American Oil and Gas Reporter - June 2019 - 93

SpecialReport: Permian Basin Activity
first-quarter report also noted the Windy
Mountain pad, which included two lower
Wolfcamp B wells drilled in close proximity to the company's Grizzly pad, is
averaging 165 boe/d per thousand feet
(60% oil), while the Argentine B4, a
Lower Wolfcamp B extended-reach lateral
well testing an accelerated flowback technique, is averaging 240 boe/d per thousand
feet (75% oil).
"Testing these additional zones, as
well as testing well-spacing within and
between zones, will help us design our
cube development," he continues. "We
have a tremendous section of rock, and
we haven't fully tested it all yet."
Reasoner says PDC Energy will begin
cube development of its acreage in 2020,
pointing out its Reeves County acreage
overlays 3,000 feet of Wolfcamp and
Bone Spring horizons at 8,000-10,000foot depths.
PDC's Delaware Basin reserves average
68% liquids and 32% natural gas, according to Reasoner. He says in 2019
60% of the laterals that are planned to
turn on line are two-milers, with the
others 1.5 miles. PDC is not planning on
turning on line any one-mile laterals this
year, he comments.
PDC has done a number of things to
lower well costs, beginning with drilling
multiple wells per pad, which Reasoner
says is more efficient.
"The next step has been to get the
right rigs with the right bits and the right
motors that are fit for purpose," he adds.
"Our rigs initially weren't fit for purpose.
Having the right casings and setting the
depths all plays into it, too, along with a
better understanding of the complexity
of the rocks."
Reasoner says after acquiring its leasehold, PDC Energy spent most of 2017 just
trying to gather geologic information. "We
drilled pilot holes into the Wolfcamp C
and B, and logged the holes," he describes.
"We acquired seismic and reprocessed it.
We logged the horizontal wells and spent
time mapping to get a full understanding
of the geologic complexities."
He maintains that the time and money
the company spent in the past two years
now is paying dividends.
When PDC Energy acquired its
acreage, the wells were completed using
100 feet between fracture stages. PDC
has lengthened that to 200-foot stages,
but Reasoner says by managing the per-

foration clusters the company is able to
impact the same amount of rock as the
100-foot stages with less expense.
"We still get fluid entry into the entire
200 feet," he relates. "We actually are
testing 240-foot stages."
PDC Energy also is pumping 2,000
pounds of proppant per foot, using a
50/50 mix of local 100 mesh sand and
Northern White 40/70 sand.
According to the company, it entered
into definitive agreements to divest midstream assets for total cash proceeds of
$350 million.
· EagleClaw Midstream has agreed
to buy PDC's gas gathering assets and
processing rights. The agreement provides
PDC with long-term flow assurance via
EagleClaw of a portion of its volumes
and transportation of residue gas to both
Waha and the Gulf Coast markets through
the Permian Highway Pipeline.
· A subsidiary of WaterBridge Resources LLC purchased PDC's water-related midstream assets. Reasoner says
the agreement will provide PDC access
to WaterBridge's extensive water disposal
network capable of transporting more
than 1 million barrels a day, and the
ability to efficiently transport all water
volumes via pipe.
· Oryx Midstream purchased PDC's
oil gathering assets and will deliver oil
to sales points consistent with PDC's
marketing agreement that takes its production to the Gulf Coast.

"These companies are experts," he
praises. "We don't expect our operating
margins to change, and we will have the
benefit of access to a variety of good
sales markets. The oil and water deals
have closed, and we expect to close the
gas transaction by mid-summer."
Row Drilling
Noble Energy established its presence
in the Permian Basin with the merger of
Rosetta Resources Inc., into a subsidiary
of Noble Energy in 2015. Two years
later, the company expanded its West
Texas position by acquiring Clayton
Williams Energy Inc.
David Burger, vice president, Texas
operations, says Noble now has 94,000
acres in Reeves County. It is running
four drilling rigs and two frac crews.
Noble has 200 horizontal wells on
production and plans to continue its trend
of drilling 50-60 wells a year. "Our current
drilling program averages more than 7,000foot laterals," Burger says. "We prefer
two-milers, but sometimes the surface
dictates we drill a section and a half."
Noble is targeting the Bone Spring
and Wolfcamp stacked zones, drilling as
many as five wells on each pad.
Burger says Noble recently drilled
two five-well pads adjacent to one another.
Those Calamity Jane pads will come on
line in the second half of the year.
"We are excited about it," he enthuses.
"It is our biggest development, drilling

Noble Energy is producing from 200 horizontal wells across its 94,000 acres in Reeves
County, Tx. David Burger, vice president of Texas operations, says the company plans
to drill 50-60 wells a year, with its primary targets the Bone Spring and Wolfcamp stacked
zones.

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American Oil and Gas Reporter - June 2019

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