Permian Basin

Total natural gas and oil production from the nation’s seven largest unconventional plays will continue to decline at least through next month, the Energy Information Administration (EIA) said.

Permian Basin-focused Callon Petroleum Co. said it will drop one of its two drilling rigs during the first quarter of 2016 and will cut operational capital expenditures (capex) for the year in half, but the independent exploration and production (E&P) company plans to increase production and be cash flow neutral by the middle of the year.

Anadarko Petroleum Corp. is reducing its capital spending plans by almost half this year, but volumes still could be up to 4% higher, led in the United States by conventional production in the deepwater Gulf of Mexico and continued strength from the Wattenberg field in Colorado and Permian Basin, despite lower planned activity.

Drillers took heed of recent industry comment that the U.S. rig count has further to fall. The latest Baker Hughes Inc. count shows the withdrawal of 17 land-based rigs and one offshore rig from service (12 oil and six natural gas).

Sixteen land-based rigs left the U.S. pack, according to the latest tally by Baker Hughes Inc., offset by a gain of three offshore rigs to yield a net decline of 13 U.S. rigs.

Recently formed Austin, TX-based Luxe Energy LLC has acquired undeveloped acreage and producing oil/gas properties in Reeves and Ward Counties, TX, from Endeavor Energy Resources LP and Finley Resources Inc. in separate deals. The acquisitions are Luxe’s first in the Delaware.

Concho Resources Inc. said a trio of separate deals — a purchase, a swap and a sale — will help bolster its position in the southern Delaware Basin and reduce its net debt, all without impacting its capital budget or production outlook for 2016.

BHP Billiton Ltd., one of the largest foreign investors in the U.S. onshore, said Friday it would take a $7.2 billion pre-tax impairment charge against the carrying value of its unconventional leaseholds in the Permian Basin and Eagle Ford, Haynesville and Fayetteville shales.

Times may be tough all around, but Houston is home to a new onshore exploration and production company, one that initially plans to look for opportunities in the Eagle Ford Shale and Permian Basin, the CEO said Thursday.