Dallas independent Pioneer Natural Resources Co. said its fourth well in the Permian Basin formation has tested at a 24-hour initial production (IP) rate of 3,605 boe/d, the highest for any interval in the Spraberry/Wolfcamp to date.

The Wolfcamp D interval well, with oil content of 74%, is in the Permian's Midland Basin in West Texas. University 7-43 10H is Pioneer's first horizontal in Andrews County. The well was completed using a 31-state hybrid fracture stimulation over a perforated lateral length of 7,382 feet.

Pioneer's third horizontal in the Wolfcamp B interval, E.T. O'Daniel No. 1H, had a 24-hour IP of 2,801 boe/d, 75% oil weighted, using a 39-stage hydrid fracture stimulation over a lateral length of 9,229 feet. The well also represented the highest IP rate for a Wolfcamp B interval well, according to the producer.

"These strong well results from our horizontal Spraberry/Wolfcamp Shale drilling program further demonstrate the substantial oil resource potential across Pioneer's northern Spraberry/Wolfcamp acreage and our southern Wolfcamp joint venture area in the Midland Basin," said CEO Scott D. Sheffield. "These areas, which cover approximately 900,000 gross acres, hold an estimated net resource potential for the company of more than 4.6 billion boe."

The E.T. O'Daniel extended the productivity of the formation about 60 miles west of recent industry drilling activity in the play, said Sheffield.

The IP rates indicate estimated ultimate recoveries for horizontals in the Wolfcamp B "will exceed 800,000 boe."

Pioneer has 16 horizontal wells on production across its northern acreage, 10 Wolfcamp Shale interval wells and six Spraberry wells in Midland, Martin, Andrews and Upton counties.

Of the six Spraberry wells, four were placed on production in late October/early November and "are currently flowing back fracture stimulation water and have therefore not yet achieved 24-hour peak initial production rates," Pioneer noted. "Since the Spraberry... interval wells are at shallower depths than the Wolfcamp...interval wells, these wells can flow back fracture stimulation water for 30 days to 60 days before achieving initial peak production rates due to lower subsurface pressures."

Also placed on production were the first three horizontal Wolfcamp B intervals on University Lands Block 2 in Reagan County in the southern Wolfcamp area. University 2-20 No. 12 had a 24-hour peak IP rate of 3,176 boe/d, with an oil content of 83%. The well was completed utilizing a 32-stage hybrid fracture over a perforated lateral length of 9,542 feet.

The University 2-20 No. 14 had an IP rate of 1,852 boe/d, 77% oil, that was completed with 33 stages over a lateral length of 9,842 feet. University 2-32 No. 15 produced initially at 1,864 boe/d, with an oil content of 79%, using 23-stage slickwater fracture stimulation over a lateral length of 6,842 feet.

Motley Fool analyst Matt DiLallo said Wednesday Pioneer "has a true Texas oil gusher on its hands" in the Wolfcamp D interval.

"What's really exciting for other producers in the play is that this Pioneer well wasn't just an outlier," DiLallo said. "The company also announced that it placed a well drilled into the Wolfcamp B interval into production, which was also a gusher...Clearly, Pioneer Natural Resources has something special in the Permian Basin."