oilfield insights

Hess Expects $2.6B Budget for 2016

Hess Corporation Lowers Budget Guidance for 2016 Hess Corporation (NYSE: HES) ended 2015 with E&P capital and exploratory expenditures of just over $4 billion with $1.6 billion being spend on onshore U.S. activity. Onshore U.S. spending was down 36.4% from the previous year. The chart below shows the companies permit and completion activity in the Bakken over the last 2 years.Bakken Completions Increase Number of StagesHess averaged 8 rigs during 2015 starting the year with 12 and dropping that number to...

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Midstates Drilling Efficiencies Lead to Lower Rig Count and Well Costs in MidCon

Midstates Petroleum (NYSE: MPO) has focused operations in the Mississippian Lime during the 2015 year. They have focused on reducing well costs through drilling efficiencies and working with suppliers. Production is expected to remain flat into 2016 as the number of completions shrink. The chart below shows the number of permits and completions by month in Oklahoma for MPO.  Mississippian Lime: Reduced rig count due to realized drilling efficienciesWells generating IRR’s of greater then 35% at current well costs Reduced drilling cycle...

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Duc…Duc…Goose: Looking at North Dakota’s Uncompleted Wells and Oil Being Sold Close to $0

Earlier this week Bloomberg reported that low quality crude or sour crude is being sold for next to nothing due to lower pipeline capacity for lower quality products. The low quality crude makes up a small part of Bakken production in which some pipelines are no longer transporting. The producers of the low quality crude are being forced to use higher cost transportation methods like trucks or trains to get their products to the refineries that have the capability to...

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CLR enhanced completions

Contintental Resources Stays the Course in Bakken & SCOOP

Like many other Bakken E&P's, Continental Resources (NYSE: CLR) activity slowed in the second half of 2015.The company will continue to invest in Bakken and SCOOP, but do not expect Continental's production growth to continue as the company plans to release rigs in Bakken and SCOOP. The chart below shows drilling permits and completions for the Bakken, Continental's key asset. Source: Energent Group Bakken: Enhanced Completions Improve EURCurrent well costs are down 27% to $7 million per well Decrease in drilling daysReduction of...

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EOG Resources Poised for Long Term Success

One of the largest independent exploration and production companies in the United States, EOG Resources (NYSE: EOG), is an operator that many look to in the current environment to model their well designs and cost saving techniques. The operator is seeing similar returns in parts of the Eagle Ford as they were in 2012 with oil being $35 dollars less and has more then doubled returns in the Permian at $60 compared to $95 in 2012.EOG Resources's  capital plan of $4.7 to...

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Increasing Pad Density in Eagle Ford

Operators regularly report that they are gaining efficiencies and saving CAPEX by increasing the number of wells per pad. This impacts all areas of the supply chain and further decouples the notion of “one sale, one well” for oilfield service companies.The following charts illustrate the increase in the well density per pad by the year the wells are permitted.Key highlights include the following:Shift in 2-well pads making up almost 50% of the multi-well pads in 2011 to below 25% in...

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7 E&Ps Fighting Through 2015 Low Commodity Prices

As third quarter earnings season starts we take a look at where some operators are in their drilling and completion programs and begin to get a peak at 2016 expectations. Check back for updates as operators and oilfield service companies update their positions in the current environment.  Antero Resources Expects 25% Production Growth Antero Resources (NYSE: AR) continues to cover production with 94% covered for the 2015 year and looking ahead to 2016 they expect 25% to 30% production growth having 1,793...

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Haynesville Permits Increase 81% in September Over August Activity

During the month of September there were 67 permits issued in the Haynesville. This was almost doubled compared to August which had 37 permits issued and closed the month out with 26 rigs running according the the BHI land rig count. At this time last year, there were 15 permits and 43 rigs in the Haynesville.The top permitting county this past week was Red River which issued 2 permits to Vine Oil & Gas. The most active week in September was...

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