Now we have some new information. From EOG's conference call via Petroleum News:
Earlier this year, EOG predicted Bakken production would fall in 2012 as the company pulled rigs from the play, but not the company thinks production could actually increase slightly.
The optimism comes from several efforts this year.
The first is downspacing.
EOG initially drilled wells every 640 acres in its Parshall field in Mountrail County, ND, but recently has been drilling every 320 acres. The initial results showed not only higher production rates from the newer infill wells, but improved recovery from the initial wells.The company plans to test at 160-acre spacing on its core acreage as well as the impact of downspacing on its nearby Bakken Lite acreage.
From the earnings transcript:
Along with the new wells, our previously reported 160-acre wells continue to outperform our expectations, and the vast majority of the planned 53 completions in 2013 will be drilled on 160-acre spacing. As we continue to gain confidence in downspacing results over the course of 2013, we will likely increase the level of drilling activity in 2014.
There's actually another story line there. Elsewhere they have been concerned about companies cutting and running now that they hold leases by production. Not.
Certainly a lot of hand wringing out there.