Diamondback Energy (Nasdaq:FANG) completed its initial public offering and raised net proceeds of $204.5 million. The company is working on the Wolfberry play (Wolfcamp, Cline, Clearfork, Spraberry, Strawn and Atoka formations) in the Permian Basin.
Diamondback Energy’s Permian Basin assets include:
- Proved reserves of 39.46 million barrels of oil equivalent (BOE)
- PDP reserves – 21.7% of proved reserves
- PUD reserves – 78.3% of proved reserves based on 329 gross well locations and assuming 40 acre spacing
- Proved reserves - 66% crude oil, 20% natural gas liquids and 14% natural gas
- Vertical drilling locations – 916 potential based on 40 acre spacing and 1,122 potential based on 20 acre spacing
- PUD estimated ultimate recoveries (EUR) - 135 million BOE, with 93 million barrels of oil, 102 million cubic feet of natural gas and 25,000 barrels of natural gas liquids
- Q2 2012 production – 3,637 BOE per day – (2,579 barrel of oil, 2.757 million cubic feet per day of natural gas and 599 barrels of natural gas liquids per day.
2012 Drilling Program
Diamondback Energy’s 2012 drilling program in the Permian Basin includes 48 gross, or 42 net vertical wells and two net horizontal wells into the Wolfberry play. The company estimates capital expenditures at $150 million to $160 million during the year.