An MDU Resources Group company, Fidelity Exploration & Production Co., has produced a record of more than 3,500 barrels per day in the Bakken area.
“It shows the investment we made last year in expanding our oil production is beginning to pay off,” said Rick Matteson, MDU Resources communications director.
Including wells that Fidelity partially owns but does not operate, the company produces a peak rate of more than 5,000 barrels of oil per day, according to a MDU Resources press release.
Fidelity holds leases on about 124,000 acres in the Bakken area and plans to invest $160 million in the area this year, the release said. The company will be operating five drilling rigs in the Bakken area in the near future. Fidelity operates 58 wells in the Bakken area Matteson said.
The increase in production also indicates Fidelity is getting better at drilling wells, Matteson said. The latest eight wells drilled have shown a 44 percent improvement in production over previously drilled wells. The most recently drilled long-lateral horizontal well was drilled in a record 28 days.
“We now have the acreage, drilling rigs and services as well as the organizational capability and experience to sustainably grow our Bakken production,” Fidelity’s Chief Executive Officer Kent Wells said in a release.
“We are on our way to reaching our goal of increasing oil production by 20 percent to 30 percent this year over 2011, with plans to invest $400 million in this business this year,” MDU Resources Chief Executive Officer Terry Hildestad said in a release.
Reach reporter Jessica Holdman at 250-8261or email@example.com.