DNR = Strong Buy
Posted: Sat Jan 29, 2011 2:06 pm
A few months ago Denbury announced that they believe their 275,000 net acres in North Dakota’s Bakken Shale contains recoverable oil of approximately 350 million bbls of light oil. This is significantly higher than previous estimates, putting Denbury in the upper half of independents operating in the play. [Based on Brigham Exploration’s 12-31-2010 reserve report, Bakken recoverable oil could be much higher.]
In the Bakken, Denbury is focusing on 73,000 net acres in the Camp and Cherry Hills areas. The rest of its Bakken acreage is held by production and the company is not under any time pressure to drill there.
Denbury recently reported a well completed to the middle Bakken formation in the Camp area. The well produced at an initial production rate of 1,328 Boepd and an average of 418 Boepd during the first 30 days of production.
Denbury has been completing recent wells with a 21 stage hydraulic fracturing operation, and will start using 24 stages beginning in 2011. The company has six wells currently being completed and another five wells being drilled. These wells are concentrated in the Cherry, Murphy Creek and Charlson areas of the play.
The company has allocated $300 million in capital to develop the Bakken formation in 2011. These funds will be used to drill between 40 and 45 operated wells, mostly in the Camp and Cherry areas. The company will also participate in between 70 and 80 non-operated Bakken wells in 2011.
In the Bakken, Denbury is focusing on 73,000 net acres in the Camp and Cherry Hills areas. The rest of its Bakken acreage is held by production and the company is not under any time pressure to drill there.
Denbury recently reported a well completed to the middle Bakken formation in the Camp area. The well produced at an initial production rate of 1,328 Boepd and an average of 418 Boepd during the first 30 days of production.
Denbury has been completing recent wells with a 21 stage hydraulic fracturing operation, and will start using 24 stages beginning in 2011. The company has six wells currently being completed and another five wells being drilled. These wells are concentrated in the Cherry, Murphy Creek and Charlson areas of the play.
The company has allocated $300 million in capital to develop the Bakken formation in 2011. These funds will be used to drill between 40 and 45 operated wells, mostly in the Camp and Cherry areas. The company will also participate in between 70 and 80 non-operated Bakken wells in 2011.