Mike Filloon Bakken Update -- October 7, 2018

Link here.

Archived.

Summary:

• COP's Anderson Ranch location produced 272 barrels of oil in the first 12 months of well life
• the move from sliding sleeves to cement casings in concert with broad volume increases in proppant continues to drive production improvements
• COP continues to push better production in the Bakken.  We expect this will drive production gains across all plays and provide better top-line numbers than are currently estimated
• US unconventional operators are currently undervalued amid higher oil prices and better well design

This is really, really cool. COP/BR's Anderson Ranch wells are tracked here. 

From Filloon:

Conoco has seen a relatively large jump in oil production per Bakken horizontal year over year.

We continue to see a jump in volumes of sand and fluids.

The improvement of 41 KBO and 63 MMcf in one year is quite good and is representative of its well design changes being implemented in a much more active manner.

A company like COP won't see the leveraged improvement of a focused, unconventional operator. That said, well design improvements will improve COP's results in the Bakken, Niobrara, Eagle Ford and Delaware.

The average increase in revenues per Bakken well is approximately $2MM. This is after we pull costs, logistics, NRI, etc.

It completed 83 North Dakota locations this year, providing a total of $170MM. This does not include its acreage in other major US plays. We continue to believe WTI is headed to $80/bbl and we are currently at the low end of the range.