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Occidental Petroleum Corporation (NYSE:OXY) has a significant leasehold in the Williston Basin. This acreage is overshadowed by other plays like California or the Permian Basin. Occidental has accumulated a concentrated acreage, most of which is in southwestern Dunn County. This area is not one of the best Bakken acreages, but is still economic.

I have covered several companies in recent articles, and how their well design equates to IP rates. Of these companies, Brigham (NYSE:STO), Kodiak Oil & Gas Corp (NYSE:KOG) and Newfield Exploration Co. (NYSE:NFX) have done better than the others. The majority of these well results use a 24-hour IP rate when reported to investors. Although this number does give an idea of well success, it is difficult to gauge how this will translate to EURs. Because of this, I have covered IP rates that are spaced out over 60 and 120 day periods. These are much better indicators of well economics.

This article has a somewhat different approach than the previous one. In December 2010, Occidental purchased Anschutz's 180,000 acres for $1.4 billion. This valued the transaction at $7,800/acre. The majority of wells purchased in this transaction started producing in 2011. So a comparison between Anschutz-operated wells of 2011 will be drawn to Occidental's in 2012. Anschutz's 2011 results and corresponding well design are given in the table below .

2011 Anschutz Southwest Dunn Results
NameDateChokeStagesWaterProppant60Day IP120Day IP
Nelson 1-12-1H-143-953/1122/6422736891335578305274
Novasio State 1-16-21H-142-956/1116/6421638521310220179134
Harlan Rebsom 1-2-11H-143-95X7/1112/642157169122156718494
Wannemacher 1-4-9H-142-959/1124/641839304474900238146
Eleanor Twist 1-3-10H-143-959/1122/6413563701313210178122
Richard Dvorak 1-33-28H-143-959/1114/6420539461148216301194
State Jaeger 1-21-16H-142-9411/1118/64356066412623006750
David Kovash 1-12-13H-142-9611/1126/6421473431276420372282
Laura Sadowsky 1-1-36H-142-9611/1120/6430693471498594167211

These results show why Anschutz needed to get rid of its acreage. The results were poor, even at the end of 2011 with higher stages. It used an average amount of water, with very low amounts of proppant. These variables would lead one to believe there was more wrong with the well than just its components. The State Jaeger well is probably the most disappointing well, given the low IP rates and high number of stages. The table to the bottom shows Occidental's well design in the same area of Dunn County.

2012 Occidental Results In Southwest Dunn County
NameDateChokeStagesWaterProppantIP Rate
Maurice Hecker 1-19-18H-142-971/12N/A2157847117286860Day=98
Wittinger 2-8-5H-143-951/1222/642154407130279260Day=402
Coyote Creek 1-20-17H-142-974/1224/642169508201404060Day=91
Elroy Kadrmas 2-10-3H-143-966/1224/642158636215977024Hour=840

Occidental's results have been less than stellar in southwest Dunn County. I am uncertain if this is due to geology or poor completion design. In analyzing the area, southwest Dunn may be in a difficult spot. To the south and southwest of Occidental's acreage is prospective of the Pronghorn Sands. Whiting Petroleum Corporation (NYSE:WLL) and Fidelity have enjoyed success in this area. To the north and northwest is a much thicker middle Bakken and upper Three Forks. This area also tends to produce more water and natural gas than other areas of the Williston Basin.

In summary, the results to date have not been impressive. Occidental's operated results have not been any better than Anschutz, so we will have to watch how its well program progresses. If Occidental can get more well results like the Wittinger well, this play is economic. Given the low number of stages and proppant coupled with a tight choke, there could be significant upside.

Source: Bakken Update: Occidental Is Searching For The Right Completion Design In Southwest Dunn County

Additional disclosure: IP rates are measured in barrels of oil per day. Water volume is measured in barrels. Proppant is measured in pounds. This is not a buy recommendation.