Updates
Later, 9:47 a.m. CT: Don correctly points out that it is possible that Hess has taken some of their acreage off the books, or let permits expire, on marginal acreage. If so, it seems to be a fair amount (from maybe 900,000 to 645,000 net acres); it's hard to believe that there would be that much acreage that would be marginal in the area the Hess operates in North Dakota. Regarless, "snapshot" still serves a purpose.
Original Post
NOTE: if one checks "Spotlight"tab at the top, and scrolls down to Hess, note that Hess Bakken acreage has significantly decreased since 2010:
Yahoo!Finance is reporting:
- 4Q13: January 29, 2014, corporate earnings: 645,000 acres in the Bakken: to ramp up in the Bakken. CAPEX will stay flat at $2.2 billion in 2014 (same as 2013) but will drill 225 operated wells vs 168; 17 rigs (2014) vs 14 rigs (2013). Will focus on unconventional shale. 4Q13: average well cost, $8 million vs $11 million (2012); forecasts 80K to 90K boepd in 2014; 9 wells for typical 1280-acre unit; will test tighter well spacing; Tioga Plant expansion to be complete 1Q14; forecast 150K boepd (2018) -- represents an increase from guidance of 120,000 boepd (2016).
- Hess Bakken Investments II, LLC: the Hess operator for Rocky Mountain assets in North Dakota, Wyoming, and Colorado; founded in 2009; Tracker Energy (TRZ) formally changed to Hess Bakken Investments II, LLC, in 2013;
- November, 2012, NOG says Hess has 800,000 acres
- September (2012) Power Conference presentation: 900,000 acres; 16 rigs
In North Dakota, the Corporation holds approximately 645,000 net acres in the Bakken oil shale play. Net production from the Bakken averaged 68,000 boepd in the fourth quarter, which reflects the previously announced downtime associated with the Tioga Gas Plant expansion.
Full year production averaged 67,000 boepd, an increase of 20 percent from 56,000 boepd for 2012.
Hess brought 46 operated wells on production in the quarter and 168 wells for the full year, bringing the cumulative total to date to 722 wells.
Drilling and completion costs per operated well averaged $8.1 million for the year, a reduction of 26 percent from $11.0 million per well in 2012.
Infrastructure investments in 2013 included the Tioga gas plant expansion project, which is expected to be completed and operational in the first quarter of 2014.
In 2014, Hess plans to increase the rig count in the Bakken to 17 from 14 but is maintaining capital spending at $2.2 billion, which is consistent with 2013 capital spend.
Production is expected to average between 80,000 boepd and 90,000 boepd in 2014, an increase of 19 percent to 34 percent from 2013. The Corporation is increasing its peak net production guidance for the Bakken to 150,000 boepd in 2018 from prior guidance of 120,000 boepd in 2016, based upon performance to date and a current design of 9 wells for a typical 1,280 acre drilling unit. During 2014, the Corporation plans to pilot test tighter well spacing to determine whether there is additional upside in the estimates for future production and resources.
Maybe it is smoke and mirrors, maybe it is second entity about to be created, maybe the are or about to be sold. Looks like fun for an investigative reporter.
ReplyDeleteMost interesting to me is that no one else has mentioned it publicly, unless I missed it somewhere (possibly in the annual reports), or the earlier data was incorrect. But I generally link all the sources. It seems to have occurred about the same time Hess transferred assets to its Rocky Mountain operator.
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