Enerplus Corp. intends to increase its North Dakota oil production by 25 percent next year. With one drilling rig currently operating in its Fort Berthold acreage, Enerplus will add another rig in January. To complete wells drilled next year, Enerplus has secured a pressure pumping service for the entire year. Through stipulations of the contract, Enerplus does not have to utilize the pumping services if oil prices do not warrant completing wells drilled in 2017. According to the company, if oil prices remain in a range of $45/b to $50/b West Texas Intermediate, Enerplus will stay cash flow positive.
“Our efforts to improve the resiliency of our business and increase our margins have delivered meaningful results,” said Ian Dundas, president and CEO of Enerplus. “We remain on track to reinitiate profitable and sustainable growth in 2017.”
Although Enerplus spent roughly $215 million in 2016, the exploration and production company intends to invest $400 million into its assets in 2017. Nearly 70 percent of its 2017 capital allocation funds will go to North Dakota. Throughout its entire list of producing assets, Enerplus will increase production by 15 percent. “Looking into 2018, we anticipate to deliver another year of double digit liquids growth,” Dundas also said.
With one rig working to hold producing leases in North Dakota, Enerplus intends to deploy its second rig for well density and downspacing tests. Currently, Enerplus utilizes a well pad design feature four wells targeting the middle Bakken and four wells targeting the upper bench of the Three Forks.
Enerplus currently has 12 drilled but uncompleted wells in North Dakota.