Emerald Oil Announces Huge 2014 Production

Emerald Acreage Map
Emerald Acreage Map

Emerald Oil announced its 2014 fourth quarter and year end financial results on Tuesday including huge increases for production and sales.

Fourth quarter production increased 7% over Q3 to average 4,101 BOEPD, with increases of 71% from the same time period in 2013. Throughout 2014, production increased 110% compared to 2013.

Related: Emerald Oil May Scale Back Bakken Drilling Program in Q1 2015

Emerald leadership attributes their strong position to the swift spending cuts made during the oil price freefall of the fourth quarter. Theses cuts and more streamlining will help them ride out a continued low price environment.

McAndrew Rudisill, Emerald’s Chief Executive Officer, stated, “2014 was a year of tremendous reserve and production growth at Emerald Oil. We have made great strides in streamlining the efficiency of our entire Bakken production base through the diligent efforts of our operations team. We feel comfortable managing the current oil price environment for a prolonged period with our low cost balance sheet and substantial liquidity.

Revenues from sales of oil and natural gas for the fourth quarter were $22.1 million compared to $17.9 million in 2013. As of December 31, 2014, Emerald had total proved reserves of approximately 26.3 MMBoe, all of which were located in the Williston Basin.

Emerald’s operations primarily targets the Middle Bakken and Three Forks formations for its development drilling. The company holds approximately 125,000 net acres in the Williston Basin in North Dakota and Montana.

Related: Emerald Oil Acquires Bakken Acreage in the Williston Basin

Read more at emeraldoil.com

Year in Review: Record Production

Bakken has a great 2014
Bakken has a great 2014

2014 was one for the record books as exploding production elevated the Bakken region to major-player status amongst the world's energy leaders.

January began as North Dakota set several all-time highs including having over 10,000 producing wells averaging 973,045 b/d and natural gas at 1,086,571 MCF/day.

By June, the NDIC announced it had hit the 1 million b/d in production. This long anticipated goal was slowed a bit by difficult weather in the winter but by the time it happened, the U/S. was positioned as the worlds largest oil producer. Even as oil prices began to decline throughout the fall, production continued to break records and by September, production averaged 1.2 million b/d.

The latest numbers from the NDIC show that at the end of the year, the Bakken and Three Forks regions alone averaged 1,118,010 barrels per day and boasted two more all time high records for producing wells (11,892) and gas (44,317,381 MCF = 1,429,593 MCF/day).

Whether this volume of prodcution can be maintained with current price declines is unclear, but the EIA predicts that drilling will slow for 2015 due the uncertainty.

Read more at dmr.nd.gov

Newfield Bakken Production Increases 40%, Exceeds 2013 Estimates

Newfield Williston Basin Production Chart
Newfield Williston Basin Production Chart

Newfield's Bakken net production in 2013 was ~4.4 MMBOE or ~12,000 boe/d. That's a 40% increase over 2012 production. At the beginning of 2013, the company had only estimated a production growth rate of 15% year-over-year in the play.

In 2014, Newfield will continue its current 4 rig program, and expects to achieve 35% to 40% year-over-year production growth. Capital expenditures are set at $330 million for 2014.

Read more: Newfield Completes Record Bakken Wells

In a company statement, CEO Lee Boothby said, “in 2013, we twice raised production guidance and once again, exceeded our guidance ranges in the fourth quarter, both domestically and internationally. The 2013 production from continuing operations was 40.1 million barrels of oil equivalent, exceeding our beginning-of-year estimates. The outperformance was primarily related to the Williston and Anadarko basins.

Newfield Bakken and Three Forks Activity in 2013

In the Bakken and Three Forks region, Newfield completed 42 wells and lowered average well costs to $8.4 million. The company drilled eight wells in the Three Forks. Seven test wells targeted the first bench and one was drilled in the second bench. The company indicates that it will continue testing these prospective horizons beneath the Middle Bakken.

In the Middle Bakken, 34 wells had an average gross initial production (IP) of 2,233. In the Three Forks, eight wells had an average gross initial production (IP) of 2,091.

Newfield Highlights

  • Newfield's Bakken net production increased 40% in 2013 to ~12,050 boe/d
  • Newfield completed 42 wells and lowered average well costs to $8.4 million
  • Newfield Three Forks drilling tested seven wells in the first bench and one well in the second bench
  • In the Middle Bakken, 34 wells had an average gross initial production (IP) of 2,233 in 2013
  • In the Three Forks, eight wells had an average gross initial production (IP) of 2,091
  • In 2014, Newfield expects to achieve 35% to 40% year-over-year production growth.

Read more at Newfield.com