Clayton Williams is set to spend $173.9MM of its $274.4MM 2010 CAPEX budget on their Andrews County Wolfberry program. They drilled and completed 13 gross wells in the trend in 2009. The ramp up will include up to six rigs operating and about 104 wells drilled and completed. They spent $1.8MM per well in 2009.
Below we look at their current producing leases and their 2010 permit activty to get a feel for where they are in their Wolfberry program.
Using the HPDI Production Tools we can see the program ramp-up take form in the latter half of 2009 with a 5 fold increase in monthly production from 5,713 BO to 29,486 BO at year end.
Take a look around the Drillinginfo Wolfberry Unconventional Update to see more.
Advances in fracture techonology have made the Wolfberry play an attractive asset to many Permian Basin operators. Spraberry oil can be combined with the deeper Wolfcamp oil to achieve stacked pay wells at a relatively low cost. Pioneer quotes about $1.2MM per Wolfberry well at this time. With that being said, lets take look at Wolfberry activity since 2000. The map below shows Wolfberry producing wells that have come on since 2000.
Of the 2105 wells shown here, > 1100 of them were drilled in Upton County. Below are two maps of the Upton county wells. The first is colored by operator and the second is colored by cumulative oil produced.
Many of the Concho operated wells have already produced greater than 50,000 barrels of oil and today’s oil prices makes them even more attractive. Below is some production information generated with HPDI tools and an economics chart from Pioneer at the 2010 Raymond James Energy Conference. The Pioneer chart is the trend area as a whole.
Be sure to check the Drillinginfo Wolfberry Unconventional Update for more information and analysis.
Concho is an independent oil and gas company that almost exclusively develops properties in the Permian Basin. They discussed their Wolfberry operations in their Q4 2009 Earnings Conference Call on 2/25/2010. They plan to drill 300 locations in 2010. Their current Wolfberry spacings are 80 and 40 acre, with a well cost of $1.2MM. 11 of their 20 rigs are located in the Wolfberry Texas Permian.
This Drillinginfo generated map shows the 2010 Concho permits. Note the majority of their activity is located in Upton county. (click on map to enlarge)
Wolfberry operations are being closely monitored in the Drillinginfo Unconventional Update available to all Drillinginfo users.