[ExI] (tt) (Star Tribune 2013-03) Bakken drilling costs dropping, Northern Oil and Gas says (fwd)

[Tomasz Rola]

---------- Forwarded message ----------
Date: Sun, 12 May 2013 03:43:20 +0200 (CEST)
From: Tomasz Rola <rtomek at ceti.pl>
To: Transhuman Tech <tt at postbiota.org>
Cc: Tomasz Rola <rtomek at ceti.pl>
Subject: (Star Tribune 2013-03) Bakken drilling costs dropping,
    Northern Oil and Gas says


(Optimism! According to this page, 

http://www.reuters.com/article/2012/10/03/us-bakkenoil-costs-idUSBRE89216D20121003 

previous cost of Bakken drilling was some 9-11 mln per well. So, we can 
now be so happy because the cost is down to ~=8.5, who would whine about 
costs being 2-3 times lower some not very long time ago - TR)

[

http://www.startribune.com/printarticle/?id=194405301

]


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   Bakken Oil Fields of North Dakota

   Jeff Wheeler, Star Tribune

Bakken drilling costs dropping, Northern Oil and Gas says

     * Article by: David Shaffer
     * Star Tribune
     * March 1, 2013 - 7:30 PM


   The  cost  of  drilling  new oil and gas wells in the Bakken region of
   North  Dakota  and  Montana  is dropping and the work is going faster,
   allowing  crude  oil to reach the market sooner, a Minnesota-based oil
   company said Friday.

   Northern  Oil  and  Gas  of  Wayzata added the equivalent of 48 Bakken
   wells  in 2012, and expects to complete almost that many in 2013. In a
   major  shift, multiple wells are being drilled in different directions
   from a single location, avoiding the need to move equipment as often.

   "It  is  very  simple math; if you are drilling four wells on one pad,
   you  are  going to get those wells drilled more efficiently," CEO Mike
   Reger said on a conference call with analysts as the company beat Wall
   Street  estimates  with  $19.5  million  in net income for the quarter
   ending in December.

   The company, which buys oil leases and finances drilling but relies on
   other companies to do the work, reported net production of 3.7 million
   barrels  of  petroleum  products  last year, and projected growth of 1
   million or more barrels this year.

   Reger and other executives said drilling times also are dropping -- to
   about  90  days from when the bit first hits the ground to initial oil
   and  gas production. In early 2012, it took twice as much time because
   oil  field  services  such as hydraulic fracturing teams were in short
   supply.

   One  well  now  can  be  drilled for $8.4 million to $8.8 million, and
   company  officials  see  that dropping to $8 million on average by the
   end  of  the  year.  Some  wells  in  Montana, because of the drilling
   circumstances,  have  cost  under  $5 million, the company said. Other
   wells,  including some the company decided not to invest in, have cost
   $10 million or more.

   Northern  Oil,  which  also  reported full-year results, said revenues
   more  than  doubled  in 2012 to $311 million and net income climbed 78
   percent  to $72 million. Its proven reserves rose 44 percent last year
   to 67.6 million barrels.

   The  company  owns  a share in 1,227 wells, which is equivalent to 106
   net  wells.  Northern Oil said it expects to add 44 net wells in 2013,
   spending up to $390 million to drill and complete them. Northern Oil's
   shares closed Friday at $14.13, up 42 cents, or 3 percent.


   David Shaffer o 612-673-7090 o @ShafferStrib

   Š 2013 Star Tribune

References

   1. http://www.startribune.com/printarticle/?id=194405301
   2. http://www.startribune.com/adiniframe?adSize=300x250&type=print