Permian Basin roars back to life as oil prices top $80 a barrel

[Elderberry]

Dallas Morining News 10/11/2021

Production in the vast West Texas shale play is expected to return to pre-pandemic highs within weeks.

A pair of Permian Basin oil producers completed a merger last week that involved the purchase of $788 million in assets in the Delaware Basin – the western portion of the Permian in southeast New Mexico and West Texas.

Callon Petroleum Company announced its intentions to buy out Primexx Energy’s acreage and interests in the deal announced in August, and on Oct. 5 the acquisition was complete.

Included in the sale was about 35,000 acres in Reeves County, Texas along the New Mexico border with reportedly 18,000 barrels of oil equivalent produced per day in the second quarter of 2021.

Upon completion of the sale, Callon Chief Executive Officer Joe Gatto said the move was intended to grow the company’s presence in the prolific Permian Basin – one of the nation’s most active.

“We are excited to get to work integrating this high-quality asset base into our Permian Basin operations, overlaying our life of field development philosophy on the acquired multi-zone resource base,” Gatto said.

“Given our deep subsurface expertise in the Delaware Basin and operational preparation, we expect a seamless transition and will be focused on delivering the types of capital and expense synergies we have achieved in similar transactions.”

More: https://www.dallasnews.com/business/energy/2021/10/11/permian-basin-roars-back-to-life-as-oil-prices-top-80-a-barrel/

[Elderberry]

Permian Basin poised to ramp up oil and gas production as mergers cool and prices rebound

Carlsbad Current-Argus by Adrian Hedden 10/12/2021

https://www.currentargus.com/story/news/local/2021/10/12/permian-basin-poised-ramp-up-oil-and-gas-production-mergers-cool/6101958001/

A pair of Permian Basin oil producers completed a merger last week that involved the purchase of $788 million in assets in the Delaware Basin – the western portion of the Permian in southeast New Mexico and West Texas.

Callon Petroleum Company announced its intentions to buy out Primexx Energy’s acreage and interests in the deal announced in August, and on Oct. 5 the acquisition was complete.

Included in the sale was about 35,000 acres in Reeves County, Texas along the New Mexico border with reportedly 18,000 barrels of oil equivalent produced per day in the second quarter of 2021.

Upon completion of the sale, Callon Chief Executive Officer Joe Gatto said the move was intended to grow the company’s presence in the prolific Permian Basin – one of the nation’s most active.

“We are excited to get to work integrating this high-quality asset base into our Permian Basin operations, overlaying our life of field development philosophy on the acquired multi-zone resource base,” Gatto said.

“Given our deep subsurface expertise in the Delaware Basin and operational preparation, we expect a seamless transition and will be focused on delivering the types of capital and expense synergies we have achieved in similar transactions.”

As of Friday, the latest data from Baker Hughes showed New Mexico had 86 active oil and gas rigs, the most all year, after growing from an average of 66 in January.

Texas also saw consistent growth in rigs this year, up to 247 as of Friday, per Baker Hughes, from January’s average of 170 rigs.