Drilling Down: Post-merger Diamondback Energy ready to drill
Midland oil company Diamondback Energy is ready for a round of new drilling projects in the Permian Basin - less than three months after completing a $9.2 billion merger with Alabama oil company Energen.
Diamondback recently filed a 27 drilling permit applications with the Railroad Commission for projects on a dozen leases in Glasscock, Martin and Reeves counties. The company’s 23 drilling projects in Glasscock and Martin counties target the Spraberry geological formation at total depths varying from 9,140 to 11,364 feet. Four drilling projects in Reeves County target the Wolfcamp geological formation at total depths ranging from 11,000 to 12,000 feet.
The company filed for 230 drilling permits in 2018.
The company’s 528 Texas leases produced nearly 22.3 million barrels of crude oil and more than 38.6 billion cubic feet of natural gas during the first 11 months of 2018.
Diamondback closed its merger with Energen in late November. Filing 152 drilling permits in 2018, Energen was ranked at the 15th most active driller in Texas. Combined, the companies are poised to be ranked in fifth place, just behind Exxon Mobil’s drilling arm, XTO Energy.
Midland oil company Concho Resources is preparing for nine drilling projects targeting three geological layers. The company is seeking permission to drill four horizontal wells in Upton County targeting the oil-rich Pegasus field. A horizontal drilling project in Reeves County targets the Wolfbone field. Four horizontal drilling projects in Andrews County target the Spraberry geological layer.
Eagle Ford Shale
Houston oil company Trinity Operating is gearing up for nine horizontal drilling projects in South Texas. The company’s proposed wells all target the Eagleville field at a total depth of 10,000 feet.
Two horizontal drilling permits were filed in the Haynesville Shale,and both went to Houston’s Sabine Oil & Gas. The company is planning to drill two horizontal gas wells targeting the Carthage field down to a total depth of 11,900 feet.
Oklahoma City’s Devon Energy was the only company to file a drilling permit application for a horizontal drilling permit in the Barnett Shale of North Texas. The company’s gas well is targeting Newark East field of the Barnett shale geological layer down to a total depth of 9,000 feet. Meanwhile, the Dallas office of Mexican oil company PetroBal filed seven drilling permit applications for vertical wells on six leases in Jack County.
Dallas oil company Scout Energy Management is preparing to drill two vertical wells east of Amarillo. The company is planning to drill two gas wells on its Burnett lease in Carson County targeting the Panhandle West field down to a total depth of 4,000 feet.