Hess Corporation announced their capital and exploratory budget for 2015. The full news release is linked here, but some of the key points and excerpts that relate to the Bakken are included below.
Here’s the overall message, Hess will be spending less in the Bakken this year, and they will be reducing their active rig count, but by closing up ranks they will also get more efficient. Well completions will not drop proportionally to their rig count.
Here are the key excerpts from the news release:
CEO John Hess said: “Our company is well positioned to manage through the current price environment, with a strong balance sheet and resilient portfolio. Our 2015 budget reflects a disciplined approach to maintaining our financial strength and flexibility while preserving our long term growth options.”
Greg Hill, President and COO, stated: “We are reducing our 2015 spending in the Bakken to $1.8 billion, compared with $2.2 billion in 2014. In 2015, we plan to operate an average of 9.5 rigs and bring approximately 210 new operated wells online, compared with 17 rigs and 238 operated wells brought online in 2014.
Unconventionals – $2.1 billion:
- $1.8 billion for the development of the Bakken Shale in North Dakota. Approximately $1.45 billion is dedicated to drilling and completion activities, pad level facilities and low pressure gathering lines; $350 million is planned for major infrastructure projects
- $290 million for drilling 20-25 wells in the core of the wet gas window of the Utica Shale play in Ohio