Wednesday, April 20, 2011

Newfield Earnings 1Q11 -- 5 Rigs in the Bakken -- Drilling Super Extended Laterals (SXLs) -- Bakken, North Dakota, USA

Link here.

Excerpt regarding the Williston Basin from earnings press release:
Newfield is running five operated drilling rigs in the Williston Basin. Current net production is about 5,000 BOEPD and the Company has 10 wells in various stages of completion (average lateral length approximately 8,600’). Dedicated fracture stimulation services arrived in the field in April and completions are underway with initial volumes from the new wells expected late in the second quarter of 2011.

Substantially all of the Company’s planned wells in 2011 are super extended lateral (SXLs) wells. Three horizontal wells were recently completed with an average initial gross production rate (24-hour) of approximately 3,900 BOEPD. This average includes a recent record completion which had an initial gross production rate (24-hour average) of 4,468 BOEPD.
Data points:
  • Five (5) operated rigs
  • Ten (10) wells in various stages of completion
  • Dedicated fracture teams to arrive in April
  • Drilling super extended laterals
  • Average 24-hour flowback IPs of 3,900 boepd
  • Recently a record completion with initial 24-hour flowback of 4,468 boepd

2 comments:

  1. Hi, do you know if the Stats on their recently completed wells would include wells that are still confidential? Or can they only report results of non-confidential wells?

    Thanks for this site, I read it every day!

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  2. Thank you for your kind comments.

    I apologize for the delayed response to your question. I was out all day with my grandchildren.

    That's a good question, whether their results include wells still on the confidential list. I cannot answer that. I could "argue" it either way, but I don't know.

    One would think that earnings would have to include wells still on confidential list. Even though they are on the confidential list, if they've produced oil and put the oil in the pipeline (meaning it's been sold), money would be transferred to their account. At a minimum, there would be "cash" in the account coming from the oil that was put into the pipeline. In addition, there's an "accounts payable" line and even if the money had not yet arrived, it would have to be in the ledger.

    At least that's my thought.

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