Keene Wells Fuel Hess Oil Production Bonanza
New wells in the Keene area of the Williston Basin are providing an oil bonanza for Hess Corporation as its first quarter production in the Bakken soared 12% to 111,000 BOEPD from 99,000 BOEPD for the same quarter in 2017.
Hess believes Bakken production will reach 175,000 BOEPD by 2021.
“Our 60-stage, 8.4 million pound proppant completions continue to show a 15% to 20% uplift in both IP180s and EUR over our previous 50-stage’s 3.5 million pound standard,” said president and COO Greg Hill.
The initial production from Keene wells was 180,000 BOEPD.
“The first quarter was strong, and that was mainly driven by drilling wells in Keene, which is really our best area of the field,” Hill said. “Our IP180s for the year will actually be some 15% to 20% higher than what is in our current investor pack.”
After drilling 23 wells and bringing 13 online, Hess will put a fifth drilling rig on in the third quarter and a sixth rig later this year. It spent $166 million, with well costs increasing by $500,000 and running between $6.5 million and $7 million.
Despite the production gains, the New York-based company reported a $106 million net loss for the first three months of the year.