Sanchez Energy drills on despite delisting
Sanchez Energy was delisted from the New York Stock Exchange last week, but is nonetheless planning to drill nine new horizontal wells in the Eagle Ford Shale of South Texas.
The Houston company, according to applications filed with the Railroad Commission, plans to target the Briscoe Ranch field in the western section of the Eagle Ford to a total depth of 8,400 feet in nine separate horizontal drilling projects split between its Briscoe Fisher Unit and Briscoe Catarina North leases in Dimmit County.
Founded in 2011, Sanchez was the third most prolific driller of the Eagle Ford last year. The company filed for 188 drilling permits last year and produced more than 6.4 million barrels of crude oil and more than 181.9 billion cubic feet of natural gas during the first 10 months of 2018.
Despite those numbers, Sanchez has not made a profit since the third quarter of 2017 amid large interest payments and obligations to preferred stockholders. The company has contracted Chapter 11 bankruptcy advisory firm Moelis & Co. in December to act as a financial adviser.
Midland oil company Colgate Operating is off to a strong start in 2019. The company filed six drilling permit applications for a series of horizontal wells split between two leases in Reeves County. All six projects target the Phantom field of the Wolfcamp geological layer down to a total depth of 11,500 feet.
Founded in 2015 and mostly focused on Reeves County, Colgate filed for 10 drilling permits last year. The company’s 13 leases produced more than 279,000 barrels of crude oil and 1.4 billion cubic feet of natural gas during the first 10 months of 2018.
Eagle Ford Shale
Houston oil company Treadstone Energy Partners continues to focus on the eastern end of the South Texas shale play. The company is seeking permission to drill a horizontal well on its James lease in Milam County. The project targets the Giddings field of the Austin Chalk geological layer down to a total depth of 6,500 feet.
Longview exploration and production company R. Lacy Services Ltd. is seeking permission to build a saltwater disposal well on its Turner SWD lease in Panola County. The injection well targets the Beckville North field of the Pettet geological layer down to a depth of 6,400 feet.
Mexican oil company PetroBal is recompleting a horizontal well on its McClure Hart lease in Palo Pinto County. Previously drilled by Veritas Energy, PetroBal is returning to the well to target the Palo Pinto County Regular field down to a total depth of 5,000 feet.
Houston-based White Oak Energy is preparing to drill a pair of vertical wells in Wharton County. The oil wells planned on the company’s Cockburn H.C. lease near the town of Magnet target the Magnet Wethers field down to a depth of 5,750 feet.