Continental, American report progress in Bakken play
Continental Resources Inc., Enid, Okla., and American Oil & Gas Inc., Denver, reported progress in Bakken operations in North Dakota and Montana.
By OGJ editors
HOUSTON, Feb. 26 -- Continental Resources Inc., Enid, Okla., and American Oil & Gas Inc., Denver, reported progress in Bakken operations in North Dakota and Montana.
Continental said its 2009 proved reserves of 257.3 million boe, up 62% from 2008, reside 41% in the North Dakota Bakken and 11% in the Montana Bakken. The company replaced 8.1 times its 2009 production.
Continental’s Hendrickson 1-36H well in McKenzie County, ND, set a company operated initial production mark of 1,990 boe/d on a 7-day test. The well’s best single-day rate was 2,105 boe/d.
However, the company will report single-day initial production tests for Bakken wells because gas pipeline capacity limits are restricting 7-day rates at some wells, if only in the first few weeks.
Continental held 488,500 net acres, 81% undeveloped, in the Bakken as of Feb. 25, and 163,500 net acres, 60% undeveloped, in the Montana Bakken.
The company resumed Montana Bakken drilling in late 2009 and will run at least one operated rig in Richland County in 2010 alternating between drilling 320-acre infill locations in the Elm Coulee field fairway and other wells in the company’s undeveloped acreage.
Continental hiked its 2010 capital budget 31% to $850 million to accelerate Bakken and Anadarko basin Woodford drilling.
American has spudded the Viall 1-25H for a planned 9,000-ft lateral in Middle Bakken at 10,930 ft true vertical depth on a 1,280-acre unit in 24 and 25-156n-98w, southeastern Williams County, ND. American has 95% working interest.
The Tong Trust 1-20H well in 17 and 20-157n-96w, Williams County, being funded under terms of a participation agreement, is waiting on completion and equipped to accommodate as many as 26 frac stages in Bakken.
American is participating with 6% working interest in the Heidi 1-4H well, in 4-156n-99w, a planned Three Forks horizontal test that will log the Bakken and Three Forks formations on a 640-acre unit.
American will also operate the Summerfield 15-15H, in 15-147n-96w, Dunn County, ND, with 38.125% interest. To be spudded in late March, it is a Bakken horizontal test on a 640-acre unit.
Meanwhile, an unidentified large independent operator will buy American’s Fetter and Krejci assets in the Powder River basin of Wyoming for $44 million, allowing American to refocus on the Bakken play.
Fetter demonstrated encouraging results from Niobrara recompletions, but it would take considerable time and investment to move the project forward with a risk profile that is more appropriate for a larger organization, American said.