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Companies Drilling in the Wolfcamp
Shale -
Wolfcamp Shale Stocks ( Wolfberry Trend )
Chesapeake Energy CHK - Permian Basin Unconventional Liquids Plays (West Texas and southern New Mexico): Chesapeake
has built a strong position of approximately 290,000 net acres of leasehold in four Permian Basin unconventional liquids plays:
the Avalon Shale, Bone Spring, Wolfcamp and Spraberry in West Texas and in southern New Mexico. The company has drilled
and completed 100 gross wells to date in these four plays. Chesapeake anticipates operating an average of approximately
five rigs in its Permian Basin unconventional liquids plays in 2010 to drill approximately 60 net wells. In 2011 and
2012, the company plans to increase its operated rig count as it continues its transition away from natural gas drilling to
more liquids-rich drilling.
EOG Resources EOG - EOG Resources (EOG) Wolfcamp Shale - In the Permian Basin Wolfcamp in Texas,
EOG has been operating a two-rig program and plans to ramp up drilling activity early in 2012. Recent efforts have focused
on completion techniques that increase reserves per well and improve cost efficiencies. In Irion
and Crockett Counties, the University 40 #1306H, 40 #1308H and 40 #1504H were completed to
sales with initial maximum production rates of 1,426, 1,293 and 1,338 Bopd with 0.9, 1.0 and 1.2 MMcfd of rich natural gas,
respectively. EOG has 94 percent, 88 percent and 89 percent working interest in these wells, respectively. In Irion
County, EOG has 88 percent working interest in the Mayer #5002H, which was turned to sales at 686 Bopd with 1.3 MMcfd
of rich natural gas.
ConocoPhillips COP - ConocoPhillips (COP) announced they have started an acreage position in the Wolfcamp Shale - In this quarter, we added 33,000 acres in the emerging Wolfcamp shale
play in the Midland Basin
PetroHawk Energy (HK) - Petrohawk Energy (HK) Expands to the Wolfcamp Shale - Petrohawk began building an acreage position
in the Permian Basin in the second half of 2010, and has now acquired or has committed to acquire approximately 325,000 net
acres at an average cost of approximately $1,400/acre with over 90% expected to be operated.
The Company's core position includes acreage in the Midland Basin, where the primary target is the Lower Wolfcamp, and acreage
in the Delaware Basin, where the primary targets are the Lower Wolfcamp Shale, Bone Springs
Sands and Avalon Shale. Petrohawk will allocate approximately $75 million
of drilling and completion capital to drill on its Permian Basin acreage during 2011. The Company plans to run four rigs in
the Basin with 15 wells scheduled to be drilled. Capital spending in this area is scheduled to gradually increase throughout
2012 and beyond with most lease terms providing for a four to five year development window. Hawk Field Services LLC, the Company's
midstream subsidiary, is in the planning stages to address infrastructure issues and opportunities for both Petrohawk and
third-parties. In the Midland Basin, Petrohawk plans to target oil with associated natural gas
in the Wolfcamp Shale at a vertical depth of approximately 8,000 feet. The Company projects that horizontal wells will have
laterals in excess of 5,000 feet at an estimated cost of approximately $7.0 million per well.
Petrohawk's acreage position is concentrated in two primary areas. In the southern portion of the basin, Petrohawk's position
has been moderately de-risked with multiple successful horizontal wells reported by other operators. The Company's position
in the northern end of the basin is largely untested, but the Company's geological evaluation indicates encouraging petrophysical
characteristics in the Wolfcamp Shale that are believed to be comparable in reservoir quality and reserve potential to the
southern end of the basin. The Delaware Basin holds three objectives
- the Avalon Shale, Bone Springs Sands and the Wolfcamp Shale, in a gross interval of approximately 3,000 feet. These targets
are found at a vertical depth of between 5,000 and 12,000 feet across the basin. The Company expects a product mix of primarily
condensate and natural gas with significant NGL yield. Horizontal wells are forecasted to cost between $6.5
and $8.0 million.
Pioneer Natural Resources PXD - Pioneer Natural Resources PXD Wolfcamp Shale. “We recently completed our second successful
horizontal well in the Wolfcamp Shale in Upton County, Texas. This well is performing similarly to the first well we announced
in 2011, with a 24-hour initial production rate of 807 barrels oil equivalent per day (BOEPD) and a peak 30-day average natural
flow rate of 677 BOEPD. The first well continues to flow naturally and produced 45 thousand barrels oil equivalent (MBOE)
over its first 90 days of production, which is seven times the production from a Spraberry vertical well over the same time
period. These results, which are above our expectations, coupled with the strong production from other industry players drilling
horizontal wells in this interval and Pioneer’s extensive geologic interpretation of the area, suggest significant horizontal
Wolfcamp Shale potential exists within Pioneer’s acreage. We are the largest acreage holder in the Wolfcamp Shale play
with more than 400,000 prospective acres. Our current focus is on 200,000 acres in the southern part of the field where we
plan to drill 30 to 35 wells by year end.”
Devon Energy DVN - Devon Energy (DVN) provides a Wolfcamp Shale Update - 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.
Linn Energy LINE - LINN Energy operates approximately 800 wells and produces more than 5,100 barrels of oil equivalent per day in the Permian
Basin. The Company currently has two active rigs in the Permian Basin Wolfberry trend, where it expects to increase to three
active rigs and drill or participate in 50 wells during the second half of the year. LINN has identified 165 Wolfberry drilling
locations, which equates to a three-year inventory at current spacing. Results in this area to date have exceeded expectations
from our acquisition model, and the Company will continue to target this area for additional acquisition opportunities.
SandRidge Energy SD - Permian Basin - SandRidge currently operates 17 rigs in the Permian Basin. Sixteen rigs are operating on the Central
Basin Platform drilling primarily San Andreas and Clear Fork vertical wells at depths from 4,500 feet to 7,500 feet. One rig
is active in the Wolfberry play in the Midland Basin. SandRidge currently controls about 332,000 gross acres and 243,000 net
acres in the Permian Basin. The company has identified approximately 8,100 low risk drilling locations (net of approximately
700 potential planned divesture locations) and will drill approximately 518 wells in 2010 and 804 wells are planned for 2011.
Through acquisitions and an active drilling program, SandRidge's Permian Basin production has grown from 20.45 MMcfe per day
in the third quarter of 2009 to 141.31 MMcfe per day in the third quarter of 2010. Approximately 64% of SandRidge's Permian
Basin production is crude oil, 15% is natural gas liquids and 21% is natural gas.
The company plans to sell certain non-core oil
assets in the Permian Basin. Assets currently being marketed include Wolfberry and Bone Spring packages. The Wolfberry package
includes approximately 1,700 Boe per day of production and 19,000 acres. The Bone Spring package includes approximately 43,000
net acres for the potential development of the Avalon Shale and Bone Spring reservoirs. There is no production or proved reserves
associated with the Bone Spring acreage. Other Permian assets that may be considered for divestiture in 2011 include non-core
producing properties in Lea and Eddy Counties, New Mexico. Combined production associated
with all assets under consideration for divestiture in 2011 is approximately 1 MMBoe. Production from these properties has
not been included in the company's 2011 guidance. Proceeds realized from these transactions will be used to fund a portion
of the company's planned capital expenditures in 2011. Additionally, while the company intends to operate 10 rigs in the Mississippian
horizontal oil play in 2011, it may monetize a portion of its acreage in the Mid-Continent region through one or more strategic
transactions.
Cimarex Energy XEC - Cimarex Energy (XEC) Wolfcamp Shale Oil Field - 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.
Whiting Petroleum (WLL) - Whiting Petroleum (WLL) Wolfcamp Shale Update 2011 - Big Tex Prospect. As of April
15, 2011, Whiting had accumulated 111,665 gross (83,303 net) acres in our Big Tex prospect area in Pecos, Reeves and Ward
Counties, Texas in the Delaware Basin. We are also continuing to acquire acreage in this area. Our average acreage cost to
date is $516 per net acre, and we have an average working interest of 75% and an average net revenue interest of 56%. We have
completed 10 vertical wells over the past nine months in the southern portion of the Delaware basin. Prospective formations
include the Wolfcamp and Bone Spring horizons. Our first vertical well in this area, the Trainer Trust 16-2, had a peak
flow rate of 816 BOE per day and continued to flow for six months, producing over 45,000 barrels of oil during its first six
months of production. The well produced at a restricted rate for 45 days during that period. Subsequently, nine vertical wells
have been completed with average initial production rates of 283 BOE per day. We have four drilling rigs in Big Tex and recently
kicked off a four-well horizontal drilling program. We consider this play to be in an early stage. Further drilling is subject
to evaluation of our drilling and completion results.
Approach Resources (AREX) - Approach Resources (AREX) Wolfcamp Shale - Horizontal Wolfcamp Oil Shale Program During third quarter 2011,
we completed three horizontal Wolfcamp wells. All three horizontal wells were completed with 23 fracture stimulation stages.
The table below summarizes the 24-hour initial producing rates for these wells. Two horizontal Wolfcamp wells
are waiting on completion, the University 42B #1001H well (7,769 feet lateral) and the University 45E #1101H well (7,712 feet
lateral). We plan to complete both wells in November 2011. The University 42B #1001H well is the Company's first well testing
a deeper zone, the Wolfcamp "C" zone, within the Wolfcamp formation. Our prior horizontal Wolfcamp wells tested
the Wolfcamp "B" and "A" zones. We currently are drilling the University 45F #2301H well. We plan
to drill this well to a lateral length of approximately 7,700 feet.
Apache (APA) - Apache (APA) Wolfcamp Formation - 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.
Forest Oil (FST) - Forest Oil (FST) Wolfcamp Shale Update - Crockett County, Texas - Wolfcamp Shale Oil Play
The Company's New Ventures group has accumulated 58,000 gross (51,000 net) contiguous acres, primarily comprised of two
leases, in the Permian Basin prospective for the Wolfcamp Shale oil play. Although the play is still in the early stages,
Forest believes the area is prospective not only for the Wolfcamp Shale but also for other conventional targets. As
this is a new play, Forest intends to perform the necessary "science" work, including extensive coring of vertical
pilot wells and employing micro-seismic technology to identify the most effective way to complete the horizontal wells. Forest
drilled its first vertical and horizontal well pair in the third quarter and is currently completing the horizontal well while
utilizing micro-seismic through the vertical well. Forest has commenced the second vertical and horizontal well pair in a
different area of its acreage position and intends to continue testing this acreage during the remainder of the year and into
2012 by drilling and completing a total of six wells.
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