Nearly Half of Halcon 2014 Budget Targeting Bakken - ~$475 Million

March 3, 2014 Kirk Eggleston

Halcon is focused on drilling wells in the Fort Berthold area in 2014 and anticipates spending approximately 49% of its total drilling and completions budget in the Williston Basin. Based on previous budget estimates, that's about ~475 million.

The company's plan for 2014 is to focus on its "de-risked" acreage, which includes the Fort Berthold area.

“Floyd Wilson, CEO, said in a company statement, “our focus in 2014 is on drilling wells in the sweet spots of our de-risked acreage in the Williston Basin and El Halcón. We will also begin drilling wells on our newly acquired acreage located in what we believe to be the core of theTuscaloosa Marine Shale. We are primed for growth and have a deep drilling inventory. We are committed to maintaining capital discipline and dedicated to improving capital efficiency.”

Halcon's 2014 Bakken Guidance

In the first-quarter of 2014, Halcon anticipates weather-related production interruptions in the Bakken.

For the full-year, the Company plans to operate an average of 4 rigs and spud 40 to 50 gross operated wells. Halcon also anticipates participating in 200-225 gross non-operated wells, with an average working interest of 3%.

Halcon's Fourth-Quarter Bakken Production

In the fourth-quarter of 2013, Halcon Resource's Bakken production increased by 15% over the third-quarter to 24,125 boe/d, despite adverse weather conditions. Company estimates accounted for weather-related impacts of ~1,040 boe/d.

Halcon's Fourth-Quarter Bakken Activity

Halcon operated an average of five rigs in the Bakken, and participated in 50 non-operated wells, with an average working interest of 3% in the fourth-quarter of 2013.

In the Fort Berthold area, the company spudded eight wells and broutght 10 wells online. For some of Halcon's Fort Berthold area wells, strong results came from the application of the "slickwater frac" technique. The company plans on continuing this practice in 2014.

“At Winter NAPE, Wilson, was quoted, “[the company’s] most recent wells in the Bakken are the best ever.”

Halcón also spudded four wells and put two wells online in Williams County in the fourth-quarter.

Whiting Hits Record Production in the Fourth-Quarter of 2013

February 27, 2014 Kirk Eggleston

Whiting Petroleum had record production in 2013 of 94,090 boe/d across its portfolio. That's up 14% from 2012 production of 82,540 boe/d.

In the fourth-quarter of 2013, Whiting's production hit the 100,000 boe/d mark. That's up 9% from the third-quarter.

The strong production numbers are due largely to the company's development of core Bakken assets in North Dakota and Montana.

“Whiting CEO, James Volkner, said, “with full-scale development underway at such fields as Pronghorn, Hidden Bench and Missouri Breaks, we generated excellent results in 2013. In the wake of this development, we posted records in production, proved reserves and discretionary cash flow.”

Whiting Petroleum's Bakken & Three Forks Fourth-Quarter Production

Whiting's fourth-quarter production was up across its core Bakken North Dakota and Montana assets. Production numbers for the fourth-quarter are as follows:

Western Williston Basin - 17,790 boe/d
Southern Williston Basin - 15,065 boe/d
Sanish Field - net production of 40,370 boe/d

Whiting's Western Williston Basin Highlights - 2013

Whiting's Western Williston Basin assets are comprised of the Hidden Bench, Tarpon, Missouri Breaks and Cassandra fields. These areas represent a total of 204,198 gross (121,909 net) acres.

Production was up 30% for Whiting's Western Williston Basin assets from the third-quarter total of 13,710 boe/d. Among all of Whitings assets, this is the largest production increase quarter-over-quarter.

In the Hidden Bench Field, Whiting tested its new completion design, which utilizes cemented liners. Two wells in this field where the completion design was applied yielded an average of ~1,320 boe/d per well. According to the company, wells completed using the new completion design had average initial production (IP) rates 53% better than wells completed with Whiting's previous completion design.

Whiting's Southern Williston Basin and Sanish Field Highlights - 2013

Whiting's Southern Williston Basin assets include the Pronghorn and Lewis & Clark fields. These areas represent 392,483 gross (263,376 net) acres. Production was up 6% in the fourth-quarter 2013 from third-quarter 2013 production of 14,610 boe/d.

In the Sanish, average net production in the fourth-quarter increased 10% from third-quarter production of 36,840 boe/d. Two infill wells, testing an eight-well testing pattern, yielded an average of ~1,350 boe/d per well. These wells were completed using the company's new completion design.

QEP Bakken Production Increases in Q4 2013, Despite Adverse Weather Conditions

February 26, 2014 Kirk Eggleston

QEP Resources Bakken Three Forks Acreage Map

QEP Resources grew its Bakken and Three Forks production in the fourth-quarter, despite adverse weather conditions, achieving net average production of 27,700 boe/d (96% liquids). That's a 30% increase over third-quarter 2013 production, which was 21,300 boe/d.

The company brought 26 operated wells to sales in the fourth-quarter, with good initial production rates. 17 of those wells were in the South Antelope, and their average 24-hour initial production (IP) rate was ~3,025 boe/d. The other nine wells were in the Fort Berthold Reservation, with an average 24-hour initial production (IP) rate of 1,850 boe/d.

In 2013, QEP also saw the value of its South Antelope property rise to $2.8 billion from a $1.14 billion investment. Production from this asset grew throughout the year.

“QEP Energy’s capital investment program resulted in a 62% increase in crude oil production over last year driven by a 133% increase in production from the Williston Basin. Crude oil volumes represented 20% of QEP Energy’s production in 2013, a substantial increase from 12% in 2012 and 8% in 2011,” said Chuck Stanley, CEO, QEP Resources.”

QEP Outside Operated Bakken and Three Forks Wells

QEP Resources also participated in 22 outside-operated Bakken or Three Forks wells that were completed and turned to sales during the fourth-quarter. These wells had an average working interest of 7%.

At the end of 2013, QEP had interests in 31 outside-operated wells in the process of being drilled, with an average working interest of 10%. Five outside-operated wells were waiting to be completed with an average working interest of 5%.

QEP Bakken Rigs Running at End of Year

At the end of the fourth-quarter, eight rigs were operating in the Williston Basin. Six of those rigs were located in the South Antelope, and two were in the Fort Berthold Reservation. QEP also had eight operated wells waiting on completion, with an average working interest of 94%.

EOG Resources Nearly Doubling Bakken Activity in 2014

February 25, 2014 Kirk Eggleston

EOG Resources sees the Bakken as a high rate of return growth play, and plans on drilling 80-net wells in 2014.

That's nearly double the number of net-wells drilled in 2013, which was 54. At that rate, the company has a drilling inventory in the Bakken of ~8 years.

EOG Resources Bakken Development in 2014

EOG Resource's focus area will be in its Bakken core acreage (~90,000 net acres) and the Antelope Extension area.

Based on successful drilling results in the Three Forks formation in the Antelope Extension in 2013, EOG plans on testing additional benches during 2014.

Completion and cost improvements in the play have resulted in EOG deciding to direct more of its capital budget to the Bakken.

“EOG is directing a larger percentage of its 2014 capital budget to the Eagle Ford and Bakken where we have tremendous drilling opportunity with excellent rates of return,” said CEO, William Thomas. “By increasing activity in these plays, we expect the momentum and operational efficiencies we’ve created to continue.”

In 2013, EOG ramped up its drilling plan from one to four wells per section, while increasing the average recoverable resource per well. More downspacing is expected in 2014.

EOG Resources Bakken Well Highlights

Wayzetta 30-3230H and 31-3230H (Mountrail County)

Initial production (IP) of 2,510 b/d and 2,540 b/d crude oil respectively

Wayzetta 35-1920H (Mountrail County)

Initial production (IP) of 2,240 b/d crude oil
Initial production (IP) of 1.2 mmcf/d natural gas

Hawkeye 2-2501H (McKenzie County)

Initial production (IP) of 2,075 b/d crude oil
Initial production (IP) of 3.8 mmcf/d natural gas

Enerplus Capital Budget in Bakken - $304 Million - 2014

February 24, 2014 Kirk Eggleston

Approximately 40% of Enerplus's $760 million capital budget for 2014 will be dedicated to the Bakken and Three Forks. That's about $304 million.

The company expects to grow production by more than 30% in North Dakota in 2014.

Enerplus 2013 Capital Expenditures in Bakken

~$308 million of capital spending was in North Dakota, with the majority invested at Fort Berthold. Approximately 70% of company spending in 2013 was directed to crude oil assets.

“VP of Operations Raymond Daniels said, “45% of our capital spending was in North Dakota where we are targeting both the Bakken and Three Forks. Our focus was on driving improvements in capital efficiencies through a reduction in drilling costs and improvement in productivity.”

Capital spending came in slightly lower in 2013 than the original forecast of $685 million, totaling $681 million.

Enerplus Bakken Reserves

25 mmboe of 2P reserves were added in 2013 from North Dakota properties. The cost of this addition was $19.74 per boe including future development capital.

Total 2P reserves increased by more than 17% year-over-year, driven by additions in the Marcellus and Bakken/Three Forks properties.

Enerplus Bakken Initial Production Rates and Total Production

“According to VP of Operations, Raymond Daniels, “our two most recent Bakken wells have been completed using about a thousand tonnes of sand per lateral foot with roughly 40 frac stages. In their first 30 days these wells have produced a record of roughly 4,000 to 8,000 barrels of oil each.”

Enerplus total production grew in the fourth-quarter to 94,167 boe/d, which is up 7% from the third-quarter. Production for 2013 was 89,800 boe/d. That's up 9%.

Enerplus Highlights

40% of Enerplus's $760 million capital budget for 2014 will be dedicated to the Bakken and Three Forks - ~340 million
Enerplus expects to grow production by more than 30% in North Dakota in 2014
~$308 million of capital spending was in North Dakota in 2013
25 mmboe of 2P reserves were added in 2013 from North Dakota properties
Enerplus total production grew in the fourth-quarter to 94,167 boe/d
Production for 2013 was 89,800 boe/d. That's up 9%