Why Three Mile Laterals in North Dakota Matter

Greg Hillman · 2026-02-04T20:44:13.894Z

Partner Memo: Why Three-Mile Laterals Matter in North Dakota Matter Subject: Economic & Strategic Advantages of Three-Mile Laterals – Williston Basin, ND Audience: Working Interest & Non-Op Partners Play: Bakken / Three Forks Region: North Dakota Executive Summary Three-mile horizontal laterals are a major step-change in Bakken development. They allow operators to recover more oil per well , lower cost per barrel , and improve returns , while reducing surface footprint and operational duplication. In North Dakota’s tight-rock environment, longer laterals consistently deliver superior capital efficiency versus traditional two-mile wells when executed by experienced operators. Key Benefits 1. Higher Recovery per Well Three-mile laterals contact ~50% more reservoir than two-mile wells. In tight Bakken rock, each additional foot of lateral exposes new productive rock that would otherwise require another well. Result: Higher EUR per well , more reserves booked per drilling location. Why it matters: More barrels from one well instead of two = better economics and less development risk. 2. Lower Cost per Barrel While total well cost increases modestly, costs do not scale linearly with lateral length. Fixed costs (pad, vertical section, rig mobilization, surface facilities) are spread over more lateral footage. Cost per completed foot and finding & development cost per barrel decline materially . Why it matters: Lower breakevens and stronger margins across commodity price cycles. 3. Improved Returns & Cash Flow Higher EUR with only incremental capex improves: Internal Rate of Return (IRR) Net Present Value (NPV) Payback period Fewer wells are required to drain the same acreage, accelerating cash flow concentration. Why it matters: Capital works harder and pays back faster. 4. Fewer Pads, Lower Surface & Operating Costs Three-mile laterals reduce the number of pads needed to fully develop a unit. Benefits include: Fewer rig moves Lower road, facility, and infrastructure duplication Reduced surface disturbance and permitting complexity Why it matters: Cleaner development with lower long-term operating friction. 5. Better Inventory & Spacing Strategy Longer laterals enable efficient development of large spacing units without excessive infill. Helps reduce frac interference and preserves future upside. Supports disciplined, manufacturing-style development programs. Why it matters: Protects long-term value of the acreage. Engineering Reality (Important, but Manageable) Per-foot productivity may decline toward the toe of extended laterals. Completion design, pressure management, and execution quality are critical. These wells work best in the hands of top-tier operators with proven extended-reach experience . Bottom line: In the Bakken, the incremental recovery and cost efficiency more than offset the technical challenges when properly executed. Bottom-Line Takeaway Three-mile laterals in North Dakota are not about drilling “bigger wells” — they are about drilling smarter wells . They deliver more oil per dollar invested , reduce development complexity, and materially improve full-cycle economics. For partners, this translates into better returns, stronger cash flow, and fewer wells needed to unlock the same resource .

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