Permian Basin 2017

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PERMIAN BASIN: KEY PLAYERS 38 | November 2017 | Capital investment, excluding acquisitions (on an accrual basis), was $306 million for the second quarter compared with $85.7 million for second-quarter 2016, of which $41.5 million was related to midstream infrastructure in the Permian Basin, the company said. QEP also invested $8.4 million to acquire var- ious oil and gas properties, including proved and unproved leasehold and additional surface acreage primarily in the Permian Basin. At the end of second-quarter 2017 the company had five operated rigs in the Permian Basin, with one on its County Line acreage and four at Mus- tang Springs, the report stated. In 2014 the company acquired crude oil properties (County Line) in the north- ern Midland Basin portion of the Perm- ian Basin, the company stated on its website. The properties included about 18,800 net acres primarily in Martin and Andrews counties of Texas with multiple horizontal target zones in the Wolfcamp and Spraberry formations. In 2016 the company acquired addi- tional crude oil properties (Mustang Springs) in the northern Midland Basin. The properties included about 10,000 net acres in Martin County located 10 miles east of the County Line acreage, the company stated on its website. RSP Permian RSP is an independent oil and natural gas company focused on the acquisition, exploration, development and produc- tion of unconventional oil and associ- ated liquids-rich natural gas reserves in the Permian Basin. The majority of the company's nearly 100,000 net acres are located on large, contiguous acreage blocks in the core of the Midland and Delaware basins. With 1,750 to 2,890 net drilling locations in the Midland Basin and 2,410 net drilling locations in the Delaware Basin, RSP has more than 3 Bboe of total resource potential, according to the company. Previously focused on the Midland Basin, the company entered into the Delaware Basin in Octo- ber 2016 with its acquisition of Silver Hill Energy Partners' Loving and Winkler County acreage for about $2.4 billion. Production increased 106% to 54.3 Mboe/d (72% oil, 88% liquids) compared to second-quarter 2016 and increased 20% compared to first-quarter 2017, according to the company's second-quarter 2017 financial results. As of June 30, the company's production was 3,527 Mbbl of oil, 3,651 MMcf of natural gas and 809 Mbbl of NGL, the report stated. RSP is running seven rigs across its position, with a 2017 drilling program targeting four distinct target horizons in the Midland Basin and five in the Delaware Basin. (Photo courtesy of RSP Permian Inc.)

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