Williston Basin — Bakken Shale News

WPX Energy will spend between $1.420-$1.523 billion in 2014, with $580-600 million directed to Bakken and Three Forks targets in the Williston Basin.

WPX is planning to add a rig to bring its operated total to five in 2014.

The company expects the added rig will allow the company to drill 62 gross operated wells, or 25% more than the ~50 wells the company drilled in 2013.

Also read:Halcon Lowers Its 2014 Capital Budget & Holds Production Guidance

“Increased oil volumes, efficient development of our resource base and enhanced balance sheet flexibility will help drive increased cash flows and better overall results,” said Jim Bender, CEO.”

The emphasis in liquids producing areas will drive production growth in 2014. WPX expects daily oil production from the Williston and San Juan to increase ~50% from 16,000 b/d in the first quarter to more than 24,000 b/d by year-end.

In total, 85% of the company's capital budget is split between liquids producing plays in the Piceance, San Juan, and Williston basins.

WPX's capital budget:

$580-600 million in the Williston Basin (oil)
$475-495 million in the Piceance Basin (gas & ngls)
$155-180 million in the San Juan Basin (oil)
$20-30 million in the Appalachia region
$10-15 million in legacy areas like the Powder River Basin
$100-115 million on land and exploration

Read the full press release at wpxenergy.com

QEP Resources Bakken Three Forks Acreage Map

QEP Resources acquired its South Antelope Properties in the fall of 2012 for ~$1.4 billion.

Since the acquisition, QEP's value estimate for those properties has increased to $2.8 billion based on probable reserve estimates.

QEP Bakken South Antelope Properties

Since the acquisition of its South Antelope properties, QEP has lowered its development costs and increased production.

Current gross completed well costs have decreased by more than $1 million from estimated costs at the time of acquisition.

In spite of delays due to downstream and weather-related issues, current South Antelope oil production grew in 2013.

“Our South Antelope acquisition is a great example of our sound and stringent capital allocation process,” commented Stanley. “We are pleased to see that the assumptions made in our South Antelope acquisition have proven to be accurate and conservative.”

QEP Production and Proved Reserves for 2013

QEP total equivalent production in 2013 was 309 bcfe and oil production was 10.2 million bbl. Natural gas and NGL production was 218.9 bcf and 4.8 million bbl respectively.

2013 year end total proved reserves were 2.55 tcf of natural gas, 148.6 million bbl of crude oil and 102.6 million bbl of NGL. That's a 37% increase of total proved reserves at year end 2013 compared to 2012.

At the end of 2013, QEP's Williston Basin proved reserves were estimated at 797.5 bcfe or ~140 million boe.

Highlights

QEP Resources South Antelope property valued at $2.8 billion
QEP total equivalent production in 2013 was 309 bcfe and oil production was 10.2 million bbl
Proved crude oil reserves at 149 million barrels. Up 25% from prior year
37% increase in total proved reserves
Williston Basin contributed more than 140 million boe in reserves

* Extensions and Discoveries: As to any period, the increases to proved reserves from all sources other than the acquisition of proved properties or revisions of previous estimates.