Bakken Shale

Denbury Resources Bails On The Bakken

Denbury Resources (DNR) is abandoning the Bakken play and has agreed to sell its assets here to Exxon Mobil (XOM) for $1.6 billion in cash and Exxon Mobil’s interests in two onshore oil and gas fields.

Denbury Resources said that the Webster Field in Texas and Hartzog Draw Field in Wyoming are suitable candidates for tertiary recovery efforts using carbon dioxide.  The company also intends to purchase an interest in Exxon Mobil’s carbon dioxide reserves in the LaBarge Field in Wyoming.

Denbury Resources reported proved reserves of 96 million barrels of oil equivalent (BOE) in the Bakken at the end of 2011.  These reserves were 84% composed of crude oil and natural gas liquids.   The company reported average production of 15,400 BOE per day from the Bakken in the first six months of 2012.

EOG Resources Reports On Bakken Shale Properties

EOG Resources (EOG) reported information on its activities in the Bakken Shale, where the company has 330,000 net acres prospective for the play.

EOG Resources has 80 million barrels oil equivalent (BOE) of proved reserves booked here as of 12/31/2009. The company believes that its potential reserves in the Bakken Shale and other formations are much higher, at 420 million BOE.

EOG Resources said that the average Bakken Shale well in the company’s Bakken Lite area has the following hydrocarbon content:

Oil – 86%

Natural Gas Liquids – 11%

Natural Gas – 3%

Continental Resources Comments On Bakken Shale - Part One

Continental Resources (CLR) reported earnings for the first quarter of 2010, and held a conference call on May 6, 2010, to discuss the results. During the call the company made comments on some of its operations, including the Bakken Shale in North Dakota and Montana.

Continental Resources recently raised the estimated ultimate recovery (EUR) on Bakken Shale wells in North Dakota, as the company has refined its completion technique. Continental Resources is now using a EUR of 518,000 barrels oil equivalent per well.

EUR’s

“We’ve increased the estimated ultimate recoveries (EUR) at the company to 518,000 BOE, this is a 20% improvement in just six months, Bakken is still getting better folks. It is based on higher initial production in North Dakota wells, and our experience there and stronger performance over 30, 60, and 90 days.”

Rig Count

“Now we operate 23 rigs under contract with 15 of those in the Bakken. By the end of May, we expect to add two more in Bakken. We have a clear focus in oil and liquids price, and very important total production volume increased related to this build up and Continental rigs are still coming in future. So you can expect to see a surge in second half of 2010 and 2011’s production rates from Continental.”

“So to give you a total picture of activity, today we have 15 active operated rigs in Bakken. We’ve planned to move two new rigs into the play by next month. One rig is drilling in Montana, and the remaining 14 are in the North Dakota Bakken.”

Montana Bakken

“The Montana Bakken dropped from 6,100 to 5,300 barrels of oil per day due to limited drilling activity during the past 12 months, and during the first quarter.”

Source: Seeking Alpha