Mikaila Adams
Editor-News
In late July, Whiting Petroleum Corp., Denver, completed a $130-million acquisition of Williston basin properties, the company said as part of its second quarter operating and financial report.
The properties, contiguous with the East Missouri Breaks and Hidden Bench areas, encompass 54,833 net acres and have current production of 1,290 boe/d and estimated proved reserves of 26 million boe. The deal is a bolt-on acquisition in the western Bakken extension of acreage with limited development where the company is optimistic that newer generation completions will enhance project returns.
“We consider this acreage highly prospective for generation 4.0 completions because it lies geologically on trend with the prolific Mallow well announced in the first quarter,” said Bradley J. Holly, Whiting’s president, chairman, and chief executive officer.
Operating, financial results
Whiting’s production in this year’s second quarter totaled 11.5 million boe, comprised of 84% crude oil and natural gas liquids. Second-quarter production averaged 126,180 boe/d and came in at the high end of guidance.
Bakken and Three Forks plays in the Williston basin averaged 103,480 boe/d. The Redtail Niobrara and Codell plays in the DJ basin averaged 22,005 boe/d. Whiting drilled 33 wells in the Williston basin area and no wells in the Redtail area during the quarter. The company put 22 wells on production in the Williston basin and 16 wells on production at Redtail during the quarter.
After failing to attract a bid it deemed worthy, Whiting has pulled Redtail from the market. The company believes the asset could generate $250 million of free cash flow in 2018 including volume deficiencies on its firm transportation commitments. Guidance for the Colorado asset remains at 15,000 boe/d exiting 2018. The company has no current plans for additional development and will work to mitigate base decline.
In the quarter, Whiting completed four noteworthy generation 4.0 north Polar wells in Williams County, ND. The Anna 14-8/Nelson 14-8 wells were completed with 6.5–7 million lb of proppant and the latest diversion techniques. On average, production profiles for the wells are stronger than an earlier generation well completed with 10 million lb. The approach results in a 30% smaller completion—a $400,000/well capex savings—and allows for better containment of the fracture stimulation in the productive zone of the rock, resulting in a lower water cut—estimated to reduce lease operating expense by $600,000 over the life of the well, the company said.