Hess records strong Q2 Bakken production numbers

By Luke Geiver | August 06, 2019

Bakken oil production is going strong for Hess Corp., the exploration and production company said during it’s latest investor update. John Hess, CEO, said full-year production in the Bakken is expected to come in at the upper end of guidance. For Hess, that means producing between 140,000 barrels of oil per day to 145,000 bopd.

The company has gone to a plug and perf completion design that is helping to increase its initial production rates for 180 days by roughly 15 percent per well. By 2021, Hess expects to produce nearly 200,000 barrels of oil per day from its Bakken asset.

This year, Hess has run six drilling rigs. Next year, the rig count will stay the same, according to the company. For the quarter, Hess reported better financials based on its production output from the Bakken, along with a decreased exploratory budget. After bringing on 39 wells (20 in the Bakken, 19 in the Three Forks) online in the second quarter of this year, Hess expects to bring 45 wells online this summer before ending the year at a total of approximately 160 new wells brought online. During the first quarter, 25 wells were brought online.

Total well costs are down for Hess in the second quarter compared to the first. In Q1, Hess paid $7.3 million per well. In the second quarter, well costs are roughly $7 million.

Hess spent roughly $322 million for unconventional development in Q2 this year, up from $258 million spent last year during the same quarter.

In addition to the Bakken, Hess is increasing its focus on offshore oil discoveries and development efforts near Guyana.