EOG's $20 Million Pad In Non-Core Bakken Acreage -- January 4, 2016

From Mike Filloon earlier today (note, Mike Filloon originally posted this article back in June, 2015, which was not made particularly obvious, which is somewhat disturbing):

EOG completed a three-well pad north of Parshall in Stanley field where economics change significantly. Other operators nearby are Hess, MDU, Statoil, Oasis, ConocoPhillips, Continental, and Marathon. This pad includes Burke 46-3130H, Burke 45-3130H, and Burke 66-3130H.

The wells:

• 26645, 445, Burke 66-3130H, Stanley, 43 stages, 12 million lbs, TD = 18,603 feet, t4/14, cum 194K 11/15;
• 26646, 737, Burke 46-3130H, Stanley, 38 stages, 11 million lbs, TD=17,566 feet, t4/14; cum 117K 11/15;
• 26647, 7636, Burke 45-3130H, Stanley, 32 stages, 10 million lbs, TD = 16,340 feet, t4/14; cum 155K 11/15;

Look how far east these wells are:

Now, back to what Mike Filloon wrote about this three-well pad -- note the important take-away: "even in non-core acreage."

This pad is just north of Parshall field. It produced 323,180 bbls of oil and 178440 Mcf in 10 months.

This produced revenues of $19,926,120.

The total cost of this pad was roughly $24 million.

Modeling these wells forward, it still reaches payback in an estimated 14 months. This is still an acceptable time frame, especially when we consider today's oil prices.

All three wells saw a different well design. Burke 66-3130H had the most complexity. It used 43 stages and 12.9 million pounds of sand. 288000 bbls of frac fluids were used.

Burke 46-3130H was a 38 stage frac. It used 11.3 million lbs. of sand and 248000 bbls. of frac fluids.

Burke 45-3130H was a little shorter. It was a 32 stage frac and used 9.7 million pounds of sand. 202000 bbls of frac fluids were used. EOG continues to use a progressive frac design, even in non-core acreage.

For what it's worth, here's a closer look of the 3-well Burke pad: