Opening comments from CFO:
- production for 3Q15 in line; 41K boepd
- production guidance for full year: in line with previous despite all the shut-in or deferred wells
- LOE plus workover expense: $7 per BOE; below our guidance; a 6% improvement
- cash G&A: $4.85 per boe; toward the low end of guidance
- taxes: $3.23 per boe; below our guidance
- gathering, transportation, other: $2 per boe; in line
- CAPEX: $84 million in 3Q15; in line
- $827 million in liquidity
- bank group recently reaffirmed the company's $850 borrow base
- reduced overall debt by more than $800 million
- operating three rigs; hope to do the same next year (2016) also
- three rigs should run about 25% less in CAPEX; production flat
Williston Basin
- all wells coming on line this year exceeded published type curves; continue to set new drilling records
- average drilling time: 14 days
- CWC: $7.2 million / well
- AFE's projected: $6.8 million / well
- selling 95% of our natural gas
- spud-to-TD: 11.4 days
- shortest time for a three-string well: just under 10 days
- fracking: four stages/day; record five stages/day
- multi-well pads; $6.8 million / well
- expensive design change: extend lateral leg by 500 feet to approximately 7,500 feet; 33% more proppant, now up to about 2,000 pounds/foot; old design a lot less expensive, but a lot less efficient
- drilling faster is putting pressure on CAPEX (note)
- CAPEX: $325 million this year; 25% less year but maintain production
- if things improve, we are not going to increase CAPEX
- reiterating: will be starting multi-well pads in Texas this year/next
- one rig in Texas; completing 2, 3 or 4 wells/quarter
- 660 feet between wells in the middle Bakken
- when drilling TF, don't want to directly stack laterals; must be alternate stacking ("drainage issues")
- everything in middle Bakken/TF is 660-foot spacing
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