Calgary-based Enverus Intelligence Research said last week recent wells targeting Barnett interval in Midland Basin show higher oil recoveries and lower breakeven prices than other secondary zones. Emily Head, senior associate at Enverus Intelligence Research, said, “Sometimes the best place to find new oil is in already producing areas, which neatly describes what’s happening in the Midland Basin.”
Head, author of the EIR report on Barnett released Nov. 7, added, “The Barnett formation is buried about 1,000 feet deeper than the Wolfcamp, a prolific oil-producing zone. This separation means companies owning deep drilling rights in the area can expand their inventories of well locations that break even below $50 per barrel, an important metric for many investors.”
Enverus said Barnett wells drilled in the core of the Midland Basin average slightly higher oil rates than those drilled near its edges.