IPs for Recent Whiting Wells Reported In May, 2011, Corporation Presentation -- Bakken, North Dakota, USA

This is the Whiting's corporate presentation (CP), May, 2011:

• CP, 1,182, WLL, Barlow 14-6H
• CP, 920, WLL, Deal 43-28TFH
• CP, 1,416, WLL, Arndt 14-5XH
• CP, 1,087, WLL, Scott Meiers 12-17TFH
• CP, 1,529, WLL, Ness 42-31WH
• CP, 715, WLL, Warden 43-9TFH
• CP, 2,212, WLL, Hoover 14-1X
• CP, 1,254, WLL, Guinn Trust 1-13TFH
• CP, 2,028, WLL, Smith 14-29XH
• CP, 1,232, WLL, Hollinger 21-14TFH
• CP, 596, WLL, Hollinger 11-14TFH
• CP, 440, WLL, Robert Patten 44-3TFH
• CP, 2,247, WLL, State 12-32H

If I remember, I will replace the "CP" with the file number, and add the field where the wells are located.

The graph in that presentation doesn't explicitly state it, but it appears that Whiting's short laterals average EUR is 450,000 bbls of oil equivalent; long laterals average EUR is 950,000 bbls of oil equivalent.

Whitings budgets a CAPEX of $6.5 million for a long lateral; $5.5 million for a short lateral.

Slide 31/32 is very, very interesting: WLL's graph says this is their "typical" Sanish well profile. At the end of the first year, the long lateral Sanish well is producing 250 bbls/day x 365 days x $75 --> $6.8 million (remember, CAPEX is $6.5 million). But the average production during that first year appears closer to 450 bbls/day x 365 days x $75 --> $12 million. And these wells will produce 25 - 30 years; BEXP says as long as 39 years. 

At $75/bbl, an EUR of 950,000 bbls --> a whopping $70 million.

$70 million / 1280 acres --> $55,000/acre.

Back-of-the-envelope calculations: at one time one could buy a Sanish township net mineral acre for $3,000. One hundred acres --> $300,000, about the price of a very nice home in Bismarck. With a EUR of 950,000 for a long lateral, one hundred net acres in a 1280-acre spacing unit would gross more $5.5 million (at $75/bbl) over the lifetime of the well.

I believe the state gets about 12 percent in extraction/production taxes.

At ten years, long lateral Bakken wells are predicted to still be producing 80 boepd on average; short laterals, about 25 boepd. When looking at these figures, one may want to review the definition and benefits of a stripper well.

I'm sure folks will correct me if my math is wrong.