Monday, December 26, 2011

About Those Newfield $10 Million Bakken Wells -- The Bakken, North Dakota, USA

Some random data ponts:
  • when the current Bakken boom began in 2007 in North Dakota, the majority of wells were short laterals, one-stage fracking
  • I've long forgotten the cost of those early wells, but $3 - $5 million comes to mind; I may be way off
  • now we're seeing mostly long laterals; 24 - 36 stage fracks; much more sand; expensive ceramics
  • Newfield wringing its hands over high cost of Bakken wells; Newfield says we've seen the last of $10 million Bakken wells (meaning they will be higher)
Fast forward, December, 2011, ops update from NOG
  • anticipates avg $7.4 million for Bakken wells in 2012
  • long laterals will be the norm
Schlumberger is on record saying that there will be increasing price pressure on fracks going forward -- but other costs will be incurred. See this excerpt from recent SSN operations update (December 15, 2011):
NORTH STOCKYARD FIELD
Everett #1-15H, Williams County, ND (SSN 26% working interest)
Fracture stimulation operations commenced on the Everett #1-15H well on December 4th with two stages pumped before operations were suspended due to hydraulic problems with the main pump units. The pumps could not be fixed on site and have been de-mobilized for repair. No stand-by charges are being incurred by Samson as the stimulation company is absorbing these. [This is the frack's team first frack job.]

Stimulation operations will continue early in the new year. The stimulation will be 20 stages and place 2.37 million pounds of proppant.

The Everett #1-15H well is Samson’s sixth Bakken well in the North Stockyard Field.

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