GeoResources Updates on Bakken Shale, Austin Chalk Operations
GeoResources has provided an operations update.
The Company holds a proportionate 10% - 18% working interest in approximately 110,000 net acres in the Bakken Shale trend of the Williston Basin. Approximately 63,000 acres are located in Mountrail County, with the remainder located in adjacent counties. To date, the Company has realized a 100% success rate with 30 successful wells drilled by the joint venture operator. In addition, the Company owns minor working interests in more than 125 wells within the Bakken/Three Forks play. These wells have provided invaluable information related to the development economics, geology and drilling and completion procedures with multiple operators at different locations within the basin. Our joint venture continues to acquire acreage in this expanding play and is currently running three rigs and may occasionally run a fourth drilling rig.
Completed well costs, including surface equipment and production facilities for single lateral wells drilled on 640 acre units range from approximately $3.0 to $3.5 million. The economics of drilling on 640 spacing units are attractive and allows us to "prove-up" and place acreage on production under an expedited schedule. Further, where we drill two or more wells off a single pad, additional vertical well bores may allow for further cost-effective development from in-fill locations or deeper horizontal drilling. However, we are scheduling 1,280 acre (and some larger) spacing units and have numerous locations which may result in or require such larger spacing units.
The Company expects to spud its next well within thirty days. The next two or three locations will be on the north-west side of our acreage block where we expect the reserves to be more "oily" and result in about 50% oil and liquids. To date, the Company has drilled 13 Austin Chalk wells and achieved a 100% success rate. Our present inventory includes 15 proved undeveloped and probable locations within the Giddings Field. At present, we expect to sequentially drill all locations with a single drilling rig. Our working interest varies from 50% to 53%.
Frank A. Lodzinski, Chief Executive Officer of GeoResources, said, "Our drilling programs continue to deliver positive results. The Bakken Shale development play has recently been expanded and provides a continuous opportunity to add reserves and production. We have interests in approximately 110,000 acres, with over 63,000 acres located in the heart of the play in Mountrail County. After a 60 day suspension of drilling, we are anxious to spud our next Austin Chalk well. This development program has delivered production and reserve growth. We have a current development inventory of at least 15 locations where we will have in excess of a 50% working interest. Our acreage position exceeds 68,000 acres, a majority of which is held by production and is prospective for the shallow Yegua and for the Eagle Ford Shale, Buda and Georgetown formations. We continue to seek attractive acreage additions in both of these successful core areas. Our strong cash flows, earnings, and liquidity provide adequate funding for our capital programs."
- GeoResources Reports Increase in Production, Reserves (Jul 07)
- GeoResources Triples Production, Adds Acreage (Apr 12)
- GeoResources Appoints New Board Members (Apr 01)