Hess Predicts 200,000 BOEPD Bakken Production By 2020
As it continues an aggressive exploration program in the Bakken, Hess Corporation executives see daily production reaching 200,000 BOEPD by 2020. This year, the estimated ultimate recovery (EUR) from new wells will be “well north of 1 million barrels”, according to CEO John Hess.
“The high intensity plug-and-perf completions are expected to deliver a 15% to 20% increase in IP 180 and a 5% EUR,” said Hess president Greg Hill.
With production projected to range between 135,000 and 145,000 BOEPD this year, the company expects to generate $750 million free cash flow at current oil prices through 2025.
Executives spoke to Wall Street analysts after releasing fourth quarter 2018 results, which showed a $4 million loss with the average selling price of crude oil at $56.11 a barrel.
Hess continued to run six rigs in the quarter, drilling 36 wells and completing 35 as production increased 15% to126,000 BOEPD.
This year, the company is planning to bring another 160 wells online, and said higher labor costs are pushing up well expenses between 5% and 10% on average.
About 45 wells will be in the Keene area, which is producing the highest EUR; 30 will be Stony Creek area of Williams County; 40 in East Nesson; 20 in Beaver Lodge; and 25 scattered in miscellaneous locations.
About 70% of its production is leaving daily by rail to secure better crude oil pricing on east and west coasts.