Tulsa-based Laredo Petroleum, Midland Basin pure-play, said Feb. 22 it plans to maintain capital discipline in 2022 with flat activity compared to last year. Expected capital expense is $520 million. Laredo said oil production in 2022 will be flat with 2021Q4 (full-year oil production growth of 24-to-36 percent). Average lateral length of wells in 2022 will be 11,800 feet, including 18 wells of 15,000 feet. The year’s highest level of investment will occur in first quarter.
Laredo is operating three drilling rigs and two completions crews in 2022Q1 with plans to release one rig and one crew by March 31. Focus is on oil output in Howard County; Laredo’s gas activity in Glasscock County reportedly is on hold. A total of 65 wells will be spudded and 55 will be completed in 2022; Laredo brought online 71 wells last year.