Paula Dittrick
OGJ Senior Staff Writer
HOUSTON, Nov. 1 -- Hess Corp. plans this month to add another rig to its nine rigs already working in North Dakota’s Bakken oil play in the Williston basin, executives told analysts during a third-quarter earnings conference call.
John Hess, chairman and chief executive officer, said “Current net production from the Bakken is approximately 18,000 boe/d, with nine rigs working. We plan to add one additional rig in November and expect to exit this year with net record production of about 20,000 boe/d.”
He expect to close by yearend on the previously announced acquisition of American Oil & Gas. AOG’s operations are largely concentrated in the Bakken and Three Forks formations in North Dakota.
Greg Hill, president of Hess worldwide exploration and production, said well costs for Hess in the Bakken are about $11 million each for a dual lateral with a EUR of about 1 million bbl per dual lateral.
“Our 30-day average IP rates are around the order of 400 to 500 b/d per lateral from 18-stage fracs,” Hill said.”
Executives acknowledged Hess has acquired a net interest of 75,000 acres in the Eagle Ford oil and gas play in south Texas where it plans to drill a well in November. The company plans to continue trying to acquire additional acreage there, Hill said.
Hess also believes it might be able to use its expertise gained from the Bakken formation in unconventional plays worldwide.
Hill said Hess and its partner Toreador Resources Corp. plan early next year to start drilling in France’s Paris basin for shale oil. In China, Hess has signed a memorandum of understanding with Petrochina to examine possibilities in Daqing field.
Contact Paula Dittrick at [email protected].
Illustration from Aker BP.
