Bakken Update: Mike Filloon -- EOG Is Big Winner With New Well Design -- October 14, 2016

Mike Filloon: EOG Big Well Design Winner In The Bakken And Probably Everywhere Else.

Summary:

• Well design can alter production significantly over the first five years of well life
• Some operators try to keep well costs down hurting economics significantly
• Results in the Bakken and other plays seem to show that operators will be forced to use Mega-Frac's or suffer in this new lower oil price environment
• EOG is the pioneer of enhanced completions, and seems to be far ahead of the competition

Look at the average EURs in the chart below for these operators. The difference is striking!

From Mike Filloon: 

The table below provides the current average recoveries for all the wells analyzed. Using a hyperbolic decline extending production three years an EUR was developed. This provided a 5-year EUR. Each operator had differing start times, so this varied from 50 to 62 months. The EURs did provide some interesting results:

Operator	EUR (BO)	Total Months	Recovered Oil	Months Produced	Remaining Recoveries	Remaining Months
HES	220,700	59	134,789	23	85,911	36
CLR	365,185	60	169,674	24	195,512	36
Petro-Hunt	304,504	62	179,552	25	124,951	37
XOM	184,260	59	108,976	23	75,284	36
ERF	484,192	57	344,088	21	140,104	36
COP	181,459	59	140,428	23	41,032	36
EOG	567,286	50	408,610	14	158,676	36

Three four comments:

• these are five (5) year EURs
• these wells will go on to produce for 35 years
• it is very possible workover rigs and the "halo effect" will "up" the final EURs
• for EOG: 500,000 bbls in less then two years -- staggering