Midland

Permian pure-play Callon Petroleum Co. plans to boost production by more than 20% in 2019, while moving forward with large-scale development projects in the Permian Basin’s Delaware formation.

Permian pure-play Parsley Energy Inc. said it will increase its development activity in a portion of the Midland sub-basin in 2019, as it reaffirmed plans to reduce capital expenditures (capex) and still grow production.

The Permian Basin’s Wolfcamp and Bone Spring formations in the Delaware sub-basin contain an estimated mean of 46.3 billion bbl of oil, 281 Tcf of natural gas and 20 billion bbl of natural gas liquids (NGL) of undiscovered, technically recoverable resources, making it the largest continuous reserves assessment ever, the U.S. Geological Survey (USGS) said.

Dallas-based Wolf Midstream Partners LLC is testing support for a proposed crude oil pipeline to expand takeaway capacity from the Permian Basin in West Texas.

Texas-based independent Earthstone Energy Inc. is gobbling up all of the oil and natural gas assets held in the Permian Basin by privately held Sabalo Holdings LLC, including 20,800 net acres in the Midland sub-basin of West Texas, in a cash-and-stock deal estimated at $950 million.

Oil and natural gas pipeline constraints in the Permian Basin may be the headline story, but operators are playing “whack-a-mole” in the giant play, where once one issue is resolved, another immediately pops up, executives said Wednesday.

Dallas-based Cogent Midstream LLC said Wednesday it plans to expand its natural gas processing capacity in West Texas with an additional 200 MMcf/d refrigerated cryogenic processing plant at the Big Lake Plant in Reagan County.

Medallion Pipeline Co. LLC has long-term commitments in hand to expand six segments of a Permian Basin oil pipeline system that runs through the Midland sub-basin, and is gauging interest in additional capacity because of “compelling interest,” CEO Randy Lentz said.

Cimarex Energy Co. said it plans to increase crude oil production up to 25% year/year (y/y) while Permian pure-player Parsley Energy Inc. has increased its spending plans and year-end production guidance to reflect shorter cycle times not seen since a wave of asset integrations.