Permian Basin

Panhandle Oil and Gas Inc. is leasing more than 4,000 acres in the Permian Basin in West Texas to an undisclosed lessee for $2 million in cash plus royalties, the company said Monday.

The Railroad Commission of Texas (RRC) reported preliminary October state production of 74.68 million bbl of crude oil and 636.23 Bcf of natural gas (total, from both gas and oil wells).

Anadarko Petroleum Corp. said Thursday onshore oil production is exceeding expectations, particularly from the Permian Basin’s Delaware sub-basin and Wattenberg field, leading it to raise 4Q2015 guidance by as much as 5%.

Earthstone Energy Inc. of The Woodlands, TX, has agreed to acquire Lynden Energy Corp. in an all-stock deal, giving it entry into the Permian Basin. The combined company will also be focused on the Eagle Ford and Bakken shales.

Encana Corp. is being judicious with its capital spending in 2016, planning now to reduce the budget by 25% and tailor nearly all of it to the “core four” in the onshore — the Permian Basin, Eagle Ford Shale, Montney and Duvernay formations. Half of the budget is to target the Permian, CEO Doug Suttles said Monday.

Permian pure-play operator Parsley Energy Inc. has agreed to acquire more than 5,000 undeveloped net acres within its core operating area, plus producing oil and gas properties adjacent to its holdings in Texas, for $148.5 million in cash.

ConocoPhillips on Thursday said it would reduce 2016 capital spending by 25% year/year, with most of its budget earmarked for the Permian Basin and the Eagle Ford and Bakken shales.

Marathon Petroleum Corp. outlined a $4.2 billion 2016 capital investment plan at an investor meeting on Thursday, just two days after the company said MarkWest Energy Partners LP unitholders overwhelmingly approved a merger with MPC’s master limited partnership (MLP), MPLX LP.

At about 10 a.m. CST Thursday a fire broke out at the 300 MMcf/d Ramsey Natural Gas Processing Plant in the Delaware Basin near Orla, TX. The plant is owned by Western Gas Partners LP, a unit of Anadarko Petroleum Corp.