Energen Corporation (EGN) released an update on the company’s operations in the Permian Basin, where it is working on various plays including the vertical development of the Wolfberry formation.
Energen has 32,000 net acres that is prospective for the Wolfberry play on its acreage in the Permian Basin. The company drilled 153 net Wolfberry wells in 2011, and completed 22 wells that were drilled in 2010. Energen has 53 net Wolfberry wells waiting on completion.
Energen estimates that it has 800 Wolfberry drilling locations based on 40 acre spacing, with the average cost to drill and complete a Wolfberry well at $2.3 million.
Energen reported that the average initial production rate of 39 producing wells was 65 barrels of oil and 150,000 cubic feet of wet natural gas per day. This was above the company’s modeled rate of 55 barrels of oil and 110,000 cubic feet of wet natural gas per day.