fraccen bakken

Novelty has worn out watching SSN graph sink to ever new depressing lows. So, decided to review some info on our Bakken neighbours. In case you are already familiar, apologies. this is by no means comprehensive but just to wet our apetite on what can be achieved with right mix of nouse and expertise. IMO SSN mgment has nouse (to identify acreage) but obviously lacked extraction expertise. Yes, I accept that these may not be our immediate neighbours but using as guide for Bakken formations.

1. Abraxas Petroleum: Two Bakken Wells Produced More Than 1,000 b/d of Oil and Two Three Forks Wells Produced ~700 b/d of Oil.

Lillibridge 1H produced 1,027 b/d of oil and 1.5 mmcfd from the Middle Bakken

Lillibridge 2H produced 766 b/d of oil and 1.2 mmcfd from the Three Forks

Lillibridge 3H produced 1,031 b/d of oil and 1.6 mmcfd from the Middle Bakken

Lillibridge 4H produced 697 b/d of oil and 1.3 mmcfd from the Three Forks

Sept operat update:
http://www.abraxaspetroleum.com/news.aspx?releaseid=1853201

2)Deals and Acquisitions: Bakken Deals Account for 33% of U.S. Shale Deals in Q3: 43 U.S. Oil & Gas Deals Valued At $16.4 Billion Were Agreed in the Third Quarter
i) Whiting Petroleum Acquires Bakken Acreage In MT & ND – $260 Million
ii)Oasis Acquires 160,000 Plus Bakken Acres – $1.5 Billion
From Oasis website: "We are not only excited about the near-term value of this deal, but the outlook over the long-term is extremely compelling."
http://www.oasispetroleum.com/press_release/oasis-petroleum-inc-announces-acquisitions-of-approximately-161000-net-acres-in-the-williston-basin-and-the-redetermination-of-its-borrowing-base-to-1-5-billion/
iii) Samson Sells Bakken Assets in Montana – $13.5 million
iv) Crestwood Midstream Acquires Arrow Midstream for $750 Million – Expanding Bakken Footprint

3. Drilling Density:
i) Continental’s Bakken & Three Forks Density Test Yields Almost 15,000 boe/d
Continental set a record with third quarter production of 141,900 boe/d. Bakken production grew 7% and accounted for 94,500 boe/d of the total

Harold G. Hamm, Continental’s CEO commented, “….In addition, we completed our first density test in the Hawkinson spacing unit, demonstrating very strong initial production in the Middle Bakken and the first three benches of the Three Forks. Once again, Continental is pioneering the expansion and improved recoveries in the world-class Bakken oil play, demonstrating the productive potential of four to five stacked zones with multiple wells in each.”

Bakken Downspacing Activity: The Hawkinson Unit
In October 2013 and one month ahead of schedule, Continental successfully completed the first of four pilot density projects it has under way. The Hawkinson unit initially tested at a combined rate of 14,850 Boe per day from 14 wells. This included 13,400 Boe per day from 11 new wells drilled this year and combined current rates of 1,450 Boe per day from three existing wells in the unit, which to-date have cumulative production of 1.3 million Boe since 2010. The Hawkinson density project includes four Middle Bakken, three TF1 (Three Forks 1), four TF2 and three TF3 wells, which all were spaced 1,320 feet apart in the same zone and offset 660 feet in the adjacent zones. This is the industry’s first density drilling program in the basin to include all of these lower benches.

From Continental website (for PDF):
investors.clr.com/External.File?t=2&item=g7rqBLVLuv81UAmrh20Mp/6fr+K/wz4zqPDFdxzxK+OZW02h5pA7nm0uHz47hMoQ4qY30aEJ5L4qlSVI+hSNgQ==

(I wont bore you with CLR share price graph....maybe after I dry my eyes!)

ii) Oasis Petroleum Is Testing Bakken & Three Forks Well Spacing: Oasis, Continental and Others Looking to Determine Optimal Well Spacing in the Region

iii) Slawson Planning Dual Laterals in the Upper Bakken
Multi-lateral Well Applications Were Filed in McKenzie, Mountrail, and Williams Counties

Link to PDF:
https://www.dmr.nd.gov/oilgas/dockets/2013/docket082913.pdf

4) Some production highlights:
i) Kodiak Oil net daily production up 7 percent from July -CEO interview
(Reuters) - Kodiak Oil & Gas Corp's net daily production has risen 7 percent since July to 36,454 barrels of oil equivalent per day, the CEO of the Bakken shale fields operator said in an interview.

Gross production, which includes production from wells Kodiak does not operate but has a stake in, has risen to "just shy" of 50,000 barrels of oil equivalent per day (boe/d), CEO Lynn Peterson said on Wednesday.
Link:http://www.reuters.com/article/2013/09/11/kodiak-production-idUSL2N0H711C20130911

ii) Halcon’s Bakken IP Rate Improved Dramatically in the Third Quarter: HK's Best Well To Date Produced Over 3,900 boe/d in Q3

Halcon Resources’ initial production rates have improved considerably across the Bakken. The company is completing wells with tighter stage densities, more proppant per stage (100% ceramics), and is using slick water in areas where gels were used in the past.

The company’s best well to date was completed on the Fort Berthold Reservation in the third quarter. The Bakken well came online 3,914 boe/d.

Wells completed with the company’s latest design have yielded results 20-60% better than comparable wells.

PDF Link:investors.halconresources.com/common/download/download.cfm?companyid=ABEA-5X1N65&fileid=703085&filekey=69077fec-8145-4f8a-b83b-b0e9ec468ba4&filename=804194.pdf

I wont you any further with Bakken geology - we've been through that many many times. Despite my personal disappointment at recent AGM decision, that is done. Now, strap in and hang on fraccing updates. Going by above Bakken-related activities, SSN should hit Slawson-warp speed....

Good luck to us all

MS