Enverus Intelligence Research (EIR), a subsidiary of Enverus, an energy-dedicated SaaS platform, has released on Nov. 7 a new report examining various exploration and production (E&P) companies testing the Barnett Formation in the Midland Basin, including economic and productivity outcomes.
“Sometimes the best place to find new oil is in already-producing areas, which neatly describes what’s happening in the Midland Basin in Texas,” said Emily Head, report author and a senior associate at EIR.
“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/bbl, an important metric for many investors,” Head said.
Key takeaways from the report:
- Recent wells targeting the Barnett interval in the Midland Basin show higher oil recoveries and lower breakevens than other secondary zones, according to a new analysis from EIR.
- Barnett wells drilled in the core of the Midland Basin average slightly higher oil rates than those drilled near its edges.
- Vertical separation of more than 1,000 feet from the Wolfcamp D makes the Barnett a true inventory expansion opportunity for operators with deep drilling rights regardless of previous shallower development.
