PetroBakken Energy Ltd. reported a slight decline in production in their second quarter report, but note there will be increased production by the end of the year with drilling and completions planned.
In southeast Saskatchewan, the Bakken business unit averaged production of 14,819 barrels of oil equivalent per day (boe/d) during the second quarter, a decrease from the first quarter.
The decrease was partly due to the sale of non-core Bakken properties which produced 2,900 boe/d, near the end of the first quarter, along with shut-in production from spring break-up, due to limited access to wells.
Activity levels resumed towards the end of the quarter, with six net wells drilled and four net wells brought on production. Currently, PetroBakken has seven drilling rigs operating in this business unit, and have drilled 12 net wells since the end of the second quarter, with 11 net wells waiting to be completed or brought on production.
PetroBakken’s conventional business unit in southeast Saskatchewan continued to provide light oil-rich production, with production averaged at 5,134 boe/d in the second quarter.
Also, the company drilled one net well in the area, with one additional well waiting to be brought on production. One drilling rig is operating in this area, and with new wells drilled, combined with additions to infrastructure, the company expects to increase production through the balance of 2012.
With three-quarters of their wells yet to be drilling in their 2012 capital program, the company expects production growth will gain momentum in the second half of 2012, with exit production rates predicted to reach between 52,000 and 56,000 boe/d.
One factor for the company is the volatile price of oil, with a historical price differential from the West Texas Intermediate price; the net impact was an 18-per-cent reduction in realized oil and liquids prices in the second quarter compared to a year ago, while in Canadian dollar terms, the WTI only decreased five per cent in the same period.