EnerCom Conference Presenters will Outline Permian Economics

The Permian Basin, the gift that keeps on giving — from an oil and gas standpoint — has spent the last few years as the site of numerous producers’ core acreage. In many instances, lower oil prices and the relative volatility of the oil and gas market has pushed operators onto acreage that they consider bomb-proof as far as oil prices are concerned.

EnerCom Conference Presenters will Outline Permian Economics

Source: EIA

The Permian basin itself is approximately 250 miles wide and 300 miles long. The basin may have a little less than 160 MMBOE of recoverable resource remaining — nearly as much — or perhaps even a little more than the estimated volume in Saudi Arabia’s Gawar field. The July 2017 EIA productivity report indicated that the Permian growth is expected to build to over 2.5 MMBOPD and nearly 9 Bcf per day.

EnerCom Conference Presenters will Outline Permian Economics

Source: EIA

A key attractor of the field is its stacked pay — with oil-bearing formations such as the Spraberry, Wolfcamp, and Bone Spring formations layered atop one-another. And these layers can be in excess of 1,000 feet thick. That’s a lot of oil producing potential.

The Permian players that carved out producing acreage for themselves have already taken a significant step towards solidifying their stability in a less-than-stable market. In early 2017, Wood Mackenzie estimated that the Permian basin average break-even oil price was in the $42–43 per barrel range.

EnerCom Conference Presenters will Outline Permian Economics

Source: Wood Mackenzie

The demand for Permian acreage is mirrored in its lease costs, at approximately $30,000 per acre. In early 2017, ExxonMobil acquired approximately 250,000 acres in the Permian for approximately $5.6 billion. Similarly, Parsley Energy purchased 71,000 acres for approximately $2.8 billion in February, 2017.

Permian operators coming to EnerCom’s The Oil and Gas Conference® Aug. 13–17, 2017

EnerCom, Inc. is excited to host a number of ranking Permian producers at the 22nd The Oil and Gas Conference® coming in August. Among these producers are:

  • Ameredev II (private)
  • Approach Resources (AREX)
  • Carrizo Oil & Gas (CRZO)
  • Cimarex (XEC)
  • Felix Energy (private)
  • Jagged Peak Energy (JAG)
  • Panhandle Oil and Gas (PHX)
  • QEP Resources (QEP)
  • Resolute Energy Corporation (REN)
  • Rosehill Resources (ROSE)
  • Shell (RDS.A)
  • SM Energy (SM)
  • Unit Corporation (UNT)
  • WPX Energy (WPX)

EnerCom’s The Oil & Gas Conference® 22

The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13–17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.


Originally published at Oil & Gas 360.

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