Permian Basin: ‘The Mother Lode’ - Texas Play Heats Up As Industry Looks to Get Back to Work (published Aug. 29, 2016)

Watching the Drama of the Permian Unfold

Move fast or lose it...That's the advice for latecomers looking for a piece of the Permian Basin. Land transactions in Texas and New Mexico are piling up at ever-increasing acreage prices, drilling and production are up and infrastructure is humming along.

Get the whole picture in this 27-page special report compiled for you by NGI's veteran oil and gas reporters and analysts who are watching developments as they unfold.

The Permian was an afterthought as the onshore renaissance took hold in the early 2000s. But recently, E&Ps have returned to their own backyard, armed with newly-honed drilling techniques.

If you're interested, it's best not to delay. There's a pervasive aroma of investment money.

"The Permian is the mother lode. You factor in 4,000 feet of shales with 12 to 14 zones to play with...We'll be drilling that for the next 100, 150 years." -- Scott Sheffield, CEO, Pioneer Natural Resources Inc.

"Two recent big deals in the Delaware were for $29,000 and $35,000/acre. That represents a huge price escalation in a very short period of time." -- Patrick Rau, Director of Strategy and Research, NGI

The Report Includes:

  • Who is making the deals and how much are they paying
  • Companies are continuing to identify the sweet spots
  • Why the price of acreage continues to escalate, even at lower commodity prices
  • Infrastructure: Not a problem in an area long prospected for legacy plays
  • Shorter laterals work here and save on costs
  • Everyone has a plan for adding rigs now and in a higher priced future
  • How improved efficiencies, better drilling techniques are driving up production profiles

Hear What Permian Operators and Experts Have to Say:

The Delaware sub-basin looks like the place to be:

"Really, the Delaware has now caught up to that infrastructure and the returns are good. The cost to drill and complete wells is down, and certainly the monthly recurring lease operating cost is down."
-- Tony Vaughn, COO, Devon Energy Corp.

And Permian oil will be first out of the gate when worldwide demand picks up:

"We're all going to have to monitor the the world for crude oil in general. And if the answer is we're the swing producer, the Permian is the best place to get it..." -- Greg Armstrong, CEO, Plains All American Pipeline LP

Be advised:

"Nearly every Permian equity offering has worked this year, so plan accordingly." -- Coker Palmer Institutional (CPI) analysts

     Dealmaking has been strong before, but it's making a huge comeback in West Texas and southeastern New Mexico,      where the plethora of accessible reservoirs now is dubbed the oil "mother lode" for at least the next century.

     Stagnant commodity prices haven't hindered transactions in any way -- and in fact, trades are being made at record      prices. This report offers insight from those working in the fields -- and also from experts watching on the sidelines.

Referenced in the Report:
Apache, Chevron, Coker Palmer Institutional, Concho Resources, Devon Energy, Diamondback Energy, Encana, Energen, EnLink Midstream, EOG Resources, ExxonMobil/XTO Energy, Laredo Petroleum, Matador Resources,
NGP Natural Resources XI, Occidental Petroleum, Oneok Partners, Parsley Energy,
Pioneer Natural Resources, Plains All-American Pipeline, QEP Resources, Reliance Energy, Resolute Energy, Riverstone Energy, RKI Exploration & Production, Rock Oil Holdings, RSP Permian, SM Energy, Viper Energy Partners, Water Midstream Partners
and WPX Energy

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