Permian Basin 2017

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PERMIAN BASIN: KEY PLAYERS 40 | November 2017 | and consistent results in several zones across our acreage position." The company plans to spend $625 million to $700 million in development capital across its Mid- land and Delaware Basin assets in 2017, completing 80 to 85 gross operated horizontal wells and pro- ducing an estimated average of 53,000 to 57,000 boe/d for the year. Shell Shell's operations in the Permian Basin reach from Midland, Texas, to the southeastern border of New Mexico and along the Pecos River. In the Delaware Basin, Shell's focus is on the Wolfcamp, Bone Springs and Avalon formations, where the company operates more than 300 wells, has 500 nonoperated wells and owns interest in more than 500,000 acres (Shell net acres about 270,000). The company produces more than 60,000 boe/d from Shell-operated wells and has made sig- nificant investments in infrastructure and gather- ing lines since acquiring the asset in 2013. Shell operates two central production facili- ties and plans to develop additional facilities in 2017 and 2018 to match its development growth in the basin. SM Energy SM Energy's year-end 2016 average produc- tion in the Permian was 10.2 Mboe/d, 7% of company's total production, and total proved reserves were 53.8 MMboe, 14% of company's total reserves, according to information on the company's website. SM Energy's second-quarter 2017 pro- duction was 2.3 MMboe (75% oil) in the Permian, compared to 2.1 MMboe in the first quarter, according to the company's second-quarter 2017 earnings report. As of August the company was running seven horizontal rigs in the basin, with two in the Sweetie Peck area and five in the RockStar area. The company recently con- verted the single vertical rig operating in the RockStar area to horizontal drilling and is running three completion crews, the report stated. During the second quarter the com- pany drilled 23 net operated wells and had nine net flowing completions. SM Energy has about 89,000 net acres in the Midland Basin, which includes about 5,400 additional net acres acquired year- to-date through acreage trades and other transactions, according to the second- quarter report. Surge Energy Surge Energy is an E&P company focused on the acquisition and development of onshore oil and gas properties in the U.S. The company holds about 83,000 net acres in the Permian Basin across Crosby, Howard and Borden counties, according to the company's website. In April 2015 the This pumpjack is located near Barstow, Texas, in Ward County. (Photo courtesy of Shell)

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