Continental Resources Bakken Production Up 11% in Q2 2014

August 13, 2014 Kirk Eggleston

Continental's Bakken production totaled 108,573 boe/d (North Dakota: 94,702 boe/d, Montana: 13,871 boe/d) in the second quarter of 2014. That's an increase of 11% quarter-on-quarter and 23% year-over-year.

During the quarter, the company completed 224 gross (93 net) wells in the Bakken, and finished the reporting period with an inventory of approximately 84 gross operated (66 net) Bakken wells drilled, but not completed. The second quarter drilling inventory numbers are down from 100 gross operated wells drilled, but not completed at the end of the first quarter of 2014. Continental expects to complete approximately 870 gross (287 net) wells in the Bakken in full-year 2014, including both operated and non-operated wells.

Continental Bakken New Completion Techniques Employed

The company continues to modify completion techniques. During the quarter, Continental conducted three slick water completions in an unspecified geological area of the play, which company officials say resulted in an average early cumulative production increase of 35% higher than the production trend for the company's 603,000 BOE estimated ultimate recovery (EUR) model for North Dakota. Additionally, in the same geological area, early production was also stronger for three wells completed with increased proppant volumes, which averaged between 200,000 to 300,000 pounds of proppant per stage.

“COO Rick Bott, said, “we’re pleased with several of the new completion methods we are testing and early results show significant improvements in well performance. We are studying the broader implications of applying enhanced completions across the play.”

Continental Bakken Well Tests Update

In 2013, Continental began testing different areas across the Bakken field to determine the optimum well density and pattern for maximizing recovery and returns. So far, the company has initiated seven density pilot projects, all designed to include the Middle Bakken ("MB") and Three Forks One, Two and Three across the company's approximately 1.2 million net acres of leasehold.

Three of these projects are testing 1,320-foot inter-well spacing and four are testing 660-foot inter-well spacing. Four of the projects have already been completed. Company officials indicate positive results from the first completed 660-foot inter-well spacing test:

Wahpeton (660 ft test); Initial Production (IP) rate for 12 wells in unit - 1,015 boe/d; IP rate for three MB wells in unit only - 1,730 boe/d

Three more projects testing the 660-foot inter-well spacing are in various stages of drilling or completion. The new wells are expected to be completed in the second half of 2014.

Bakken Major Contributor to EOG's Production Growth in Q2

August 6, 2014 Kirk Eggleston

In its second quarter report, EOG Resources said the Bakken and Eagle Ford Shale plays were major contributors to EOG's overall production growth.

EOG's U.S. crude oil production grew 33% year-over-year and associated natural gas liquids NGLs grew 22% year-over-year.

See below for EOG's U.S. production volumes for the quarter:

Crude Oil and Condensate - 274,600 b/d
NGLs - 78,500 b/d
Natural Gas - 925 MMcfd

The company said most of its activity was focused on its core acreage in Mountrail County during the quarter. According to company officials, well productivity improved due to continued refinements in completion designs.

In EOG's first-quarter report, the company indicated its activity in the Bakken would nearly double. So far, the company is on track to hit their target goal.

EOG Bakken Second Quarter Operations Update

Three Core wells were completed during the second quarter in Mountrail County:

Wayzetta 43-0311H - 1,505 b/d
Wayzetta 44-0311H - 2,410 b/d
Wayzetta 45-0311H - 2,690 b/d

EOG says it plans to drill several Three Forks wells to test various benches of this play on both its core and Antelope extension acreage during the remainder of 2014. Currently, the company has a six rig program running in the Bakken, and 80 net wells planned for the full-year.

Whiting Bakken Production Hits Record Levels in Second Quarter

August 1, 2014 Kirk Eggleston

Whiting Petroleum reported record Bakken/Three Forks production of 80,195 boe/d in the second quarter of 2014. The data was released in the company's second quarter report, and represents a 33% increase in production year-over-year. Bakken/Three Forks production counted for 73% of the company's total production across its portfolio. Currently the company holds 1,059,957 gross (674,162 net) acres in the Williston Basin in North Dakota and Montana. Whiting Petroleum recently announced the acquisition of Kodiak Oil & Gas, in an all stock transaction, for $3.8 billion. The deal makes the combined company the largest Bakken/Three Forks producer, unseating Harold Hamm’s Continental Resources from the top spot.

“Whiting CEO James Volker said in a prepared statement, “we believe we have plenty of running room in theWilliston Basin, particularly in light of our new completion techniques and downspacing programs.”

Whiting Bakken Well Completions Benefiting from Cemented Liners

According to company officials, recent results using cemented liner completions in Whiting's Hidden Bench field have been particularly strong. The 11 wells completed in the second quarter using cemented liners had an average initial production (IP) rate of 2,872 boe/d, a 50% increase over the average of the company's Hidden Bench wells completed with sliding sleeve technology.

Whiting Bakken First Slickwater Frac Job

Whiting's first slickwater frac job, the Sundheim 21-27-1H well at the company's Missouri Breaks field in McKenzie County, North Dakota, was completed on August 24, 2013. It had a 120-day production rate of 374 boe/d, which was 44% greater than an offsetting well, which was completed using an uncemented liner and sliding sleeve technology. Currently the company has 11 slickwater fracs either underway or planned for the third quarter of 2014 at the Missouri Breaks, Sanish, Hidden Bench and Pronghorn fields.

Halcón Resources Sets New Operations Records in the Williston Basin

May 9, 2014 Kirk Eggleston

During the first quarter of 2014, Halcón Resources (HK) set new company operations records in the Williston Basin for drilling and production.

A major focus for Halcón is on improving efficiencies, particularly those associated with pad drilling. Currently, Halcón is in the process of putting six new wells online in the Fort Berthold area that were drilled from a single pad and spaced 660' apart. The initial production (IP) rate for one of these wells during the quarter was a record breaking 4,225 boe/d.

The company also recorded its fastest drilling times to date during the first-quarter. A Bakken well in the Fort Berthold area was drilled in 12 days (spud to total depth). Another Three Forks well in the Fort Berthold area was drilled in 17 days (spud to total depth).

Halcón Williston Basin First Quarter Operations Update

Halcón operated an average of four rigs in the Williston Basin during the first quarter, and the company plans to keep an average of three to four rigs active for the remainder of the year. Average production for the quarter was 23,313 boe/d. That's a 73% increase compared to the same period in 2013.

Weather-related issues slowed down drilling and completion that were begun late in the fourth quarter of 2013. Despite the weather-related impacts and delays, Halcon saw average initial and 30 day production rates improve during the quarter. Company officials say activity in the Williston Basin has since returned to normal, and current production is approximately 25,000 Boe/d.

Halcón Non-Operated Interests in the Williston Basin

Halcón participated in 72 non-operated wells during the quarter with an average working interest of approximately 6%. Current production from non-operated wells is approximately 3,500 boe/d.

By contrast, there are currently 144 Bakken wells producing, 11 Bakken wells being completed or waiting on completion and 2 Bakken wells being drilled on Halcón's operated acreage.

Similarly, there are currently 44 Three Forks wells producing, 5 Three Forks wells being completed or waiting on completion and 2 Three Forks wells being drilled on the Company's operated acreage.