Thursday, August 23, 2018

What Does This Tell Us About CLR? -- August 23, 2018

CLR reported this well today:
In its most recent corporate presentation, if I recall correctly, CLR's "optimized completion" strategy:
  • 60 stages
  • 10 - 15 million lbs proppant
  • 250,000 lbs/stage - 167,000 lbs/stage
Generally, in the Bakken, I am seeing:
  • long laterals (about 9,000 feet horizontal legs; 20,000 feet TD)
  • most operators going with 40 stages
  • about 175,000 lbs/stage (significantly less than what they are using in the Permian)
  • most operators going with about 8 million lbs of proppant, trending toward 10 million lbs
  • one operator says 
    • under 7.5 million lbs proppant, sub-optimal results
    • trending toward 15 million lbs proppant, no significant improvement
    • "Goldlilocks" completion strategy: 60 stages; 12 million lbs proppant
  • trending toward more use of "smaller" sand (three sizes: small, medium, large)
  • middle Bakken requires 20% more sand than the Three Forks first bench
  • CLR and one or two other operators starting to drill more T2 and T3 wells (second bench and third bench of the Three Forks)
  • best Three Forks first bench wells might be better than best middle Bakken wells (Lynn Helms suggested this years ago; at the time, no information on second and third bench wells)
So, what does this tell us about the Bakken or about CLR when we see 20 million bbls of sand being used (by the way, EOG has also use this amount of sand in several cases -- they were the first to use that much sand in the Bakken, as far as I can tell, and that was some years ago) -- but I digress -- what does using 20 million lbs of sand mean?
  • sand is incredibly inexpensive right now
  • spending less on drilling can be used to spend more on fracking
  • Harold Hamm's brother owns a fracking sand pit
By the way, what does the production profile look like for that most recent Vardon well? 122K in three months. 122K x $40 = $5 million. Average well cost to completion in the Bakken: they say $8 million.

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare


  1. Interesting... EOG owns a sand plant (a big one) located in Chippewa Falls, WI, just north of us in Eau Claire, WI. So they have some control over the cost of sand for their fracs... very interesting...

    1. I think EOG was the first operator in the Bakken to build a dedicated terminal to receive fracking sand from Minnesota / Wisconsin. A pretty exciting story.