Why I Love To Blog -- Huge Thanks To A Reader -- Hess CAPEX For 2014 In The Bakken

This came in as a comment but because comments are not google-searchable, I have moved the comment to a stand-alone post, and what a great post. The reader wrote:

You had commented on the potential for this to be a big year for Hess in the Bakken. Here is a link that confirms that: http://finance.yahoo.com/news/hess-sets-2014-capex-5-181005580.html

Hess plans on commissioning 225 new wells in 2014!

From the linked story over at Yahoo!Finance reported by Zachs:

Oil and gas producer Hess Corp. intends to spend $5.8 billion on exploration and production in 2014, down 15% from 2013 as it focuses more on greater efficiency in its U.S. shale fields.

The company targets to spend most of its capital in low-risk, high-growth areas such as North Dakota’s Bakken shale as well as focus largely on discovering and developing energy reserves to satisfy activist investor Elliot Management.

Of the total budgeted amount, Hess plans to allocate $2.85 billion (49%) toward unconventional shale resources, $1.475 billion (25%) for production, $925 million (16%) for development and the balance $550 million (10%) for exploration. 

As part of its program, Hess proposes to spend $2.2 billion for the development of the Bakken Shale in North Dakota, flat with 2013. Due to lower well costs and reduced investments in infrastructure projects the company plans to operate 17 rigs versus 14 last year and commission 225 new operated wells in 2014 compared to 168 in 2013. Moreover, the company has increased its expenditures in the emerging Utica shale play to $550 million from $455 million last year.

At a very, very superficial level, the 2013 CAPEX works out to $13.095 million/well. For 2014, it works out to $9.778 million/well. 

Again, a huge "thank you" to the reader for taking time to write.