Halcon Holds Production Guidance & Lowers Its 2014 Capital Budget

December 24, 2013 R.T. Dukes

Halcon Resources lowered its capital budget for 2014 and is keeping its production guidance the same (38,000-42,000 boe/d).

Approximately $125 million will be spent on leasehold, infrastructure, and seismic. Halcon also plans to divest $300-400 million in properties in 2014.

Halcon originally planned to spend more than $1 billion, but has lowered its budget 14% to $950 million.

“We expect to fund our entire 2014 capital budget with a combination of cash flow from operations, borrowings under our revolving credit facility and proceeds from additional non-core asset sales.”

— Floyd C. Wilson, CEO

SM Energy Will Run Three Bakken Rigs In 2014

December 23, 2013 R.T. Dukes

SM Energy plans to run three rigs spending $275 million on operated activity and another $75 million on non-operated properties.

Activity will primarily target the Bear Den, Raven, and Gooseneck areas in North Dakota.

SM Energy expects to complete 45 gross, operated wells in 2014.

Tony Best, CEO commented, "Our 2014 growth will be anchored by our core development programs in the Eagle Ford and Bakken-Three Forks, with additional investments being made in our emerging oil programs in the Permian Shales and the Powder River Basin."

Whiting's CEO Jim Volker on CNBC's Mad Money - Video

December 20, 2013 R.T. Dukes

Whiting's CEO was interviewed by Jim Cramer on CNBC a few weeks back. Learn more about how the company remains a leading oil play developer straight from the CEO:

Takeaways From the Interview

Lead in the Bakken by controlling drilling and completion costs
Drilling time from well spud to total depth in the Bakken has fallen from 30 days to 11-15 days now
Have used top drive, higher horsepower rigs, and better drill bits to drive down time spent drilling
WLL has potential for 3,000 drilling locations in the Niobrara
The Niobrara has 60 million barrels of oil in place in each spacing unit or approximately twice what is found in the Bakken
With the amount of oil in place, Whiting is already planning 16 well spacing units in the Niobrara

Kodiak Sets 2014 Capital Budget at $940 Million - Expects 45% Growth

December 19, 2013 R.T. Dukes

Kodiak Oil & Gas' 2014 capital budget has been set at $940 million. That's down from approximately $1 billion in 2013.

Kodiak expects to spend $890 million drilling and completing ~100 net wells to production 45%.

$50 million is budgeted for infrastructure build-out and acreage acquisitions.

Kodiak has budgeted for seven operated rigs and a dedicated frack crew in 2014. An additional completion crew will be on standby and utilized on an as needed basis.

Production in 2013 is on pace to average 29,000 boe/d and the company believes 2014 production will average 42,000-44,000 boe/d. Kodiak currently has over 26,000 b/d locked in with hedges at $93.29/bbl in 2014.

Polar & Smokey Downspacing Results Look Promising

[ic-r]Two 12-well downspacing tests have yielded promising results. The 12 wells completed in the Polar area have averaged 618 boe/d over the first 120 days and the 12 wells in the Smokey area have averaged 627 boe/d over the first 60 days.

Kodiak estimates the Polar area downspacing unit is on pace to pay out in as little as 18 months.

Marathon Oil Plans To Spend $1 Billion in the Bakken in 2014

December 18, 2013 R.T. Dukes

Marathon Oil Bakken Initial Production Improvement

Marathon Oil plans to spend $1 billion of its $3.6 billion budget in North America in the Bakken in 2014.

As a result, the company's production is expected to grow from a little less than 40,000 boe/d in 2013 to a little less than 50,000 boe/d in 2014.

Marathon will run six rigs in 2014, with one rig dedicated to recompleting Bakken wells that were stimulated with open hole completions.

The company has transitioned from open hole completions to 20-stage completions then to 30-stage completions today. Over the first 1,000 days of a wells life, Marathon's current 30-stage completions are producing 122% more than open hole completions were a short time ago.

“We believe this standard of performance, coupled with continued resource growth, fully supports an accelerated investment in our three high-quality resource plays — the Eagle Ford, Bakken and Oklahoma Woodford.”

— Lee Tillman, CEO,

Marathon Oil's 2014 Expectations and Highlights

Targeted spud to total depth of 15 days
Well costs target of $7.0-7.8 million
Testing 4 Middle Bakken and 4 Three Forks (1st bench) wells per 1,280-acre unit
Planning 6 Three Forks (2nd bench) well tests
Potential to recomplete 100 wells that were stimulated with a open hole completion (increasing reserves 280,000 boe per well)
Inventory of ~2,300 gross wells over 370,000 net acres in the Bakken and Three Forks
Probable resources of 630 million barrels
Expecting production to grow to ~70,000 boe/d by 2017

Read the company's full capital budget press release at marathonoil.com