Updates
May 8, 2014: I thought the press release was a bit "weak," but I really had no idea what to expect from investors, but the reaction does not surprise me, down over $7, down over 5%.
If I remember, I will post an observation comparing EOG's strategy vs CLR's strategy, or so it would seem.
Original Post
- adjusted net income: $272 million; $1.47 per diluted share
- 14-well Hawkinson density test production performance remains strong after 150 days of production
- strong early performance at Rollefstad density plot; eight (8) new wells have combined initial production of 22,460 boe per day (2,800/day/well = 84,000/month/well)
- EBITDAX for 1Q14 was 9% greater than 4Q13 (previous quarter); 25% greater than 1Q13
- CLR: 152,500 boepd
CLR is in the process of adding company storage for 240,000 bbls, "providing greater flexibilitiy and improved balancing of crude oil sales logistics; will fill this storage during summer of 2014Daily production by region, 1Q14 (numbers rounded):
- North Dakota Bakken: 84K (55% of total CLR production)
- Montana Bakken: 14K
- Bakken total (from above two): 98K (64% of total CLR production)
- Red River: 14K
- ND/MT total: 112K (74% of CLR total production)
- SCOOP: 29K
- NW Cana: 6K
- Total of SCOOP and Cana (from above two): 35K (23%)
- Arkoma: 3K
- Other: 3K
CLR continues to test completion techniques: fluid type, increased proppant, shorter stage lengths. Early results:
- slickwater increases production by approx 30% (another company reported same results)
- the 30% increase is above CLR's blended average EUR of 603,000 bbls;
- increased cost/well: as much as $2 million more above company's goal ($8 million/well now, and $7.5 by year-end 2014)
What to do? What to do? CLR will continue testing enhanced production methods on 20% of wells drilled in 2014.
See the press release of details on the increased density projects:
- Hawkinson unit
- Tangsrud unit
- Rollefstad unit
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