Tuesday, February 21, 2012

CLR, WLL, OAS, NFX Report Later Today? CLR's Most Recent Corporate Presentation

I don't know for sure, but that's what my calendar shows.

CLR's February, 2012, corporate presentation, data points (some numbers rounded):
  • 901,098 net acres; down slightly from 2Q11 data -- 901,370 net acres
  • 22 rigs in North Dakota; down 1 from previously announced 23
  • EUR: 603K boe per well
  • 4Q11: 75,219 boepd production
  • early January: 80,000+ boepd
  • proved reserves: 40% growth yoy; 500 million boe proved reserves
  • three Bakken formations: payzone -- generally the middle Bakken
  • four Nisku (Three Forks) formations; Charlotte 2-22H; 1st successful test of a deeper TF bench; 1,496 boepd in 1-day test
  • 2nd test of this deeper TF bench: Sunline 11-1TF-2SH; 1,023 boepd
  • Huge footnote on slide 9: "CLR estimate of recoverable oil and gas (24 billion boe) includes only Middle Bakken and upper Three Forks. Lower TF benches should be additive."
  • Montana Bakken: 2-rig program
Well cost:
  • Single well: $8 million, 603K EUR
  • ECO-Pad well: $7.2 million, 603K EUR
Rate of return:
  • $50 oil: 15 - 20 percent
  • $70 oil: 25 - 30 percent
  • $90 oil: 40 - 45 percent
ECO-Pad: examples (IP per well average for 4 wells)
  • Dvirnak-Pletan: 1,838 boepd 
  • Bailey-Wiley: 1,105 boepd
  • Hamlet-Salo: 811 boepd
Bakken Development Plan
  • Original dual-zone plan: 8 wells per 1,280-acre unit; 4 middle Bakken; 4 TF; 603K boe EUR per well
  • Additional Three Forks potential: total TF 180 to 270 feet thick
  • Words don't do the graphic justice; if serious about the Bakken or CLR, you need to look at this slide yourself
For newbies, a thickness of 250 feet is huge in the "Bakken"

Total cash cost/boe (slide 18)
  • 2008: $17.20
  • 2009: $15.01
  • 2010: $17.12
  • 2011 (first 9 months): $19.73 (Newfield is right: it's gotten a lot more expensive to drill in the Bakken)
Remember EOG saying $40 oil is robust in the Bakken some years ago?

Swaps and Collars (oil)
  • 4Q11: $80 - $97
  • 2012: $80 - $97
  • 2013: $80/$95 - $92/$110
Swaps (natural gas)
  • 4Q11: $5.40
  • 2012: $5.07

6 comments:

  1. I listened to a webcast of the Jan 5th presentation right after it took place and I think it was Jeff Hume that said with the cores they have taken and the results of their first second bench TF well and the the second bench well results of another company that he thought we would see around a 60% increase in their former reserve estimate or around 40 billion barrels of recoverable oil.

    Maybe we will hear more about that today?

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    Replies
    1. If that's even close to accurate (60%) that is huge. Absolutely huge.

      If accurate, it's most likely a reflection of the thickness of the "new" deeper formation and the ability of the drillers to get that deep.

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  2. how thick is the bakken in eastern montana particularily Roosevelt county near Culbertson? Has any companies ever determined this?

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    1. Maybe someone can answer this; I don't know off but when I get back home I will see if I can find an answer. The Bakken does thin out at the edges, and I assume that's true in eastern Montana.

      Delete
  3. embraceyourinnerhillbillyFebruary 23, 2012 at 12:21 AM

    Here's a few nuggets from Whiting's press release.

    James J. Volker, Whiting’s Chairman and CEO, commented, “2011 was a year of discoveries for Whiting Petroleum. We de-risked a substantial portion of our acreage at Lewis & Clark/Pronghorn and generated excellent initial drilling results at Hidden Bench/Tarpon. Our 2011 drilling program sets the table for what we believe will be a strong year for production and reserves growth in 2012. Based on independent engineering at December 31, 2011, we had 2,264 gross locations from our 3P reserves. Based on internal estimates at year-end 2011, we had an additional 3,741 gross locations estimated from our resource potential.”

    Mr. Volker continued, “In 2012, we will focus on bringing a number of our prospects into development mode. These prospects include Hidden Bench/Tarpon and Missouri Breaks. We also plan further development of our resource play at Lewis & Clark/Pronghorn. With these key projects, we are optimistic about Whiting’s operational results in 2012. We will continue to focus on oil in the foreseeable future. Currently, crude oil trades at more than 40 times the price of natural gas, which compares to their 6 to 1 heating equivalency ratio. At year-end 2011, 86% of our proved reserves and 84% of our production consisted of oil and natural gas liquids. We expect that percentage to continue to increase over the next several years.”

    *In addition, our average lease cost in the Williston Basin, where we hold 681,504 net acres in the Bakken/Three Forks Hydrocarbon System, is $432 per net acre.

    *In 2012, we plan to invest $851 million for the drilling and completion of 218 gross (124 net) wells in the Williston Basin. This represents 69% of our total planned exploration and development expenditures of $1,236 million. We have initiated pad drilling at our Sanish field and our Lewis & Clark/Pronghorn prospects. We expect to drill two or three wells off of each pad at Sanish and, for the most part, two wells off of each pad at Lewis & Clark/Pronghorn. We currently estimate that we can save approximately $500,000 per well in mobilization costs and efficiencies utilizing pad drilling.

    *We currently have 21 drilling rigs operating in the Williston Basin. We have 33 service rigs running in the Basin, which is up from 20 at September 22, 2011, and three full-time dedicated frac crews. As of February 1, 2012, there were 292 Whiting-operated wells producing, 46 operated wells being completed or awaiting completion, 16 wells were being drilled and 31 wells were shut-in awaiting workover operations.

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    Replies
    1. Thank you; this is a big help when I am way behind in posting.

      I posted your entire note as a stand-alone so folks can find it more easily. It will be part of a very long post on snippets from CLR, OAS, WLL, CHK earnings reports.

      Again, thank you.

      Delete