Excerpt from the earnings press release...
Our U.S. crude oil assets located within the Williston Basin represent approximately 40% of Enerplus' total crude oil and natural gas liquids production. Throughout 2012, we continued to focus the majority of our capital spending program in the Fort Berthold region in North Dakota. We also acquired an additional 20% working interest in the Sleeping Giant project in Montana, thereby growing our interests in both regions.
At Fort Berthold, we advanced our understanding of both the Bakken and Three Forks opportunities in the region and grew production by approximately 120% in 2012, exiting at 14,000 BOE per day. We drilled a total of 26 net operated wells, 19 of which were Bakken wells and seven of which were Three Forks wells. We also participated alongside our partners on 5.1 net non-operated wells.
We continue to evaluate optimal spacing and densities in this region. Based upon results to date, we believe that ultimate recoveries will vary depending upon a number of factors including the lateral length and number of frac stages, the number of wells drilled within a drilling spacing unit and whether the wells are producing from the Bakken or Three Forks formation. We anticipate expected ultimate recoveries ("EURs") will be lower for wells landed in the Three Forks formation and for the third and fourth wells drilled in a spacing unit. As a result, we continue to expect that EURs per long lateral well could range between 500 and 800 Mbbls of crude oil.
As a result of our drilling activities, we grew reserves by 53%, adding 34.2 MMBOE of P+P reserves at a cost of $25.38 per BOE including FDC. We have 86.1 MMBOE of P+P reserves booked as of December 31, 2012 and the Fort Berthold region now represents 25% of our corporate P+P reserves. In addition, our internal assessment of the best estimate of contingent resources, as audited by our independent reserve evaluators, is now 33.5 MMBOE at Fort Berthold. We converted 31.2 MMBOE of contingent resources to reserves during the year and added 2.0 MMBOE of Bakken and 13.6 MMBOE of Three Forks contingent resources to our estimate.
In 2013, we expect to reduce our capital spending by approximately 25% over 2012 levels and plan to run a two-rig program drilling between 20 - 25 net operated wells during the year. We expect to grow daily production by approximately 30%. Our focus is to improve our capital efficiencies in 2013. As we exited 2012, we have seen significant cost improvement in the region, particularly in completion costs. As a result of these reductions and an improvement in execution, we would expect our well costs to decrease by 10% - 15% in 2013.
Source: Enerplus
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