Is the Bakken Boom Getting Boomier? - Video

An Irish correspondent visited North Dakota and he believes the Bakken boom is getting boomier. It's a good overview of what's happening from a foreign perspective. Enjoy the Irish commentary:

A few interesting quotes and takeaways:

• The Bakken covers an area twice the size of Ireland
• The population in the region is just half that of the Irish Province Munster
• Development is the "biggest oil boom on American land since Texas"
• "Digging" thousands of oil wells
• Prices are making the boom even more boomier
• Lucky workers make it to the man camps that beat all man camps
• Many didn't have much and are now multi-millionaires

P.S. Don't be surprised if you see me use the word "boomier" (pronounced: boomy-er) in the future.

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

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

Continental's Bakken & Three Forks Density Test Yields Almost 15,000 boe/d

Continental Resources Hawkinson Bakken Three Forks Density Test

Continental set a record with third quarter production of 141,900 boe/d. Bakken production grew 7% and accounted for 94,500 boe/d of the total.

Continental operated 20 rigs in the Bakken region during the quarter and grew gross production to almost 120,000 boe/d (94,500 boe/d net). That's 51% higher than the third quarter of 2012 and even more impressively, Montana production grew 17% over the second quarter.

Continental participated in the drilling of 203 gross (75 net) Bakken-Three Forks wells and the number of drilled, but not completed wells grew to 85. The company expects to participate in a total of 761 gross (282 net) Bakken & Three Forks wells in 2013.

The company also reached its year-end target of $8.0 million well costs during the quarter.

“....In addition, we completed our first density test in the Hawkinson spacing unit, demonstrating very strong initial production in the Middle Bakken and the first three benches of the Three Forks. Once again, Continental is pioneering the expansion and improved recoveries in the world-class Bakken oil play, demonstrating the productive potential of four to five stacked zones with multiple wells in each.”

— Harold G. Hamm, Continental's CEO

Continental Completes Hawkinson Unit & Plans Full Field Development in the Antelope Area

W. F. "Rick" Bott, COO, commented, "The Hawkinson project is a milestone event for CLR and further validates our vision for full field development of the Bakken -Three Forks reservoirs in this world class oil field."

Continental Resources Bakken - Antelope Area Map

The Hawkinson density project tested 14 wells in a single unit. Three wells were existing and another 11 were drilled to complete the test. Four Middle Bakken, three Three Forks 1, four Three Forks 2, and three Three Forks 3 wells were drilled and completed at 1,320 ft spacing and 660 ft spacing in adjacent zones. The 11 new wells yielded 13,400 boe/d in addition to the 1,450 boe/d being produced from the existing three wells. That's almost 15,000 boe/d from a single pad.

The company also announced full-field development plans in the Antelope area. This will include drilling 350 wells from pads with 20-30 wells each over the next four to five years. The area will be the first to see full field development in the deeper benches of the Three Forks.

Read the full release at clr.com

Bakken Deals Account for 33% of U.S. Shale Deals in Q3

Oasis Petroleum Bakken Acreage Map - Acquisition Included

There were $1.8 billion in Bakken deals in the third quarter and that led all shale plays in terms of dollar value. There were $16.4 billion worth of deals in the third quarter and $5.4 were attributable to assets in shale plays.

The Eagle Ford in South Texas led with seven deals compared to the Bakken's three, but trailed the Bakken in total deal value by $100 million.

PWC only tracks deals with a value of more than $50 million. We actually covered four deals in the quarter:

• Oasis Acquires 160,000 Plus Bakken Acres - $1.5 Billion
• Whiting Petroleum Acquires Bakken Acreage in Montana and North Dakota - $260 million
• Samson Sells Bakken Assets in Montana - $13.5 million
• Halcon Buys Resolute Energy's Williams County Bakken Acreage - $75 million

Read the full oil and gas divestitures report at pwc.com

EOG Will Utilize Self-Sourced Sand in Bakken Completions

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.