Bakken Shale

EOG Resources - Bakken Shale Update

EOG Resources Inc. (EOG) held its third quarter earnings conference call on November 9, 2009 and discussed the Bakken Shale. EOG Resources plans a major capital program in the Bakken Shale in 2010. The company also has concluded that the Three Forks formation is a separate formation from the Bakken Shale. During the second quarter, Continental Resources (CLR) came to a similar conclusion.

Bakken Shale 2010 Capital Plans

“In the North Dakota Bakken we’ll run 14 rigs in 2010 drilling in the Bakken Core, Bakken Lite and Three Forks Formations.”

“our big projects for 2010 really are going to be delineating how much of the area is really productive in Three Forks and what are we looking at there, it’s really 500,000 acres and then how much of the 400,000 non-core Bakken acres are really productive under this Bakken Lite concept.”

Three Forks Bakken Shale Potential

“Additionally, preliminarily tests indicate that the Three Forks is productive and not pressure depleted under our portion of our 500,000 acres. The next steps order determine how much of our acreage is perspective with Three Forks potential and we’ll have more details on subsequent costs.”

“So there is certainly a strong indication that we may have another oil field beneath our core oil field and I would say these pressure results are consistent with at least one other operator has already delineated.”

Bakken Lite Potential

“$4.4 million and you get about 300,000 barrels of oil for a Bakken Lite well… We’re drilling generally 5000 foot laterals on most of our horizontal wells. And generally, we’ve been increasing the number of stages, so right now we’re somewhere around the 15 stages on those Bakken Lite wells and plan to rise it to 17.”

Source: Seeking Alpha

Hess Corp Outlines Bakken Shale Expansion

Hess Corp (HES) held its third quarter earnings conference call on October 28, 2009, and made the following comments on the Bakken Shale. The company is planning a major capital exploration program over the next five years, and plans in boosting production to 80,000 barrels per day in five years.

“We’ve got 135 wells in the ground. We’ve got three rigs operating in the Bakken. We’re in the middle of our 2010 budget and operating plan exercise, so we haven’t yet finalized our plans on the Bakken, but what I will say is, what we plan to do is significantly step up activity there.”

“So our plans contemplate a $4 billion to $5 billion spend over the next four to five years in the Bakken. Next year it will probably be around $800 million, although we haven’t finalized our plans yet. So you can assume $800 million walking up to $1 billion a year thereafter, and the production that follows that will be a peak rate of 80,000 barrels a day at the end of five years. So that’s currently what we are contemplating for the Bakken.”

Source: Seeking Alpha

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Whiting Petroleum Corporation Issues Operation Update - Part Two

Whiting Petroleum Corporation (WLL) issued an operations update on its acreage in the Sanish and Parshall Fields in the Bakken Shale area. The fields are located in Mountrail County, North Dakota.

Recent Completions

The Maki 11-27H produced 4,761 BOE per day during its initial 24-hour production, including 4,345 barrels of oil and 2.5 million cubic feet (MMcf) of gas.

The Tollefson 44-10H produced 2,636 BOE per day during its initial 24-hour production, including 2,409 barrels of oil and 1.4 million cubic feet (MMcf) of gas.

The Kannianen 11-5H produced 1,998 BOE per day during its initial 24-hour production, including 1,773 barrels of oil and 1.3 million cubic feet (MMcf) of gas.

All three wells are in the Sanish Field.

Upcoming Completions

Ogden 11-3TFH – Located in the Sanish field, the well is being completed using a 24 stage hydraulic fracturing operation. Results are expected in three weeks.

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Whiting Petroleum Corporation Issues Operation Update - Part One

Whiting Petroleum Corporation (WLL) issued an operations update on its acreage in the Sanish and Parshall Fields in the Bakken Shale area. The fields are located in Mountrail County, North Dakota.

Production (September 2009 average daily production)

Sanish Field - 10,565 barrels of oil equivalent (BOE)

Parshall Field – 6,845 BOE

Acreage

Sanish Field - 119,530 gross acres (69,643 net acres)

Parshall Field – 74,840 gross acres (18,365 net acres)

Activity through October 20, 2009

Sanish Field – Whiting Petroleum has six rigs operating currently, and is drilling six wells, and completing four others. The company has participated in a total of 84 wells (55 operated) in the field since entering.

Parshall Field – The company has participated in a total of 109 wells in the field since entering. EOG Resources, Inc operates the field. One well is currently being drilled, and none are waiting on completion.

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Newfield Exploration Company Comments On Bakken Shale

Newfield Exploration Company (NFX) discussed the Bakken Shale during its third quarter earnings conference call held on October 22, 2009.

Bakken Shale Well Cost

“As it relates to the deeper portion or the place that we have drilled historically most of our wells, we have got our cost down to somewhere around 4.2 to 4.5 million. As we move into some of the shallower areas…those wells are typically going to be about $3.5 million well or so.”

Lateral Length and Frac Intervals

“We have drilled one 10,000 foot (Bakken Shale) laterals and as we previously stated, we're just not seeing the performance results in the longer laterals to substantiate the incremental cost.”

“Going through shorter and shorter intervals in the order of 400 to 500 feet. And I suspect we will be doing more of that. So we're going to keep an eye on the lateral lengths. We are continuing to go shorter and lateral, shorter and shorter, and that is kind where we are in today.”

Source: Seeking Alpha ___________________________________________________________________

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Kodiak Oil & Gas Corp. Reports Two Bakken Shale Completions

Kodiak Oil & Gas Corp. (KOG) announced the completion of two wells on its acreage in North Dakota in the Bakken Shale. Much of Kodiak’s acreage is on the Fort Berthold Indian Reservation in Dunn County, North Dakota.

Charging Eagle #1-22-10H

• Drilled with a 9,949-foot horizontal lateral, and a 15 stage hydraulic fracturing operation. 
• An initial 24-hour production rate of 1,288 barrels of oil equivalent (BOE) per day composed of 1,187 barrels of oil per day and 606 thousand cubic feet of natural gas per day.
• Kodiak Oil and Gas has a 55% working interest (WI) and 45% net revenue interest in the Charging Eagle #1-22-10H Bakken Shake well. 

Charging Eagle #1-22-23H

• Drilled with a 6,620-foot horizontal lateral, and a 13 stage hydraulic fracturing operation.
• An initial 24-hour production rate of 845 barrels of oil equivalent (BOE) per day composed of 769 barrels of oil per day and 452 thousand cubic feet of natural gas per day.
• Kodiak Oil and Gas has a 60% working interest (WI) and 50% net revenue interest in the Charging Eagle #1-22-23H Bakken Shake well.

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Brigham Exploration Company Reports Bakken Shale Completion

Brigham Exploration Company (BEXP) reported the results of its latest Bakken Shale well completion. The Brad Olson 9-16 #1H produced 2,112 barrels oil equivalent (BOE) during its initial 24 hours of production. (1,805 barrels of oil and 1.84 million cubic feet (MMcf) of natural gas.

The Brad Olson 9-16 #1H was completed with a 28 stage hydraulic fracturing process, and is located in Williams County, North Dakota in the Rough Rider project area. The company believes it has as many as 240 net drilling locations in the Rough Rider area. Upcoming wells to watch for are the Lee 16-21 #1H, the Strand 16-9 #1H, and the BCD Farms 16-21 #1H.

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Brigham Exploration Company Discusses The Bakken Shale

Brigham Exploration Company (BEXP) made the following comments regarding the Bakken Shale during its second quarter conference call held on August 6, 2009.

Acreage

“Ross area in Mountrail County, where we control approximately 35,200 net acres. We believe this area is now proven for both the Bakken and the Three Folks, and as I said earlier, we estimate our reserves to be produced from both objectives at about 66 million barrels… that's assuming the drilling of Three Bakken and Three Folks wells per drilling unit which we think is likely.”

Bakken Shale and Three Forks

“…Bakken and the Three Forks is the greatest. We believe they are independent reservoirs with independent reserves in this area. The Continental's Mathistad well announcement to validate this conclusion.”

Production Growth

“We are forecasting our third quarter volumes to be up to 2450 barrels of oil per day, a 35% increase over that for the second quarter 2009 and a 73% increase relative to that for the prior year's period.”

Source: Seeking Alpha ___________________________________________________________________

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Newfield Exploration Company Discusses The Bakken Shale During Conference Call

Newfield Exploration Company (NFX) made the following comments on the Bakken Shale during its second quarter conference call held on July 23, 2009.

On The Bakken Shale Being Separate From The Sanish/Three Forks

“We are doing quite a bit of work on that as is the rest of the industry and I can say our buyers just for inspection at the strata and the course that we have taken is that it would be separate and I think that is probably, predominantly the feeling of industry. We are collecting and are doing looking at chemistries of the oils and everything that we continue to see would suggest that they are separate and then the answer to your last question is it would be would we considered drilling both those in the same section and the answer is absolutely yes.”

Bakken vs. Sanish/Three Forks EUR’s

“we're typically going to be in a 320 MBO a typical Bakken well and we felt that the Sanish Three Forks was going to be north of that maybe pushing 400 MBO.”

Source: Seeking Alpha ___________________________________________________________________

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Hess Corporation Updates The Bakken Shale

Hess Corporation (HES) made the following comments on its on its acreage in the Bakken Shale during its second quarter earnings conference call held on July 29, 2009.

General Comments On Bakken Shale Acreage

“We’re very pleased with our position in the Bakken. So I think that we'll play an increasingly important part of our portfolio mix and we're currently in the middle of evaluating various development options in terms of pace and additional late rigs etcetera. So when we have those development plans done, we'll share more information about the Bakken but we're very pleased with what we have and we're anxious to get moving on the Bakken.”

Production

“On the Bakken we're averaging about little over 10,000 barrels a day right now. In the Bakken we've got about 130 operated wells, in the Bakken. And as I said before we're in a midst of formulating our development plans, but we're very excited about the opportunity that we do have up there.”

Source: Seeking Alpha

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