Energen pursuing Permian basin liquids plays

By OGJ editors

Energen Resources Corp., Birmingham, Ala., said it replaced its 2011 production and added 20% to its proved reserves for a yearend total of 343 million bbl of oil equivalent.

About 45 million boe of additions came from proving up probable and possible reserves mainly in the Permian basin, where 54% of the company’s proved reserves now reside. More than half of the company’s yearend proved reserves are liquids.

Energen made good progress in the vertical Wolfberry play in the Midland subbasin of the Permian basin and is seeing good results from its more recent Third Bone Spring wells that have been drilled on the east side of the Pecos River.

Avalon shale potential remains unclear, and Energen likely will redirect planned Avalon capital to the deeper Wolfcamp shale formation in 2012; the Wolfcamp is thought to have a higher mix of oil to gas, and its production will hold the shallower Avalon shale.

Energen drilled 153 net Wolfberry wells in 2011 and completed another 22 spudded in 2010. Of these 175 wells, 122 are producing and 53 are waiting on completion. Initial stabilized rates from the 39 wells brought on line in the fourth quarter averaged 65 b/d of oil and 150 Mcfd of wet gas. Energen’s risked model initial stabilized rate is 55 b/d and 110 Mcfd.

Energen has 32,000 net undeveloped acres in the Wolfberry play and some 800 potential drilling locations based on 40-acre spacing. The company’s estimated cost to drill and complete a Wolfberry well in 2012 is $2.3 million.

Meanwhile, Energen drilled and completed 18 net Third Bone Spring wells in 2011 and completed 2 wells spudded in 2010; another 5 are drilling, waiting on completion, or testing.

The seven wells brought on line in the fourth quarter had an initial stabilized rate of 485 b/d of oil and 1,085 Mcfd of wet gas. The initial stabilized rate of all 20 net wells brought on line in 2011 averaged 400 b/d and 1,035 Mcfd. The initial stabilized rate in Energen’s risked, weighted average Third Bone Spring model is 260 b/d and 735 Mcfd.

The majority of 12 wells drilled on the west side of the Pecos River have underperformed relative to wells drilled on the east side. In general, the western wells have encountered higher amounts of water, and efforts to optimize production from nine wells that have had steeper-than-expected declines have been hampered by limited infrastructure. With water disposal wells drilled late in 2011, Energen has lately been able to install pumps on three of the west-side wells and continues to work to improve production.

Energen has 68,000 net undeveloped acres prospective for the Third Bone Spring sands and 210 potential drilling locations based on 320-acre spacing. The company’s estimated cost to drill and complete a Third Bone Spring well in 2012 is $7.5 million.

Energen’s Avalon shale test well in Loving County had an initial stabilized rate of 200 b/d of oil and 750 Mcfd of wet gas. The rate has declined to 75 b/d and 750 Mcfd. The well’s completion design utilized smaller fracs in an effort to reduce produced water and maximize hydrocarbon production; instead, hydrocarbon production may actually have been hampered by the use of smaller fracs, the company said.

Energen has 110,000 net undeveloped acres are prospective for Avalon shale and 340 potential drilling locations based on 320-acre spacing.

Related Articles

BHI: US rig count forced down by large losses in Texas

12/12/2014 Forced down by large losses in Texas and specifically the Permian basin, the US drilling rig count plummeted 27 units to settle at 1,893 rigs worki...

More West Texas gathering, processing to come onstream

12/09/2014 EagleClaw Midstream Services LLC, Midland, Tex., has bought natural gas gathering and processing in Reeves County, Tex. The company declined to ide...

ConocoPhillips slashes 2015 capital budget

12/08/2014 ConocoPhillips has elected to reduce its 2015 capital budget to $13.5 billion, down 20% compared with this year’s budget. The news comes on the hee...

Plains All American to expand Cactus pipeline takeaway capacity

11/25/2014 Plains All American Pipeline LP (PAA) plans to provide additional pumps to increase the takeaway capacity of the Cactus pipeline in response to hig...

Encana completes acquisition of Athlon Energy

11/13/2014 Encana Corp. now holds a premier 140,000 net acre spread in the oil-rich Permian basin after successfully acquiring Fort Worth-based Athlon Energy ...

BHI: US rig count down slightly during October, past week

11/07/2014

The US drilling rig count dropped 4 units to settle at 1,925 rigs working during the week ended Nov. 7, Baker Hughes Inc. reported.

PAA to buy BridgeTex interest from Oxy in $1.075 billion deal

11/06/2014 Plains All American Pipeline LP (PAA) and Plains GP Holdings LP have signed an agreement with Occidental Petroleum Corp. to purchase Oxy’s 50% inte...

Lone Star begins construction on third Mont Belvieu frac unit

11/06/2014 Lone Star NGL LLC, a joint venture of Energy Transfer Partners LP (70%) and Regency Energy Partners LP (30%), both of Dallas, has begun constructio...

PNR, Reliance seek divestment of Eagle Ford midstream business

11/04/2014 Pioneer Natural Resources Co. (PNR), Dallas, and Reliance Holding USA Inc. are pursuing the divestment of their Eagle Ford shale (EFS) Midstream bu...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected