Permian Basin News Pulse August 2021

Posted: September 22, 2021

The Permian Basin | August 2021

Field Overview

Located in West Texas, the Permian Basin has been producing oil for over 100 years. It leads the US in oil production and estimates put 43 billion bbl of oil still in the Permian; 80% of those reserves are believed to be at less than 10,000 feet. Some top formations are the Wolfcamp, Upper/Lower Spraberry, and the Leonard.


State Drilling Statistics (End of 7/9)

Active Drilling Rigs in Basin- 237
Total Rigs in Texas- 229
Total Rigs in United States- 497
Total U.S. Rigs up 94% YTD

Permian Top Producers

Top Gas Producer – Pioneer
Top Oil Producer – Pioneer

Permian Permitting Data
Permits Approved – 478


Basin Highlights

Callon Petroleum to buy Delaware Basin assets from Primexx for $788 mln

Callon Petroleum Co announced that it would purchase assets in the Delaware Basin from Primexx Energy Partners for $788 million, as it seeks to expand its presence in the Permian Basin’s westernmost shale field. Callon will pay Blackstone Group-backed Primexx (BX.N) $440 million in cash and issue approximately 9.2 million shares. “The Primexx acquisition adds Delaware scale at an attractive price,” analysts at brokerage Cowen wrote in a note. Callon shares were down 12% at $33.36, having more than doubled this year despite broader weakness in oil prices.

Article Link

Surge Energy America Announces Bolt-On Acquisition in Howard County

Surge Energy has purchased Apache Corporation’s leasehold interest and wells in Howard County, Texas. The Transaction’s total purchase price at closing was $37.5 million USD. This land includes approximately 4,000 net leasehold acres (100 percent held-by-production) contiguous to an existing leasehold position in Howard County, as well as production of roughly 800 net barrels of oil equivalent per day. Additionally, through expanded lateral lengths and working interests, this transaction adds about 14 net drilling locations.

Article Link

Permian Basin expected to recover from COVID-19 in 2022

According to a report from analytics firm GlobalData, oil and gas production in the Permian was expected to fully recover from the pandemic by next year. According to the report, the Basin was producing approximately 4.6 million barrels per day (bpd) as of Aug. 3 and was expected to exceed 4.9 million bpd by the middle of 2022. That would be more than the 4.8 million bpd produced in February 2020, a month before the COVID-19 health crisis hit the United States.

Article Link


Operators with Highest Permitting

RankCompanyPermits
Approved
1Conocophillips51
2BTA Oil31
3Pioneer27
3Endeavor27
5XTO26
Hyperlinks to available Q2 2021 Reports

Top Gas Producers —————————— —Top Oil Producers

RankCompanyGas Production (mmscf) (6/21)RankCompanyOil Production (6/21)
1Pioneer 239.51Pioneer 89.13
2Conocophillips 224.42OXY 66.36
3OXY 219.63Conocophillips58.01
4EOG 217.44EOG54.38
5XTO 195.25Diamondback50.47
Hyperlinks to available Q2 2021 Reports

Counties with Highest Permitting

RankCompanyPermits
Approved
1Lea92
2Midland71
3Reeves57
4Martin42
4Loving42

Rig Count


Texas Oil Production


Texas Gas Production


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The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
noted:

www.eia.gov
www.drillinginfo.com
www.bhge.com
RARE Petro Analytics

Related Tags: News Pulse | permian | texas

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