Month: November 2013

Devon Energy Corp . has reached a definitive agreement to purchase Eagle Ford assets from Woodlands, Tex.-based independent GeoSouthern Energy for $6 billion in cash. The transaction is expected to close in first-quarter 2014. Current production in the assets consists of 53,000 boe/d and 82,000 net acres including at least 1,200 undrilled locations. The risked recoverable resource is estimated at 400 million boe, with the majority as proved reserves. The acreage is in the largely contiguous Lavaca and DeWitt counties in Texas, the latter of which holds acreage that’s largely derisked. Oklahoma City-based Devon stated the acreage position demonstrates the highest average initial production rates in the entire play, as average estimated ultimate recoveries in DeWitt County are more than 800,000 boe/well. Devon said it expects the assets to grow at a compound growth rate of 25%/year over the next several years, reaching a peak production rate of 140,000 […]

Click here to view full article at www.ogj.com

One of Texas’ oldest oil fields, in decline for decades, has become one of the hottest places in the country to drill for crude, as energy companies create clusters of wells with layers of horizontal branches. The Permian Basin—86,000 square miles centered on Midland, Texas—has been pumping oil since the 1920s, though production peaked at about 2 million barrels a day in the early 1970s. For decades, geologists have known that oil could be found in different layers of rock piled up like a stack of geologic pancakes. But now drillers are starting to tap those layers simultaneously from a single site—and are committing billions of dollars to do so. …]

Click here to view full article at online.wsj.com

One of Texas’ oldest oil fields, in decline for decades, has become one of the hottest places in the country to drill for crude, as energy companies create clusters of wells with layers of horizontal branches. The Permian Basin—86,000 square miles centered on Midland, Texas—has been pumping oil since the 1920s, though production peaked at about 2 million barrels a day in the early 1970s. For decades, geologists have known that oil could be found in different layers of rock piled up like a stack of geologic pancakes. But now drillers are starting to tap those layers simultaneously from a single site—and are committing billions of dollars to do so. …]

Click here to view full article at online.wsj.com