NRP - Sundance Reach $35.5 Million Bakken Deal

Natural Resource Partners (NRP) has agreed to acquire non-operated working interests in the Bakken from Sundance Energy for $35.5 million. 

This is NRP’s second acquisition of producing, non-operated working interests in the Bakken/Three Forks play, which will grow and further diversify NRP’s revenue going forward.
— Nick Carter, NRP's COO.

The deal includes 77 producing wells and associated acreage in Dunn, McKenzie, and Mountrail counties. All leases are held by production. NRP plans to participate in future development on the properties.

Read the full release at

QEP's Bakken Production Down Due To Transition To Pad Drilling

QEP Resources Bakken Three Forks Acreage Map
QEP Resources Bakken Three Forks Acreage Map

QEP Resources produced approximately 17,000 boe/d from the Bakken and Three Forks in the first quarter. That's down from more than 18,000 boe/d in the fourth quarter of 2012.

QEP has moved to pad drilling across much of its acreage and that means longer lead times before wells are brought to production.

No alarms should be going off here. Single wells that would have come online a short time after being drilled now have to wait until three wells are drilled and ready for completion on the same pad. Expect to see similar results from other Bakken operators who are transitioning to pad drilling throughout 2013.

Bakken and Three Forks Development Plans

QEP plans to drill eight wells per unit from two four well pads at the company's South Antelope area. Four wells will target the Bakken and four will target the Three Forks. Pad drilling will be the primary means of development in the South Antelope area.

During the quarter, only one well was turned to sales in the South Antelope area and 11 were turned to sales in the Fort Berthold area. You can read more about the South Antelope acreage in the article - QEP and Helis Reach Bakken Deal For $1.3 Billion

The 11 wells at Fort Berthold include two five well pads that yielded almost 2,200 boe/d and 2,500 boe/d per well on each pad, respectively. QEP's water gathering system is also running at Fort Berthold and the company is saving $5 per barrel in transportation costs.

QEP expects all in well costs to hold below $11 million as the company transitions to pad drilling. Currently, three rigs are running at Fort Berthold and four rigs are running on the South Antelope properties. QEP has approximately 117,000 acres prospective for the Bakken Shale.

Kodiak Doubles Bakken Production Over Q1 2012

Kodiak Bakken Acreage Map
Kodiak Bakken Acreage Map

Kodiak Oil & Gas provided a first quarter operations update and production is continuing a strong growth trajectory. Production grew to 21,700 boe/d in the first three months of the year. That's 105% more than first quarter 2012 volumes of 10,578 boe/d and 19% more than fourth quarter production of 18,228 boe/d.

During the quarter Kodiak completed 20 gross (14.6 net) operated wells and 13 gross (3.4 net) non-operated wells. The company also employed a full-time completion crew as of March 2013 and expects to add a second crew in May. Multi-well pads will push operated development to 27 gross (23 net) operated wells in the second quarter.

Kodiak's CEO Lynn Peterson said: "We are pleased with the progress that we achieved during the first quarter and believe that we are on course to deliver sustained production growth during the remaining quarters."

Kodiak has seven operated rigs running, with four in Williams County, two in McKenzie County, and one in Dunn County.

12 Well Bakken Unit Being Tested

Kodiak is also drilling 12 wells in a single unit to test well spacing. Core from the wells is being evaluated and well completion and microseismic will kick off in May.

In efforts to continue driving down costs, the company has also drilled three water disposal wells in the area. Oil, gas, and water pipelines should be largely installed in the Polar Area by the end of the second quarter.