Hess boosting rig count, production in Bakken for 2019

By Luke Geiver | December 10, 2018

To deliver strong returns, production growth and significant future free cash flow, Hess Corp. will spend 75 percent of its 2019 capital budget in the Bakken shale play. The Bakken will receive $1.425 billion from Hess in 2019, the most of any of its operations both in the U.S. and internationally.

The increased funding in the Bakken will push the independent exploration and production company’s rig count from four to six rigs. The money will also be used to help shift to higher intensity plug and perf wells. For the upcoming year, Hess has planned to drill 170 new wells while also bringing online an additional 160 wells.

Greg Hill, COO, said the changes Hess has planned for the Bakken are “expected to generate a significant uplift in net present value and initial production rates while also increasing the estimated ultimate recovery of oil and natural gas.”

Net production across Hess’s Bakken operations in 2019 should range between 135,000 to 145,000 barrels of oil equivalent per day. Across all of its producing assets, Hess will generate between 270,000 to 280,000 barrels of oil per day.

Following the Bakken, operations in offshore Guyana will receive the next largest capital amount. Offshore operations in the deepwater of the Gulf of Mexico will receive $290 million from Hess and another $150 million will be invested in production activities in the Gulf of Thailand at North Malay Basin.

 “As we focus spending on our high return investment opportunities, we will continue to reduce our unit costs to drive margin expansion and improve profitability,” said John Hess, CEO.

Earlier this month, the Board of Directors of Hess Corp. declared a regular quarterly dividend of 25 cents per share payable on the Common Stock of the Corporation on December 31, 2018, to holders of record at the close of business on December 17, 2018.