North Dakota has reached new records in both oil and gas production, according to preliminary data released by the state’s Department of Mineral Resources (DMR) on July 13.
The state, where the core of the Bakken/Three Forks play is located, produced roughly 1.2 million barrels per day of oil in May—an increase of about 17,000 barrels from the last record set in December 2014.
“This is a very encouraging time for North Dakota as oil and gas operators and service companies have developed drilling rigs that are twice as efficient as they were in 2014 to drill and complete permitted wells,” Lynn Helms, director of the North Dakota DMR, said in a statement. “Closing the gap between current wells producing and the wells capable of producing will add to 2018 production numbers so we should continue to reach new highs.”
North Dakota also continues to set record numbers for gas production reaching about 2.3 billion cubic feet per day, according to May data from the DMR. Increasing gas production has increased pressure on operators to meet requirements of the North Dakota Industrial Commission’s gas capture policy.
The state also announced gas capture was at 83% in May. The current capture goal is 85% and is scheduled to increase to 88% in November 2018. This is the first time since October 2017 that industry has not met the commission goal, the DMR said.
“Missing the gas capture goal for May is disappointing, but can be attributed in large part to gas plant maintenance,” Helms said. “The department is meeting with operators and midstream companies to encourage working together to divert gas when needed to use 100% of available capacity and to think creatively on how they plan to meet future goals.”
Production data for the close of the second quarter is scheduled to be released Aug. 15.
Energean, which is focused in the Mediterranean, will sell Edison E&P’s U.K. and Norwegian units for $250 million, with additional cash contingent consideration of up to $30 million.
The company said, however, that the industry’s recent proposal to make temporary adjustments to tax regulations could boost cash flow and increase activity.
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