Permian Oil and Gas

Quicksilver Resources Reports On Price Ranch #1 Well In Permian Basin

Quicksilver Resources (KWK) issued an update on the company’s Permian Basin development program, where it has 105,000 net acres of leasehold.

Quicksilver Resources recompleted the Price Ranch #1 well in Pecos County, Texas, into the Bone Springs with a 1,500 foot lateral and six hydraulic fracturing stages. The well produced at an initial rate of 300 barrels of oil equivalent (BOE) per day with an 80% crude oil composition.  The ten day production rate on the Price Ranch #1 well was 200 BOE per day.

Quicksilver Resources plans to drill and complete future Permian Basin wells with laterals from 6,000 to 7,500 feet and a minimum of 20 hydraulic fracturing stages. The company’s acreage is located across the Midland and Delaware sub basins in West Texas and is prospective for the Bone Springs and Wolfcamp plays.

Range Resources Updates Cline Shale Development Activity

Range Resources (RRC) released an update on the company’s operations in Texas where it is developing the Cline Shale in the Permian Basin. The company has 100,000 net acres exposed to this play.

Range Resources said that the company’s first horizontal well into the Cline Shale is “very encouraging” and the company has drilled a second test well. The well had an initial production rate of 600 barrels of oil equivalent (BOE) per day.

Range Resources estimates that this Cline Shale well has an estimated ultimate recovery (EUR) of 340,000 BOE. This is composed of 210,000 barrels of crude oil, 71,000 barrels of natural gas liquids and 353 million cubic feet of natural gas.  

Range Resources estimates that once the company ramps up development here, wells with a 3,000 foot lateral will cost $4.3 million to drill and complete.  These wells will earn a 41% rate of return and have a net present value of $3.4 million per well.

Whiting Petroleum Completes Bone Spring Wells In Permian Basin

Whiting Petroleum (WLL) has an active development program in the Permian Basin and disclosed an update on recent operations here.  The company is working on the Wolfbone play on its properties, which include the Brushy Canyon, Bone Spring, and Wolfcamp zones.

Whiting Petroleum is active in the Big Tex area and has drilled and completed the Bissett 9701H well into the Bone Spring formation.  The Bissett 9701H was drilled with a 3,645 foot lateral and eighteen hydraulic fracturing stages, and produced an average of 336 barrels of oil equivalent (BOE) per day during the first thirty days.

Whiting Petroleum has also completed fracturing operations on the Chilton 5601H drilled into the Bone Spring and the Lizzy 402H well drilled into the Brushy Canyon formation.  The company is waiting for results on these two wells.