Whiting Announces Strong First Quarter

Whiting Petroleum: 2015 Q1
Whiting Petroleum: 2015 Q1

Whiting Petroleum announces solid first quarter results for Bakken region.

In its Q1 press release, Whiting reported production totaling 15.0 million barrels of oil equivalent (MMBOE), 88% crude oil/natural gas liquids (NGLs). Production averaged 166,930 barrels of oil equivalent per day (BOE/d), a 3% increase over the fourth quarter 2014.

Whiting’s budget remains at $2 billion with capital expenditures expected to decline sharply in the second half of 2015.

James J. Volker, Whiting’s Chairman, President and CEO, commented, “While we are reducing rig count and well cost, production was strong in Q1 2015. We had solid results in the Bakken/Three Forks and Niobrara. Our total rig count will average 11 rigs in the second half of 2015. Nine of these rigs will operate in the Bakken/Three Forks.

Related: Whiting to Reduce Bakken Rig Count

Bakken Highlights

Whiting currently holds an astounding 1,270,092 gross acres in the Williston Basin of North Dakota and Montana. Here are Bakken In the first quarter 2015:

  • Production from the Bakken/Three Forks averaged a record 133,500 BOE/d, an increase of 82% over the 73,325 BOE/d in the first quarter 2014
  • The Bakken/Three Forks represented 80% of Whiting’s total first quarter production.
  • As of December 31, 2014, Whiting had an estimated 7,541 future gross drilling locations in the Bakken/Three Forks formations, of which approximately 60% target the Bakken formation.
  • At Dunn field in Dunn County, North Dakota, initial production rates from four Whiting-operated wells completed in mid-January averaged 3,181 BOE/d per well while 30-day rates averaged 1,255 BOE/d per well.
  • At the Polar field in Williams County, North Dakota, initial production rates from four Whiting-operated wells completed in late February averaged 2,630 BOE/d per well while 30-day rates averaged 1,130 BOE/d per well.
  • At the Koala field, which is located near our Hidden Bench field in McKenzie County, North Dakota, we completed four pad wells in mid-March that flowed an average rate of 2,584 BOE/d per well while 30-day rates averaged 1,395 BOE/d per well.

Read more at whiting.com

Continental Resources Aggressively Cuts Costs

Continental Resources: 2015 Q1
Continental Resources: 2015 Q1

Continental Resources announces first quarter results that highlights increases in production and reduced costs.

Related: Harold Hamm Gains More Bakken Acreage

In a press release on May 6th, Continental reported a net loss of $132.0 million for the first quarter of 2015 and a production increase to 206,829 boed.

Most impressive is the company’s drilling and completion costs , which fell by 15% since 2014 year end. The company expects to see service cost reductions of up to 20% by mid-year and further savings from drilling and completion efficiencies. One example of these efficiencies is the new company record for drilling in the Bakken as they report drilling the two-mile lateral portion of a well in three days, nearly four days faster than its average time to drill a lateral.

Bakken Highlights for First Quarter

  • Production averaged 135,538 Boe per day (39% increase over first quarter 2014)
  • Completed 66 net wells
  • Operated an average of 13 rigs in the Bakken, down from 19 rigs at year-end 2014
  • Significantly reduced its completion crew count
  • 115 gross operated Bakken wells drilled and waiting on first production (122 at year-end 2014)

Continental’s plans for Bakken moving forward

  • The Company plans to average 10 operated rigs through the remainder of 2015, based on current market conditions.
  • The Company expects to have approximately 90 gross operated Bakken wells drilled and waiting on first production at year-end 2015.
  • Approximately 60% of the wells in the 2015 program will be drilled on 660-foot to 880-foot inter-well spacing in the Middle Bakken and Three Forks reservoirs.
  • The Company's 2015 Bakken drilling program is targeting an average EUR of approximately 800,000 Boe per well.

Red more at clr.com

New Resources for Bakken Producers

Bakken Oilfield StorageTanks
Bakken Oilfield StorageTanks

American Midstream Partners announced a strong first quarter and revealed they are in process and on budget to finish a new Bakken oil gathering system by the second quarter of 2015.

Related: New Bakken Crude Oil Gathering System

In a press release this week, American Midstream Partners reported increases of nearly 50% over the prior year quarter, with gross margin of $33.8 million and adjusted EBITDA of $15.6 million.

The company’s forecasted growth capital expenditures includes construction of the Bakken crude oil gathering system that consists of a 39-mile pipeline with the capacity to transport up to 40,000 Bbls/d crude oil. This pipeline will serve to provide producers in North Dakota with  access to refinery, rail, and pipeline markets.

Steve Bergstrom, Executive Chairman, President & CEO said “Commissioning of the fee-based Bakken crude gathering system is underway with startup expected by the end of the second quarter. The project has remained on track despite weather challenges slowing the construction process. We’re in advanced negotiations with several producers to add meaningful truck volumes to the system which will provide producers with access to premium refinery, pipeline and rail markets. Throughput volumes are expected to ramp up to 20,000 barrels per day in the second half of the year.