SM Energy Will Run Three Bakken Rigs In 2014

December 23, 2013 R.T. Dukes

SM Energy plans to run three rigs spending $275 million on operated activity and another $75 million on non-operated properties.

Activity will primarily target the Bear Den, Raven, and Gooseneck areas in North Dakota.

SM Energy expects to complete 45 gross, operated wells in 2014.

Tony Best, CEO commented, "Our 2014 growth will be anchored by our core development programs in the Eagle Ford and Bakken-Three Forks, with additional investments being made in our emerging oil programs in the Permian Shales and the Powder River Basin."

ND Oil Production On Pace for More than 1 Million b/d by Year-end

November 18, 2013 R.T. Dukes

North Dakota oil production is on pace to eclipse 1 million b/d by year-end. The state reported production of ~932,000 b/d in September and is expected to add between 20,000 and 30,000 b/d each month going forward.

ND natural gas production set a new record at 1.06 bcf/d.

The state should also eclipse 10,000 producing wells before year-end. The real risk to any of the above trends is snow and cold weather.

Other takeaways include:

207 wells were completed in September - up from 153 in August
One well is getting completed for every 1.5 drilled
Time from spud to first production held at ~100 days
>95% of drilling targets the Bakken and Three Forks
Natural gas prices near Watford City are trading near $3/mcf

Read the full director's cut at dmr.nd.gov

EOG Will Utilize Self-Sourced Sand in Bakken Completions

November 7, 2013 R.T. Dukes

EOG Resources is shifting to self-sourced sand for use in completions in the Bakken and Three Forks. The company has owned and operated sand mines supplying other plays for years.

EOG's sand mines will contribute to significant well cost savings.

Most of the company's current activity is focused in the core area of the Parshall field and the company's Antelope Extension. EOG plans to complete 54 net wells in those areas in 2013.

“EOG is consistently making the best oil wells in the best two oil plays in North America, the Eagle Ford and Bakken/Three Forks.”

— CEO, William R. "Bill" Thomas.

The company's utilization of more fluid and sand in completions is proving successful in the Bakken. The company has seen both improved recoveries and returns in the play.

EOG Bakken and Three Forks Well Highlights

Six wells produced initial rates of approximately 2,000 b/d of oil or more in Mountrail County
Three - Three Forks wells in the Antelope Area came online at rates between 1,235-2,100 b/d of oil

"Every quarter, EOG's technical understanding of the Eagle Ford and Bakken/Three Forks expands, as we further modify completion techniques that boost overall well productivity and economics," Thomas said.

EOG Increases Company-wide Production Growth Estimates

Production guidance in 2013 has been increased again. EOG expects 39% growth in oil production, 17% growth in NGL production and company-wide growth of 9%. That`s up from initial estimates of 28% crude oil growth, 10% NGL growth, and just 4% company-wide growth at the beginning of the year.

Halcon's Bakken IP Rate Improved Dramatically in the Third Quarter

November 5, 2013 R.T. Dukes

Halcon Resources' initial production rates have improved considerably across the Bakken. The company is completing wells with tighter stage densities, more proppant per stage (100% ceramics), and is using slick water in areas where gels were used in the past.

The company's best well to date was completed on the Fort Berthold Reservation in the third quarter. The Bakken well came online 3,914 boe/d.

Wells completed with the company's latest design have yielded results 20-60% better than comparable wells.

“Third quarter results were defined by continued expansion of our activities in the Williston Basin, El Halcon and other areas.”

— Floyd C. Wilson, CEO

Spud-to-total depth drilling times have fallen below 18 days at both the company's Fort Berthold and Williams County properties. Approximately 80% of drilling in 2013 and 100% of drilling in 2014 will be multi-well pads.

Halcon spudded 14 wells and completed 13 wells in the third quarter as net production increased 40%. The company will operate 5-6 rigs in the fourth quarter and 4-5 rigs in 2014.

The company continues to test downspacing across the play and the lower benches of the Three Forks. The first Three Forks Second Bench well is being drilled currently.

Downspacing tests at 660 ft/well have proven promising. The three Bakken wells tested at 660 ft spacing in the unit depicted above all came online at more than 2,500 boe/d. Halcon is planning the majority of Bakken development on the Fort Berthold Reservation at 660 ft spacing and plans to drill downspacing pilot tests in Williams County in 2014.

Halcon has 132 producing Bakken wells, 39 producing Three Forks wells, and 14 wells in various stages of drilling and completion.

Read the company's full Q3 press release at HalconResources.com

SM Energy Grew Bakken Production 9% in the Third Quarter

October 31, 2013 R.T. Dukes

SM Energy grew Bakken production volumes from 13,700 boe/d in the second quarter to 14,900 boe/d in the third quarter.

The company completed 13 gross wells and is producing 35% more than it did at this time last year.

SM has three rigs running, with a focus in the Gooseneck, and Raven/Bear Den areas. SM Energy has 162,000 net acres prospective for the Bakken and Three Forks, but is focused on development of 81,000 net acres.

The company made two comments related to testing in the play:

Downspacing results will be considered in planning at year-end
Evaluating alternate completion designs being used in the play - Current design utilizes a 26-stage sliding sleeve completion and 80,000 barrels of fluid.

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