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Hess (HES) is an exploration and production company drilling for Oil in the Bakken Shale. The company also has a facility which exports crude oil out of the Bakken to other states.
Hess Bakken 2012 Update - In the Bakken oil shale play in North Dakota, we generated strong growth throughout the second half of the year and exited 2011 at a peak net rate of approximately 50,000 barrels of oil equivalent per day. We maintain our 60,000 barrels of oil equivalent per day forecast for the Bakken in 2012. We will also continue to invest in infrastructure projects, including the Tioga Gas Plant expansion and our crude oil rail loading and storage facility, which will become operational in February. Net production from the Bakken in 2012 is forecast to average 60,000 barrels of oil equivalent per day or double the 2011 average of 30,000 barrels of oil equivalent per day. We expect net Bakken production to further increase to 120,000 barrels of oil equivalent per day in 2015. On the well rates, we've got 113, 34-plus stage systems installed in the Bakken with 76 on production now. And those wells have 30-day IPs that are continuing to average 1,000 barrels a day. So we're very pleased by those results. And as we continue to improve our subsurface understanding, of course, we'll optimize those frac stages and designs to maximize profitability. So areas with very good rock, we may reduce the number of frac stages from 38 to something smaller as a way to maximize profitability. Well costs while we're in HBP mode, still about $10 million per well. One thing that I think people sometimes don't remember is that first well that you're drilling in this HBP mode carries a lot of the costs because we build the pad for 6 to 8 wells, we bring all the infrastructure up to the well pad, getting ready for that pad drilling. So $10 million is still a pretty good HBP well cost. Regarding EURs, we're still sticking with the 550 for now. We're just waiting to get enough statistical data to have confidence to increase those EURs