North Dakota Production Will Surpass 1 Million b/d Early in 2014

Bakken Production Chart - Goldman Sachs

North Dakota oil production grew a little less than 10,000 b/d from September to October to set another record with 941,637 b/d.

With current weather conditions, it will take an exceptional November and December for the state to surpass 1 million b/d before year-end. The Bakken has surprised us before, but it looks like it will be some point in the first quarter before North Dakota joins the million barrel a day club.

The state also set a record in October for natural gas production with 1.07 bcf/d and for the number of producing wells with 9,900. With ~200 wells coming online per month, the state will easily surpass 10,000 wells before the end of 2013. Pretty amazing for a state that had just ~3,600 producing wells at the beginning of 2008.

Other highlights from the monthly director's cut include:

• 5,939 wells producing from the Bakken and Three Forks
• October sweet crude prices fell to $85.16/bbl and further to $71.42/bbl in November
• 202 well completions in October
• McKenzie County roads were close 3-4 days due to rain in October
• Operators have indicated plans to add 10-15 rigs by mid-year 2014
• Days from spud to initial production increased to 114 days from 100 days in October
• More than 95% of drilling targets the Bakken and Three Forks
• ~460 wells were awaiting completion at the end of October

Read the full director's cut at dmr.nd.gov

Whiting Expands Bakken Position & Tests New Completion Designs in the Third Quarter

Whiting Petroleum Bakken Acquisition Acreage Map - August 2013

Whiting Petroleum acquired additional Bakken acreage in North Dakota and Montana, and tested new completion designs in the third quarter.

Whiting is using cemented liners and higher sand volumes in the Missouri Breaks area. One well completed in August using this method and a slick water frack came online at rates approximately 75% better than an offset well.

The method was used again in the Hidden Bench area and yielded results almost 1,000 boe/d better than an offset plug and perf completion.

Watch for Whiting to test cemented liners across much of its acreage. If initial results are any indication, future wells could perform as much as 50% better than previously thought.

“This is an exciting time for Whiting and our shareholders. During the third quarter, we added 17,282 net acres to our Hidden Bench and Missouri Breaks prospect areas and 32,419 net acres to our Redtail Niobrara prospect. Our new completion design using cemented liners and plug and perf technology is working throughout the Williston Basin. Initial results from our higher density drilling program at our Pronghorn prospect are very encouraging, and we expect results from our Sanish field and Hidden Bench prospect higher density drilling programs in the fourth quarter.”

— James J. Volker, CEO

Also, downspacing results in the Sanish Field are expected in the fourth quarter. If the wells prove commercial, Whiting could add an additional ~190 gross drilling locations.

Whiting produced a total of 92,750 boe/d in the third quarter with 87% attributable to crude oil and NGLs. Approximately 81% of Whiting's production is attributable to the company's Rockies Region, where the Bakken and Three Forks drive growth.

Read the company's third quarter earnings release at whiting.com

ConocoPhillips Increases Bakken Spending in Its 2014 Budget

ConocoPhillips Bakken Leashold and Mineral Acreage Map

ConocoPhillips' 2014 budget includes spending $16.7 billion, with 55% of the total allocated to North America.

Within North America, Conoco expects continued growth from the Eagle Ford, Bakken, and Permian plays.

Approximately $4.3 billion will be spent on development drilling in the Lower 48 states. The budget includes increased investment in the drilling programs in the Eagle Ford, Bakken and Permian.

“2014 is an important year for ConocoPhillips,” said Ryan Lance, chairman and chief executive officer. “Since becoming an independent E&P company, we have set out to deliver a unique value proposition of 3 to 5 percent volume and margin growth with a compelling dividend.”

Conoco has a five-year plan to spend $5 billion in the Bakken to grow production to more than 50,000 boe/d by 2017. The company has over 626,000 acres prospective for the Bakken and estimates a drilling inventory of more than 1,400 wells.

Read more at conocophillips.com

Northern Oil & Gas Repuchases Stock - Grows Bakken Production 20%

Northern Oil & Gas Bakken Acreage Map

Northern Oil & Gas bought back more than two million shares of its common stock in the third quarter and grew production 20% over the second quarter to 13,049 boe/d.

The company participated in bringing 147 gross (12.1 net) wells to production in the third quarter and has participated in 358 gross (27.3 net) wells year-to-date. Approximately 260 gross (18.8 net) wells are in some stage of drilling or completion.

Read more from earlier in the year: Northern's Bakken Production Growth Slowed by Bad Weather

At the end of September, the company spent an average (AFE) of $9 million on each well.

“October activity was also very encouraging and we are in a great position to continue to execute our business plan into 2014 and beyond.”

— Michael Reger, CEO

Northern Continues Leasing Bakken Acreage

Northern Oil & Gas acquired leases on 7,357 net mineral acres during the third quarter at a cost of $10.8 million ($1,462/acre) and now controls ~187,000 net acres prospective for the Bakken and Three Forks. The company has spent a total of $22.6 million on acreage in the first nine months of the year.

Approximately 61% of the company's acreage position is held-by-production.

Oasis Petroleum Nearing Half a Million Acres in the Bakken

Oasis Petroleum Bakken Acreage Map - Acquisition Included

Oasis Petroleum added acreage in the third quarter is nearing half a million acres prospective for the Bakken and Three Forks.

In September, the company announced several deals that added over 160,000 acres to the company's position.

Read more:Oasis Petroleum Bakken Deals Grow Acreage ~50% for $1.5 billion

The deals were just one highlight of many from the company's third quarter earnings release:

• Oasis now has an inventory of almost 3,000 potential drilling locations
• Added two rigs through the acquisitions. 14 running across its position now
• Expanding Oasis Well Services
• Decreased well costs to $7.5 million
• Successful results from the Three Forks 2nd and 3rd benches
• Production grew 10% quarter over quarter to ~33,000 boe/d

“Including production from our recent acquisitions, we expect production to range between 42,000 boe/d to 46,000 boe/d in the fourth quarter of 2013.”

— Mr. Nusz, CEO

At year-end, watch for additional announcements related to results from downspacing tests and wells in the lower portion of the Three Forks.

The company currently expects to drill 4-6 wells in the Middle Bakken and 1st bench of the Three Forks in the best areas of the the basin. Drilling in 2014 will be split relatively evenly between the Bakken and Three Forks. If wells in the lower portion of the Three Forks prove successful, the mix of drilling could be weighted toward the Three Forks more than currently planned.