Permian Oil and Gas

SandRidge Energy Updates Permian Basin Operations For Fourth Quarter Of 2011

SandRidge Energy (SD) issued an operations update for the fourth quarter of 2011and disclosed additional information on the company’s activity in the Permian Basin.  The company has 225,000 net acres under lease.

SandRidge Energy drilled 195 Permian Basin wells in the fourth quarter of 2011, boosting the company’s total well count to 803 for the year.  The company estimates that it has approximately 7,900 drilling locations left on its Permian basin properties, and plans to drill over 750 wells here in 2012.

SandRidge Energy is operating 13 rigs in the Permian Basin and is focusing on the Grayburg/San Andres formation in the Central Basin Platform. These formations are developed vertically and are at depths ranging from 4,500 feet to 7,500 feet.

Energen Discloses Avalon Shale Activity

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.

Energen Reports Update On Wolfberry Development

Energen (EGN) updated investors on the development of the Wolfberry formation on its acreage in the Permian Basin.

Energen is targeting the Wolfberry in the Midland Basin at depths ranging from 7,500 to 10,500 feet.  The company estimates that vertical Wolfberry wells have a gross estimated ultimate recovery (EUR) of 155,000 barrels of oil equivalent (BOE) and cost $2.1 million to drill and complete.

In 2011, Energen has drilled and completed 67 net Wolfberry wells and plans to drill 80 more before the end of the year.  Energen said that the typical Wolfberry well will produce 63% oil, 25% natural gas liquids and 12% natural gas.  The company plans to drill 155 wells in 2012 and 160 wells in 2013.