Hess Reports Higher First Quarter Bakken Production
Bakken crude oil production for Hess Corp. for the first quarter was up 7,000 BOPD more than the company had anticipated.
Even though it completed only eight wells during the three months of the year, Hess attributed improved production “to higher frac stage counts and higher proppant loadings,” said president and COO Greg Hill. Production averaged 99,000 BOEPD.
“We recovered from the bad weather more rapidly than we anticipated,” Hill said.
Now with four drilling rigs working on new wells, Hess plans to add two more late in the year. “It takes 3.5 rigs to hold the Bakken [oil production] flat,” Hill said, “and anything above that is growth.”
Hill spoke to Wall Street analysts April 25, after the company reported a first quarter net loss of $324 million while total production from all of its domestic and foreign assets was 307,000 BOEPD.
Despite increased completion costs, Hess said it is slowing the upward pressure on increasing costs by locking in drilling rig rates, pre-purchasing large volumes of proppant sand, and adhering to “its lean manufacturing program.”