Enerplus Capital Budget in Bakken - $304 Million - 2014

Enerplus North Dakota Acreage Map

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

Read more: Enerplus Sets New Bakken Production Record in Q1

~$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%

Read more at Enerplus.com

Enerplus's US Production Grows With Fort Berthold Bakken Production

Enerplus Bakken Map

Enerplus grew U.S. oil production to more than 20,000 boe/d in the second quarter. Production from the Bakken was the primary driver, with volumes growing to 15,000 boe/d from the company's Fort Berthold assets.

Enerplus invested $78 million drilling 4.7 net wells and bringing 6.1 net wells to production during the second quarter. Service costs and well costs continue to fall. Enerplus has realized savings of 10% compared to its plan at the beginning of 2013.

The company's Fort Berthold assets are the primary focus of development. Enerplus has drilled 92 wells to date (74 Bakken & 18 Three Forks) and estimates its acreage holds:

• 6 year drilling inventory or 130 undrilled locations
• Downspacing potential at 160 acres per well that could add another 150 undrilled locations
• Potential in the second, third, and fourth benches of the Three Forks.

Read the full Q2 press release at enerplus.com

Enerplus Sets New Bakken Production Record In Q1

Enerplus Bakken Acreage Map

Enerplus set a new company record in the first quarter with 14,500 boe/d of Bakken production from the company's Fort Berthold assets. In total, Enerplus produced just under 20,000 boe/d from the U.S. in the first quarter.

The company plans to drill 20-25 net wells in 2013, with two-thirds targeting the Bakken and one-third targeting the Three Forks formation.

Enerplus spent approximately 45% of the $173 million it invested in the first quarter in the Bakken. A similar trend is expected the rest of the year.

The Fort Berthold region continues to be our most active development area within our portfolio.

A total of three operated and one non-operated well were drilled in the quarter. In addition, five long lateral wells, two short laterals, and one non-operated well were completed during the quarter.

Enerplus also saw costs savings of almost 10% during the quarter due to lower services and supply costs. The company initially budgeted $12.9 million for drilling, completion, and tie-in of wells in the area. By year-end, total costs should be much lower.

Read the full press release at enerplus.com