Permian Basin 2017

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PERMIAN BASIN: KEY PLAYERS 32 | November 2017 | ments. The proposed pipeline would transport more than 1.8 Bcf/d of natural gas from the Waha area to Agua Dulce, providing an outlet for increased natu- ral gas production from the Permian Basin to grow- ing markets along the Texas Gulf Coast, according to KMI's second-quarter earnings report. Laredo Petroleum Inc. Laredo Petroleum is an independent energy com- pany with headquarters in Tulsa, Okla. The com- pany focuses on the acquisition, exploration and development of oil and natural gas properties and the gathering of oil and liquids-rich natural gas from properties in the Permian Basin. In second-quarter 2017 Laredo produced a company record of 58,632 boe/d, completing 16 horizontal wells with an average completed lateral length of about 9,100 ft, according to the compa- ny's second-quarter report. That was an increase of about 23% from second-quarter 2016 and up 12% from fi rst-quarter 2017. Laredo also grew oil production to a company record 27,275 bbl/d of oil, an increase of about 16% from fi rst-quarter 2017. In addition, the company completed the last six wells of the nine-well Sugg-Graham package in the second quarter. While early in its production his- tory, this package is outperforming the company's Upper/Middle Wolfcamp three-stream type curve by 24% and outperforming the oil type curve by 25%, the report stated. Matador Resources Co. As of Aug. 2, Matador held 189,500 gross (108,000 net) acres in the Permian Basin, primarily in the Delaware Basin in Lea and Eddy counties in New Mexico and in Loving County, Texas, according to the company's second-quarter 2017 report. According to the company's fi rst-quar- ter earnings report, Matador's Delaware Basin average daily oil equivalent pro- duction increased 19% sequentially from about 20,700 boe/d (consisting of 12,800 bbl/d of oil and 47.0 MMcf/d of natu- ral gas) in fourth-quarter 2016 to about 24,500 boe/d (consisting of 15,700 bbl/d of oil and 53.1 MMcf/d of natural gas) in fi rst-quar- ter 2017. The Delaware Basin contributed 86% of Matador's daily oil production, 60% of daily natu- ral gas production and 74% of daily oil equivalent production in the fi rst quarter, the report stated. According to the company's second-quarter earnings report, Delaware Basin average daily oil equivalent production increased 13% sequentially from about 24,500 boe/d in fi rst-quarter 2017 to about 27,600 boe/d (consisting of 16,600 bbl/d of oil and 65.9 MMcf/d of natural gas) in second-quar- ter 2017. The Delaware Basin contributed 86% of Matador's daily oil production, 63% of daily natural gas production and 75% of daily oil equivalent pro- duction in second-quarter 2017, the report stated. During the second quarter and through Aug. 2, Matador acquired about 8,300 net acres in the Delaware Basin, mostly in and around its existing acreage positions, including new leasing activities, acquisition of small interests from mineral and working interest owners in Matador's operated wells and acreage trades or term assignments with other operators, the second-quarter report stated. Matador closed more than 20 such transactions from April 1 through Aug. 2. Matador incurred capex of about $28 million during this period to acquire this addi- tional acreage throughout the Delaware Basin as well as for new 3-D seismic data across portions of its Wolf asset area, according to the report. The Black River Cryogenic Natural Gas Processing Plant in Eddy County, N.M., is owned by San Mateo Midstream LLC, a joint venture between Matador Resources Co. and Five Point Capital Partners LLC. (Photo courtesy of San Mateo Midstream LLC)

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