Despite Fat Cat Sale, QEP’s Bakken Position Still Strong

By The Bakken magazine staff | June 21, 2014

QEP Resources Inc. has devoted 52 percent of its 2014 capital allocation to the Bakken, the highest percentage out of eight possible allocation categories. Although the exploration and production company has continued to focus primarily on the Bakken shale play, it recently sold acreage located in the Williston Basin. QEP Resources wholly owned subsidiary QEP Energy Co. has sold what the company called its Fat Cat acreage for roughly $35 million. The Fat Cat acreage was not considered to be an operated focus area.

Although QEP still has leaseholds spread throughout Williams County, N.D., its main leasehold focus will now be its Fort Berthold and South Antelope blocks. In both areas, QEP has reported well costs of $11 million per well for wells drilled to 12,500 feet. Before the sale of Fat Cat, QEP held 117,000 net acres in the Williston Basin. The company is currently running eight drilling rigs. According to Chuck Stanley, president, QEP will average 20 to 25 well completions per quarter in 2014. The company is monitoring other infill density programs being performed by other operators, and, QEP is also working on its pilot program to determine optimal well spacing. The results of the pilot project may be released by the end of the year.

Last year, the company purchased a large acreage block in the Permian Basin, a play that now represents roughly 18 percent of total capital allocation for the company.