Combination of quick notes from slides and oral presentation.
1. Acreage remains the same as previously presented.
2. 1,303 gross drilling locations; 537 net.
3. Production
- 1Q10: 3,300 bopd
- 1Q11: 8,000 bopd
- 2Q11: 7,900 bopd (horrendous spring flooding)
- 3Q11: 11,000 bopd (estimate) (could be as high as 12,500)
5. West Williston: Hebron wells in Montana are within typical ND Bakken range; Indian Hills acreage is the deepest and IPs coming in at the middle-to-high-end of the Bakken range; TFS looks encouraging; 3 wells/formation in each spacing unit yields 10 - 15 percent of oil in place (remember when "we" were talking about 2 to 5 percent?)
6. Frack stages: 30 percent increase in frack stages leads to 20 to 30 percent increase in EURs (BEXP was first to champion this); cost per stage: $120,000; recovery per stage: 12,000 to 25,000 bbls
7. Frack stages, two examples: 28-stage yielded 44,000 bbls in first 60 days; 36-stage yielded 62,000 bbls in first 60 days
8. Well costs: $9 million; 36-stage; plug and perf
9. Rigs: operating 7; working towards 9 in 2H11
10. Frack crews: 3 dedicated (third crew operational in June 2011)
11. Discussed Oasis Well Services (OWS) -- one frack spread initially; in-house; save $1 million/well on 20 net wells/year
Not on the slides, but in the oral presentation, at about 14 minutes into the presentation:
Discussion regarding number of rigs in North Dakota: stopped at 200. The costs are geting too high and everyone is gun shy about a oil price down turn. Some of the bullishness is being quieted. Fracking costs are growing faster than drilling costs.I blogged about this earlier.
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