Bullish On The Bakken
The ever-evolving Bakken Shale set a new production record in January and is poised for decades of drilling, said Brad Holly, president and CEO of Whiting Petroleum Corp. (below), earlier in the day. He attributed the upswing to cycle-time improvements and right-sized completions.
In January, Bakken production reached 1.46 million barrels of oil per day (bbl/d), with production per well continuing to grow. Customization is key and Whiting plans to complete 130 wells this year, relying on data science to tailor each job for the optimum frac. “The play has strong economics and hefty inventory—there are decades of drilling ahead.” While earlier Bakken completions resulted in recovery of 10% to 12% of original oil in place (OOIP), completions today are recovering close to 20%.
Hess Corporation's vice president of onshore, Barry Biggs (above), said the Bakken is competitive among global projects because of breakeven prices. He added that development costs in the Bakken have been reduced by 60% since 2010. Hess has 3,000 high-quality locations, according to Biggs. He also said the company expects to spin off significant cash flow in the coming years.
Back To the San Juan
Along with other operators, DJR Energy is bringing activity back into the San Juan Basin, said Jack Rosenthal, vice president of geoscience for DJR (above). The company has 350,000 net acres in the basin that it acquired from Elm Ridge and Encana. “We have the capacity and geologic potential to expand the Mancos core area,” he told the audience. The company is targeting the Mancos in the San Juan—which is the early stages of development—and will bring on one rig in the second half of 2019.
Meanwhile, San Juan Resources’ Jerry McHugh Jr. said the San Juan has 24,000 active wells and is being revitalized by new entrants. “The basin is always reinventing itself, with new zones and new technologies,” McHugh said. “It’s the gift that keeps on giving.”
Wall Street Watch
During a panel on how Wall Street sees the situation in the Rockies, Trisha Curtis of PetroNerds LLC said the shale model has inspired broader changes in the oil market. U.S. shale has become a necessary piece of a global asset portfolio, said the president and co-founder of the Denver-based energy analytics firm, and clients are attracted to its short-cycle investment and quick production response.
But with well-spacing issues raising anxiety levels, Curtis addressed the question: Are well spacing issues killing the boom? Short answer: No. "Operators are evolving their approaches and making changes in inventory and changes in spacing,” she said. “Completion design modifications continue and year-over-year well productivity is improving.”
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Congratulations to our 2019 DUGGIE and BINGO Winners
Grand Prize: Robin Jeffers, Sentry Technologies
2nd Place Prize: Mike Sedler, Industrial Accessories
3rd Place Prize: Chris Barnes, US Well Services