Monday, September 9, 2013

Some Random Observations From Whiting's August, 2013, Corporate Presentation

Disclaimer: I often make typographical errors. Again, the blog is for my personal use (see "welcome/disclaimer") but I post it publicly for folks who might be interested. I try to be as accurate as possible when posting about the Bakken, but I do make errors. I recommend folks go to the original source.

Slide 10 (I am unsure of the meaning of some symbols in the legend, but I believe I am correct in the following):
Whiting notes four zones in the middle Bakken, Zones A, B, C, and D. In this particular slide, Whiting does not note the various benches in the Three Forks.

Zone A:
  • TOC: 6.3 to 7.9%
  • OOIP: 6 (mmboe/1280 acre)
Zone B:
  • TOC: 4.4 to 6.1%
  • OOIP: 7
Zone C:
  • TOC: 6.0 to 9.4%
  • OOIP: 6
Zone D:
  • TOC: 4.7 to 6.5%
  • OOIP: 11
Three Forks
  • TOC: 7%
  • OOIP: 9
[Back of the envelope: 40 x 0.05 x 75 = $150 million/1280-acre drilling unit at the wellhead.]

Slide 11:
  • Whiting adds another 19 million bbls OOIP in Bakken shale; recovery efficiencies < 2%
  • Whiting feels Zone D is underexploited 
Slide 12:
  • proposed drilling plan for Whiting's various prospects
  • as few as 6 wells per spacing unit in the Pronghorn prospect
  • as many as 15 wells per spacing unit in the Hidden Bench prospect
Slide 13:
  • graphic of Whiting's recent acquisition
  • 17,282 net acres smack dab between its Missouri Breaks and Hidden Bench prospects
  • even with the pricey new acquisition, Whiting states: as of 6/30/13, Whiting's total acreage cost in 697,259 net acres is approximately $383 million, or $549/net acre"
  • for perspective: Oasis recently announced 161,000 acres for $1.51 billion
Slide17:
  • cost of Red River wells: $3 to $3.5 million; EUR: 250K/well
  • compare with "Bakken wells": $6 to $8.5 million
Slide 19:
  • North Dakota production exceeds pipeline capacity
  • rail plus pipeline exceeds production
Slide 20:
  • Whiting has a robust oil and gas gathering system in the Williston Basin
Slide 21:
  • realized prices in 2Q12: $75/bbl
  • margins in 2Q12: $50/bbl

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