Image courtesy of Chesapeake Energy

Bakken production per well has been in decline for 20 months and is down to 126 barrels per day in February from high of 144 in June 2012, according to a report in Seeking Alpha by Zoltan Ban.

He said Bakken production will continue to increase but “the rate of increase will be significantly slower than the impressive year-on-year increase experienced in 2011-12.”

In 2009-12, the number of total producing wells in Bakken increased in the 50-60% range, Ban said.

“In 2013 however, the year-on-year increase in total wells dropped to just over 30%. This rate will continue to decline and production per well will continue to decline with it,” he said.

There’s also a decline in initial production volume per new well.

“It is forecast by the EIA to drop from 435 b/d in 2013 to 414b/d this year,” Ban said.

“That is a decline of about 5%. As companies continue to exhaust the sweet spots in the field and are forced to tackle increasingly inferior quality reserves, the negative effect on total production per well will intensify.”


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