Sunday, May 19, 2013

1Q13 Milestones: CLR. Will Reduce Rigs To 20 (Efficiencies); Drilling All Four Benches Of The Three Forks

Some random data points for CLR, 1Q13 (some numbers rounded).

Prices:
  • average realized sales price (excluding effects of derivatives), oil: $90
  • average realized sales price (excluding effects of derivatives), NG: $5
  • average realized sales price (excluding effects of derivatives), boe: $72
  • hedging loss: $0.63/bbl boe
Production expense:
  • $5.70/boe, significantly lower than $5.90/boe from 4Q12
  • 10.9 million boe x 20 cents/boe savings = $2 million in savings past quarter on production expense
  • expense higher than annual guidance ($5.20 to $5.60) due to typical winter weather
  • expectation: production cost to decrease through majority of rest of year
Other select expenses, cash, debt:
  • Production taxes:8.2% of oil and natural gas sales
  • DD&A: $20/boe
  • B&A: $3/boe
  • Total cash: $60 million
  • Total debt: $4 billion
Bakken Ops
  • net production: 76,900 boepd; up 12% from previous quarter; up 60% from year ago
  • 22 rigs
  • 1.2 million net acres
  • 66 net wells in  1Q13
  • backlog: 80 gross wells drilled but not completed; down from 4Q12, but will grow at various times during the year due to pad drilling; 
  • ND wells: 84% oil; IPs averaged 1,125 boepd; EUR 603,000;
  • MT wells: 87% oil; IPs averaged 670 boepd; EUR 430,000;
22-well Lower Three Forks exploratory program:
  • Barney 2-29H-2, 2nd bench, IP of 1,075 boe, 16 miles north of Charlotte pad
  • Stedman 2-24H-2, 2nd bench, IP of 1,030 boe, Stedman pad, western flank near Montana stateline, 35 miles NW of Charlotte pad,  
  • Stedman 3-24H-3, 3rd bench, IP of 465, Stedman pad, see above
  • inclusive of these wells: 6 producing wells in the lower benches with average 1,170 boepd

Charlotte pad and Angus:
  • Charlotte 2-22H, 2nd bench, 116K boe over 18 months
  •  Charlotte 3-22H, 3rd bench, 55K boe over 5.5 months
  • Angus 209H-2, 2nd bench, 53K boe over 2 months
Four pilot density projects:
  • test 320-acre and 160-acre spacing in Middle Bakken and first three benches of the Three Forks
  • 47 gross wells in the pilot density program
  • Hawkinson pad, Dunn County: has drilled 8 wells; currently drilling the 9th on its first 320-acre pilog density project
  • Wahpeton pad, McKenzie County: drilling underway on the 13-well, 160-acre pilot
  • Tangsrud pad, Divide County: drilling underway on 12-well, 320-acre pilot
  • Rollefstad pad, 320-acre pilot; scheduled to spud in 2H13
  • Summary: 47-well pilot density program: 10 wells currently drilling; 10 wells waiting completiong; 27 wells yet to be drilled
  • Once each pad has reached IP, the wells will be announced together as part of quarterly results
Rigs
  • 22 currently; but will reduce to 20 due to efficiencies

2 comments:

  1. Great summary Bruce. Thanks.

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    Replies
    1. Thank you. I was a bit late getting to this. Earnings season is always overwhelming.

      I think one could be fully occupied just tracking Continental Resources.

      Doing these summaries is the only I can (sort of) keep up.

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