QEP Resources, Inc. Provides Operational Update
DENVER--(BUSINESS WIRE)-- QEP Resources, Inc. (NYSE:QEP, "QEP" or the "Company") provides an update to operating results for the second quarter 2013.
QEP has completed and turned to sales its first four-well pad on the recently acquired South Antelope property in the Williston Basin of North Dakota. The four wells had an average 24-hour gross initial production rate of 3,598 barrels of oil equivalent per day (Boepd) per well (3,929 Boepd post processing), including the first two QEP-operated Bakken Formation wells completed at South Antelope that had an average 24-hour initial production rate of 4,174 Boepd per well (4,584 Boepd post processing).
The company has also completed nine new wells (four Bakken and five Three Forks) on two QEP-operated multi-well pads on the Fort Berthold Indian Reservation. The new wells had an average 24-hour gross initial production rate of 2,379 Boepd per well (2,573 Boepd post processing).
A fifth company-operated rig is currently moving onto location on the South Antelope property and is expected to commence the first well on a multi-well pad by mid-June. With the addition of this rig, QEP will have eight company-operated drilling rigs active in the Williston Basin.
Construction of QEP Field Services' 10,000 barrel-per-day Blacks Fork fractionator expansion is nearing completion and commissioning and startup is expected to commence in early June.
"I am pleased with QEP's strong operational results this quarter and I am encouraged by the very strong well results from our first operated multi-well pad on the South Antelope Acquisition," commented Chuck Stanley, Chairman, President and CEO of QEP Resources. "As anticipated, it has taken some time to transition to pad development, where multiple wells are drilled and cased before completion activity commences. Based on our experience in other resource plays, we believe this is the right approach for efficient development of the Bakken and Three Forks reservoirs in the Williston Basin. In addition, recent well completions on our Fort Berthold Indian Reservation assets continue to exhibit strong initial performance. The fifth rig on the South Antelope property (our eighth operated rig in the Williston Basin) has arrived ahead of schedule and will begin drilling soon.
"At QEP Field Services, the Blacks Fork fractionator expansion is poised to come online ahead of schedule and on budget. When fully operational, NGL fractionation capacity at Blacks Fork will total 15,000 barrels per day. To support this expansion, QEP is doubling existing railcar loading capacity at Blacks Fork to facilitate access to what are often higher-value local, regional, and national NGL markets.
"Overall, the QEP team continues to execute well. We are very pleased by the initial results of our first pad wells at South Antelope, in particular the extremely strong Bakken well results, and are excited about the potential positive impact of combining QEP's expertise in efficient drilling and completion operations with this top-quality asset," concluded Stanley.
About QEP Resources
QEP Resources, Inc. (NYS: QEP) is a leading independent natural gas and crude oil exploration and production company focused in two major regions: the Northern Region (primarily in the Rockies and the Williston Basin) and the Southern Region (primarily Oklahoma, Louisiana, and the Texas Panhandle) of the United States. QEP Resources also gathers, compresses, treats, processes and stores natural gas. For more information, visit QEP Resources' website at: www.qepres.com.
Safe Harbor Statement
This release includes forward-looking statements within the meaning of Section 27(a) of the Securities Act of 1933, as amended, and Section 21(e) of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as "anticipates," "believes," "forecasts," "plans," "estimates," "expects," "should," "will" or other similar expressions. Such statements are based on management's current expectations, estimates and projections, which are subject to a wide range of uncertainties and business risks. These forward-looking statements include statements regarding: plans to drill and complete wells; date of commencement of operations at, and the cost and capacity of, the expanded Blacks Fork fractionator; development plans for the Bakken and Three Forks reservoirs; and use of railcar to reach higher-value markets. Actual results may differ materially from those included in the forward-looking statements due to a number of factors, including, but not limited to: the availability of capital; global geopolitical and macroeconomic factors; general economic conditions, including interest rates; changes in local, regional, national and global demand for natural gas, oil and NGL; natural gas, NGL and oil prices; impact of new laws and regulations, including regulations regarding the use of hydraulic fracture stimulation and the implementation of the Dodd-Frank Act; drilling results; shortages of oilfield equipment, services and personnel; operating risks such as unexpected drilling conditions; weather conditions; changes in maintenance and construction costs; and the other risks discussed in the Company's periodic filings with the Securities and Exchange Commission, including the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2012. QEP Resources undertakes no obligation to publicly correct or update the forward-looking statements in this news release, in other documents, or on the website to reflect future events or circumstances. All such statements are expressly qualified by this cautionary statement.
QEP Resources, Inc.
Greg Bensen, 303-405-6665
Director, Investor Relations
KEYWORDS: United States North America Colorado
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