Energen (EGN) updated the investment community on its development of the Avalon Shale on its acreage in the Permian Basin. This formation is present in the Delaware Basin at depths ranging from 8,500 to 9,000 feet.
Energen (EGN) plans horizontal development of the Avalon Shale and estimates that wells here will have a gross estimated ultimate recovery (EUR) of 300,000 to 350,000 barrels of oil equivalent (BOE) and cost $5.5 million to drill and complete. The company plans to drill seven net wells in 2012 and six net wells in 2013.
Energen said that a step out Avalon Shale well in Winkler County produced approximately 100 to 110 barrels of oil and 400,000 to 600,000 cubic feet of natural gas per day during the first 45 days of production. The company hopes to correct completion issues and increase production top make the well more economical. Energen is currently working on two other Avalon Shale wells in Reeves and Loving Counties.