Between May and December 2013, according to the U.S. EIA, the number of horizontal, oil-directed rigs in the Permian Basin rose by 63 rigs, 50% of the total increase in the United States. Several million-dollar acquisitions will no doubt keep activity high:

  • Linn Energy recently acquired Permian Basin oil and gas properties from an undisclosed seller for $525 million. The deal includes more than 6,250 net acres with about 124 producing wells and about 300 identified future low-risk, infill drilling locations.
  • QEP Energy purchased producing West Texas properties from EnerVest for $950 million. The properties are primarily located in West Texas’ Martin and Andrews counties (RRC Dist. 8).
  • BreitBurn Energy Partners paid CrownRock LP approximately $282 million for additional properties in the Permian Basin.
  • Diamondback Energy Inc. paid about $300 million for thousands of Permian Basin acres. In late February, Diamondback closed an accretive acquisition in Martin County, Texas, from private sellers and acquired 6,450 gross, 4,785 net. The company’s acreage position is now about 72,000 net leasehold acres and 12,700 net mineral acres.

1 Devon Energy Corp. - 04/28/14

In Coke County (RRC Dist. 7C), Texas, Devon Energy Corp. completed a horizontal Wolfcamp/Cline shale well. The #1H Kathi Johnson C flowed 49 bbl of 42-degree-gravity oil and 605 bbl of water per day through a fracture-treated set of perforations at 11,484-14,502 ft. Gauged on a one-in. choke, the flowing tubing pressure was 100 psi. The 14,709-ft well has a true vertical depth of 7,412 ft and is located in Section 25, Block W, T&P RR Co Survey, A-708. The bottomhole is about 1.5 miles to the south. Devon is based in Oklahoma City.

2 J. Cleo Thompson - 04/25/14

A horizontal Wolfbone Field well was announced by J. Cleo Thompson in Reeves County (RRC Dist. 8), Texas. The #1H Lynx flowed 737 bbl of 42-degree-gravity oil, 1.12 MMcf of gas and 2,894 bbl of water per day. Production is from acid- and fracture-stimulated perforations at 10,655-17,629 ft in Wolfcamp. Gauged on a 26/64-in. choke, the flowing casing pressure was 2,100 psi. The 17,719-ft well was drilled is in Section 38, Block 50, T8S, T&P RR Co Survey, A-4372. The lateral bottomed about 1.5 miles to the north beneath Section 35 on the Dallas-based company’s 490-acre Delaware Basin lease.

3 Cimarex Energy Co. - 04/24/14

Denver-based Cimarex Energy Co. completed a Bone Spring well in Culberson County (RRC Dist. 8), Texas. The Derby Field venture, #2H Jet Pilot 24 flowed 2.35 MMcf of gas, 600 bbl of 54.4-degree-gravity condensate and 1 Mbbl of water per day. Production is from fracture-treated perforations at 7,413-11,930 ft. Gauged on a 1-in. choke, the flowing tubing pressure was 915 psi The well was drilled to 11,962 ft on a 688.9-acre lease in Section 24, Block 60, T1S, T&P RR Co Survey, A-7001 and the true vertical depth is 7,382 ft. The lateral bottomed to the north. Most of the horizontal production in this part of Culberson County comes from Wolfcamp.

4 Bopco LP - 04/15/14

Bopco LP has permitted two extended lateral wildcats in the Eddy County, N.M., portion of the Delaware Basin. The #35H Big Eddy Unit DI9 will be in Section 21-21s-30e with a proposed depth of 20,325 ft, 9,087 ft true vertical. The lateral targets Bone Spring and will extend about two miles to the west and will bottom in Section 19. From an offsetting location on the same pad, the Midland, Texas-based company plans to drill #34H Big Eddy Unit DI9. The 34H Big Eddy Unit DI9 will have a 10,354-ft pilot hole followed by a west-trending lateral that will run south of and parallel to #35H Big Eddy Unit DI9. The expected bottomhole will be in Section 30 and the proposed depth is 20,430 ft, 9,125 ft true vertical. The pilot hole will reach Wolfcamp, while the lateral targets Bone Spring.

5 OXY USA Inc. - 04/14/14

OXY USA Inc. completed a Bone Spring producer on the eastern flank of Culebra Bluff South Field. The #1H Bank 18 Federal Com in Section 18-23s-29e of Eddy County, N.M. It was tested flowing 219 bbl of crude, 411 Mcf of gas and 285 bbl of water per day from an acid- and fracture-treated zone at 8,750-12,540 ft. Tested on a 17/64-in. choke, the flowing tubing pressure was 1,000 psi. The Los Angeles-based company drilled the well to 12,681 ft and true vertical depth is 8,540 ft with the horizontal leg bottoming about one mile to the east-southeast.

6 ConocoPhillips - 03/20/14

A horizontal Wolfcamp completion by ConocoPhillips has extended Ford West Field. The #2H Harrier WC 10 is in Section 10, Block 58, T2S, T&P RR Co Survey, A-4356 of Culberson County (RRC Dist. 8), Texas. It was tested flowing 336 bbl. of 53.3-degree-gravity oil, 4.4 million cu. ft. of gas and 4,944 bbl. of water per day. Production is from an acid- and fracture-stimulated zone at 9,900-14,052 ft. Gauged on a 34/64-in. choke, the flowing casing pressure was 3,325 psi. The venture was drilled to 14,241 ft. and the true vertical depth is 9,542 ft. The lateral bottomed less than a mile to the south. ConocoPhillips is based in Houston.

7 Cog Operating LLC - 03/17/14

COG Operating LLC completed a Delaware Basin horizontal Bone Spring workover in Eddy County, N.M. The #1 Tuna 28 Federal is in Section 28-26s-25e and had an initial daily potential of 400,000 cu. ft. of gas and 480 bbl. of water. Production is from acid- and fracture-stimulated perforations at 5,449-7,505 ft. The 10,000-ft. well was plugged back to 7,525 ft. This well was originally completed by Marbob Energy Corp. in 2010 as a Morrow gas producer in Milepost Field. It produced 380,000 cu. ft. of gas per day from acidized perforations at 9,680-9,700 ft. COG’s headquarters are in Midland, Texas.