US-based Kodiak Oil & Gas has announced it will continue with its plan to operate seven rigs in 2013, three rigs of which are currently located in the Polar project area in southern Williams County, US.
The other rigs are located in each of the Smokey, Koala and Grizzly project areas in McKenzie County, with another rig in Dunn County.
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Kodiak plans to open one of the drilling rigs during the first quarter of 2013 and operate six rigs during the remaining of 2013.
The company completed 11 gross (8.6 net) wells in the Williston Basin of North Dakota, US, during December 2012 and in the first ten days of January 2013.
Kodiak said its programme to test 12 wells as part of a drilling spacing unit (DSU) in the Polar and Smokey operating areas is on schedule.
The company will drill the Polar pilot project wells from three four-well pads, with six wells targeting the Middle Bakken and six wells targeting the two upper intervals of the Three Forks formations.
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By GlobalDataTwo additional rigs will be assembled on top of the remaining pads later in the first quarter of 2013, while drilling from the first four-well pad has already begun.
Two wells within the company’s Smokey block, one well from the Middle Bakken and one from Three Forks have started producing, while a rig is currently drilling the second of three additional well bores within the same DSU.
Kodiak expects fourth quarter 2012 average daily oil and gas sales volumes to be about 19,000 barrels of oil equivalent per day, while oil and gas sales rates was about 26,000 barrels of oil equivalent per day and production rate was about 29,000 barrels of oil equivalent per day during December 2012.
The company expects average oil and gas sales volumes to be about 29,000 barrels of oil equivalent per day to 31,000 barrels of oil equivalent per day in 2013, based on the drilling activities considered under its $775m 2013 CAPEX budget.
The anticipated exit rate for 2013 sales volumes is expected to be about 38,000 barrels of oil equivalent per day to 40,000 barrels of oil equivalent per day.
Kodiak chairman and CEO Lynn A Peterson said that the company’s average spud to total depth drilling days is about 20 days per well, which allows it to reduce completed well costs.
"We ended 2012 with sales and production volumes in line with our expectations and look forward to continued growth in 2013," added Peterson.
Image: Williston Basin. Photo: Courtesy of Kodiak.
