Friday, July 17, 2015

Thirteen (13) New Permts -- North Dakota; Zeits On Halcon In The Eagle Ford, July 17, 2015

Active rigs:

Active Rigs73196189209178

Thirteen (13) new permits --
  • Operators: Oasis (7), XTO (3), Newfield, BR, Hess
  • Fields: North Tobacco Garden (McKenzie), Siverston (McKenzie), Lost Bridge (Dunn), Sand Creek (McKenzie), Robinson Lake (Mountrail)
  • Comments: the Oasis permits look like three distinct pads in section 23-151-99 (two 2-well pads, and one 3-well pad);
Slawson cancels two permits: one Ironbank well in Williams County and one Howo well in Mountrail County
Evidence of changing a target to a better payoff during period of low prices: CLR with a name change; new name: Alpha 5-14H; was Alpha 5-14H2;

The Gold Standard Is Still The Bakken

From Richard Zeits on Halcon's El Halcón in the Eagle Ford, Texas, over at Seeking Alpha today:
HK estimated that its type well in El Halcón generates ~17% well-level IRR, using 452 type curve, the current $7.5 million AFE and mid-May strip pricing. The economics should become more compelling once the company implements additional costs savings and completes its lease capture program.
Assuming those additional savings are achieved, the play should be viable at the project level at oil prices above ~$60-$65 per barrel. However, El Halcón still remains a distant second in terms of well productivity per dollar invested relative to the company's core acreage in the Bakken on the Fort Berthold Indian Reservation.
The El Halcón is not just behind the Bakken, but is "a distant second."

From Richard Zeits in one of his comments at the linked article: "The reality is that HK has the best track record in the play and competition has subsided lately." I assume he means the entire Eagle Ford play. Considering EOG is also there, that's quite a statement.

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