EOG Will Utilize Self-Sourced Sand in Bakken Completions

EOG Resources Bakken Map

EOG Resources is shifting to self-sourced sand for use in completions in the Bakken and Three Forks. The company has owned and operated sand mines supplying other plays for years.

EOG's sand mines will contribute to significant well cost savings.

Most of the company's current activity is focused in the core area of the Parshall field and the company's Antelope Extension. EOG plans to complete 54 net wells in those areas in 2013.

“EOG is consistently making the best oil wells in the best two oil plays in North America, the Eagle Ford and Bakken/Three Forks.”

— CEO, William R. "Bill" Thomas.

The company's utilization of more fluid and sand in completions is proving successful in the Bakken. The company has seen both improved recoveries and returns in the play.

EOG Bakken and Three Forks Well Highlights

• Six wells produced initial rates of approximately 2,000 b/d of oil or more in Mountrail County
• Three - Three Forks wells in the Antelope Area came online at rates between 1,235-2,100 b/d of oil

"Every quarter, EOG's technical understanding of the Eagle Ford and Bakken/Three Forks expands, as we further modify completion techniques that boost overall well productivity and economics," Thomas said.

EOG Increases Company-wide Production Growth Estimates

Production guidance in 2013 has been increased again. EOG expects 39% growth in oil production, 17% growth in NGL production and company-wide growth of 9%. That`s up from initial estimates of 28% crude oil growth, 10% NGL growth, and just 4% company-wide growth at the beginning of the year.

Marathon Oil's Bakken Production Holds Flat in Q3 - Drilling Faster

Marathon Oil Bakken Map

Marathon Oil's Bakken production held flat at 38,000 boe/d in the third quarter as the company shut in production to complete adjacent wells. Compared to the third quarter of 2012, production is up 27%.

Flat production from one quarter to the next isn't a knock on Marathon, it's going to happen with the expanded use of pad drilling. Unless operators stagger their pad drilling perfectly (near impossible), we'll see lumpy production additions going forward.

“Marathon Oil achieved strong financial results in the third quarter, delivering $1.44 billion in operating cash flows before working capital changes, and adjusted net income of $617 million, 29 percent higher than the second quarter,” said Lee M. Tillman, CEO. “All three business segments performed well, capturing the higher liquid hydrocarbon realizations both domestically and internationally, compared to the second quarter.”

Marathon hit total depth on 21 gross wells and brought 21 gross wells to production during the quarter. The 2013 exit rate for production is estimated at 40,000 boe/d.

The company's average drilling time for each well fell from 15 days in the second quarter to 14 days in the third quarter. That's 20% faster than one year ago.

Marathon also discussed successful results in the Three Forks. The company is targeting the upper portion of the play and expects to explore the lower benches in 2014. Marathon has drilled 58 Three Forks wells to date and the formation accounts for more than 20% of the company's production in the region.

Read the full release at marathonoil.com

Halcon's Bakken IP Rate Improved Dramatically in the Third Quarter

Halcon Bakken Drilling Spacing Unit

Halcon Resources' initial production rates have improved considerably across the Bakken. The company is completing wells with tighter stage densities, more proppant per stage (100% ceramics), and is using slick water in areas where gels were used in the past.

The company's best well to date was completed on the Fort Berthold Reservation in the third quarter. The Bakken well came online 3,914 boe/d.

Wells completed with the company's latest design have yielded results 20-60% better than comparable wells.

“Third quarter results were defined by continued expansion of our activities in the Williston Basin, El Halcon and other areas.”

— Floyd C. Wilson, CEO

Spud-to-total depth drilling times have fallen below 18 days at both the company's Fort Berthold and Williams County properties. Approximately 80% of drilling in 2013 and 100% of drilling in 2014 will be multi-well pads.

Halcon spudded 14 wells and completed 13 wells in the third quarter as net production increased 40%. The company will operate 5-6 rigs in the fourth quarter and 4-5 rigs in 2014.

The company continues to test downspacing across the play and the lower benches of the Three Forks. The first Three Forks Second Bench well is being drilled currently.

Downspacing tests at 660 ft/well have proven promising. The three Bakken wells tested at 660 ft spacing in the unit depicted above all came online at more than 2,500 boe/d. Halcon is planning the majority of Bakken development on the Fort Berthold Reservation at 660 ft spacing and plans to drill downspacing pilot tests in Williams County in 2014.

Halcon has 132 producing Bakken wells, 39 producing Three Forks wells, and 14 wells in various stages of drilling and completion.

Read the company's full Q3 press release at HalconResources.com

NRP - Sundance Reach $35.5 Million Bakken Deal

Natural Resource Partners (NRP) has agreed to acquire non-operated working interests in the Bakken from Sundance Energy for $35.5 million. 

“This is NRP’s second acquisition of producing, non-operated working interests in the Bakken/Three Forks play, which will grow and further diversify NRP’s revenue going forward.”

— Nick Carter, NRP's COO.

The deal includes 77 producing wells and associated acreage in Dunn, McKenzie, and Mountrail counties. All leases are held by production. NRP plans to participate in future development on the properties.

Read the full release at nrplp.com

SM Energy Grew Bakken Production 9% in the Third Quarter

SM Energy Bakken Map

SM Energy grew Bakken production volumes from 13,700 boe/d in the second quarter to 14,900 boe/d in the third quarter.

The company completed 13 gross wells and is producing 35% more than it did at this time last year.

SM has three rigs running, with a focus in the Gooseneck, and Raven/Bear Den areas. SM Energy has 162,000 net acres prospective for the Bakken and Three Forks, but is focused on development of 81,000 net acres.

The company made two comments related to testing in the play:

• Downspacing results will be considered in planning at year-end
• Evaluating alternate completion designs being used in the play - Current design utilizes a 26-stage sliding sleeve completion and 80,000 barrels of fluid.

Read the company's full third quarter press release at sm-energy.com