Oasis Petroleum Nearing Half a Million Acres in the Bakken

December 3, 2013 R.T. Dukes

Oasis Petroleum Bakken Acreage Map - Acquisition Included

Oasis Petroleum added acreage in the third quarter is nearing half a million acres prospective for the Bakken and Three Forks.

In September, the company announced several deals that added over 160,000 acres to the company's position.

The deals were just one highlight of many from the company's third quarter earnings release:

Oasis now has an inventory of almost 3,000 potential drilling locations
Added two rigs through the acquisitions. 14 running across its position now
Expanding Oasis Well Services
Decreased well costs to $7.5 million
Successful results from the Three Forks 2nd and 3rd benches
Production grew 10% quarter over quarter to ~33,000 boe/d

“Including production from our recent acquisitions, we expect production to range between 42,000 boe/d to 46,000 boe/d in the fourth quarter of 2013.”

— Mr. Nusz, CEO

At year-end, watch for additional announcements related to results from downspacing tests and wells in the lower portion of the Three Forks.

The company currently expects to drill 4-6 wells in the Middle Bakken and 1st bench of the Three Forks in the best areas of the the basin. Drilling in 2014 will be split relatively evenly between the Bakken and Three Forks. If wells in the lower portion of the Three Forks prove successful, the mix of drilling could be weighted toward the Three Forks more than currently planned.

Abraxas - Natural Resource Partners Bakken Deal Announced

June 18, 2013 R.T. Dukes

Abraxas Petroleum has signed an agreement to sell the majority of the company's non-operated Bakken acreage to Natural Resource Partners.

Natural Resource Partners is paying $35.3 million plus the assumption of well commitments that total $8.1 million related to 22 wells in which Abraxas has elected to participate.

The deal includes production of 502 boe/d. Abraxas will retain operated acreage in the Bakken.

Bob Watson, President and CEO of Abraxas commented, "This is obviously a transformational day for Abraxas as we significantly reduce our leverage while simultaneously shifting our focus to a core operated portfolio. Heading forward we will continue to rationalize our asset base to focus on our core operated properties primarily in the Bakken and Eagle Ford. Moreover, the removal of the non-operated Bakken assets from our portfolio will provide the company with a much more predictable production growth profile and CAPEX schedule.

Read the full press release at abraxaspetroleum.com

Kodiak Buying Bakken Assets From Liberty Resources For $660 Million

June 4, 2013 R.T. Dukes

Kodiak Oil & Gas has signed a purchase and sale agreement with Liberty Resources for 42,000 net acres in the Williston Basin for $660 million.

The acquisition includes acreage prospective for the Bakken and Three Forks formations in McKenzie and Williams counties.

In total, a portion of 35 (1,280-acre) spacing units are included in the deal.

14,000 net acres adjacent to the Polar Area
25,000 net acres west of the Koala & Smokey areas

Production from the assets averaged 5,700 b/d in May of 2013. Kodiak will also assume a rig contract that has 14 months remaining.

After closing, Kodiak will control 196,000 net acres in the Bakken.

Northern Oil & Gas Grew Bakken Production 95% in 2012

March 13, 2013 R.T. Dukes

Northern Oil & Gas had an exceptional year in the Bakken. The company grew production 95% or from just under 2 million boe in 2011 to 3.76 million boe in 2012. That equates to daily production of more than 10,000 boe/d in 2012. Production growth was the result of Northern participating in the drilling of 42.8 net wells and bringing 48.3 net wells to production at a cost of $485 million.

Michael Reger, CEO, commented: "2012 was a year of operational transition in the Williston Basin. Throughout the year, drilling costs peaked and abated, wellhead price differentials peaked and subsequently improved to some of the play`s best levels and operators began the transition to pad drilling.

Bakken reserves grew 44% to 67.6 million boe in 2012. Approximately 55% are classified as proved and undeveloped

The company realized an average oil price differential of $9.79 per barrel in 2012, which compares to $6.30 in 2011. Differentials are expected to trend lower in 2013 as WTI prices trade lower than current Bakken markets that can be reached by rail on the East Coast and West Coast.

[ic-r]Northern held approximately 179,131 net acres in the Williston Basin as of year-end 2012. That total grew during the year as the company spent $37 million acquiring acreage:

17,590 net mineral acres at a cost of $1,788 per acre- $31.5 million
3,404 net mineral acres at a cost of $1,082 per acre - $3.7 million
As well as earning 6,450 net acres through farm-ins.

An estimated 64% of the company's acreage is held by production.

2013 Bakken Capital Budget

Northern plans to spend between $420-440 million in 2013. Approximately $370-390 will be spent on drilling and completing wells and an estimated $20 million will be spent on acreage acquisitions. Plans call for the drilling and completion of 44 net Bakken and Three Forks wells.

Production is expected to grow 3,000 boe/d to 4.7-5 million boe for the year. The benefits of multi-pad drilling are expected to be realized in the second half of 2013.

SM Energy Begins Bakken Infill Drilling - Moving to Walking Rigs

February 27, 2013 R.T. Dukes

SM Energy grew company wide production by 18% from the fourth quarter of 2011 to 2012. Strong growth was the direct result of successful development in both the Bakken (40% growth) and Eagle Ford (50% growth).

During 2012, SM completed 30 operated wells, with focus in the Bear Den, Raven, and Gooseneck prospects noted in the map. In 2013, drilling will shift almost completely to infill drilling in those areas. Exploration is complete and the company can begin pushing to improve operational efficiencies by employing walking rigs on multi-well pads. Two traditional rigs will be exchanged for walking rigs in early 2013.

Tony Best, CEO, remarked, "SM Energy had a record-breaking year in 2012 with new highs for proved reserves and annual production, completing the year with record quarterly production. These results were driven by our high rate of return oil and liquid-rich programs in the Eagle Ford shale and Bakken/Three Forks, which are expected to continue to drive our growth in 2013."

SM Energy produced 11,900 boe/d from the Bakken in the fourth quarter of 2012 and increased proved reserves in the Rockies from 48.4 to 54.8 mmboe during the year.

The company also sold non-operated Bakken acreage as the year ended. In total, SM divested 27,000 net acres, with 6,000 net acres located in the company's focus area.

SM now has:

162,000 net acres prospective for the Bakken and Three Forks Formations
81,000 net acres located in the company's focus area

Read the company's full press release at sm-energy.com