Whiting Shares Tumble On Plans To Keep Fracking Despite Cheap Oil
"We are relying on ourselves to make money in the current environment," Volker said on the call, which came the day after Whiting posted profit far below Wall Street expectations. .
"We're designed, and continue to design into 2016, our operations to make money at current oil prices."
Whiting outlined new cement lining techniques and fracking methods it says will save money. Whiting executives added they're successfully negotiating lower prices with oilfield service providers.
The company's well costs are roughly $6.5 million in North Dakota's Bakken shale, down about 20 percent from a year ago, executives said.
"We will still drill 265 wells and we're confident in their returns at current even $50 oil prices," Volker said.
Whiting expects production to only rise 6 percent this year, even after its November acquisition of smaller rival Kodiak Oil and Gas.
Production in North Dakota will be flat, meaning the small output rise will be fueled by operations in Colorado, where Whiting believes some 6,600 wells could be drilled.
Continental has told Wall Street its production could rise as much as 20 percent this year.
(Reporting by Ernest Scheyder; Editing by Terry Wade and Meredith Mazzilli)
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