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
Showing posts with label Wolfberry. Show all posts
Showing posts with label Wolfberry. Show all posts
Saturday, November 20, 2010
Monday, October 25, 2010
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
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
Tuesday, September 28, 2010
Callion Petroleum Company: Permian Basin (Wolfberry) Update
By Andrea: http://oilshalegas.com
Callon Petroleum Company (CPE) recently provided an update on its onshore drilling activity in the Permian Basin:
Results in the company's Permian Basin Wolfberry development drilling program are exceeding expectations. As a result, earlier this month the company added a second drilling rig in the play. Ten wells have been drilled to date and the company plans to drill a total of 23 net wells by the end of 2010. Callon's net production has increased from 350 net Boe/d to 500 net Boe/d in September as a result of its development drilling activity. The company expects to exit the year at nearly 1,000 net Boe/d. In addition, Callon has increased its interest in the East Bloxom Development Area, located in Upton County, from an average 47% working interest to 100% working interest through a number of small acquisitions and a farm-ins. As a result, Callon controls the activity in three development areas encompassing 11 sections (6,656 net acres).
Callon currently has an inventory of 330 well locations in the Wolfberry oil play, 154 of which are 40-acre development locations. As operator and with no significant drilling obligations, the company can increase or decrease its pace of development as appropriate
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Callon Petroleum Company (CPE) recently provided an update on its onshore drilling activity in the Permian Basin:
Results in the company's Permian Basin Wolfberry development drilling program are exceeding expectations. As a result, earlier this month the company added a second drilling rig in the play. Ten wells have been drilled to date and the company plans to drill a total of 23 net wells by the end of 2010. Callon's net production has increased from 350 net Boe/d to 500 net Boe/d in September as a result of its development drilling activity. The company expects to exit the year at nearly 1,000 net Boe/d. In addition, Callon has increased its interest in the East Bloxom Development Area, located in Upton County, from an average 47% working interest to 100% working interest through a number of small acquisitions and a farm-ins. As a result, Callon controls the activity in three development areas encompassing 11 sections (6,656 net acres).
Callon currently has an inventory of 330 well locations in the Wolfberry oil play, 154 of which are 40-acre development locations. As operator and with no significant drilling obligations, the company can increase or decrease its pace of development as appropriate
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Monday, August 16, 2010
Eagle Ford Shale Pipeline: Spectra Energy Corp. (SE)
By Andrea: http://oilshalegas.com
Spectra Energy Corp. (SE) announced that in the Eagle Ford shale, DCP is laying additional pipe to connect producers to nearly 250 million cubic feet a day of its existing processing capacity which will be available, beginning in 2011. In the Permian Basin, DCP is restarting and expanding its Roberts Ranch processing facility to provide up to 70 million a day of capacity for the Wolfberry region beginning in September. And they're adding new gathering and processing capacity for Avalon Shale volumes being developed now in southeast New Mexico.
Spectra Energy Corp. (SE) is one of North America’s leading providers of natural gas infrastructure. They were founded in 2007 as a subsidiary of Duke Energy.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Spectra Energy Corp. (SE) announced that in the Eagle Ford shale, DCP is laying additional pipe to connect producers to nearly 250 million cubic feet a day of its existing processing capacity which will be available, beginning in 2011. In the Permian Basin, DCP is restarting and expanding its Roberts Ranch processing facility to provide up to 70 million a day of capacity for the Wolfberry region beginning in September. And they're adding new gathering and processing capacity for Avalon Shale volumes being developed now in southeast New Mexico.
Spectra Energy Corp. (SE) is one of North America’s leading providers of natural gas infrastructure. They were founded in 2007 as a subsidiary of Duke Energy.
For more shale updates, visit: http://blackberrystocks.blogspot.com
For more stock updates, visit: http://daytradingstockblog.blogspot.com
Saturday, August 14, 2010
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
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
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