Permian Basin 2017

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PERMIAN BASIN: OVERVIEW 10 | November 2017 | In the Leonard Shale EOG completed three wells with an average length of 5,400 ft/well and average 30-day IP rate per well of 1,615 boe/d. According to its second-quarter report, the com- pany was averaging 13 rigs drilling in 2017. Alpine High, water, sand and earthquakes Apache's Christmann said, "We expect continued production volume increases at Alpine High and in the Midland Basin as well as from our international regions during the second half of 2017. We are suc- cessfully managing service cost pressure, lease oper- ating expense, and general and administrative costs across the company." In the Permian Basin the company averaged 146,000 boe/d and operated an average of 17 rigs, according to the company's second-quarter report released on Aug. 3. At Alpine High the company averaged six rigs. The company connected the first segment of its natural gas trunkline to market, achieving first pro- duction in early May. Apache averaged six rigs in the Midland Basin focused primarily on multiwell pad drilling in the Wolfcamp and Spraberry formations. Major pieces of the puzzle continue to be water and sand. The Culberson County Groundwater Conservation District voted on Aug. 2 to approve the Agua Grande water project to drill into a des- ert aquifer near Van Horn, Texas, and transport some 5.4 million gallons of water about 60 miles from the Apache Mountains to the heart of the Delaware Basin. Like other water projects in the region, this one was protested by ranchers, farmers, environmental- ists and residents. Most of the protests involved the threat to the spring-fed pool at nearby Balmorhea State Park. Apache also has been working with local agencies and constituents on protecting the San Solomon Springs. The company also has been fighting the application of another company to drill saltwater disposal (SWD) wells. Apache has been very focused on managing its own use of water in the area. SWD wells also could be the cause of earth- quakes in the area of Pecos, Texas. Residents are wondering if the SWD wells are causing earth- quakes similar to those in northern Oklahoma. A final piece of the puzzle is sand. Up to 50 mil- lion pounds of sand are being pumped into wells A Parsley Energy employee checks the equipment at the John Denny 41-44H facility in Midland County in July. (Photo courtesy of Parsley Energy)

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