Bakken Update: Whiting's Sanish Well Models To 2 Million Barrels Of Oil
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
In my most recent article I stressed the value of historical production to model unconventional wells. It is not a perfect method as it does not account for all variables. Drilling and completion techniques are the most difficult to gauge. This is why it is important to compare a series of wells from one operator in the same general area. It provides a baseline. This allows focus to remain on other variables and how it affects production.
My article Bakken Update: EOG's Parshall Field EURs of 2 Million Barrels of Oil focused on consistent data points. I used EOG Resources (EOG) for several reasons. It is a top producer with a good well design. In 2007, EOG completed a large number of wells in Parshall Field. This allowed for a comparison of wells in the same area, with the consistency of one operator. Results were consistent as IP rates improved when larger amounts of water and proppant were used. EOG continued to use short laterals throughout its development of Parshall Field. Only one well modeled below 500 MBo. Two of these wells were over 1000 MBo. READ FULL ARTICLE HERE