Hess has an impressive 500,000 net acre position on and to the East of the Nesson. This includes much of what appears to be the core in Mountrail County. Whats also interesting about Hess in the Bakken is their drilling and completion strategy. They are drilling dual laterals with impressive results. They say the economics of this are beneficial since it takes less surface equipment, fewer verticals, and they can be drilled from a pad. Hess has been giving the same stats for these wells the past few quarters.
- EUR of 1 million Boe per dual lateral
- $10-$11 million per dual lateral
- 30 day IP of ~ 1000 BOPD, (~450-500 Boed per lateral)
As of the May quarterly conf call, they had 4 completed dual laterals and 5 others in various phases of drilling and completing.
Hess has announced a 5 year Bakken escalation program with at least 10 rigs by mid-2011. They currently have 5. Hess has a 20,000 Bo/d projection at the year end 2010. Below is their historical Bakken production chart.
And here are there permits filed since 2008. The drop off in 2009 is significant and also coincides with the drop in commodity prices. The ramp-up is evident with the 25 permits filed in the first quarter vs. the 31 permits in all of 2009.
When production data comes in for these dual laterals we’ll be able to get a better picture of how they compare to other practices such as extended laterals. Check out the Bakken Unconventional Update for all things Bakken.
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