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 oil rig count rises for first time in 30 weeks

07/02/2015 A sudden 12-unit jump in oil-directed rigs during the abbreviated week ended July 2 represented their first rise since Dec. 5, 2014, and helped lif...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

BHP, Woodside move to decommission Stybarrow field

07/01/2015 BHP Billiton Ltd. and Woodside Petroleum Ltd. have started preparations for decommissioning of the Stybarrow group of oil fields in production lice...

Tullow Oil provides production update on Jubilee, other fields

07/01/2015 Tullow Oil PLC reported that gross production for the Jubilee field offshore Ghana averaged 105,000 b/d in this year’s first half, up from 102,000 ...

Statoil to suspend Scarabeo 5 drilling rig

07/01/2015 Due to overcapacity in its rig portfolio, Statoil ASA said it has decided to suspend Saipem’s Scarabeo 5 dynamically position drilling rig after it...

FWS issues Shell letter of authorization on Chukchi Sea lease

07/01/2015 The US Fish & Wildlife Service issued Shell Gulf of Mexico Inc. a letter of authorization (LOA) related to the potential disturbance of polar b...

USGS: Water usage for fracturing varies widely across shale plays

07/01/2015 The volume of water required to hydraulically fracture wells varies widely across the country, according to the first national analysis and map of ...

Forum extends study of subsea integrity


Work by an industry forum called SURF IM Network, which studies oil and gas subsea integrity management, has been extended by 3 years.

White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

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