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Share Name | Share Symbol | Market | Type |
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iShares Trust | NASDAQ:CRED | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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0.00 | 0.00% | 107.61 | 105.17 | 114.94 | 0 | 01:00:00 |
Five Bakken and Three Forks Wells Placed on Production in Fiscal First Half
Nine Wells Currently Drilling or Being Completed
Nine Additional Wells Planned for the Remainder of Fiscal 2012
Credo Petroleum Corporation (Nasdaq:CRED), an oil and gas exploration and production company with significant assets in the North Dakota Bakken and Three Forks, Kansas, Nebraska, the Texas Panhandle and Oklahoma, today updated its Bakken and Three Forks operations.
Michael D. Davis, interim Chief Executive Officer stated, "This press release updates our Bakken and Three Forks drilling project where we have the potential to drill up to 400 wells in the primary Bakken and Three Forks zones. In addition, some operators are having success testing the "lower" Three Forks benches, which adds additional upside to our position in the play. We currently estimate that the Bakken and Three Forks represent about 50% of Credo's resource potential based on only four wells per spacing unit."
Credo has participated in 25 Bakken and Three Forks wells to date. As shown in the tables below, 16 of the wells have been completed and all are high rate producers. Five of the producers were placed on production during the first half of fiscal 2012. Nine wells are currently in various stages of drilling or completion. Another nine wells are on the drilling schedule for the remainder of fiscal 2012, bringing the Company's expected Bakken and Three Forks well count to 34 by fiscal year end.
Producing—16 Wells (Average 6.4% Working Interest) | ||||
Well Name | Operator | Formation | WI | IP BOEPD |
PetroHunt 147-94-3A-10-1H | PetroHunt | Bakken | 18.75% | 769 |
GoodBear 21-14H | Marathon | Bakken | 14.61% | 1,280 |
GoodBear 31-14H | Marathon | Bakken | 14.61% | 1,357 |
PetroHunt 148-94-17D 1-H | PetroHunt | Bakken | 10.00% | 1,486 |
PetroHunt 148-94-17D 2H | PetroHunt | Three Forks | 10.00% | 1,697 |
Sorenson B-155-94-35-26-H1 | Hess | Bakken | 6.25% | Not Released |
Sorenson B-155-94-35-26-H2 | Hess | Bakken | 6.25% | Not Released |
Weisz 11-14-1H | Brigham | Bakken | 6.05% | 2,278 |
MHA 1-32-31H-150-90 | QEP | Bakken | 3.57% | 1,520 |
State of ND 10-3H | WPX | Bakken | 3.13% | 2,141 |
FBIR Beaks 24X-08 | XTO | Bakken | 3.13% | 1,168 |
Debbie Baklenko 12-26H | Marathon | Bakken | 1.56% | 1,352 |
Mary R. Smith 5-8H | WPX | Bakken | 1.56% | 821 |
Ethan Hall 6B-31-30-1H | Enerplus | Bakken | 1.48% | 3,732 |
Spotted Rabbit 14-23H | WPX | Bakken | 1.17% | 1,524 |
PetroHunt 151-94-26B-35-1H | PetroHunt | Bakken | 0.63% | 2,937 |
Drilling or Completing—9 Wells (Average 11.3% Working Interest) | ||||
Well Name | Operator | Formation | WI | IP BOEPD |
Fort Berthold 148-95-23D-14-1H | PetroHunt | Three Forks | 20.05% | Completing |
Fort Berthold 148-94-30A-31-1H | PetroHunt | Three Forks | 19.37% | Completing |
Fort Berthold 148-94-30A-31-2H | PetroHunt | Three Forks | 19.37% | Completing |
Fort Berthold 153-93-18B-19-1H | PetroHunt | Three Forks | 12.99% | Completing |
Fort Berthold 148-95-22D-15-1H | PetroHunt | Bakken | 12.24% | Drilling |
Fettig 6-7 HC | WPX | Bakken | 6.73% | Drilling |
Fort Berthold 148-95-26A-35-1H | PetroHunt | Bakken | 6.01% | Drilling |
FBIR Black Medicine 24X-21 | XTO | Bakken | 3.13% | Drilling |
Goodbird 36-25 HC | WPX | Bakken | 1.56% | Completing |
Scheduled For Remainder of Fiscal Year—9 Wells (Average 11.5% Working Interest) | ||||
Well Name | Operator | Formation | WI | Expected Spud Date |
Fort Berthold 148-94-29B-32-1H | PetroHunt | Bakken | 18.75% | 6/15/2012 |
Fort Berthold 148-94-29B-32-2H | PetroHunt | Three Forks | 18.75% | 8/15/2012 |
Fort Berthold 152-93-18B-19-2H | PetroHunt | Bakken | 12.99% | 7/15/2012 |
Fort Berthold 152-93-18B-19-3H | PetroHunt | Three Forks | 12.99% | 9/15/2012 |
Fort Berthold 148-95-24C-13-1H | PetroHunt | Three Forks | 12.50% | 5/15/2012 |
QEP 150-92-26-27 | QEP | Bakken | 11.25% | 8/15/2012 |
Fettig 6-7 HB | WPX | Bakken | 6.73% | 5/15/2012 |
Linseth 149-95-12-13-1H | WPX | Three Forks | 5.30% | 6/15/2012 |
WPX 148-92-30-31 | WPX | Bakken | 4.08% | 9/15/2012 |
Credo's leases are located in the core of the play on the Fort Berthold Reservation and consist of approximately 73,000 gross (6,300 net) acres based on the Company's ownership in 57 spacing units averaging 1,280 acres. The Company's average working interest in the spacing units is approximately 9%. Drilling activity in the area of the Company's Bakken and Three Forks acreage has significantly increased as operators crack the technical code for drilling and completion success. As a result, the Company increased its fiscal 2012 Bakken and Three Forks drilling budget by almost 400% to $22.4 million compared to $5.7 million last year.
The following table illustrates Credo's estimated Bakken and Three Forks resource potential depending on the number of wells that are drilled in each spacing unit.
Credo Bakken and Three Forks Resource Potential(1) | ||||
Number of Prime Spacing Units | 50 | 50 | 50 | 50 |
Number of Wells per Spacing Unit(2) | 2 | 4 | 6 | 8 |
Number of Drilling Locations | 100 | 200 | 300 | 400 |
Estimated EUR per Well (BOE) | 600,000 | 600,000 | 600,000 | 600,000 |
Credo's Average Working Interest | 9% | 9% | 9% | 9% |
Company Net EUR per Well (BOE) | 54,000 | 54,000 | 54,000 | 54,000 |
Credo Resource Potential (BOE) | 5,400,000 | 10,800,000 | 16,200,000 | 21,600,000 |
(1) Data is for illustrative purposes only and is based on management assumptions. EUR refers to management's internal estimates of reserves potentially recoverable from successful drilling of wells. | ||||
(2) Assumes equal number of Bakken and Three Forks wells. For example, the first column assumes one Bakken and one Three Forks well. |
MANAGEMENT COMMENT
"Oil is currently worth about eight times more than natural gas on an energy equivalent basis," Davis continued. "That unprecedented price differential validates our timely and successful transition to becoming primarily an oil producer. At our January 2012 first quarter-end, oil represented 61% of Credo's production quantities and 85% of its oil and gas sales. We expect oil to increase to around 75% of our total production quantities in the fourth quarter of this year, as we aggressively drill on our North Dakota, Kansas, Nebraska and Texas Panhandle projects.
"The Bakken is the premier oil resource play in North America, and will provide an excellent growth platform for many years. To put our Bakken opportunity into perspective, the 25 wells we have drilled to date have only scratched the surface of our development potential which may range up to 400 wells. Resource potential up to 21.6 million barrels adds another growth perspective considering that our total Bakken and Three Forks reserves at year-end 2011 were only 1.3 million barrels, and Credo's total reserves at year-end 2011 were 4.1 million barrels.
"Our drilling projects in Kansas, Nebraska and the Texas Panhandle are also very exciting in terms of resource potential, diversification, economics, and contribution to growing our Company. In Kansas and Nebraska we have several potentially significant new field discoveries, and in the Texas Panhandle, we are drilling our first horizontal well to test the Cleveland formation. We will update those operating areas in future press releases."
This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements included in this press release, other than statements of historical facts, address matters that the Company reasonably expects, believes or anticipates will or may occur in the future. Such statements are subject to various assumptions, risks and uncertainties, many of which are beyond the control of the Company. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those described in the forward-looking statements. Investors are encouraged to read the "Forward-Looking Statements" and "Risk Factors" sections included in the Company's Annual Report on Form 10-K for more information. Although the Company may from time to time voluntarily update its prior forward looking statements, it disclaims any commitment to do so except as required by securities laws.
CONTACT: Michael D. Davis Chief Operating Officer and CEO (Interim) or Alford B. Neely Chief Financial Officer 303-297-2200 Website: www.credopetroleum.com
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