Permian Basin 2018

Issue link:

Contents of this Issue


Page 6 of 99

PERMIAN BASIN: OVERVIEW | October 2018 | 5 Additionally, if it hits this production forecast, the play would exceed the production of every OPEC member except for Saudi Arabia, this in spite of well-publicized infrastructure bottlenecks. The success stories continue to pile up. Devon Energy, for instance, recently spoke about its "mon- ster wells" in the Delaware Basin at Hart Energy's DUG Permian conference in May. The company's second quarter earnings call indicated that 30-day IP rates in its Delaware Basin acreage averaged 3,000 boe/d, and John Raines, vice president of Devon's Delaware Basin business unit, told confer- ence attendees, "I believe my team has brought on the third- and fourth-best Delaware wells Devon has ever put online." Added Dave Hager, president and CEO, in the company's fi rst quarter earnings call, "This is not due to us opening the chokes up really wild to get a huge 24-hour IP. This is truly an exceptional area where we're seeing not only great wells with strong pressures. We can also anticipate the EURs in this area … to be two to three times what our normal type curve is out there. This is truly an outstanding area that we have discovered." Endeavor Resources also has seen major success. Lance Robertson, COO and senior vice president of development, told the DUG crowd that it was faced with well productivity that was not competitive, but techniques such as optimizing landing points, zipper fracks and slick pipe drillout improved the average 30-day IP for a group of seven horizontal wells 43% in the fi rst quarter of 2018. Robertson noted that these wells were among the fastest it had drilled because rock that is easily stimulated allows for faster ROPs. "We're happy with the results," he said. "[But] we recognize we still have more to do. We're just not fi nished yet." Elevation Resources has recognized the impor- tance of geology in the play. The company is seeing success in the Central Basin Platform in Andrews County, Texas. CEO Steve Pruett told DUG attend- ees that a combination of risk-taking by fi nancial backers, creative ideas from the staff and a partner- ship with University Lands led to the discovery of a new play. But more work is needed. "We need to transition from a science-based data collection effort to a manufacturing effort," he said. Another success story is PT Petroleum LLC, which is having success in southwest Reagan County. Its Orange 6091C well produced more than 100,000 bbl of oil and 45 MMcf of gas during its first 140 days, CEO Cory Richards told conference attendees. "We believe that well will be transformational not only on the Trinity Project but for the entire southern Midland Basin," he said. "We believe it sets up a large-scale development opportunity." Opportunities in the Permian Basin seem endless, but rapid development has strained local resources.

Articles in this issue

Links on this page

Archives of this issue

view archives of Playbooks - Permian Basin 2018