By Eric Fox - August 29, 2012 | Tickers: CLR, MUR, NFX, OAS, SWN | 0 Comments

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The Three Forks formation lies below the Bakken in many of the same areas in North Dakota and Montana and saw additional testing and development by oil and gas operators active in the area during the second quarter of 2012.

Leader

Continental Resources (NYSE: CLR) has done more development in the Three Forks formation than any other operator active in the area. The company has delineated the play into four separate benches, or zones, and has drilled two successful wells into the second bench of the Three Forks in different areas on its acreage.

Continental Resources plans to drill wells into the first and third benches to test the productivity of these zones. The companys long term plan is to drill eight wells per 1280 acre section, with four into the Bakken and four into the Three Forks.

Continental Resources has grown rapidly on the strength of its Bakken program and will also benefit from the development of the Three Forks. In June 2012, the company increased its oil and gas production to over 100,000 barrels of oil equivalent (BOE) per day.

New Players

Murphy Oil (NYSE: MUR) is just starting the companys Three Forks development program and reported during the recent quarter that its first well in the Alberta Basin was producing 280 barrels of oil per day after being on production for almost seven months. The companys second completed well into the Three Forks was producing 100 barrels of oil per day after 70 days.

While these production rates might seem low to some investors, it is common for to see low rates at the start of development while operators refine their well design and completion techniques. Murphy Oil plans to drill a third well into the Three Forks in the fourth quarter of 2012.

Continued here:
The Rise of the Three Forks