Thursday, October 25, 2012

Occidental Easing Back on Bakken Activity

During the conference call for third quarter earnings today, an Occidental Petroleum spokesperson stated the company currently has over 310,000 net acres in the Willison Basin with resource potential estimated at 250 million net barrels. He added the company's production in the basin has tripled since it entered the area over eighteen months ago but added that drilling activity has slowed as the company significantly reduces its rig count due to cost pressures. "While well costs have subsequently declined modestly", he explained, "we will only increase our rig count when costs come down enough to make returns competitive with the rest of our portfolio. We believe that over the long term, our resource base in the Williston basin represents a significant opportunity for the company." Read more

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