Houston-based Apache Corp. said last month in its quarterly report that it plans to add a second drilling rig in Permian Basin by midyear in a return “to a very modest level of activity in the U.S.” John J. Christman IV, CEO, said Feb. 25 that Apache will boost upstream capital spending in 2021 by 11 percent to $1.1 billion, but most of it will be spent overseas. “This measured approach will advance our objective of mitigating Permian oil production declines,” he said. “We will likely need to add a third rig at some point to fully arrest the decline at Alpine High.” Apache recently completed two gas wells in Alpine High and is planning five additional completions this spring. “While there are no specific Alpine High drilling plans in 2021,” the CEO added, “we will continue to monitor commodity prices and remain flexible with this asset.”
Denver-based Cimarex Energy said last month in its quarterly report that it plans to spend 90 percent of its 2021 drilling and completion budget of $500 million to $600 million in Delaware Basin. Cimarex’s activities will continue to focus on long laterals in Wolfcamp and Bone Spring in Culberson and Reeves counties in Texas and Eddy and Lea counties in New Mexico. Cimarex projects 2021 production at 75,000 to 81,000 b/d – up 2 percent from 2020. Cimarex currently operates 5 rigs and 2 completion crews in Delaware Basin. It brought 33 gross (16 net) wells online in Delaware Basin in 2020Q4 to reach a regional total of 92 (48 net) new wells for 2020.