Archive for the ‘Permian Basin’ Category

Lucid Energy Group LLC, Dallas, has reported the startup of the Red Hills II cryogenic natural gas processing plant in Lea County, NM.

The US drilling rebound that extends back almost a year has surpassed another benchmark, rising above 900 in its 18th straight week of gains.

An area of mutual interest encompassing 1,100 sq miles of the Delaware
basin will be imaged this year by the Coyanosa Survey, a joint venture
of FairfieldNodal and Schlumberger Ltd.

Crude oil production from the seven major US onshore producing
regions is forecast to rise 122,000 b/d month-over-month in June to
average 5.401 million b/d, according to the US Energy Information
Administration’s latest Drilling Productivity Report. All but 15,000 b/d of the increase is expected to come from the Permian and Eagle Ford.

The US drilling rig count during the week ended May 12 recorded its 17th consecutive increase, bolstered again by rigs targeting oil, drilling horizontally, and stationed on the Permian basin.

Exploration and production firms that acquired Permian basin acreage
in the land grab of 2016 are now faced with maintaining premium
valuations while meeting high-growth expectations in a rising cost
environment, according to research by IHS Markit.

The US Energy Information Administration says recent pipeline additions and expansions should be sufficient to accommodate expected increases in Permian basin crude oil production. It also stated that the combination of new pipeline systems and the December 2015 lifting of export restrictions on US-produced crude will give Permian oil greater access to international markets through the Gulf Coast’s crude oil export infrastructure.

The rig counts for the US and its largest drilling and production
region each gained 7 units during the week ended May 5, according to
data from Baker Hughes Inc.

Centennial Resource Development Inc.
has agreed to buy 11,860 net acres in Lea County of southern New
Mexico, directly north of the Red Hills area, from fellow Denver firm GMT Exploration Co. for $350 million in cash.

The US tally of active drilling rigs increased by 13 to 870 during the week ended Apr. 28, marking the 12th double-digit rise during 15 straight weeks of gains, according to Baker Hughes Inc. data.