Crockett County, TX - Wolfcamp Shale

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.

http://blackberrystocks.blogspot.com/

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

http://oilshalegas.com/wolfcampshale.html

EOG Resources (EOG) - Wolfcamp Shale

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.

http://blackberrystocks.blogspot.com/

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

http://oilshalegas.com/wolfcampshale.html

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

Reagan County, TX - Wolfcamp Shale

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.

http://blackberrystocks.blogspot.com/

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

http://oilshalegas.com/wolfcampshale.html

Irion County, TX - Wolfcamp Shale

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.

http://blackberrystocks.blogspot.com/

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

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

Spraberry Oil Field in West Texas - Pioneer Natural Resources (PXD)

By Tim - http://oilshalegas.com

Pioneer Natural Resources (PXD) - Spraberry Oil Field in West Texas

Pioneer Natural Resources (PXD) recently gave comments about the Spraberry Oil Field located in West Texas. It seems as though they are seeing a lot of oil recovery from their wells.

“In the Spraberry oil field in West Texas, Pioneer is currently operating 44 rigs, of which 41 are drilling vertical wells (including 15 Company-owned rigs) and three are drilling horizontal wells. The Company drilled 690 wells in 2011 and placed 640 wells on production. The Company has continued to expand its integrated services to control drilling costs and support the execution of its drilling program. Five Company-owned fracture stimulation fleets totaling 100,000 horsepower are currently operating in the Spraberry field supporting vertical drilling operations. An additional 10,000 horsepower will be added to these five fleets by mid-year. Two additional fleets totaling 60,000 horsepower will be added by mid-year 2012 to support Pioneer’s horizontal drilling program in the Wolfcamp Shale. The Company also owns other oil field service equipment, including pulling units, fracture stimulation tanks, water transport trucks, hot oilers, blowout preventers, construction equipment and fishing tools. In addition, the Company has contracted for tubular and pumping unit requirements through 2012 and well cementing services through 2016.”

http://blackberrystocks.blogspot.com/

http://www.spraberryoil.com

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

Permian Basin - Callon Petroleum (CPE) - Wolfcamp Formation

By Tim - http://oilshalegas.com

Callon Petroleum (CPE) is currently drilling for oil in the Permian Basin, Midland Basin, and the Wolfcamp Shale located in Texas. Callon Petroleum (CPE) provides details on this exploration below.

Net production from Callon's Permian properties increased 135% to 965 barrels of oil equivalent per day (Boe/d) in 2011 from 411 Boe/d in 2010. The company drilled 36 gross (33 net) vertical Wolfberry wells in 2011 and net production from the properties at year-end 2011 was approximately 1,300 Boe/d.

At the Pecan Acres Field, the two initial wells have been drilled and stimulated, and are currently flowing back in preparation for first production. In addition, a third well has been drilled, but not yet completed, and a fourth well is currently being drilled. Callon plans to complete the third and fourth wells in March 2012.

Based upon Callon's ongoing evaluation of its acreage position in the East Bloxom Field, located in Upton County, TX, and recent industry drilling results in northern Upton County and western Reagan County, TX, the company plans to commence a horizontal drilling program at its East Bloxom Field targeting the Wolfcamp B shale during the second quarter of 2012. Callon recently contracted a new-generation drilling rig under a two-year contract to execute the East Bloxom program.

Additionally, Callon has recently expanded its Permian Basin acreage position by 150% to 24,009 net acres from 9,539 net acres at December 31, 2011 with the acquisition of 16,020 gross (14,470 net) acres. The new leasehold is located in the northern portion of the Midland Basin which has had limited drilling activity relative to recent drilling and evaluation efforts in the southern portion of the basin. Callon has an average 90% working interest across the contiguous acreage positions and is the operator. The lease bonus payments were funded from existing cash balances. The company expects to acquire 3-D seismic data in the first half of 2012 and commence drilling to delineate the acreage in the third quarter of 2012. Callon has performed technical analysis of the newly acquired acreage and believes that the acreage is prospective for horizontal drilling of the Cline shale and vertical drilling of multiple intervals. Callon is continuing to pursue additional leasing opportunities in the area.

Callon produced 1.8 MMboe for the year 2011, comprised of 54% crude oil and 46% natural gas and natural gas liquids. The company's production and reserve growth initiatives continue to focus primarily on the Permian Basin, building a multi-year portfolio of oil-weighted drilling locations. In order to advance its growth plans, Callon will be directing a significant amount of its capital budget in 2012 to horizontal drilling and new acreage initiatives in the Permian Basin. The company believes the potential for increased production rates and improved capital efficiency from its horizontal drilling initiatives will enhance the quality of Callon's asset base as this program evolves over time.

Given the near-term production impact of a transition to horizontal drilling in 2012, including reduced vertical activity and the timing of initial production from horizontal completions, and scheduled downtime at the Medusa and Habanero Fields, the company estimates that full-year production for 2012 will approximate 1.7 – 1.9 MMboe. Importantly, Callon anticipates that Permian production will grow approximately 100% in 2012, reflecting the growing contribution of this basin to the company's total production.

http://blackberrystocks.blogspot.com/

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

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

Bone Spring - Wolfberry - Spraberry Oil Fields - Permian Basin

By Tim - http://oilshalegas.com

Recently, I've been asked to blog about the recent activity going on in the Permian Basin right now located in West Texas. The Permian Basin is the hot spot right now as was the Eagle Ford Shale over the past year. While we are seeing the majority of the rigs continue to flock to the Eagle Ford Shale, there is a huge jump in rigs and drilling activity in the Permian Basin.

The Permian Basin consists on a combination of Oil fields which also contain Natural Gas. On the east side, we have the Spraberry Field as the top zone, the Dean Formation as the middle layer, and the Wolfcamp Shale as the bottom zone. When the oil producers drill into all of these formations, they are calling it the Wolfberry.

On the west side, we are talking about the top layer being the Avalon Shale ( also known as Leonard Shale ) with it mixing into the top layer of the Bone Spring which is made up of three zones. After the bone spring formation, we have the wolfcamp shale again. This area is located in West Texas and extends up into New Mexico. Lea County New Mexico and Eddy County New Mexico are the hot spots.

The Spraberry is seeing acreage go for $15,000+ per acre in some spots regarding mineral rights leasing. All of these zones are hot hot hot and producing a lot of oil.

For more shale updates, visit http://blackberrystocks.blogspot.com

Berry Petroleum Company (BRY) - Permian Basin shale Update

By Andrea: http://oilshalegas.com

Berry Petroleum Company (BRY) announced that it has entered into agreements with a group of sellers to acquire their interests in properties on approximately 9,300 net acres in the Wolfberry trend (Permian Basin) in West Texas for a combined purchase price of $180 million in cash. Berry's proved plus probable reserve estimates associated with the forty-acre development of the properties are approximately 35 million barrels of oil equivalent (MMBOE) with crude oil comprising 76% of these volumes. Upon completion of the acquisitions, the properties are expected to add approximately 2,200 barrels of oil equivalent per day (BOED) to Berry's production during 2011.

Since entering the Permian basin in March of 2010, Berry has accumulated approximately 19,350 net acres in the Wolfberry trend. The $313 million of acquisitions in 2010 is expected to provide a five-year drilling inventory in the Wolfberry of 400 locations on forty-acre spacing with an additional 400 potential locations on twenty-acre spacing.

Robert Heinemann, president and chief executive officer, stated, "We are pleased to bring additional scalable, high margin oil assets into the portfolio which complements our base oil assets in California and Utah. We believe these acquisitions enhance our overall Permian operations with a contiguous 6,800 net acre block and strong per well recoveries of 180 MBOE. The first three years of expected production on these assets has a hedging floor of approximately $87 WTI which should allow these assets to generate operating margins of $62 per barrel. The Company's existing Wolfberry assets, acquired earlier in 2010, are performing in line with expectations and production is 1,700 BOED today. With the acquisitions announced today, we now expect production from our Permian assets will grow to 9,000 BOED during the next four years."

David Wolf, executive vice president and chief financial officer, stated "We expect to fund this acquisition under our credit facility and on a pro forma basis we will have liquidity of over $500 million. With this acquisition, our leverage should be in the range of 2.25 to 2.5 times EBITDA in 2011."

The effective date of the transaction is October 1, 2010 with closing expected in December 2010 and is subject to customary closing conditions. Production from the properties to be acquired is expected to be approximately 1,200 BOED at closing. Contribution to the Company's fourth quarter 2010 production will be minimal given the expected closing date.

For more shale updates, visit: http://blackberrystocks.blogspot.com

For more stock updates, visit: http://daytradingstockblog.blogspot.com

Concho Resources, Inc. (CXO): Avalon shale update

By Andrea: http://oilshalegas.com

Concho Resources, Inc. (CXO) announced recently that it plans to drill its first horizontal well in the Avalon shale by the end of 2010.

Concho Resources is an independent oil and gas company with an interest in the acquisition, exploration and development of natural gas properties. Their resources lie mainly in the Permian Basin of southeast New Mexico and west Texas. The Permian Basin is the largest onshore oil and gas basin in the United States.

For more shale updates, visit: http://blackberrystocks.blogspot.com

For more stock updates, visit: http://daytradingstockblog.blogspot.com

Anadarko Petroleum (APC): Avalon Shale update

By Andrea: http://oilshalegas.com

Anadarko Petroleum Corp. (APC) is currently testing Avalon shale to see if the formation is profitable: Robert Daniels, Senior VP states: "On the Avalon, what we've done so far is in the Bone Spring itself. And we have looked at the Avalon which does seem to have some characteristics that would make it attractive to test. And so we do have some plans to go out and test the Avalon shale and see what sort of producibility it may have, what kind of recoveries we would get, what type of hydrocarbon. We do plan to drill two wells in there right now. We have 170,000 acres out in the West Texas area that would be prospective for the Bone Spring and Avalon Shale. So we would be testing it and see what we get out of it."

For more shale updates, visit: http://blackberrystocks.blogspot.com

For more stock updates, visit: http://daytradingstockblog.blogspot.com

Devon Energy Corp. (DVN): Permian Basin Update

By Andrea: http://oilshalegas.com

Devon Energy Corp. (DVN) announce in their 2010 2Q earnings call that they have been actively acquiring acreage in the Permian Basin. In their Wolfberry light oil play in West Texas, they added 58,000 net acres since the beginning of 2010 and they now have 200,000 prospective net acres in play. They have four operated rigs running and they drilled 26 wells during the 2nd quarter. The 2nd quarter activity included their best well to date, known as the Helen Crump B. They well provides over 500 barrels of oil equivalent per day.

For more shale updates, visit: http://blackberrystocks.blogspot.com

For more stock updates, visit: http://daytradingstockblog.blogspot.com