[ExI] (tt) (Star Tribune 2013-03) Bakken drilling costs dropping, Northern Oil and Gas says (fwd)
rtomek at ceti.pl
Sun May 12 01:43:57 UTC 2013
---------- 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,
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)
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
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
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