THE BAKKEN – In early February, Hess brought online two 4-mile lateral wells in North Dakota. These were the first 4-mile laterals drilled in the state and represent a technical and strategic achievement with a number of benefits:
- The breakeven for a 4-mile lateral well is significantly reduced.
- The extended lateral length increases the estimated ultimate recovery per well, while lowering the economic threshold, which increases Hess’ development opportunities outside of the asset’s core acreage.
- Hess’ environmental footprint is reduced by accessing more acreage with less surface locations, subsequently reducing the trucking, equipment and manhours required to develop acreage.
Longer lateral wells are part of a “shale evolution” in the Bakken where Hess is applying its Lean manufacturing tools and experience to safely and efficiently extract oil and gas from the vast shale reservoirs in the Bakken. From a well planning perspective this happened quickly – about a year from start to production.
The two new milestone wells run parallel, north to south, in Hess’ Beaver Lodge field, which is northeast of Williston. The Hess team capitalized on lessons learned from earlier 2- and 3-mile lateral wells, making subtle changes with help from Nabors Industries, which leases and operates the drill rig. Some of the changes will be carried forward as permanent improvements when Hess continues drilling the 3- and 4-mile lateral wells.
Hess has drilled a 2-mile observation lateral that overlaps the last 2 miles of the producing laterals between the two 4-mile wells.
The purpose of the observation well, which is outfitted with permanent fiber and pressure gauges, is to help document and understand the depletion and recovery of the 4-mile lateral wells over time. It collected data during frac operations and will monitor drainage in the reservoir from the last two miles of the extended laterals.