Houston-based independent Callon Petroleum said in its announcement of 2022Q3 operating results that oil productivity in the first 120 days online was up 26 percent in Delaware Basin and up 28 percent in Midland Basin compared to 2021Q3. Joe Gatto, president and CEO, said Nov. 2, “Callon’s strong production growth this quarter was the product of increased well productivity and completion efficiencies that improved cycle times of larger scale projects.” Production volumes of oil were up 8 percent to 66,400 b/d and 7 percent in boed to 107,300 (62 percent oil).
Completions for Q3 included 12 gross (10.0 net) wells in Delaware Basin and 23 gross (20.9 net) wells in Midland Basin. Callon placed 10 gross (7.1 net) wells on production in Delaware and 22 gross (19.9 net) wells in Midland. Callon entered Q4 with 5 active drilling rigs – 4 in Delaware and 1 in Midland. A sixth rig was contracted in October that is expected to begin drilling in Q4. Sixth rig “was added earlier than scheduled to secure high-quality drilling services in support of operational plans for early 2023.” Callon expects 4Q production of 105,000 to 108,000 boed (63 percent oil). Capital expenses in Q3 were $254.7 million.