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Permian Basin 2017

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PERMIAN BASIN: KEY PLAYERS 26 | November 2017 | hartenergy.com As of August the company was running three fracturing spreads (two in Midland and one in Delaware). The company also reported its Permian acreage has six core areas with 1,000 Mboe-plus EURs in multiple intervals. In addition, Diamondback added about 3,200 net acres in the southern Delaware Basin during sec- ond-quarter 2017, according to the presentation. In March 2017 Diamondback acquired lease- hold interests and related assets from Brigham Resources Operating LLC and Brigham Resources Midstream LLC for 80,185 net leasehold acres in Pecos and Reeves counties for $2.55 billion, a press release stated. With the Brigham transaction, Dia- mondback also acquired 1,321 net royalty acres in addition to the leasehold acreage. Encana Encana has 12,000 well locations in the Permian Basin. Since entering the basin, the company has decreased its drilling and completion costs (down from more than $8 million to less than $5 million) and its operating costs (down 35%), according to an August corporate presentation. More than 50% of Encana's 2017 capital is directed toward the Perm- ian, and the company plans for its Permian produc- tion to grow three to four times over the next five years, the presentation stated. In addition, "Encana's cube development approach combined with advanced completion practices have significantly enhanced its Perm- ian well performance and led to a 20% increase in the company's Permian type curves and 700 new premium return locations," a June press release stated. "The 700 new premium return locations are five times the quantity the company will drill this year and brings 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." Energen Energen is an oil-focused E&P company with oper- ations in the Permian Basin of West Texas and New Mexico. The company has 118,727 gross acres (94,037 net) in the Midland Basin and 91,071 gross acres (61,690 net) in the Delaware Basin, according to the company's second-quarter 2017 presentation. Energen's proved reserves at year-end 2016 totaled 316 MMboe. As of July 1, the company identified 4,116 net engineered, unrisked, poten- tial drilling locations on 147,428 net acres in the Delaware and Midland basins with an estimated 2.5 Bboe net undeveloped resource potential, the company said. The company's net production (excluding asset sales) has continued to increase from 2012 through 2017. Energen reported 54.6 Mboe/d total production in 2016 and 70.6 Mboe/d as of second-quarter 2017, the company's website stated. From 2016 through June 2017, Energen acquired about 19,000 net acres for about $335 million, accord- ing to the second-quarter presentation. Acquisitions in the first six months of 2017 totaled 9,732 net acres for about $215 million. The company expects total 2017 production of 70.6 Mboe/d and total 2017 Midland and Delaware production to be Encana's RAB Davidson pad in Midland County is one of the multiwell pads where the company is employing its Cube development strategy. (Photo courtesy of Encana Corp.)

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