Winter storms kept Whiting Petroleum’s production flat in 1Q

Leaving a tough winter behind that affected its oil production, Whiting Petroleum based in Denver, Colorado said it intends to see more production, especially in the Bakken.
The Bakken is where it has the largest exploration effort but the company still has some smaller operations in western Oklahoma.
Production in the first quarter 2019 totaled 11.6 million barrels of oil equivalent or an average of 128,670 barrels of oil equivalent a day. But it was flat production and the company blamed it on the severe winter weather.
Capital expenditures totaled $219 million, lower than the anticipated level of facilities spending. But they were also consistent with the company’s expectations. Cap-ex is expected to drop in the second half of 2019 as front-end loaded completion and drilling spending translates into a higher level of put on production (POP) activity.

Bradley J. Holly, Whiting’s Chairman, President and CEO, commented, “ As we head into the spring and summer months, we intend to POP 104 wells over the next two quarters in the Williston Basin and unlock the full potential of our top-tier assets. As we ramp up production and taper capital spending, we expect to drive a strong free cash flow profile, particularly in the second half of the year. To protect this projected free cash flow we have continued to layer on hedges at strong prices and now have approximately 57% of our production hedged for the second half of 2019.”

The company also intends to expand the potential of the Bakken and Three Forks horizons across the Williston Basin.

The Company’s oil to total production ratio declined slightly during the quarter due to natural declines in oil production, increased gas capture in the Williston Basin and weather impacts at its Redtail Field. This trend is expected to reverse as the Company brings on oil volumes from 104 new Williston Basin wells that will be POP in the second and third quarters versus only 11 in the first quarter.

In the Eastern Williston Basin, Whiting has pursued multiple infill drilling projects that bracket its Sanish Field. At its Pod 8 project, infill Bakken and Three Forks wells have outperformed parent wells by approximately 160% and 230%, respectively, after 180 days on production. Parent wells have experienced a marked increase in production relative to the trend prior to infill drilling. The Bakken wells drilled in the Bartelson unit, located at the far western edge of the Sanish Field, have outperformed the parent well by 244% after 180 days on production. The parent well in the Bartelson area saw a substantial and sustained positive response to infill drilling, flowing for over four months after the new completions. At the Company’s Pronghorn area, new completion approaches have also resulted in superior results. The 2018 Pronghorn wells are outperforming 2017 wells by 27% with well costs that are 13% lower than the 2017 average.

In the Northern Williston Basin, the Periot wells located in the Cassandra area continue to deliver strong results. With over 100 days on production, Bakken and Three Forks wells have outperformed competitor wells by 37% and 48%, respectively. Also, construction on the Ray gas plant was completed during the quarter. This additional gas capacity will support accelerated activity in the Polar area in 2019 and future activity in the Cassandra area.

In the Southern Williston Basin, the Stenehjem wells in southern Hidden Bench continue to outperform parent wells. With over 80 days on production, the Stenehjem wells have produced over 90,000 barrels of oil per well on average, a 124% increase relative to parent results.