Topic: Drilled Uncompleted Wells

Parsley Energy Grows Drilling Inventory 73% with Permian Acquisition

Parsley Energy (NYSE: PE) announced in its Q1’17 earnings call that it had closed the acquisition of about 71,000 acres and associated assets in the Permian Basin from Double Eagle Energy Permian LLC. The acquisition — which spans Dawson, Andrews, Martin, Howard, Midland, Glasscock, Upton, and Reagan Counties — increases Parsley’s total leasehold in the Permian to about 230,000 net acres and grows its net drilling inventory (in terms of locations in priority target zones) by 73 percent:Source: Parsley Energy...

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Continental Resources Waits for Sustained $45 bbl Oil Prices to Complete DUCs

Continental Resources (NYSE: CLR) is nearing cash flow neutrality and hopefully the end of the year will bring improved oil prices to lift them into the green. Continental has spent $630 million of the company’s $920 million budget in the first half of the year leaving only 32% of the budget for the second half of year so expect the company to have lower activity in the fourth quarter. Largest DUC Inventory in the Bakken Continental has had very minimal activity in...

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Energen Prepares for 2017 Increasing Budget by Over $100 Million

Energen Corporation (NYSE: EGN) is a pure play operator in the Permian Basin that recently increased its budget to drill more wells this year to grow its inventory of DUCs. The company increased its budget by $100 to $150 million which is expected to be spent in the second half of the year on building the inventory of DUCs. This brings Energen’s total capex in 2016 to $350 to $400 million with $250 to $300 for the Midland Basin and...

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Noble Energy Increases Production with Less Capital

Noble Energy (NYSE: NBL) continued to show discipline in the first quarter of 2016 coming in under the low end of their CAPEX guidance of $400 to $500 million at $374 million for the quarter. Cost cutting efforts have helped the company grow production while spending less. Noble exceeded the company’s production guidance at 416,000 Boe/d for the first quarter.IP-Rates Increase by 30% in the DJ-Niobrara First quarter production in the DJ basin totaled 118,000 Boe/d which has been attributed to...

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Exploring the 885 DUCs in North Dakota

What do you mean DUCs? When our clients talk about DUCs, there is a discussion about what exactly constitutes a drilled but uncompleted well. Is it drilled and cased? What is the typical timeframe of a DUC? When is the well considered temporarily abandoned? If it finished drilling last week, should that be included in the DUC count? What was the typical DUC count prior to the downturn? These questions set the table for how the company views how DUCs impact...

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Devon Energy Actively Manages $976M in Debt and Continues Refrac Program

Devon Energy (NYSE: DVN) cut their budget by 75%, forecasting a 10% decline in oil production on a quarter to quarter basis from 2015 to 2016. Devon continues to manage their debt by putting assets up for sale and raising equity to cover the $976 million in debt they have in 2016. Committed to the Stack in 2016 In 2016 Devon will be running 4 rigs in the Stack with a focus in Meramec. The company is testing down spacing and staggering to...

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Duc…Duc…Goose: Looking at North Dakota’s Uncompleted Wells and Oil Being Sold Close to $0

Earlier this week Bloomberg reported that low quality crude or sour crude is being sold for next to nothing due to lower pipeline capacity for lower quality products. The low quality crude makes up a small part of Bakken production in which some pipelines are no longer transporting. The producers of the low quality crude are being forced to use higher cost transportation methods like trucks or trains to get their products to the refineries that have the capability to...

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CLR enhanced completions

Contintental Resources Stays the Course in Bakken & SCOOP

Like many other Bakken E&P's, Continental Resources (NYSE: CLR) activity slowed in the second half of 2015.The company will continue to invest in Bakken and SCOOP, but do not expect Continental's production growth to continue as the company plans to release rigs in Bakken and SCOOP. The chart below shows drilling permits and completions for the Bakken, Continental's key asset. Source: Energent Group Bakken: Enhanced Completions Improve EURCurrent well costs are down 27% to $7 million per well Decrease in drilling daysReduction of...

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