Continental Resources' Bakken Production Surpasses 100,000 boe/d (Gross Operated)

Continental Resources Bakken Shale Map

Continental Resources' first quarter production averaged 76,900 boe/d net or 63% of company-wide production.

Gross operated production surpassed a significant milestone at more than 100,000 boe/d.

The company is targeting well costs of $8.2 million by year-end 2013 and is well on its way to that goal after spending $8.3 million per well in the first quarter. Expanded use of pad drilling should continue to drive costs down.

“Our production growth remained strong despite seasonal challenges in the Bakken. We continue to monitor oil differentials and transportation costs to ensure we realize the most attractive pricing for our premium Bakken oil.”

— W. F. "Rick" Bott, Continental's President and Chief Operating Officer

Highlights from the quarter include:

• Production growth of 14% over the fourth quarter of 2012 and 60% over the first quarter of 2012
• 80% of operated oil production moving by rail
• Operated 22 rigs
• Completed 162 gross (66 net) wells in the quarter
• Have a 80 gross wells drilled and awaiting completion
• Average initial production rates in ND were 1,125 boe/d (84% oil)
• Estimated EURs remained unchanged at 630,000 boe in ND and 430,000 boe in MT
• Successful Lower Three Forks completions in the quarter have expanded the aerial extent of the play.

Continental currently has six producing wells in the lower benches of the Three Forks with average initial production rates of approximately 1,170 Boe per day.

The number of wells drilled and awaiting completion will fluctuate as Continental expands its pad drilling operations.

Mr. Bott added, "Quarter after quarter, our Bakken operations continue to deliver impressive growth with highly attractive returns. On the exploration front, we are very excited about the continual success of our Lower Three Forks productivity tests. Our cost focus has put us ahead of target on reducing average drilling and completion well costs in the Bakken. Based on field estimates, we are down to approximately $8.3 million in April 2013."

Read the full press release at clr.com

Oasis Petroleum Forms Bakken Midstream Subsidiary - Production Above 30,000 boe/d

Oasis Petroleum Bakken Map

Oasis Petroleum has realized significant cost savings through its Oasis Well Services (OWS) subsidiary and will be targeting savings on the midstream side through Oasis Midstream Services (OMS). Oasis formed the midstream venture when it transferred salt water disposal and other midstream assets to the subsidiary.

Creating subsidiaries for oilfield and midstream services allows the company to realize costs savings through vertical integration. Being split out as subsidiaries also makes them much easier to divest if the company chooses to do so in the future.

"The momentum of our operational success continued into the first quarter, as we again exceeded our production guidance and drove down our average capital cost per well by 5% to $8.4 million, excluding the impact of Oasis Well Services," said Thomas B. Nusz, CEO.

The company saved an additional $0.3 million per well through OWS to lower total capital expenditures to $8.1 million per well.

Bakken production surpassed 30,000 boe/d in the quarter, but is expected to hold relatively flat in the second quarter as the company transitions to pad drilling. Full year production guidance has been increased to 31,000-34,000 boe/d.

Marathon Oil's Bakken Production Higher Than Planned

Marathon Oil Bakken Shale Map

Marathon Oil's Bakken production is outpacing expectations. The company produced 37,000 net boe/d from the play in the first quarter and surpassed 38,000 net boe/d in April.

The company now expects 2013 production to average 40,000 net boe/d. That's almost 15% higher than previous guidance.

A total of 18 gross Bakken wells were drilled in the first quarter and 22 were brought to production.

Clarence P. Cazalot, Jr., CEO, said "Our strong operational performance was a result of high levels of reliability in our base business along with continued growth in our Eagle Ford and Bakken shale plays."

The average spud to spud drilling time continues to fall. Marathon was able to drill and move rigs in an average of 25 days in the first quarter.

Price realizations are also improving as the company moved 45% of its oil by rail in the quarter. Marathon realized an average price of almost $89/bbl in the Bakken in the first quarter compared to less than $80/bbl in the fourth quarter of 2012.

Read the full press release at marathonoil.com

EOG's Bakken Downspacing & Three Forks Second Bench Look Promising

EOG Resources Bakken Shale Map

EOG Resources announced results from the first quarter of 2013 and impressive well results in the Bakken and Three Forks were included.

The first test of the second bench of the Three Forks yielded promising results in the company's Antelope Extension acreage in McKenzie County, ND. The Riverview 03-3130H was completed to sales at 3,150 b/d of oil. Additional tests are planned in the same area.

In addition, modifications in completion techniques and production enhancements combined to make EOG's rate-of-return results from the Bakken the highest in company history.

The Bakken helped fuel company-wide crude oil production growth of 33% year-over-year and recent completions are yielding projected returns as good as any play in the company's portfolio.

EOG Tests 160-Acre Spacing At Parshall

Initial production rates from 160-acre spacing test in the Parshall Field look promising. Highlighted wells include:

• The Wayzetta 136-2127H was completed at an initial production rate of 1,910 Bopd
• The Fertile 53-3024H began sales at 1,725 Bopd
• The Van Hook 20-0107H and 127-0107H were completed to sales at rates of 2,375 and 2,170 Bopd

If crude oil prices remain in the current range, EOG plans to increase the level of its North Dakota drilling activity in 2014.

SM Energy Trading Two Bakken Rigs For One Walking Rig

SM Energy Bakken Map

SM Energy plans to drop from running four Bakken rigs to three later in the year. Two rig contracts are up and the company will be trading two for one.

The rig coming in will be a walking rig capable of drilling multi-well pads.

Bakken production was up 3% on the quarter and 18% from this time last year to 12,200 boe/d. The focus of drilling is in the Raven, Bear Den, and Gooseneck prospects in Divide, McKenzie, and Williams counties in North Dakota.

SM Energy completed 11 gross wells on its operated acreage during the quarter.

Read the full press release at sm-energy.com