For folks who haven't read it yet, a reminder -- don't forget to read the conference call transcript, EOG's 1Q12 earnings.
This rather lengthy transcript may be the article that brings folks quickly up to date on what is happening in the Bakken, where it is headed. The best takeaway from the transcript: EOG is much more excited about the Bakken than they were a year ago. It should be noted that EOG says its Bakken production could be flat for 2012 before rising in 2013. That's a huge data point: EOG is the number one producer in the Bakken.
The other interesting data point is this, something I've thought about for quite some time: what's the rush to drill (once leases are held by production)? Unless one has been under the Geico rock since 2007, it's been obvious that wells in the Bakken have gotten better -- and significantly better -- over time. Technology keeps improving, so what's the rush to drill? Of course, some companies need to drill at max rates to keep cash flow coming to execute their CAPEX programs; bigger companies may have some latitude. Besides improving technology, costs for oil services support should come down, and infrastructure should improve. Did we just read the other day (RBN Energy) that 70% of all North Dakota oil is still trucked at some point before getting to a pipeline or a rail terminal?
The company spokesmen said several times that fracking an infill well improves the production from an older offset well, and that EOG will be downspacing to 160 acres in the better Bakken.
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