Marathon expects oil production growth in big 4 US shale plays

By Luke Geiver | May 16, 2017

Marathon Oil Corp. continues touting—and growing—its presence as a multi-play shale operator. The exploration and production giant said this month that by Q2, production in its Williston Basin, Permian Basin, Eagle Ford and SCOOP/STACK operations will resume sequential growth. Compared to Q4 2016, Marathon expects oil production across its North American assets will have increased by 20 to 25 percent in Q4 2017 compared to the year-ago quarter.

Due to its entrance into the Delaware Basin, Marathon now expects to produce an additional 5,000 barrels of oil equivalent per day this year, pushing the company’s production into a range of 340,000 to 360,000 boepd.

Oklahoma

Full field development of Marathon’s STACK operations are in sight. Marathon is currently running 8 rigs with an increase set for 11 rigs by year’s end. In Q2, roughly 22 wells will be brought onto sales.

Eagle Ford

Well costs average $4 million during Q1. Due to faster drilling times, Marathon was able to utilize two cold stacked rigs during the quarter. The team set a new drilling record for a well drilled past 4,000 feet. Most completions included 1,750 pounds of proppant per lateral foot and in March, Marathon recorded a record level of stages.

Bakken

Although Q1 Bakken production took a dip with only 4 wells going to sales, Marathon expects its Williston Basin assets to provide production growth once again in Q2. The company is now confident with its higher intensity completion designs and will base its future drilling increases on its new knowledge of well productivity based on its new completion designs, the company said. The Bakken drilling team will now be running 7 rigs in the play.

Delaware Basin

Although Marathon is still assembling its Permian team and has yet to perform any substantial work on its acreage, the company did say that the play’s extension continues and impressive well results around its acreage are being reported. By the end of the year, the company will run 3 rigs.