Midland-based Diamondback Energy said Tuesday it lifted its reduction in May of about 9,000 barrels of oil production per day and resumed pumping from its shut-in wells in June. Travis Stice, CEO, said, “With oil prices having recovered significantly since the decision to curtail production was made in April, Diamondback returned this production through the month of June with minimal associated cost.”
Diamondback drilled 58 gross operated horizontal wells in 2020Q2 and turned 9 wells to production in April, 6 in May and 0 in June. After averaging 13 operated drilling rigs in 2020Q2 with minimal completion activity, Diamondback now is operating 7 drilling rigs and 3 completion crews with “plans to operate between 5 and 6 operated drilling rigs and between 3 and 4 completion crews for the remainder of 2020.”
Houston-based Noble Energy said last week it expects to return a majority of its curtailed oil production in July as prices recover from historic lows. During 2020Q2 Noble’s curtailments averaged about 11,000 barrels of oil per day. Noble’s U.S. onshore oil production capacity averaged 124,000 b/d in 2020Q2 (113,000 b/d sold, 11,000 b/d curtailed) – reflecting what the company called “strong base and wedge performance” in Delaware and DJ basins. David L. Stover, chairman and CEO, added, “We’ve materially reduced the cost structure of our business while demonstrating robust production capacity in both our onshore and offshore businesses.”
Concho Energy and Parsley Energy reportedly also are reopening existing wells, and ConocoPhillips and EOG Resources plan to increase production in 2020Q3.