Hess Projects 1 Million Barrel EUR
Hess Corp. anticipates that its ultimate production (EUR) on new Williston Basin wells next year will exceed 1 million barrels, as it increases completions on horizontal wells to 60 stages with 140,000 pounds of sand per stage, at a cost of $6 million.
President and COO Greg Hill said it has added a third frac crew, and could possibly increase the number of drilling rigs from four to six in 2018.
With third quarter production coming in lower than expected at 103,000 BOEPD, Hill expects year-end production to reach 105,000 BOEPD.
At an Oct. 26 conference call with Wall Street analysts, Hess reported a net loss of $624 million for the third quarter, compared a net loss of $339 million for the same quarter last year.
Its midstream unit, which primarily covers its natural gas plant, crude oil and natural gas gathering system in North Dakota, had a net loss of $12 million for the quarter.
Hill said wet weather and road closures in September, along with a 20% increase in flared wells, impacted third quarter production.
He said the “core of the core area of Keene” is the absolute best in the field, which had a 90-day initial production at 1,000 BOEPD based on 60-stage wells. There has been a 10 to 15% increase in in IP rates because of the additional frac stages. “Sixty stage and 50-stage results have been encouraging,” Hill said.