Bakken #78 Project is Live!

Greg Hillman · 2026-01-30T01:21:56.227Z

Get all the details on Bakken #78 right here! If you have any questions, please leave a comment and I will reach out to you. See attachments below for details . Executive Summary The DW Bakken #78, LP project represents a strategic oil and gas investment opportunity focused on the development of six horizontal wells within the Bakken Shale play of the Southern Williston Basin in North Dakota. Managed by DW Energy Group, LLC, the project leverages partnerships with three premier operators: Silver Hill Energy Partners, Kraken Oil & Gas, and Formentera.The investment is positioned to capitalize on a matured economic environment where drilling and completion costs have decreased by more than 15% since 2018 (and up to 23% in certain locations since 2014), while advanced technologies have significantly increased well productivity. For qualified investors, the partnership offers substantial tax advantages, including immediate deductions for Intangible Drilling Costs (IDC) and long-term depletion allowances. The geological focus spans Divide, Mountrail, and Williams Counties, areas characterized by high recoverable reserves and established infrastructure. Project Overview and Market Context The Bakken Shale play remains a cornerstone of U.S. energy production, with over 7.4 billion barrels of recoverable oil and a production history exceeding 1.5 million barrels per day. The DW Bakken #78 project focuses on six specific well locations designed to exploit these reserves using optimized drilling and completion designs. Economic and Technological Drivers The project benefits from a "sustained low-price economic environment" that has forced innovations in efficiency and technology. Key highlights include: Cost Reduction: Overall well costs have seen a reduction of over 15% since 2018. Efficiency Gains: Wells are being drilled faster and more economically than in previous cycles. Enhanced Productivity: Modern horizontal wells are significantly outperforming legacy offset wells due to optimized fracking and drilling methods. Infrastructure: The region possesses robust pipeline and rail networks, facilitating efficient transportation to major U.S. markets and export terminals. Investment Structure and Tax Advantages DW Bakken #78, LP is structured as a tax-advantaged investment for qualified and sophisticated investors. The partnership provides a combination of immediate tax relief and long-term passive income.| Feature | Description || ------ | ------ || First Year Deduction | Intangible Drilling Costs (IDC) and first-year expenses can comprise up to 90% of the investment, often fully deductible in the year incurred. || Depletion Allowance | Up to 15% of a well’s gross annual production may be tax-free in perpetuity. || Income Potential | Focus on long-term passive monthly income streams and high ROI potential. || Diversification | Serves as a non-correlated asset to complement stocks, bonds, or real estate. | Operator Profiles and Expertise The project involves three primary operators, each chosen for their track record and technical expertise in the Bakken formation. Silver Hill Energy Partners Headquarters: Dallas, Texas. Leadership: Kyle D. Miller (President & CEO). Track Record: Known for the $2.5 billion merger of Silver Hill I & II with RSP Permian in 2017. Acreage: Operates approximately 86,000 net acres in North Dakota with over 600 drilling locations combined with their East Texas assets. Kraken Oil & Gas Status: Private equity-backed exploration and production company established in 2012. Leadership: Bruce Larsen (President & CEO), formerly of Shell E&P and Ursa Resources. Operations: Currently operates over 330 wells across the Williston Basin in North Dakota and Montana. Formentera Strategy: Disciplined, value-oriented approach emphasizing capital efficiency and asset consolidation. Leadership: Bryan Sheffield (Founder & Managing Partner), previously the founder of Parsley Energy. Operational Focus: Technically driven execution with a lean organizational structure. Geological Focus and Well Units The six wells associated with DW Bakken #78, LP are distributed across high-potential units in the North Dakota Bakken. Specific Well Units Formentera Wildcat Hollow 2 Well Unit: Located in the Divide County region. Kraken Turbodiesel 2 Well Unit: Situated in the Williams/Mountrail area. Silver Hill Units: Specific wells including the NM 158-92-18-19-2MBH and Esther units. Offset Production Data (as of 11.1.2025) Data from neighboring wells indicates strong historical performance in the target areas: Silver Hill (Esther 158-93-28-33-4MBH): Produced 332,467 Barrels of Oil (BO) and 516,836 MCF of Gas. Kraken (Jenna 4-33-28 #3H): Produced 455,436 BO and 497,038 MCF of Gas. Kraken (King LE 8-5-32 #11H): Produced 429,656 BO and 562,942 MCF of Gas. Continen

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comm-media__49037127_Elite Bakken Direct Participation Feb 2026.pdf

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