Marathon Update from CEO

Link here to Rigzone. 

"Our growth trajectory is benefiting from Marathon Oil's two largest U.S. oil shale assets - the North Dakota Bakken and South Texas Eagle Ford, which are delivering strong results. We currently have 25 rigs and five hydraulic fracturing crews dedicated to these two plays," Cazalot said.

Since December, the Company has continued to ramp up production in the Bakken with eight rigs currently drilling. From its December exit rate of 24,000 net boed, Marathon Oil now expects a 2012 annual average of 27,500 net boed and 38,000 net boed by 2016, a 15 percent increase from the Company's previous 33,000 net boed projection. The Company's production from the Bakken is approximately 95 percent crude oil.

"We continue to raise our expectations for Bakken production growth. Our recent wells are generating 24-hour peak initial production rates in the range of 1,200 to 1,400 barrels per day (bpd). We've also moved to 30-stage fracture jobs," Cazalot said.

An observation: it seems every time a CEO of a major operator in the Bakken provides a 30-second soundbite about the Bakken, it's this: "the Bakken is bigger than we anticipated."

My takeaways from this short article:

• the Bakken is bigger than anyone has anticipated
• Harold Hamm is right  

At my last update, I noted MRO had 6 rigs and planned to ramp up to 7 rigs by 2Q12. In fact, they are already (1Q12) at 8 rigs. Folks who think things are slowing down in the Bakken may want to reconsider. I'm beginning to think I'm underestimating the Williston Basin. Note that we haven't even started seeing any activity in the other payzones and minimal activity to date in Three Forks.

I just updated ALL the Slawson wells in the Bakken and noted that even with a company that's been in the Bakken since the beginning of this boom, we have very, very few wells that are older than two years old. And Bakken wells will produce for 30 years, maybe longer. It's gonna be a wild ride.

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A Note to Our Granddaughters

While updating the Bakken in the evening, I often have reruns of various police shows on in the background. Tonight it's Criminal Minds. This episode tonight features several Leonard Cohen songs. Many years ago my brother introduced me to Leonard Cohen. My brother was demonstrating the clarity of Bose speakers and felt that Leonard Cohen's "Ten New Songs" were particularly useful. He lent me his CD and from that moment I was hooked. Until then, believe it or not, I had not heard of Leonard Cohen.

One of my favorites is "Dance Me To The End of Love" and that was featured on the Criminal Minds episode this evening.

I find it amazing how this wonderful poet just keeps on going and going. Incredible.


Dance Me To The End of Love, Leonard Cohen


Sisters of Mercy, Leonard Cohen