ConocoPhillips Increases Bakken Spending in Its 2014 Budget

ConocoPhillips Bakken Leashold and Mineral Acreage Map
ConocoPhillips Bakken Leashold and Mineral Acreage Map

ConocoPhillips' 2014 budget includes spending $16.7 billion, with 55% of the total allocated to North America.

Within North America, Conoco expects continued growth from the Eagle Ford, Bakken, and Permian plays.

Approximately $4.3 billion will be spent on development drilling in the Lower 48 states. The budget includes increased investment in the drilling programs in the Eagle Ford, Bakken and Permian.

2014 is an important year for ConocoPhillips,” said Ryan Lance, chairman and chief executive officer. “Since becoming an independent E&P company, we have set out to deliver a unique value proposition of 3 to 5 percent volume and margin growth with a compelling dividend.

Conoco has a five-year plan to spend $5 billion in the Bakken to grow production to more than 50,000 boe/d by 2017. The company has over 626,000 acres prospective for the Bakken and estimates a drilling inventory of more than 1,400 wells.


ConocoPhillips' Capital Budget Favors the Bakken and Eagle Ford

ConocoPhillips Bakken Acreage Map
ConocoPhillips Bakken Acreage Map

ConocoPhillips released plans to spend $15.8 billion in 2013. Of that, more $4 billion will be spent across the company's U.S. assets in the Bakken, Barnett, Eagle Ford, Niobrara, and Permian Basin areas. Targets in all of those areas are liquids-rich.

If 2012 is a good indication of what to expect in 2013, Conoco will likely spend 15-20% of the $4 billion allocated for the U.S. in the Bakken. In 2012, the company spent approximately $600 million developing the play.

Conoco's believes its 600,000 + acres in the Bakken will yield:

  • 1,300 gross proved and probably drilling locations
  • 400 million barrels of resources from just 40% of its acreage
  • Production of almost 40,000 boe/d in 2016

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