From QEP's Earnings Conference Call; Strong IPs; Can't Tell Difference Between TF and MB; 10-Well Pad Strong

Link here to SeekingAlpha.com (sent in by a reader, thank you).

And with regard to our North Dakota acquisition, we booked approximately half of the purchase price to the proven properties and remainder to unproven properties. It'll move assets from the unproven category to the proven category as we execute our development program for the acquired properties. 

We closed our $1.4 billion acquisition in the North Dakota's Williston Basin Bakken/Three Forks play on the 27th of September. We've now taken over operations from the seller. We currently have 2 rigs working on the acquired South Antelope properties and we expect to begin to ramp up rig activity as we get our multi-well pads designed, permitted and constructed.

We've also began to make changes in the well design that we believe will allow us to deliver $11 million of lower gross completed well cost going forward. Note that we inherited a handful of wells that were in progress that were designed differently from our standards, so we won't see an immediate decrease in well cost until we work through that inventory.

Earlier this month, we completed in terms of sales the first QEP operated well on the South Antelope acreage since the close of the acquisition. The Kummer 1-6-7H at Three Forks well came on at a very strong 24-hour initial production rate of just over 2,500 boe per day.

On our Fort Berthold acreage, we completed, in terms of sales, 5 new wells during the third quarter, 3 of those wells were in the middle Bakken, 2 were in the Three Forks formation. Four of the wells were located on a single pad, which is in the southwest portion of our acreage. And all of them came on with extremely strong rates, with average 24-hour IPs of over 2,100 boe per day. The fifth well, which was designed to delineate the eastern edge of the Middle Bakken reservoir on our leasehold, came online with a 24-hour IP of just slightly under 1,000 boe per day. This well also had some oil foaming issues related to an experimental frac fluid that we used on that well, which we're no longer using, which we suspect also contributed to constrained initial rate. 

Since the end of the quarter, and this is something new. This is not in the releases. Since the end of the quarter, we have completed and turned to sales 7 additional wells on our Fort Berthold acreage, 3 Middle Bakken and 4 Three Forks wells. The last 5 of these new wells to sales were from the first pad on our 10-well independence pad, which is located on the extreme northwestern corner of our acreage. And all of these well had excellent 24-hour IPs of 2,400 barrels a day to 2,900 barrels equivalent a day. So these well are quite strong and we really can't distinguish between the flow back results from Three Forks wells or the Bakken wells.

During the third quarter and into the current quarter, we've been able to deliver completed wells on the reservation at an average gross completed cost of about $11 million. Note that we'd now currently have 3 rigs running on our Fort Berthold acreage.

Go to the link for more.