Permian Basin

Permian-focused Energen Corp. said it will increase its capital expenditure (capex) budget by 10%, to $1.1 billion, for the full-year 2015 so it can focus on development and appraisal programs in the Wolfcamp and Spraberry formations, and expects the company’s overall production to increase by nearly 20% as a result.

Permian pure-play operator Laredo Petroleum Inc. said it increased production by more than one-third and slashed production costs during the second quarter. Meanwhile, the company plans to sell a chunk of its non-operated assets to fund additional drilling in the Wolfcamp formation before year’s end. Laredo also has increased its capital expenditures (capex) budget by 25% to grow a crude oil pipeline system.

The latest active rig count for North America from Baker Hughes Inc. shows a flip-flop from last week’s activity as the United States added 10 rigs and Canada dropped seven. In the previous week, Canada added rigs while the United States lost a handful (see Shale Daily,July 31).

Cost reductions and efficiency gains are driving positive results in the Spraberry/Wolfcamp for Pioneer Natural Resources Co., and it is sticking with plans to add rigs in the Northern Midland Basin at a time when some peers are being crushed by low commodity prices. To fund increased drilling, Pioneer raised its spending plans for 2015.

ExxonMobil Corp. has secured more development rights in its most prolific liquids play in the U.S. onshore, the Permian Basin.

The Permian Basin led the way in helping Apache Corp. boost its output in North America during the second quarter, but low commodity prices forced another huge writedown, the second quarter in a row.

Onshore explorer Devon Energy Corp. crushed it — in a good way — during the second quarter, beating Wall Street earnings expectations and making significant progress to reduce costs, despite low commodity prices. Production was above guidance for the fourth straight quarter.

While experiencing more red ink in the current year, Noble Energy executives exuded a positive outlook for the future on Monday, emphasizing the company’s significant acreage in more major U.S. unconventional plays since closing its $2.1 billion acquisition of Rosetta Resources Inc. with more than 100,000 acres in the Permian Basin and Eagle Ford Shale (see Shale Daily,May 11).

Newly formed Rangeland Energy III LLC, with $300 million of funding from EnCap Flatrock Midstream and management, is looking for midstream deals across North American resource plays. Meanwhile, West Texas projects of a sibling company are advancing.