As part of a May 3 announcement of first quarter financial results, Kodiak Oil & Gas Corp. presented information about its active drilling program in the Bakken play of North Dakota and Montana, as well as its dramatic increase in production over the last year.
The company is currently operating six drilling rigs in the Williston basin and expects delivery of a seventh rig before the end of May.
Kodiak has a full-time, 24-hour-per-day completion crew that started work at the beginning of the year. A second completion crew, the company said, will be “utilized going forward in order to accelerate completion activity.”
The Denver-based independent reported average sales volumes of 10,578 barrels of oil equivalent per day for the first quarter, as compared to 1,864 boe per day for first quarter 2011 and 7,195 boe in the quarter ending in December.
Crude oil accounted for 91 percent of its first quarter sales volumes.
‘On track’ for 51 net wells
“We are on track to meet our 73 gross and 51 net well program as contemplated under our $585 million 2012 capex program. For the remainder of the year, we expect all of our wells to be drilled and completed through the heart of our core leasehold in southern Williams, McKenzie and Dunn counties, where we carry a high working interest in the wells,” said Kodiak’s Chairman and CEO Lynn Peterson.
The company said $151 million was invested for the drilling and completion of wells and for infrastructure in the Williston basin during the first quarter.
Kodiak has designated $550 million of its 2012 capex for drilling and completion, $25 million for infrastructure investments, and $10 million for additional acreage acquisitions.
Drilling and completion costs per well are about $10.5 million Kodiak said in a recent presentation.
The company’s 2011 capex was $261 million.
Utilizing zipper frac technique
“We have 14 gross (12.6 net) operated wells that we anticipate completing in the second quarter. Two of the wells are already completed and are flowing back. Completion work with our dedicated frac crew is under way on our second two-well pad. Both of these wells have cemented liners, and we are utilizing the zipper frac technique for operational efficiency,” Peterson said.
During the first quarter, Kodiak drilled 14 gross (12.1 net) operated wells and completed 12 gross (eight net) operated wells, and as of March 31, the company had 14 gross (12.6 net) operated wells waiting on completion.
