EOG Resources (EOG) - Permian Basin

By Tim - http://oilshalegas.com

EOG Resources (EOG) is currently drilling for oil in the Permian Basin, Midland Basin, and the Wolfcamp Shale.

In the West Texas Permian Basin, EOG increased drilling activity in the Wolfcamp formation during the second half of 2011 in preparation for a more active year in 2012. EOG reported success from the upper Wolfcamp zone. The University 9 #2803H in Reagan County, 25 miles west of its current middle Wolfcamp activity began production at 883 Bopd with 68 Bpd of NGLs and 388 Mcfd of natural gas. EOG has a 100 percent working interest in the well. In Irion County, the University 43 #0902H and 40A #0402H were completed in the middle Wolfcamp zone at initial oil rates of 1,088 and 1,076 Bopd, respectively. In addition to the strong oil production, the wells were turned to sales with 86 and 129 Bpd of NGLs and 489 and 736 Mcfd of natural gas, respectively. EOG has 90 and 85 percent working interest in the wells, respectively. On the border between Irion and Crockett counties, the University 40 #1309H and 38 #0601H began production at 1,738 and 1,077 Bopd with 137 and 119 Bpd of NGLs and 779 and 678 Mcfd of natural gas, respectively. EOG has 88 percent working interest in these wells. EOG plans to operate a four-rig drilling program in the Wolfcamp during 2012.

In the New Mexico Leonard Shale, EOG reported drilling success from Lea County with the Caballo 23 Fed #4H and #6H. The wells, in which EOG has 86 percent working interest, initially produced at 932 and 750 Bopd with 116 and 99 Bpd of NGLs and 636 and 545 Mcfd of natural gas, respectively. During 2012, EOG is positioned to increase its drilling activity in the Leonard Shale with a year-long two-rig program.

http://blackberrystocks.blogspot.com/

http://www.oilshalegas.com/permianbasinoil.html

http://oilshalegas.com/wolfcampshale.html

Culberson County, TX - Wolfcamp Shale - Oil & Gas

By Tim - http://oilshalegas.com

Wolfcamp Shale Update - Cimarex Energy (XEC)

Cimarex Energy (XEC) provides an update on drilling for oil in the Wolfcamp Shale located in Culberson County, TX

In the fourth-quarter, four horizontal Wolfcamp wells were brought on production in southern Eddy County New Mexico (White City) and northern Culberson County Texas. The wells brought on in the fourth-quarter had first-30 day production rates averaging 6.8 MMcfe/d, comprised of 38% gas, 31% oil and 31% NGL. On average these wells have the highest oil contribution of the wells drilled to date in the Wolfcamp. For 2011 Cimarex drilled and completed 11 gross (10 net) horizontal Wolfcamp wells, bringing total wells in the play to 18 gross (16.8 net). First 30-day production from all the wells has averaged over 6.5 MMcfe/d, comprised of 44% gas, 24% oil and 32% NGL.

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/wolfcampshale.html

Wolfcamp Shale - Devon Energy (DVN)

By Tim - http://oilshalegas.com

Wolfcamp Shale Update - Devon Energy (DVN)

Devon Energy (DVN) provides an update on drilling for oil in the Wolfcamp Shale located in the Midland Basin.

We only recently began drilling on the 92,000-net-acre Wolfcamp shale position that we have established in the Southern Midland Basin. We brought 4 Wolfcamp Shale horizontal wells online in the fourth quarter, with the best well delivering a 24-hour IP of 935 barrels of oil equivalent per day. The results of our wells, combined with industry results around our position, give us confidence and consistent economic results in this play. We are continuing to fine-tune our drilling and completion techniques and have just finished drilling our first 7,100-foot lateral, which included a 30-stage completion. This well is just starting to flow back. We'll keep you posted and updated on our progress.

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/wolfcampshale.html

Devon Energy (DVN) - Permian Basin Update

By Tim - http://oilshalegas.com

Devon Energy (DVN) is currently drilling for oil in the Permian Basin, Midland Basin, and the Bone Spring Shale play. Devon Energy (DVN) is one of the leaders in the Bone Spring Formation.

In the Permian Basin, Devon increased oil and natural gas liquids production 22 percent compared to the fourth-quarter 2010. Liquids production accounted for nearly 75 percent of the 53,000 equivalent barrels per day produced in the Permian Basin during the quarter.

The company completed eight operated Bone Spring wells within the Permian Basin in the fourth quarter. Initial daily production from the eight wells averaged more than 600 Boe per day per well.

From the recent conference call - February 2012

Mark Gilman - The Benchmark Company, LLC, Research Division

Okay. My follow-up, Dave, relates primarily to the Bone Springs in the Permian, an area where, in the recent past, results have been pretty good. I wonder if you could update us. I didn't hear you specifically mention Bone Springs activity in your review of the quarter.

David A. Hager

Well, we've had a number of good Bone Springs wells in the quarter. I think we highlighted, actually, in the earnings release that we had a number of good Bone Springs wells on the order of around 600 barrels a day or so that we achieved out there. I think we had 8 wells average more than 600 barrels per day, 8 operated wells in the fourth quarter that achieved more than 600 barrels a day so we're seeing very good results out there. We see a good inventory of opportunities sitting out there. We estimate we probably have 350 to 400 locations remaining in the Bone Springs just on our existing inventory and will probably drill somewhere around 80 this year. So again, you can see 4- to 5-year inventory of Bone Springs opportunities.

http://blackberrystocks.blogspot.com/

http://www.oilshalegas.com/permianbasinoil.html

http://www.bonespring.com

Eddy County New Mexico - Wolfcamp Shale

By Tim - http://oilshalegas.com

Wolfcamp Shale Update - Cimarex Energy (XEC)

Cimarex Energy (XEC) provides an update on drilling for oil in the Wolfcamp Shale located in Eddy County, NM

In the fourth-quarter, four horizontal Wolfcamp wells were brought on production in southern Eddy County New Mexico (White City) and northern Culberson County Texas. The wells brought on in the fourth-quarter had first-30 day production rates averaging 6.8 MMcfe/d, comprised of 38% gas, 31% oil and 31% NGL. On average these wells have the highest oil contribution of the wells drilled to date in the Wolfcamp. For 2011 Cimarex drilled and completed 11 gross (10 net) horizontal Wolfcamp wells, bringing total wells in the play to 18 gross (16.8 net). First 30-day production from all the wells has averaged over 6.5 MMcfe/d, comprised of 44% gas, 24% oil and 32% NGL.

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/wolfcampshale.html

Irion County, TX - Wolfcamp Shale

By Tim - http://oilshalegas.com

Wolfcamp Shale Update - Irion County, Texas - Apache Corp (APA)

Apache Corp (APA) recently gave an update on the Wolfcamp Shale located in Irion County, TX.

In the Southern Midland Basin, we leased 20,000 acres in the Wolfcamp shale play in Irion County, which brings our total to 25,000 acres. This is in addition to 31,000 acres in the form of BP leasehold we have in the same area. And during 2012, we plan to drill up to 6 horizontal wells on these properties. We currently think there's potential for up to 150 locations, horizontal wells in this area.

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/wolfcampshale.html

http://oilshalegas.com/permianbasinoil.html

Bone Spring Shale - Devon Energy (DVN)

By Tim - http://oilshalegas.com

Devon Energy (DVN) is currently drilling for oil in the Permian Basin, Midland Basin, and the Bone Spring Shale play. Devon Energy (DVN) is one of the leaders in the Bone Spring Formation.

In the Permian Basin, Devon increased oil and natural gas liquids production 22 percent compared to the fourth-quarter 2010. Liquids production accounted for nearly 75 percent of the 53,000 equivalent barrels per day produced in the Permian Basin during the quarter.

The company completed eight operated Bone Spring wells within the Permian Basin in the fourth quarter. Initial daily production from the eight wells averaged more than 600 Boe per day per well.

From the recent conference call - February 2012

Mark Gilman - The Benchmark Company, LLC, Research Division

Okay. My follow-up, Dave, relates primarily to the Bone Springs in the Permian, an area where, in the recent past, results have been pretty good. I wonder if you could update us. I didn't hear you specifically mention Bone Springs activity in your review of the quarter.

David A. Hager

Well, we've had a number of good Bone Springs wells in the quarter. I think we highlighted, actually, in the earnings release that we had a number of good Bone Springs wells on the order of around 600 barrels a day or so that we achieved out there. I think we had 8 wells average more than 600 barrels per day, 8 operated wells in the fourth quarter that achieved more than 600 barrels a day so we're seeing very good results out there. We see a good inventory of opportunities sitting out there. We estimate we probably have 350 to 400 locations remaining in the Bone Springs just on our existing inventory and will probably drill somewhere around 80 this year. So again, you can see 4- to 5-year inventory of Bone Springs opportunities.

http://blackberrystocks.blogspot.com/

http://www.oilshalegas.com/permianbasinoil.html

http://www.bonespring.com