Filloon On MRO -- Re-Posting -- September 16, 2018

See these links posted earlier today:

• MRO update
• MRO's Lars well in Killdeer oil field
• top Bakken operator of the year?

Now, reposting.

This Filloon article was posted some months ago.

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, or relationship decisions based on anything you read here or think you may have read here.

Now, the Filloon link.

Summary:

• the Bakken continues to push ahead benefiting from higher oil prices
• Marathon has made positive changes and has the best oil production per location with its well design on completions from 6/2017 to 6/2018
• MRO's design improvements have increased revenues by approximately $1.3 MM/well
• MRO is beginning to see its core increase to the west, adding high end locations for future development
• Marathon continues to improve unconventional completion design. This has translated to much better oil production per foot. Much of this improvement has occurred over the past two years, and it is now beginning to ramp up its usage. We are seeing the majority of MRO locations using large volumes of sand and fluids. We think this improvement has provided a buying opportunity, as many of the better operators hone its well design and increase production.

From the article:

There are a few wells that underperform, but the majority produce between 220 KBO and 160 KBO in the first 7 or 8 months.

Marathon has several locations that have eclipsed 300 KBO between 7 and 10 months.

We have a more bullish vantage looking at completions with data of just four months.

This range is between 230 KBO and 130 KBO. This is a wide range, but there are two locations that model better than any other locations on this graph.

Its Chauncey (#33414) and June (#33415) locations are the best. It used 9MM and 14MM lbs of frac sand in those two horizontals. Its expansion of sand and fluids seem to show it is better stimulating the source rock. This is further proved by some of its best results to date.

Some of these completions are further west than what it had established as "core".

The Three Forks has produced well, and in some instances better than the middle Bakken. There are several operators experiencing this as the Three Forks is deeper and gassier.

Both variables increase pressures at the well head. MRO has focused on its McKenzie and Dunn County leaseholds. The majority of this is on or near the Nesson Anticline. Most of the locations are 10 miles north and 15 miles south of Mandaree. The northern horizontals are in McKenzie and the southern wells are in Dunn. Its McKenzie completions produce the most oil.