If this turns out to be true,we are all in for one hell of a ride !Many here know that the Permian Basin has the oil and lots of it.The Wolfcamp,being a relatively new play seems as though it is going to have a very bright future.
I regularly look back and compare this company with SSN ( i do not hold).SSN is also involved in a new play with the Niobrara and if you follow the M&A and the wheeling and dealing there you will have noticed that the play isn't as hot as it was some 6 - 8 months ago.There are a lot of companies moving out of the Niobrara because of various reasons ( drills going wrong,not using 3D data,not being patient enough etc ),the play still has potential but compare it to the Wolfcamp and there is a big gap between the two.
Pioneer and others are redirecting a lot of their planned 2012 expenditure towards the Wolfcamp play for good reason.
1: “So it’s got the most pay zones of any oil shale play in the U.S. I call it the third or fourth coming of the boom in West Texas.”
2: Pioneer believes that more than 400,000 of those acres are ripe for horizontal drilling.
3: Pioneer’s two completed wells in the Wolfcamp have already exceeded expectations, each producing 800 to 1,000 barrels of oil a day, and they’re still early in production.
4:EOG’s wells in the Wolfcamp are producing 2,000 barrels a day, says Dan Morrison, analyst with Global Hunter Securities.
“Even if Pioneer’s don’t get to 2,000 barrels a day, at 800 barrels a day the play is incredibly economic,” Morrison said.
So for those holders that are becoming annoyed by the delay in news from the company,I say the waith and the end outcomes will be very well worth it.Outcomes Outcomes Outcomes hey Rob,lol
BUY BUY BUY !
All this is my uneducated opinion and by no means investment advice !
INVESTOR’S BUSINESS DAILY
By MARILYN ALVA,
Posted 01:41 PM ET
U.S. oil production is enjoying a renaissance, thanks to new technology that has made oil recovery possible in tight shale rock.
The busy Bakken formation in North Dakota and Montana is the largest and best-known oil shale play.
Two wells drilled by Pioneer Natural Resources have already exceeded expectations. The company has 900,000 acres under lease.
The Eagle Ford in South Texas and the Barnett “combo play” (gas and oil) in North Texas are also fairly famous unconventional plays.
But the Wolfcamp Shale?
“Over the next two or three years, everybody is going to be making a beeline to the Wolfcamp,” said Scott Sheffield, chief executive of Pioneer Natural Resources (PXD).
Spanning numerous counties across West Texas, the Wolfcamp formation is located below the long-plied Spraberry field, which helped make Midland, Texas, oil-central starting in the early 1950s.
Its location in the Midland Basin is within the larger Permian Basin.
Sheffield and other oil experts say the Wolfcamp is probably the thickest of any onshore U.S. oil shale play, with up to 1,000 feet of potential payout across hundreds of thousands of acres.
Biggest And Thickest
“It will be the biggest, and it is already the thickest,” Sheffield said. “So it’s got the most pay zones of any oil shale play in the U.S. I call it the third or fourth coming of the boom in West Texas.”
If Wolfcamp does turn out to be the next big oil shale play, Pioneer is on the ground floor. With 900,000 acres under lease in the Spraberry, it has the largest land position.
Pioneer believes that more than 400,000 of those acres are ripe for horizontal drilling.
Its game plan: drill 10,000 feet down through the Spraberry to the Wolfcamp and then out 7,000 feet horizontally.
For now, it’s targeting 200,000 acres in the southern portion of the Spraberry field.
Pioneer’s two completed wells in the Wolfcamp have already exceeded expectations, each producing 800 to 1,000 barrels of oil a day, and they’re still early in production.
EOG Resources (EOG) started drilling in the Wolfcamp earlier and is now seeing higher output from its 35 or so wells.
But Sheffield says Pioneer will be a bigger operator in the Wolfcamp in the sense that it has 400,000 prospect-worthy acres to EOG’s 100,000.
“We are going to drill 80 wells in 2012 and 2013,” he said.
EOG’s wells in the Wolfcamp are producing 2,000 barrels a day, says Dan Morrison, analyst with Global Hunter Securities.
“Even if Pioneer’s don’t get to 2,000 barrels a day, at 800 barrels a day the play is incredibly economic,” Morrison said.
GGP Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
