ConocoPhillips' Bakken Production Averages 24,000 in Q4 2012

ConocoPhillips Bakken Acreage Map
ConocoPhillips Bakken Acreage Map

ConocoPhillps' Bakken production averaged 24,000 boe/d in the fourth quarter of 2012. Production is expected to grow almost 10% in 2013 and ultimately rise to approximately 40,000 boe/d over the next 4-5 years.

Conoco has a drilling inventory of over 1,200 gross locations and expects to capture more than 400 million barrels of resource potential from the play. The company drilled and participated in 187 gross operated and non-operated wells during 2012.

At year-end, Conoco had over 30 wells drilled and awaiting completing, while almost 15 wells were awaiting gathering infrastructure.

The company stated the following related to the Lower 48 and Latin America:

Fourth-quarter production was 475 thousand barrels of oil equivalent per day (MBOED), an increase of 31 MBOED compared to the same period of 2011. Significant growth continues from the ramp up of core shale plays in the Eagle Ford and Bakken. For the quarter, these shale plays delivered approximately 113 MBOED, a 71 percent increase compared to the fourth quarter of 2011. During the quarter, Eagle Ford averaged 89 MBOED, achieving a peak daily rate of more than 100 MBOED, while Bakken averaged 24 MBOED. Earlier this month, the company announced an agreement to sell its Cedar Creek Anticline properties for $1.05 billion, with closing expected by the end of the first quarter of 2013.

The company also sold Williston Basin assets during the quarter. Cedar Creek Antincline assets were sold for over $1 billion and the deal should close early in 2013. The assets had declining production and simply weren't competitive with the rest of Conoco's portfolio.