Midland’s Diamondback Energy said last week in its quarterly financial report that its crude production in 2020Q2 fell to 176,323 barrels per day from 191,229 b/d in 2020Q1 with plans to operate 5 or 6 drilling rigs and 3 or 4 completion crews for the remainder of 2020. Diamondback drilled 37 gross horizontal wells in Midland Basin and 21 gross horizontal wells in Delaware Basin in 2020Q2. The company turned 10 horizontal wells to production in Midland and 5 horizontal wells to production in Delaware in 2020Q2.
During 2020Q2 Diamondback spent $456 million on drilling and completions, $50 million on midstream, $32 million on non-operated properties and $24 million on infrastructure ($562 million total). The company said current drilling and completion costs are between $450 and $500 per lateral foot in Midland and $650 and $700 per lateral foot in Delaware (plus equipment costs). Diamondback said it set a Permian Basin record for most footage drilled in 24 hours with 8,150 lateral feet using new rotary steerable technology.
Travis Stice, CEO, said Aug. 3, “We made the decision to complete as few wells as possible in 2020Q2 with 0 wells turned to production in June. We also curtailed 5 percent of our oil production during 2020Q2. This curtailed production has been restored.”