QEP Resources Bakken & Three Forks Production Surpasses 21,000 boe/d

QEP Resources Fort Berthold Bakken Well Results
QEP Resources Fort Berthold Bakken Well Results

QEP Resources Bakken and Three Forks production grew a little less than 1,000 boe/d in the third quarter to average 21,300 boe/d.

QEP brought 21 operated wells to production with impressive initial production rates. Ten wells in the South Antelope area came online with a 24-hour initial production (IP) rate of 3,412 boe/d and 11 wells in the Fort Berthold area came online with IPs of 2,588 boe/d. Many of those wells were drilled and completed on mult-well pads.

Production didn't grow quite as much as expected due to midstream bottlenecks and shut-ins required by drilling operations. I suspect we'll see relatively strong growth in the fourth quarter.

At the end of the third quarter, QEP had drilling operations active on eight well pads (3 at South Antelope and 5 at Fort Berthold). QEP also has an interest in 24 outside operated wells being drilled and is awaiting completion on 22 operated and non-operated wells.

In the Williston Basin, we brought on 21 new QEP-operated wells in the third quarter compared to a total of 27 operated completions in the first half of the year. Production results from our South Antelope wells continue to confirm our pre-drill EUR expectations. Despite some delayed well completions — in part due to bottlenecks in third-party downstream crude oil systems — and shut-ins of existing wells for offset completions, we expect to grow oil production at an enviable rate of 60 percent over 2012.
— Chuck Stanley, CEO

On QEP's Fort Berthold acreage alone, the company estimates potential for 420 gross Bakken and Three Forks wells at 160-acre spacing. EURs in the Bakken range from 400-650 mboe and wells in the Three Forks are expected to yield 350-600 mboe. That equates to resource potential of 121-202 million barrels of oil equivalent (net) from QEP's Fort Berthold assets alone.

Read the full press release at qepres.com

EOG Will Utilize Self-Sourced Sand in Bakken Completions

EOG Resources Bakken Map
EOG Resources Bakken Map

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.

QEP Resources Bakken Well Pad Surpasses 15,000 Barrels Per Day!

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

QEP Resources Bakken production was down in the first quarter due to the company's transition to pad drilling. That was quickly reversed as the company brought its first four well pad online on its South Antelope acreage in the second quarter.

The four wells had a 24-hr, initial production rate that eclipsed 15,000 boe/d or 3,929 boe/d per well after processing when added together. That's after QEP produced just 17,000 boe/d in the first quarter of 2013.

The first two wells actually eclipsed 4,500 boe/d each and that is from the first two wells the company has drilled in the area. QEP Resources acquired its South Antelope acreage from Helis for $1.3 billion in late 2012.

I am pleased with QEP`s strong operational results this quarter and I am encouraged by the very strong well results from our first operated multi-well pad on the South Antelope Acquisition,” commented Chuck Stanley, Chairman, President and CEO of QEP Resources. “As anticipated, it has taken some time to transition to pad development, where multiple wells are drilled and cased before completion activity commences.

QEP operates 8 rigs targeting the Bakken and Three Forks in the region.

Watch for lumpy production rates as operators shift to pad drilling. This is perfect example of how significant volumes can come online all at once.

Read the full operations update at qepresources.com