The Permian Basin | June 2021
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- 224
Total Rigs in United States- 479
Total U.S. Rigs up 86% YTD
Permian Top Producers
Top Gas Producer – OXY
Top Oil Producer – OXY
Permian Permitting Data
Permits Approved – 646
Northern Oil and Gas Boosts Permian Position with Delaware Acquisitions
Northern Oil and Gas, Inc. announced today that it has signed three definitive agreements for the purchase of non-operated interests totaling approximately 2,900 net acres in Reeves County, Texas, and Lea and Eddy Counties, New Mexico, for a total purchase price of $102.2 million. May 2021 production on the assets was approximately 2,200 Boe per day and Northern expects their efforts to boost average production to 3,700 Boe per day in the second half of 2021. Northern estimates approximately $35 million of capital expenditures on the combined properties to be incurred in 2021.
Colgate Purchases $508 Million Worth of Acreage from Occidental
Occidental Petroleum Corp said in early June that it would sell some of its Permian basin assets to a subsidiary of private equity-backed Colgate Energy Partners III LLC for $508 million. After the pandemic slashed fuel consumption, the oil producer cut jobs, production, and asset value, putting more strain on a firm that had taken on huge debt to buy Anadarko Petroleum for $38 billion in 2019. According to a regulatory filing, the company’s long-term net debt was $35.47 billion as of March 31, and it aims to sell between $2 billion and $3 billion in properties this year to pay down the debt. The transaction with Colgate Energy spans about 25,000 net acres in Texas’ Southern Delaware Basin, with around 360 active wells producing about 10,000 barrels of oil equivalent per day (boepd).
Callon Selling a Slew of Assets
Callon Petroleum Operating Company is selling Midland Basin properties in order to generate cash. This includes tier 1 assets over 1150 acres with excellent production as per the 18 horizontal wells already on site. The projected 12 month PDP cash flow is $11.1 million. 32 quantified horizontal locations are already in place targeting the Spraberry and Wolfcamp formations.
Operators with Highest Permitting
Top Gas Producers (2020 cum)——————————–Top Oil Producers (2020 cum)
|Rank||Company||YTD Production (mscf) (as of 5/21)||Rank||Company||YTD Production (mbbls) (as of 5/21)|
Counties with Highest Permitting (March)
Texas Oil Production
Texas Gas Production
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