GeoResources (GEOI) issued an operations update on its activities in North Dakota and Montana, where the company is working on the Bakken and Three Forks formations. The company operates 25,000 net acres in North Dakota and 8,200 net acres in Montana.
GeoResources is operating two rigs on its properties and has recently contracted for a third rig, which is currently under construction. The company said that the new rig will be more mobile and reduce mobilization time in between wells. This will reduce drilling and completion costs, which are currently running from $7.5 million to $8 million per well.
GeoResources reported that the Olson 1-21-16H well was recently completed and average production of 300 barrels of oil equivalent (BOE) per day during the first thirty days of production. This was the company’s first well in Montana.
Fourth Quarter of 2011 Highlights
- Spud six gross wells.
- Completed four gross wells.
- Five gross wells waiting on completion.
- Between 23 and 28 gross operated wells planned for 2012.