Magnum Hunter Resources Provides Second Quarter Bakken Update

Magnum Hunter Bakken Shale Map

Mangnum Hunter Resources participated in bringing on 19 gross (5.5 net) Bakken wells in the second quarter of 2013. At the end of the quarter 20.4 gross (11.4 net) wells were in some stage of drilling or being completed.

Magnum Hunter also noted midstream delays brought on by wet weather. A Oneok gathering system expected to be online in April did not accept gas until the last week of June. The gas gathering system is being built in an effort to conserve natural gas production in the area. In total, the project will connect ~300 wells in the area over the next year.

Bakken & Three Forks Well Highlights

• Border Farms 3130-5TFH - (28.3% interest) Drilled to a measured depth of 14,300 ft (lateral length of 6,075 ft), fraced with 26 stages. The 24-hour flowing initial production (IP) rate was 626 boe/d
• Montclair 0112-2TFH - (16.7% interest) Drilled to a measured depth of 17,710 ft (lateral length of 9,572 ft), fraced with 40 stages and placed. The 24-hour flowing IP rate was 683 boe/d
• J. Olson 22-15-162-98H 2DM - (36.25% interest) Drilled to a measured depth of 18,215 ft (lateral length of 9,455 ft), fraced with 36 stages. The 24-hour flowing IP rate was 872 boe/d
• J. Olson 27-34-162-98H 2XM - (35.7% interest) Drilled to a measured depth of 18,842 ft (length of 10,096 ft), fraced with 36 stages. The 24-hour flowing IP rate was 820 boe/d
• Baja 2215-2H - (30.4% interest) Drilled to a measured depth of 18,155 ft (lateral length of 9,568 ft), fraced with 25 stages. The 24-hour flowing IP rate was 813 boe/d
• Baja 2215-3H - (30.4% interest) Drilled to a measured depth of 18,280 ft (lateral length of 9,820 ft), fraced with 25 stages. The 24-hour flowing IP rate was 1,076 boe/d
• Baja 2215-1H - (30.4% interest) Drilled to a measured depth of 17,977 ft (lateral length of 9,545 ft), fraced with 25 stages. The 24-hour flowing IP rate was 913 boe/d

Magnum Hunter controls 190,000 net acres in the Williston Basin. 140,000 acres are located in North Dakota and ~50,000 acres are located in Canada.

Bakken Ethane Pipeline Gets State Department Approval

Vantage Ethane Pipeline Map

A pipeline that will move ethane from a Hess processing plant in Tioga, North Dakota, to Canada has been approved by the U.S. State Department.

The Vantage Pipeline will stretch 430 miles from Tioga, North Dakota, to Alberta, Canada, where it will deliver ethane to petrochemical plants. Approximately 80 miles of the pipeline will be located in North Dakota.

The pipeline will take several hundred thousand man hours and more than $300 million to build. Capacity is expected to be 40,000-60,000 b/d.

“The Vantage Pipeline is another major piece of infrastructure that will help us build our North American energy security partnership with our closest friend and ally Canada. The project illustrates clearly how modern pipelines can create jobs, make us more energy secure, and do so with good environmental stewardship. It will enable us to reduce flaring in North Dakota and also reduce emissions where the natural gas is used by industry.”

— Senator John Hoeven

Bakken Oil Production Record Set In May - Despite Wet Weather

Bakken oil & gas production in North Dakota grew almost 2% in May to set a new record. The state produced:

• 810,129 b/d of oil
• 899,977 mmcfd

That's up from 793,852 b/d and 861,193 mmcfd in April.

If any month was expected slow, it would have been May. June is really the only month left to watch this year. The rest of the year should continue to grow at a consistent pace. Activity levels point to growth of 10,000 b/d per month through the end of the year. Growth of more than 16,000 b/d in May is a bit of surprise to the upside and puts the state well on its way to eclipsing 850,000 b/d by year-end.

April was the coldest on record and was followed by the wettest month on record. Load restrictions have been in force in parts of the state over the past two months and construction of well sites has been constrained.

Samson Oil & Gas Selling Bakken Assets In Montana

Samson Oil Gas Roosevelt Project Bakken Map

Samson Oil & Gas is selling 30,000 net acres in the company's Roosevelt Project in Montana for $13.5 million.

The deal includes the acreage and an interest in the following wells: the Australia II, Gretel II, and Abercombie (Contiental Resources operated).

Samson will use the cash raised to further development of the company's North Dakota Bakken prospects.

The Roosevelt Project accounted for the bulk of the company's acreage in the play, but well results must not have been good enough to continue exploring the prospect. The company will now focus its development efforts in its 2,450 net acres in North Dakota. Samson expects to be producing 1,200 net b/d in the Bakken by the end of 2013.

Abraxas Nears Completion On Bakken Pad Utilizing A Zipper Frack

Abraxas Petroleum Bakken Acreage Map

Abraxas Petroleum has completed 109 of 122 frack stages in four wells on its Lillibridge unit in McKenzie County.

Production data will be released after flowback begins and production measurements can be made.

A well pad just west of this unit is currently being drilled and will be completed later in the summer.

Bob Watson, CEO, commented:

“In numerous presentations over the last several months we spoke of an anticipated step change in production. As we head into the third quarter of 2013 we are poised to realize that production growth via our four new Bakken wells and upcoming Eagle Ford completions...... In the Bakken, our Lillibridge completions are running remarkably smoothly and our rig is working efficiently.”

Read the full press release at abraxaspetroleum.com