Milestone: almost 1.5 years under their 5-year program to triple production from year-end 2009 to year-end 2014
- Right on track
- 1Q11 production stronger than expected
- 51,663 boepd for 1Q11, 34% increase over 1Q10; 8% increase over 4Q10
- 4Q10 was 27% higher than 4Q09
- [51,663 bopd -- at $70/bbl --> $3.6 million/day]
- Bakken production: 25,523 boepd in first quarter
- [25,523 -- at $70/bbl --> $1.8 million/day]
- This is amazing: CLR maintains production in the Red River units in southwest North Dakota; only one rig but producing 4,065 boepd from those units [4,065 --> $285,000/day (one rig)]
- Red River unit production up 17%
- Production grew 67% year-over-year
- 25 gross wells; 12 wells that tested over 1,000 boepd
- The strongest: Bud 1-19H tested at almost 2,000 boepd
- Many CLR wells restricted to minimize flaring; without restrictions could have tested double or more
- 6 of their strongest 8 wells in Williston area (the "Williston" prospect)
- Still considered exploratory
- 6 of CLR's strongest 8 wells in this prospect
- Aakron 1-27H tested at 1,407 boepd, 3,600 psi on a 16/64" choke; a very strong well
- Less discussion separating the two
- Now: more about the "Bakken" cross both states
- Experimenting with various methods
- For the first time in years, using sliding-sleeve systems along with perf-and-plug
- Stages: 24 is the norm, but anywhere from 18 to 30
- Pumped their first Schlumberger "HIWAY" frac -- pulses proppant into the frac zone
- Still tens of thousands of wells to drill over next 2 to 3 decades
- Still feel that there is at least 24 billion boe recoverable
- USGS estimate of 4.3 billion boe recoverable based on 2007 data and reported in 2008
- Since then a technological revolution with more than 2,000 additional wells drilled
- The Bakken play is a conventional play with increasingly predictable well results
- The entire scope of the Bakken (15,000 square miles) is now considered (by the oil industry) to be viable for development -- the entire scope (makes me think of Chesapeake's recent announcements
- Will maintain
- $269 million
- 53% higher than one year earlier
- 22% higher than previous quarter (and remember, the current quarter hard hit by weather)
- Some others in the Bakken constrained by takeaway capacity; not CLR
- CLR first in line when pipeline operators increase capacity
- Ship on all pipeline systems in the Bakken
- Ship by rail out of three separate facilities
- Can generally get around bottlenecks due to so many options
- Operations
- Maintain 22 rigs in the Bakken
- Substantial backlog, currently 63 wells drilling/awaiting completion in the Bakken
- Next 2 weeks: 13 new ND wells on-line
- Hiland: to bring on-line its 30 million cubic feet/day plant on May 15
- Because of Eco-Pads, production in next quarter could be lumpy
- Need to hire a lot of professionals to meet target of tripling production
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