Dallas-based Pioneer Natural Resources said last week it plans to concentrate its development program starting in 2023 on locations with higher potential. That comes after a year in which officials said results have not been satisfactory. Scott D. Sheffield, CEO, said Oct. 27, “We have increased the return thresholds for wells to be included in our future development programs, which is expected to improve our program well productivity in 2023 and subsequent years, surpassing 2021 productivity levels.” Sheffield said Pioneer’s 15,000-foot lateral program – to be expanded in 2023 – is delivering improved returns with lower capital costs.
Rich Dealy, COO, added, “We’re going to go to locations in areas that have the highest rates of return, and that will move to a certain extent a little bit north.”
Pioneer said it “continues to deliver strong operational performance in the Midland Basin,” enabling the company to place on production 128 horizontal wells in 2022Q3 and 399 horizontal wells in first 9 months of 2022. Pioneer plans to operate an average of 22 to 24 horizontal drilling rigs in Midland Basin and place 475 to 505 wells on production in 2022. Production of 350,000 to 365,000 barrels of oil per day is expected in 2022 (623,000 to 648,000 boed). Total capital budget for 2022 for Pioneer is $3.6 billion to $3.8 billion.