Posts Tagged “permian”
Texas’ crude oil production is projected to grow next month by 68,000 barrels a day, led by the Permian Basin in West Texas, the Energy Department said Monday.
The Permian increased production faster than expected in October and is projected to grow by nearly 40,000 barrels more than previously estimated, the Energy Department said. By the end of the month, output from the prolific shale play is expected to be just shy of 3.5 million barrels a day.
The Permian has faced pipeline constraints as production has outpaced pipeline capacity. Three major projects with a total crude capacity of more than 2 million barrels a day are under construction from West Texas to Gulf Coast markets and export hubs. They are expected to be completed by early 2020.
Drilled but uncompleted wells, which are wells that oil and gas explorers have drilled but haven’t used hydraulic fracturing or fracking to produce oil and gas, continued to increase. The Permian added 194 such wells from August to September, increasing the total number to 3,722. The Eagle Ford added 18 drilled but uncompleted wells to its inventory, which rose to 1,584 wells.
Halcon Resources Corp. received better than expected production results from its first Permian Basin well. Completed with a lateral length of 5,167 feet targeting the Wolfcamp A interval, Halcon’s Ward County, Texas, well “is significantly exceeding Halcon’s type curve EUR estimates for its Ward County acreage of 1,258 Mboe for a 10,000 foot lateral,” according to the company.
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In a quest to continue their acquisitions in the area, Parsley Energy is buying rights to undeveloped acres in the heart of West Texas’ Permian Basin from Double Eagle Energy for $2.8 billion.
This will be the 10th largest purchase in the basin that has been announced by Parsley, an Austin-based company, it will add 71,000 net acres to the company’s Midland portfolio. This brings it’s total Permian acreage to 227,000, one of the largest holdings by an independent production company within the basin.
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