Continental Resources' 2014 Bakken Budget Increases to $2.5 Billion

Continental Resources Bakken Three Forks Map

Continental Resources plans to spend $2.5 billion on development drilling and completions in the Bakken in 2014. That's a 16% increase from plans to spend $2.15 billion in 2013.

In 2014, the company will run 17 rigs in North Dakota and four rigs in Montana, with plans to drill 886 gross (300 net) wells.

Continental will spend a total of $4 billion in 2014, with $2.5 billion allocated to the Bakken, approximately $900 million allocated in Oklahoma, and $500 million directed to exploration activities. Company-wide production guidance calls for growth of 26-32%, with a 2014 exit rate of 200,000 boe/d.

"Achieving our 2014 goals will be an excellent 'Year 2' in our five-year plan to triple production and proved reserves," said Harold G. Hamm, Continental's CEO.

Continental plans to complete its four Three Forks well density pilots and will plan additional pilots in 2014 based on the results.

“...the Company has set a new goal to reduce average operated Bakken completed well costs in a range of 3% to 5% by the end of 2014.”

The company controls approximately 1.2 million net acres and produces approximately 80,000 boe/d from the Bakken.

Read the more from the company at clr.com

Abraxas Provides Bakken Update - Four Wells Average 1,100 boe/d

Abraxas Petroleum Bakken Acreage Map

Abraxas Petroleum provided an operational update and included results from a four-well pad that targeted the Bakken and Three Forks.

Bob Watson, CEO of Abraxas, commented, "Abraxas continues to execute operationally with excellent well results in our core operated Bakken and Eagle Ford assets."

The following four wells were completed in the Lillibridge East unit in McKenzie County, ND, and produced at the following rates over an initial 30-day period:

• Lillibridge 1H produced 1,027 b/d of oil and 1.5 mmcfd from the Middle Bakken
• Lillibridge 2H produced 766 b/d of oil and 1.2 mmcfd from the Three Forks
• Lillibridge 3H produced 1,031 b/d of oil and 1.6 mmcfd from the Middle Bakken
• Lillibridge 4H produced 697 b/d of oil and 1.3 mmcfd from the Three Forks

Abraxas has hit total depth of 20,800 ft on the Lillibridge 8H and 7H and set casing. The wells are located on the company's Lillibridge West pad. The 6H is being completed and the company will start drilling the 5H soon thereafter. Abraxas has a 34% interest in both Lillibridge units.

Read the full press release at abraxaspetroleum.com

Bakken Rig Count Unchanged - Williston Basin Flat at 182 Rigs - Sept 6, 2013

Oasis Petroleum Bakken Acreage Map - Acquisition Included

The Bakken rig count held flat at 180 rigs running for the fifth week. In a similar fashion, the Williston Basin rig count has held flat at 182 rigs during the same period.

The U.S. rig count fell nine rigs to 1,767 and more rigs moved to drilling natural gas. A total of 394 rigs are targeting natural gas and 1,365 are targeting oil in the U.S. The remainder are drilling service wells (e.g. disposal wells, injection wells, etc.). 182 rigs are running in the Williston Basin.

News this week was highlighted by the announcement that Oasis Petroleum acquired 161,000 acres in four transaction for $1.515 billion. The deal increases the company's acreage position by almost 50%. Read more in the article Oasis Petroleum's Bakken Deal Grows Acreage Position 50%

Note: The NDIC reports 185 rigs are active in North Dakota. That is 15 more than Baker Hughes reports. The difference is likely accounted for in the number of rigs actually working and rigs that might not be serviced by Baker Hughes. On any given week, a certain number of rigs are in route to the next well location or idle waiting to drill the next well. The NDIC notes that more than 10 rigs are in the process of moving in and rigging up.

Bakken Oil & Gas Rigs

[ic-l]The number of oil rigs running held flat at 180 in the region. WTI oil prices were trading above $110/bbl and the benchmark has been above $100 for nine weeks running. Watch for operators to begin reacting to higher oil prices. It's common to see a 60-90 day lag before companies increase or decrease activity in response to commodity price changes. Williston Basin Sweet crude traded at $95.94/bbl on Sept 5th.

The natural gas rig count in the region held flat at zero. Natural gas futures (Henry Hub) were trading near $3.50/mmbtu on Friday. Natural gas delivered to the Northern Border pipeline in Watford City is trading below $3/mmbtu. A little more than 10% of the production stream from the Bakken and Three Forks is attributable to natural gas.

McKenzie County led development with 64 rigs running. Dunn, Mountrail, and Williams counties are the only other counties with more than 20 rigs running. View the full list below.

Activity is dominated by horizontal drilling: 157 rigs are drilling horizontal wells, 15 rigs are drilling directional wells, and five rigs are drilling vertical wells.

Bakken Oil & Gas News:

• Oasis Petroleum Bakken Acquisition Grows Production 50%
• Bakken Banks See Exception Growth
• No Need For Keystone XL In The Bakken

Be sure to visit our Bakken Job Listings to search openings and come back weekly for updates.

Bakken Drilling by County

What is the Rig Count?

The Bakken Shale Rig Count is an index of the total number of oil & gas drilling rigs running across Montana and North Dakota. The rigs referred to in this article are for ALL drilling reported by Baker Hughes and not solely wells targeting the Bakken formation. All land rigs and onshore rig data shown here are based upon industry estimates provided by the Baker Hughes Rig Count and/or Smith Service Co's (Schlumberger) Smith Rig Count.

Oasis Petroleum's Bakken Deals Grow Acreage Position 50% - $1.5 Billion

Oasis Petroleum Bakken Acreage Map - Acquisition Included

Oasis Petroleum has agreed to acquire 161,000 acres prospective for the Bakken in the Williston Basin for a total of $1.515 billion. In four separate deals, the company's position grows from 331,000 to 492,000 net acres.

The deals included production of 9,300 boe/d, so total volumes just grew from 33,700 boe/d to 43,000 boe/d.

Oasis currently operates 11 rigs in the region and the sellers operate two. Oasis expects to continue a similar level of activity (13 rigs) through the end of the year and will ramp up to running 15-16 rigs by the end of 2014.

"These acquisitions add high quality acreage in the heart of the Bakken and Three Forks play, providing incremental scale to our premier position in the Williston Basin," said Thomas B. Nusz, Oasis' CEO. "As we enter full development mode, our size and scale will continue to drive growth, efficiencies and shareholder value."

Other notable facts related to Oasis Petroleum's position include:

• Operational control held flat at 91% of acreage with the acquisition
• Operated working interest fell from 69% to 68%
• Estimated number of spacing units grew from 280 to 399
• Operated drilling inventory grew from 2,020 gross (1,532 net) to 2,847 (2,150 net) wells
• Estimated proved reserves grew from 169.9 mmboe (89% oil) to 215.6 mmboe (87% oil)

Over 90% of the value of the deal is attributed to acreage in the western portion of the company's target area. Approximately $1.45 billion was spent acquiring 9,000 boe/d and 136,000 net acres west of the Nesson Anticline; the remainder was attributed to 300 boe/d from 25,000 net acres to the east.

Air Travel In The Bakken Gets Boost From ND Land Board

Minot Airport

The North Dakota Land Board has awarded more than $27 million in grants to airports throughout western North Dakota. The grants add to the $11 million awarded by the FAA. In total, more than $38 million has been awarded airports in the state.

The bulk of the funding will be allocated in areas impacted by Bakken oil and gas development. The largest grants include:

• Minot - $22.2 million from the state
• Bowman County - $4.6 million from the FAA and $1.9 million from the state
• Bismark Airport - $2.3 million from the FAA
• Dickinson Airport is getting $1.9 million from the FAA and $1.2 million from the state
• Crosby - $1 million from the state

“Airports in western North Dakota are experiencing record increases in boardings and activity, requiring additional investment in new and expanded terminals, runways and other maintenance needs,” said Gov. Jack Dalrymple. “These state grants will help airports in our oil and gas counties address the impacts of rapid growth and enhance air travel opportunities for our citizens.”

No other airport is getting more than $500,000 in grant funding. The state set aside $60 million in Energy Impact Grants to fund airport projects. The $27 million awarded is the first round of distributions.

Read the full press release from the Governor's office at governor.nd.gov