Kodiak Nearing Completion Of Two 12 Well Pads

Kodiak Oil & Gas Bakken Three Forks Well Placement

Kodiak Oil & Gas is nearing completion of two well pads that will test six wells in the Bakken and six wells in the Three Forks. If successful, you might see a lot of development across the area shift to this strategy.

The Bakken and Three Forks wells are spaced approximately 800-850 ft apart. The wells in the Bakken and Three Forks are not stacked, but offset from each other to minimize interference. Not all six wells in the Three Forks are being drilled in the same zone either. Three are targeting the Upper Three Forks and three are targeting the middle Three Forks.

On one pad in the Polar area, 10 of the planned 12 wells had been drilled and on the other pad in the Smokey area 8 of the 12 planned wells had been drilled as of the beginning of May. The Polar area pad is expected to be completed and producing by late July.

“Kodiak had a solid first quarter and we are making progress towards the milestones that we set out for the year.”

— James Catlin, EVP

Other highlights from the first quarter included:

• Kodiak dropped one completion crew in March & April, but plans to add them back in May
• Production Averaged 21,700 boe/d in the first quarter
• Spending 20 days from spud to total depth
• Oil & gas infrastructure and salt water disposal infrastructure near 12-well pads is nearly complete
• Running seven rigs currently with plans to drop one later in the month

Resolute Energy Bakken Operations Update - Planning Sale

Resolute Energy Operating Areas

Resolute Energy plans to sell its Bakken properties in 2013 to fund development of other assets, but the Bakken does account for 8% of the company's production. Production was down slightly in the first quarter, but is expected to rebound in the next few months.

The company cited weather related delays for lower production, but expects the Bakken will rebound to between 1,100-1,200 boe/d in the second quarter. Spring break up could delay production in the quarter, but four wells are clear and waiting on pumping units. There should be room for production to outperform expectations.

Read the company's full press release at resolutenaturalresources.com

Residential Apartment Rates Almost Triple In The Past Two Years

Apartments In Williston, ND

It's no secret rental rates have skyrocketed over the past two years in Western North Dakota.

In Williston, residents of a two bedroom apartment have seen their rent go from $850 per month to $2,000 per month.

Almost 500 new units have been permitted, so the hope is prices will come down. Currently, "Fair Market Rent" is considered $1,000 for a two bedroom apartment.

Expensive rent has also driven the low income status range for a single person to $36,000.

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.