Permian Basin 2018

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PERMIAN BASIN: KEY PLAYERS 20 | October 2018 | For full-year 2018 the company expects to com- plete 170 to 190 gross horizontal wells with an aver- age lateral length of about 9,300 ft, according to the investor presentation. In August Diamondback announced two major Permian acquisitions. It will acquire Ajax Resources LLC for about $1.2 billion. The Ajax acquisition is expected to close at the end of October and will have an effective date of July 1, a press release stated. The Ajax acquisition will comprise 25,493 net leasehold acres in the Northern Midland Basin, including about 21,000 net acres in northwest Martin and northeast Andrews counties (about 89% HBP). In addition, Diamondback plans to acquire Energen Corp. in an all-stock transaction valued at about $9.2 billion. The transaction is expected to be completed by year-end 2018, according to a company press release. Encana Corp. Encana Corp.'s Permian production was up 43% year-over-year with current production of more than 90,000 boe/d, according to the company's second-quarter 2018 results. Encana brought three cubes onto production in the Midland and Martin counties in the second quarter. Four wells in the Jo Mill bench of Mar- tin County are exceeding type curve with average 30-day IP rates of 1,100 bbl/d of oil, according to the report. A pumpjack and Diamondback rig are seen just west of the city of Midland. (Photo courtesy of Diamondback Energy) Four rigs operate on Encana's RAB Davidson pad cube development in Midland County, Texas. (Photo courtesy of Encana)

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