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Permian Basin Oil and Gas Magazine

PBOG is the Official Publication of the Permian Basin Petroleum Association and is published monthly by Zachry Publications, LP.

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More permits filed at RRC for wells that target only natural gas

April 30, 2020 by PBOG

Twenty-five companies filed 69 drilling permits the week of April 15-21 with Railroad Commission of Texas, but Houston Chronicle said that included a record 12 percent for wells that produce only natural gas. Sabine Oil & Gas and Trinity Operating plan to drill six gas wells in Haynesville, and French oil major Total and JBL Energy Partners plan three projects in Barnett. Chronicle added, “Fewer oil wells being drilled means less natural gas being produced as a byproduct, which many traders believe will send natural gas prices to levels not seen in years.”
Also, Midland-based Concho Resources filed permits for seven oil wells targeting Spraberry in Midland County and two for Wolfcamp in Loving and Reeves counties. And Midland’s CrownQuest Operating plans to drill a vertical well targeting Spraberry, Strawn and Devonian in Glasscock County.

Filed Under: PBOG Newsletter, Rig Count Reports Tagged With: permian basin, rig counts, Texas Railroad Commission

Comments

  1. M. McDonnold says

    May 1, 2020 at 3:05 pm

    As a non-operator only I have no meaningful vote on whether to drill, but until WTI sells for more than its lifting costs I’d prefer to leave my oil underground. I don’t plan to participate if my alternative is 1/4th royalty.

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