Monday, December 31, 2012

Data Points From the December, 2012, CLR Corporate Presentation

CLR corporate presentations can be found here

Note: in some cases numbers may be rounded.

The Briefing Begins With The Bakken
Largest Continuous Reservoir of "Unprecedented Magnitude"

Data points:
  • for CLR: proved reserves: 610 million bbls of equivalent oil at mid-year, 2012
  • current production: >105K boepd
  • estimate: almost 60% y/y production growth 2012/2011
  • cash margins: >70%
Middle Bakken and First Bench (Upper) of the Three Forks

  • full development
  • continuous oil field: 15,000 square miles x 640 acres --> 9.6 million acres
  • true oil play: in 2010, it was estimated that 24 billion bbls were technically recoverable
  • currently less than one (1) well per 1280-acre spacing unit
  • full development: 4- to 8- wells per zone for full development
Lower Three Forks
  • increases OOIP by almost 60% --> 903 billion bbls
  • slide 6: suggests 45 billion bbls recoverable (see MDW calculations below)
  • Discusses CLR's exploratory work with the Three Forks (slide 8)
  • proved separation of middle Bakken and the upper Three Forks
  • theorized four Three Forks benches; proved two; testing a third; plans to test the fourth
CAPEX for Three Forks "produce while exploring" in 2013
  • Three Forks accelerated de-risking: $70 million
  • 320-acre spacing pilot, two areas; one in southeastern Divide County; one in southeast McKenzie County: $160 million 
  • 160-acre spacing pilot, near the Charlotte wells in north-central McKenzie County: $36 million
Single well economics, current (slide 9)
  • 10,000-foot lateral; 30 stages
  • EUR: 600K
  • well costs: single well, $9.2 million; ECO-Pad well, $8.5 million
  • rate of return: at $80 oil, 50% RoR; at $60 oil, 20% RoR
Single well drilling vs 6-well pad drilling (slide 10)
  • 200 days to drill six single wells; 130 days to drill a 6-well pad
  • $30 million to $22 million; $8 million savings
Evacuation capacity (slide 12)
  • pipeline and rail through 2017
  • currently: 900K bbls committed to pipelines; 900K bbls rails --> 1.8 million bbls; another 1.3 million bbls proposed pipeline
Miscellaneous
  • CLR first to send Bakken oil directly to Tesoro Refinery, Anacortes, Washington, September, 2012, rail
Interesting observations, back of the envelope calculations:
  • CLR says they lease 10% of the Bakken; with ~ one million acres, that suggests about 10 million acres in the Bakken
  • back of the envelope: 8 wells/640 acres. Average EUR of 400,000 bbls. 8x 400,000 = 3,200,000 bbls/640 acres or 5,000 bbls/acre. Ten million acres x 5,000 bbls/acre --> 50 billion bbls. Cross-checking: 1 trillion bbls original oil in place x 5% recovery --> 50 billion bbls; if one cuts this to 8 wells/1280 acres --> 24 billion bbls
 *************************

The Briefing Then Switches To the SCOOP (South Central Oklahoma Oil Province)
A New, High-Impact Resource Play

Data points: SCOOP
  • dual reservoir: upper and lower Woodford
  • 6x the Cana Field
  • 3 of the top oil-producing counties in Oklahoma
  • 3 billion bbls of oil produced
  • 60 reservoirs
Commanding position in the SCOOP (again, some numbers rounded)
  • 100,000 acres at end of 2010 (3% held by production)
  • 200,000 acres at end of 2012 (20% held by production)
  • 2 billion bbls oil equivalent potential to CLR; based on unrisked, 80-acre spacing
  • 50% RoR

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