Magnum Hunter Bakken 2014 Capital Budget - $52 Million

March 24, 2014 Kirk Eggleston

Magnum Hunter sold off its non-core Eagle Ford assets in 2013. In 2014, the company is focusing on its core Appalachia and Williston Basin areas. $52 million of the company's $400 million capital budget will be spent in the Williston Basin in 2013. 65% of the budget will be spent on the company's Appalachia assets.

“In a company statement, Magnum Hunter CEO Gary Evans said, “we made the decision to sell our Eagle Ford assets [] for a contracted price of $401 million and redeploy those proceeds to our two remaining core areas, Appalachia and the Williston Basin. Revenues were still up over 72% and EBITDAX increased 48%. We drilled 21 gross wells (12.5 net) in the Marcellus and Utica resource plays and drilled 72 gross (24.6 net) in the Bakken and Three Forks Sanish plays of the Williston Basin.”

Magnum Hunter Bakken & Three Forks Fourth Quarter Operations

In the fourth-quarter of 2013, Magnum Hunter drilled 15 gross (6.2. net) in the Bakken/Three Forks formations. In its operated areas, the company drilled 2 wells, and in non-operated areas, 13 gross (4.2 net) wells were drilled.

Initial production (IP) rates varied across the company's Williston Basin acreage. In the Middle Bakken Formation, six two-mile lateral wells completed, with an average 24-hour IP rate of 561 boe/d and a 30-day rate of 389 boe/d. Two one-mile laterals were also completed in the Middle Bakken. At the end of the year, one well had a 24-hour IP rate of 680 boe/d and a 30-day rate of 253 boe/d. In the Three Forks/Sanish Formation, seven two-mile lateral wells were completed, with an average 24-hour IP rate of 584 boe/d and a 30-day rate of 287 boe/d. One one-mile lateral was also completed in the Three Forks/Sanish. It had an a 24-hour IP rate of 760 boe/d and a 30-day rate of 282 boe/d.

Magnum Hunter 2013 Bakken & Three Forks Capital Spending

Upstream capital spending in the Williston Basin during the fourth-quarter was $19.7 million in 2013. For the full-year, the company spent $131.8 million. That was ~43% of the company's total upstream capex budget for the year.

Nearly Half of Halcon 2014 Budget Targeting Bakken - ~$475 Million

March 3, 2014 Kirk Eggleston

Halcon is focused on drilling wells in the Fort Berthold area in 2014 and anticipates spending approximately 49% of its total drilling and completions budget in the Williston Basin. Based on previous budget estimates, that's about ~475 million.

The company's plan for 2014 is to focus on its "de-risked" acreage, which includes the Fort Berthold area.

“Floyd Wilson, CEO, said in a company statement, “our focus in 2014 is on drilling wells in the sweet spots of our de-risked acreage in the Williston Basin and El Halcón. We will also begin drilling wells on our newly acquired acreage located in what we believe to be the core of theTuscaloosa Marine Shale. We are primed for growth and have a deep drilling inventory. We are committed to maintaining capital discipline and dedicated to improving capital efficiency.”

Halcon's 2014 Bakken Guidance

In the first-quarter of 2014, Halcon anticipates weather-related production interruptions in the Bakken.

For the full-year, the Company plans to operate an average of 4 rigs and spud 40 to 50 gross operated wells. Halcon also anticipates participating in 200-225 gross non-operated wells, with an average working interest of 3%.

Halcon's Fourth-Quarter Bakken Production

In the fourth-quarter of 2013, Halcon Resource's Bakken production increased by 15% over the third-quarter to 24,125 boe/d, despite adverse weather conditions. Company estimates accounted for weather-related impacts of ~1,040 boe/d.

Halcon's Fourth-Quarter Bakken Activity

Halcon operated an average of five rigs in the Bakken, and participated in 50 non-operated wells, with an average working interest of 3% in the fourth-quarter of 2013.

In the Fort Berthold area, the company spudded eight wells and broutght 10 wells online. For some of Halcon's Fort Berthold area wells, strong results came from the application of the "slickwater frac" technique. The company plans on continuing this practice in 2014.

“At Winter NAPE, Wilson, was quoted, “[the company’s] most recent wells in the Bakken are the best ever.”

Halcón also spudded four wells and put two wells online in Williams County in the fourth-quarter.

Enerplus Capital Budget in Bakken - $304 Million - 2014

February 24, 2014 Kirk Eggleston

Approximately 40% of Enerplus's $760 million capital budget for 2014 will be dedicated to the Bakken and Three Forks. That's about $304 million.

The company expects to grow production by more than 30% in North Dakota in 2014.

Enerplus 2013 Capital Expenditures in Bakken

~$308 million of capital spending was in North Dakota, with the majority invested at Fort Berthold. Approximately 70% of company spending in 2013 was directed to crude oil assets.

“VP of Operations Raymond Daniels said, “45% of our capital spending was in North Dakota where we are targeting both the Bakken and Three Forks. Our focus was on driving improvements in capital efficiencies through a reduction in drilling costs and improvement in productivity.”

Capital spending came in slightly lower in 2013 than the original forecast of $685 million, totaling $681 million.

Enerplus Bakken Reserves

25 mmboe of 2P reserves were added in 2013 from North Dakota properties. The cost of this addition was $19.74 per boe including future development capital.

Total 2P reserves increased by more than 17% year-over-year, driven by additions in the Marcellus and Bakken/Three Forks properties.

Enerplus Bakken Initial Production Rates and Total Production

“According to VP of Operations, Raymond Daniels, “our two most recent Bakken wells have been completed using about a thousand tonnes of sand per lateral foot with roughly 40 frac stages. In their first 30 days these wells have produced a record of roughly 4,000 to 8,000 barrels of oil each.”

Enerplus total production grew in the fourth-quarter to 94,167 boe/d, which is up 7% from the third-quarter. Production for 2013 was 89,800 boe/d. That's up 9%.

Enerplus Highlights

40% of Enerplus's $760 million capital budget for 2014 will be dedicated to the Bakken and Three Forks - ~340 million
Enerplus expects to grow production by more than 30% in North Dakota in 2014
~$308 million of capital spending was in North Dakota in 2013
25 mmboe of 2P reserves were added in 2013 from North Dakota properties
Enerplus total production grew in the fourth-quarter to 94,167 boe/d
Production for 2013 was 89,800 boe/d. That's up 9%

WPX Energy Sets Its Bakken Capital Budget at $580-600 Million in 2014

February 18, 2014 R.T. Dukes

WPX Energy will spend between $1.420-$1.523 billion in 2014, with $580-600 million directed to Bakken and Three Forks targets in the Williston Basin.

WPX is planning to add a rig to bring its operated total to five in 2014.

The company expects the added rig will allow the company to drill 62 gross operated wells, or 25% more than the ~50 wells the company drilled in 2013.

Also read:Halcon Lowers Its 2014 Capital Budget & Holds Production Guidance

“Increased oil volumes, efficient development of our resource base and enhanced balance sheet flexibility will help drive increased cash flows and better overall results,” said Jim Bender, CEO.”

The emphasis in liquids producing areas will drive production growth in 2014. WPX expects daily oil production from the Williston and San Juan to increase ~50% from 16,000 b/d in the first quarter to more than 24,000 b/d by year-end.

In total, 85% of the company's capital budget is split between liquids producing plays in the Piceance, San Juan, and Williston basins.

WPX's capital budget:

$580-600 million in the Williston Basin (oil)
$475-495 million in the Piceance Basin (gas & ngls)
$155-180 million in the San Juan Basin (oil)
$20-30 million in the Appalachia region
$10-15 million in legacy areas like the Powder River Basin
$100-115 million on land and exploration

Read the full press release at wpxenergy.com

Marathon Oil's Bakken Production Drives North American E&P Income Up 38%

February 7, 2014 Kirk Eggleston

Marathon Oil's Bakken production helped drive the company's North American E&P segment income to $529 million in 2013, compared to $382 million in 2012.

The approximately ~38% increase was primarily due to higher liquids volumes from the Eagle Ford, Bakken and Oklahoma resource basins.

Marathon Q4 2013 Production and 2014 Bakken Budget

[ic-l]Marathon Oil averaged approximately 40,000 net boe/d of production in the Bakken during the fourth quarter. That's approximately a ~5% increase from 38,000 net boe/d in the third quarter of 2013.

In 2014, Marathon will spend $1 billion of its $3.6 billion budget in North America in the Bakken. As a result, Bakken production is expected to grow to a little less than 50,000 boe/d.

Marathon Oil's average Bakken production by commodity is as follows:

90% crude oil
4% NGLs
6% Natural Gas

Marathon Hits Q4 2013 Production Target

In the fourth quarter, the company reached total depth on 15 gross wells and brought 22 gross wells to sales, hitting its year-end exit rate estimate of 40,000 boe/d.

“During 2013... our strong year-over-year net production growth in the top U.S. liquids resource plays — 136 percent in the Eagle Ford, 34 percent in the Bakken and 68 percent in the Oklahoma resource basins — demonstrated our ability to drive superior operating results,” said Lee M. Tillman, Marathon Oil’s president and CEO.”

The company improved it's average time to drill a well in the Bakken by 16% compared to a year prior, averaging 15 days spud to total depth. Drilling and completion costs have decreased approximately 10% compared to the fourth quarter 2012.

Marathon Highlights for 2013

~5% increase in production from Q3 (38,000 boe/d) - Q4 (40,000 boe/d)
North American E&P income Up ~38% from 2012 to $529 million thanks to unconventional drilling
16% faster rate to drill a well than Q4 2012 (approx. 15 days)
Drilling and completion costs decreased 10%
Marathon sets capital budget in Bakken at $1 billion in 2014