Bruin E&P Partners for $1.4 billion

“The sale of our Williston Basin operated assets transforms Halcón into a single-basin company focused on the Delaware Basin where we have more than 41,000 net acres in Ward and Pecos Counties representing decades of highly economic drilling inventory. The cash proceeds from this transaction and related debt reduction provide us with a strong balance sheet and liquidity to execute our growth plans.”

— Floyd Wilson, Halcón's Chairman, CEO, and President

Halcón shares jumped more than 35% at the news of the deal.

Halcón emerged from bankruptcy last fall, where it was able to eliminate approximately $1.8 billion in debt. Soon after, company executives announced it wouldl sell its Eagle Ford assets (“El Halcón”) to Hawkwood Energy for $500 million.