Chord Energy is going long in the Bakken, planning to spud seven new 4-mile wells this year.
Chord is encouraged by its first three 4-mile middle Bakken wells, the first of which began production in the first quarter.
The first 4-mile Bakken well was spud in late 2024 and completed in February. Chord reached a total depth (TD) exceeding 30,400 ft, vertical and lateral combined, while cleaning out frac plugs.
“The clean-out was executed in only one run and was much faster than we originally expected, leading to a total well cost approximately $1 million below the original budget,” Chord COO Darrin Henke said during a May 7 first-quarter earnings call.
Using tracers, Chord confirmed that every stage of the 4-mile lateral is contributing to production.
“Initial volumes and pressure indications are encouraging, but we need to monitor the flat period and initial decline before drawing definitive conclusions,” he said.
Chord remained tight-lipped on production from the first 4-mile well. Henke noted that the well is choked back restrictively to minimize sand flowback and protect pumping equipment.
While aggressively choking reduces IP rates, the well should experience less decline in its earliest months, preserving reservoir pressure.
When comparing well performance on a per-foot basis, 4-mile wells “will typically be lower than 2-mile wells, as the higher IP is more than offset by the longer lateral,” Henke said.
But over a 6- to 12-month period, “the longer flat period and shallower declines will lead longer laterals to catch up to the 2-mile well on a recovery per-foot basis,” he continued.
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Enhanced economics
Compared to 2-mile wells, Chord’s 4-mile wells are expected to produce 90% to 100% more EUR for 40% to 60% more investment per well. That helps lower the breakeven cost for a 4-mile well by between $8/bbl to $12/bbl versus a 2-mile well.
In aggregate, longer laterals help bring Chord’s less economic acreage into more profitable territory. The company has shifted to drilling fewer wells in the Bakken’s core while drilling more 3-mile wells farther to the west.
“The team is really improving economics by bringing acreage that currently isn't sub-$60 into that sub-$60 category,” said Michael Lou, Chord’s chief strategy and commercial officer.
Chord successfully drilled two more 4-mile laterals during the first quarter. The wells are slated to be completed later this year.
The early results give Chord confidence to plan seven additional 4-mile wells over the next eight to nine months, Henke said.
“With success, Chord is likely to implement many more in 2026 and beyond,” he said.
Other Bakken players are drilling longer laterals, too. Hess Corp. reported drilling its first two 4-mile Bakken wells in February—which it said were the first of their kind in North Dakota.
Hess also drilled a 2-mile observation well outfitted with fiber and pressure gauges to measure recoveries and depletion from the 4-mile laterals.
Longtime Bakken producer Continental Resources has also drilled 4-mile wells, Founder and Chairman Harold Hamm told Hart Energy in an interview April.
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3-mile-plus laterals
Chord plans for 80% of its future drilling program to target laterals stretching 3 miles or more, CEO Danny Brown said.
The company pivoted from 2- to 3-mile wells “pretty quickly,” he said. Chord should be able to pivot from 3-mile to 4-mile wells even faster, since the company has built up confidence and operating practices along the way.
The benefits of 3-mile laterals are clear on Chord’s western acreage, where 3-mile wells have delivered 50% more oil EURs than 2-mile wells, for only a 20% cost increase.
Longer 3-mile wells outside of the basin’s core “actually have similar or better returns” than 2-mile wells inside the core, Henke said in February.
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Shopping Marcellus non-op
Chord got even deeper in the Williston Basin through a $4 billion acquisition of Enerplus Corp. last year. The deal included Enerplus’ non-operated Marcellus gas assets in northeastern Pennsylvania.
They’re quality assets but not core to Chord’s Bakken-focused portfolio, Brown reiterated on the earnings call.
“We recognize that that's not a non-core position for us, and we're going to look to maximize value on that over time,” he said.
Producers are seeking greater natural gas exposure amid elevated prices. Natural gas futures average $4.34/MMBtu over the next 12 months; 24-month strip is $4.29/MMBtu.
“Clearly, gas price relative to oil price is more constructive now than it has been historically, and so we're always looking at how we can maximize value,” Brown said.
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