Devon Energy Will Utilize 15 to 20 rigs in 2017 with STACK and Delaware Focus

Devon Energy Will Utilize 15 to 20 rigs in 2017 with STACK and Delaware Focus

Devon Energy (NYSE: DVN) released its preliminary 2017 outlook in December expressed the possibility of getting to 15 to 20 rigs in their drilling program with a focus in the STACK and Delaware basins. Devon will also focus on reducing their drilled but uncompleted count in the Eagle Ford down to about 40 in the first half of the year. The company is forecasting double digit U.S. oil growth with about a third of production hedged in 2017.

Source: Devon Energy IR Presentation

Devon Energy Deploys Rigs Adding Up to 7 In the Delaware

Devon will be adding rigs having only 3 running at the end of 2016 and possibly increasing by 7 in 2017. The majority of 2016 completion activity was focused in Lea and Eddy New Mexico with a few 2 and 3 well pads. Devon strictly used only FTSI and SLB in 2016 for stimulation activity dropping HAL and BHI.

Source: Devon Energy IR Presentation

Devon Tests Above Average Proppant Volumes

Devon Energy continues to be the largest leaseholder in the STACK with 430,000 net surface acres. The Meramec area will be the focal point for 2017 where the company will focus on extended laterals. The company’s drilling and completion cost for a 10,000 foot lateral is around $7.5 to $9 million. Devon continued to use Halliburton in the basin while increasing the use of CUDD and FTSI.

Source: Energent Group

Devon has tested some of the largest proppant volumes seen to date in the US in which they used 52 million pounds of proppant on a lateral of 9,732 feet which is over 5,000 pounds per lateral foot. The well had 51 stages and used 41 million gallons of water.

Drilling Activity Returns to the Powder River Basin

Devon released that drilling activity would return to the Powder River Basin in Campbell and Converse Counties in 2017 targeting Parkman, Teapot and the Turner formations. The company says LOE costs have decreased by about 50% since the start of 2016. During 2016 the company permitted 67 wells in Campbell and Converse counties with 47 of them being on pads with 2 or more wells.

 

Find out how many wells Devon will complete with Energent’s well forecast.

 

 

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