Permian Basin 2018

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PERMIAN BASIN: KEY PLAYERS 22 | October 2018 | "Encana's cube development approach com- bined with advanced completion practices signifi - cantly enhanced its Permian well performance and led to a 20% increase in the company's Permian type curves and 700 new premium return locations," the company said in a June 2017 press release. The 700 new premium return locations were fi ve times the quantity the company drilled in 2017 and brought total premium return locations in the play to 3,450. "Encana expects it will develop less than 30% of its Permian premium inventory through 2021," the release stated. Endeavor Energy Resources Private E&P company Endeavor Energy Resources holds the second largest land position in the Mid- land Basin with more than 300,000 net acres. Its focus is on Martin, Midland, Glasscock, Upton and Reagan counties. Production for the second quarter of 2018 was a company record 5.9 MMboe, according to the company. Endeavor placed 41 gross wells on production and spudded 36 gross horizontal wells in the second quarter. The company also reported that average 30-day IP rates for the completed hori- zontal wells in this quarter were approximately 920 boe/d (88% oil). EOG Resources EOG Resources has a 416,000-net-acre position in the Delaware Basin. "EOG has identifi ed an additional 375 net undrilled premium locations in the Delaware Basin, raising the total to 4,815 locations and more than replacing the 250 locations drilled since the last premium inventory assessment in 2017," the company stated in its second-quarter 2018 results press release. "Cost reductions from infrastructure investments and the delineation of additional drill- ing targets supported the identifi cation of the new premium locations." During the second quarter of 2018, EOG con- tinued development in the Delaware Basin with ongoing testing of additional targets and spac- ing. "Lateral lengths increased farther during the quarter, and the company increased its use of locally sourced sand beginning in June," the company stated in the report. Operations also commenced at additional locations on EOG's new crude oil gathering system commissioned earlier in 2018." In the Delaware Basin Wolfcamp, EOG com- pleted the Quanah Parker 8H-11H four-well package, and average 30-day IP rates per well of 2,565 boe/d, or 1,535 bbl/d of oil, 525 bbl/d of NGL and 3.0 MMcf/d of natural gas, according to the report. In the Delaware Basin Second Bone Spring, EOG completed the Bandit 29 State Com 501H-503H and 504Y four-well package with average 30-day IP rates per well of 2,410 boe/d, or 2,035 bbl/d of oil, 170 bbl/d of NGL and 1.3 MMcf/d of natural gas. Looking ahead, "EOG said completions at its Delaware operations in the Permian will fall to 30% of total work in the second half of the year from 40% in the fi rst half," according to an Aug. 3 Reuters report. EP Energy EP Energy's Permian focus is on the Wolfcamp Shale with about 178,000 net acres and 2,682 gross drilling locations as of year-end 2016. The company had $91 million in oil and gas expenditures and 0.6 average gross drilling rigs in the Permian in the first half of the year, according to the company's second-quarter 2018 results report. During the second quarter in the Permian, EP Energy produced 26,500 boe/d, including 9,700 bbl/d of oil, averaged approximately one drilling rig, invested $48 million in capital and completed (fractured) 13 gross and nine net wells, according to the report. In addition, the company constructed and oper- ationalized its fi rst produced water pond for recy- cling use in the Permian in the second quarter. "The facility became operational in April and is lower- ing operating costs by approximately $1.54/bbl of water," the report stated. "In addition, the facility lowers completion costs by providing a low-cost direct source of water for completion operations instead of trucking in freshwater, saving approxi- mately $0.45/bbl of water."

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