Wolfcamp Shale - Pioneer Natural Resources (PXD)

By Tim - http://oilshalegas.com

Wolfcamp Shale Update - Upton County, Texas - Pioneer Natural Resources (PXD)

Pioneer Natural Resources (PXD) continues to see great oil well results in the Wolfcamp Shale located in Upton County, TX.

“We recently completed our second successful horizontal well in the Wolfcamp Shale in Upton County, Texas. This well is performing similarly to the first well we announced in 2011, with a 24-hour initial production rate of 807 barrels oil equivalent per day (BOEPD) and a peak 30-day average natural flow rate of 677 BOEPD. The first well continues to flow naturally and produced 45 thousand barrels oil equivalent (MBOE) over its first 90 days of production, which is seven times the production from a Spraberry vertical well over the same time period. These results, which are above our expectations, coupled with the strong production from other industry players drilling horizontal wells in this interval and Pioneer’s extensive geologic interpretation of the area, suggest significant horizontal Wolfcamp Shale potential exists within Pioneer’s acreage. We are the largest acreage holder in the Wolfcamp Shale play with more than 400,000 prospective acres. Our current focus is on 200,000 acres in the southern part of the field where we plan to drill 30 to 35 wells by year end.”

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Barnett Shale Combo Play - Oil Field

By Tim - http://oilshalegas.com

Pioneer Natural Resources (PXD) - Barnett Shale Combo Play - Oil Field Texas

Pioneer Natural Resources (PXD) is out with their Barnett Shale Combo Play update. The Barnett Shale combo play is a zone of oil and natural gas.

In the liquids-rich Barnett Shale Combo play, Pioneer has built a 78,000 net acreage position, representing more than 1,000 drilling locations. The Company drilled 43 wells in 2011 and placed 42 wells on production. Pioneer operated two rigs in the play for much of 2011 and plans to remain at this level through 2012. The Company expects to increase to four rigs in 2013.

Production in the fourth quarter for the Barnett Shale Combo play was 6 MBOEPD, up from 4 MBOEPD in the third quarter. The Company expects production to increase from an average of 4 MBOEPD in 2011 to 7 MBOEPD to 9 MBOEPD in 2012 under the current two-rig program. With the expected increase to four rigs in 2013, production is forecasted to grow to 12 MBOEPD to 16 MBOEPD in 2013 and 18 MBOEPD to 23 MBOEPD in 2014. Production is comprised of 60% liquids (oil and NGLs) and 40% gas.

Pioneer’s internal rate of return in the Barnett Shale Combo play is expected to be 30% before tax. This assumes a targeted per-well drilling cost of $3.5 million for 5,000-foot lateral wells, a gross EUR of 460 MBOE and flat commodity prices of $100 per barrel for oil and $4 per MCF for gas. The internal rate of return has been impacted by the low gas price environment.

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Eagle Ford Shale - Pioneer Natural Resources (PXD)

By Tim - http://oilshalegas.com

Pioneer Natural Resources (PXD) provided an oil & natural gas drilling update in the Eagle Ford Shale play located in South Texas.

In the liquids-rich Eagle Ford Shale in South Texas, Pioneer and its joint venture partners are currently running 12 rigs. The Company drilled 111 wells in 2011 and placed 92 wells on production. To improve the execution of its drilling and completions program and reduce costs, Pioneer is operating two Company-owned fracture stimulation fleets totaling 100,000 horsepower. The Company is also utilizing a dedicated third-party fracture stimulation fleet, which commenced operating in April 2011 under a two-year contract.

Pioneer plans to continue running 12 rigs in 2012 and drill approximately 125 wells. The 2012 drilling program will continue to focus on liquids-rich drilling, with only 15% of the wells designated to hold strategic dry gas acreage. The original plan for 2012 called for an increase to 14 rigs on the assumption that 25% of the program would target dry gas drilling. However, in response to the current low gas price environment, the increase to 14 rigs has been delayed until 2013. It is now planned that the rig count will increase to 16 rigs in 2014 and 19 rigs in 2015.

Pioneer increased its Eagle Ford Shale production from 14 MBOEPD in the third quarter to 20 MBOEPD in the fourth quarter. The Company expects production to increase from an average of 12 MBOEPD in 2011 to 25 MBOEPD to 29 MBOEPD in 2012, 37 MBOEPD to 41 MBOEPD in 2013 and 47 MBOEPD to 53 MBOEPD in 2014.

Pioneer’s gross well cost in the Eagle Ford Shale ranges from $7 million to $8 million per well. Using this well cost, estimated EURs, assumed flat commodity prices of $100 per barrel for oil and $4 per MCF for gas and excluding the benefit of the joint-venture drilling carry, the before-tax internal rate of return for the 2012 drilling program is estimated to be 70%.

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/eaglefordshale.html

Upton County, Texas - Wolfcamp Shale - Oil Drilling

By Tim - http://oilshalegas.com

Wolfcamp Shale Update - Upton County, Texas - Pioneer Natural Resources (PXD)

Pioneer Natural Resources (PXD) continues to see great oil well results in the Wolfcamp Shale located in Upton County, TX.

“We recently completed our second successful horizontal well in the Wolfcamp Shale in Upton County, Texas. This well is performing similarly to the first well we announced in 2011, with a 24-hour initial production rate of 807 barrels oil equivalent per day (BOEPD) and a peak 30-day average natural flow rate of 677 BOEPD. The first well continues to flow naturally and produced 45 thousand barrels oil equivalent (MBOE) over its first 90 days of production, which is seven times the production from a Spraberry vertical well over the same time period. These results, which are above our expectations, coupled with the strong production from other industry players drilling horizontal wells in this interval and Pioneer’s extensive geologic interpretation of the area, suggest significant horizontal Wolfcamp Shale potential exists within Pioneer’s acreage. We are the largest acreage holder in the Wolfcamp Shale play with more than 400,000 prospective acres. Our current focus is on 200,000 acres in the southern part of the field where we plan to drill 30 to 35 wells by year end.”

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/wolfcampshale.html

Permian Basin Oil Field, Texas

By Andrea http://oilshalegas.com/

The Permian Basin is a sedimentary basin located in the western part of Texas and in the southeastern part of New Mexico. It reaches from just south of Lubbock, Texas, to just south of Midland and Odessa, extending westward into the southeastern part of New Mexico. The Permian Basin region includes the following counties:

- Andrews County, Andrews, TX

- Borden County, Gail, TX

- Crane County, Crane, TX

- Dawson County, Lamesa, TX

- Ector County, Odessa, TX

- Gaines County, Seminole, TX

- Glasscock County, Garden City, TX

- Howard County, Big Spring, TX

- Loving County, Mentone, TX

- Martin County, Stanton, TX

- Midland County, Midland, TX

- Pecos County, Fort Stockton, TX

- Reeves County, Pecos, TX

- Terrell County, Sanderson, TX

- Upton County, Rankin, TX

- Ward County, Monahans, TX

- Wrinkler County, Kermit, TX

The Permian Basin is a large oil and natural gas producing area which is part of the Mid-Continent Oil Producing Area. Up to the beginning of 1993, total production for that region was over 14.9 billion barrels. The towns of Midland and Odessa serve as the headquarters for oil production activities in the basin.

Currently, Pioneer Natural Resources Co. (PXD) is the largest operator in the Permian Basin with approximately 20,000 locations and roughly 900,000 acres under lease in the Permian Basin. Pioneer Natural Resources Co. (PXD) also predicts that they will eventually be one of the largest operators in South Texas with their Eagle Ford Fleet.

Permian Basin News, 2010:

- Occidental Exec:Negotiated $1.5B Acquisitions Mainly In Permian Basin
- Concho Resources Inc. to Acquire Oil & Gas Assets in the Permian Basin for $1.65 Billion
- Apache to Acquire BP Assets in Permian Basin, Canada and Egypt For $7 Billion

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