Steve Reese’s Post

Off the Beaten Path Following up on our post from Tuesday, Reese Energy Consulting today is following news from producers who are finding oil and gas magic on the fringes of core-basin plays. In an article earlier this month, Hart Energy featured Denver-based Bayswater Exploration and Production, which aside from its assets in the DJ and Powder River, also operates 48,000 acres in the Permian’s Northern Midland. Here, targeting the Wolfcamp and Spraberry, Bayswater is striking paydirt the farther east it explores. Call it extending the extensions. With a strategy to develop tier-2 acreage positions that could ultimately deliver tier-1 performance, the company first went to work in Howard County, Texas, near Mitchell County, where high levels of carbonates comprised of limestone and dolomite have tended to discourage drilling. Not so for Bayswater, which discovered a rich hydrocarbon environment in the carbonate/shale reservoir, completing its first well in 2021 with initial production of nearly 1.3 MBPD and cumulative production of 430+ Mbbls. Now three years later, Bayswater has moved farther east into Mitchell County, reporting even higher production and drilling six more 2.5-mile laterals with completions slated this summer. Speaking of step outs, gas producers Comstock Resources and Aethon Energy continue their “victory is mine” exploration and development of the Western Haynesville—an extension now aptly christened Waynesville. Aethon, whose newest well in Robertson County, Texas, produced nearly 3.3 BCF in the first four months of production last fall, can’t get enough of Wayne’s world and is now on the hunt for more. What do you think? Learn more about REC and our crude oil and natural gas consulting services in the Permian and Haynesville at https://lnkd.in/ewhkGFa.

Off the Beaten Path Following up on our post from Tuesday, Reese Energy Consulting today is following news from producers who are finding oil and gas magic on the fringes of core-basin plays. In an article earlier this month, Hart Energy featured Denver-based Bayswater Exploration and Production, which aside from its assets in the DJ and Powder River, also operates 48,000 acres in the Permian’s Northern Midland. Here, targeting the Wolfcamp and Spraberry, Bayswater is striking paydirt the farther east it explores. Call it extending the extensions. With a strategy to develop tier-2 acreage positions that could ultimately deliver tier-1 performance, the company first went to work in Howard County, Texas, near Mitchell County, where high levels of carbonates comprised of limestone and dolomite have tended to discourage drilling. Not so for Bayswater, which discovered a rich hydrocarbon environment in the carbonate/shale reservoir, completing its first well in 2021 with initial production of nearly 1.3 MBPD and cumulative production of 430+ Mbbls. Now three years later, Bayswater has moved farther east into Mitchell County, reporting even higher production and drilling six more 2.5-mile laterals with completions slated this summer. Speaking of step outs, gas producers Comstock Resources and Aethon Energy continue their “victory is mine” exploration and development of the Western Haynesville—an extension now aptly christened Waynesville. Aethon, whose newest well in Robertson County, Texas, produced nearly 3.3 BCF in the first four months of production last fall, can’t get enough of Wayne’s world and is now on the hunt for more. What do you think? Learn more about REC and our crude oil and natural gas consulting services in the Permian and Haynesville at https://lnkd.in/ewhkGFa.

Check out this post from Reese Energy Consulting

With money being expensive, high ROI & IRR projects are in demand. Check out EAG's recent study on ReFracs in the Haynesville.

Energy Advisors Group has released a Special Supplement ReFrac Report focused on horizontal wells in the Haynesville/Bossier formations as an addition to our Original Hayesville Report issued April 12, 2024. This Report evaluates the performance of every Haynesville/Bossier ReFrac/Recompletion (199 wells or just 3% of Haynesville/Bossier horizontal wells drilled). It concludes that ReFracs are coming in at 90% of original completion rates and 75% are estimated to have payback in <12 months. Download The Haynesville Supplement Report Here: https://lnkd.in/gyVhWFS5 If you missed our Haynesville/Bossier basin study, you can find it here: https://lnkd.in/guK5cBPs Please reach out to Brian J. Lidsky ([email protected]) or Blake Dornak ([email protected]) to learn more about this report or any of EAG's other market monitor research studies. We are working hard to expand our thought leadership and look forward to providing additional market insight for our clients through regional perspectives, M&A analysis and market monitor. Current Assignments: https://lnkd.in/epPqcEZ Qualifications & Capabilities: https://lnkd.in/gUKH7wuV Research/Perspectives: https://lnkd.in/g6mjMQ8p #haynesville #bossier #easttexas #louisiana #oilandgas #study #research #capitalmarkets #mergersandacquisitions

Permian Midstreamers and the Chocolate Factory With 18 days left in the calendar year, midstream operators want you to know there’s no rest for the weary, especially when it comes to keeping up with record high natural gas production in the Permian. Reese Energy Consulting today is following the latest from the nation’s scene-stealing basin where residue gas production in November climbed to an astonishing 19.8 BCFD—the lion’s share coming from the Wolfcamp, Spraberry, and Bone Spring, where associated gas has tripled since 2018. For midstreamers, catching up to all these volumes might seem reminiscent of Lucy and Ethel on the chocolate factory assembly line. But make no mistake, new pipelines, capacity expansions, and processing plants continue unabated, whether they’re under construction, wrapping up, or going live nearly every month, along with more projects on the docket for 2024. Here are a few mentions. According to the EIA, of the 20 BCFD in new pipeline capacity now under construction across the country, 13.5 BCFD of that is dedicated to flow natural gas in and outside of the Permian to supply five Gulf Coast LNG terminals. Houston-based Kinder Morgan, Inc. earlier this month announced wrapping up its expansion of the 430-mile Permian Highway Pipeline, which adds another 550 MCFD of capacity to move Permian gas from the Waha Hub to the Gulf Coast and Mexico. San Antonio-based Howard Energy Partners has now announced the completion of $800 million in projects that include the completion of its 200 MMCFD expansion of the Stateline natural gas processing complex serving the Delaware, increasing its total capacity to more than 600 MMCFD. Never underestimate the tenacity of our midstream folks to git ‘r’ dun. What do you think? Learn more about REC and our natural gas, midstream, and Permian consulting services at https://lnkd.in/ewhkGFa.    

My post today for Steve Reese and Reese Energy Consulting. Colorado Strikes a Pose And just like that, the Supremes today have cast Colo., in a white-hot spotlight with its new rendition of Ain’t No Mountain High Enough. But here, in The Land of the DJ Basin, where the shale boom reanimated the state’s economy six ways to Sunday, oil and gas players are finding a spotlight of their own. This one against a backdrop of uncertainty that has them tossing the dice.   Reese Energy Consulting today is following the latest news from Colo., where Democratic state lawmakers have now proposed two bills that would further threaten new drilling. One bill would require a five-month cease and desist of production every year. The second, a phase down of drilling permits starting in 2008 with an all-out ban of permits in 2030—the first ever state-sponsored ban in the nation. When plotting long-term strategies in the DJ, the basin’s largest operators (Chevron, Civitas Resources, and Oxy) are hardly oblivious to Colo.’s longtime hellbent-for-leather temperament. Chevron last May piled on its Rocky Mountain love with a $6.3 billion show of affection for PDC Energy. One month later, Denver-based Civitas—the largest pure-player in the DJ with 470,000 net acres and 79.8 MBPD—said, “Standby, we’re rethinking things.” with a $7 billion surprise leap into the Permian Delaware and Midland, adding 70,000 net acres and 51.8 MBPD to its lunch box. According to the company’s recent 4Q earnings report, Civitas quietly offloaded $85 million worth of non-core acreage in the DJ as part of its plan to divest $300 million in assets by June and direct the majority of 2024 investments in the Permian. Sitio Royalties, however, is feelin’ groovy in the DJ with its first deal of the year at $150 million, scooping up 13,000 net royalty acres in the basin’s core operated by none other than Chevron, Civitas, and OXY. What do you think? Learn more about REC and our crude oil and natural gas expertise in the DJ Basin at https://lnkd.in/eAebAz8.

Permian Midstreamers and the Chocolate Factory With 18 days left in the calendar year, midstream operators want you to know there’s no rest for the weary, especially when it comes to keeping up with record high natural gas production in the Permian. Reese Energy Consulting today is following the latest from the nation’s scene-stealing basin where residue gas production in November climbed to an astonishing 19.8 BCFD—the lion’s share coming from the Wolfcamp, Spraberry, and Bone Spring, where associated gas has tripled since 2018. For midstreamers, catching up to all these volumes might seem reminiscent of Lucy and Ethel on the chocolate factory assembly line. But make no mistake, new pipelines, capacity expansions, and processing plants continue unabated, whether they’re under construction, wrapping up, or going live nearly every month, along with more projects on the docket for 2024. Here are a few mentions. According to the EIA, of the 20 BCFD in new pipeline capacity now under construction across the country, 13.5 BCFD of that is dedicated to flow natural gas in and outside of the Permian to supply five Gulf Coast LNG terminals. Houston-based Kinder Morgan, Inc. earlier this month announced wrapping up its expansion of the 430-mile Permian Highway Pipeline, which adds another 550 MCFD of capacity to move Permian gas from the Waha Hub to the Gulf Coast and Mexico. San Antonio-based Howard Energy Partners has now announced the completion of $800 million in projects that include the completion of its 200 MMCFD expansion of the Stateline natural gas processing complex serving the Delaware, increasing its total capacity to more than 600 MMCFD. Never underestimate the tenacity of our midstream folks to git ‘r’ dun. What do you think? Learn more about REC and our natural gas, midstream, and Permian consulting services at https://lnkd.in/ewhkGFa.    

No more drilling on Forties and Beryl and an imminent closure of Grangemouth – a perfect storm for the UK’s energy security? When the UK government imposed an additional tax levy on oil and gas producers early in 2023, several operators responded by cancelling drilling activities. Apache UK was amongst the most vocal in imposing an immediate stop to drilling on their Forties and Beryl assets. In this talk, David Moseley – Vice President Operations (Europe) at Welligence Energy Analytics – explores the consequences of no further drilling activity at these fields, both of which continue, for now at least, to form important production hubs. He will also discuss the impact of bringing COP forward on both the fields themselves and the upside in their catchment areas. Included will be a review of the Forties pipeline throughput to place into context the recent announcement that the Grangemouth terminal is set for closure. You will also learn the latest on wells being drilled in the North Sea, presented by Alyson Harding from Westwood Global Energy Group. 🗒️ - Tuesday 30th January 2024 - 12:00-14:00 ⬇️ - Atholl Hotel - 54 King‘s Gate, Aberdeen 🥪 - Will be served 🎫 - £25 👉 - Registration: https://lnkd.in/erihqUEW GESGB (Geoscience Energy Society of Great Britain), GEO EXPRO

My post today for Steve Reese and Reese Energy Consulting. Bonanzas for All This just in: E&Ps testing the Barnett Formation in the Permian’s Midland are reporting higher oil recoveries and lower break evens than other Tier 2 zones. The latest report from Enverus Intelligence® Research characterizes recent well results in the Barnett—1,000’ deeper than the Wolfcamp D—as the herald of a coming “bonanza” in terms of production, economics, and drilling inventory. But not all bonanzas are limited to the Permian, and geology has a way of secreting her treasures. Reese Energy Consulting today is following the latest news from Okla. City-based MACH Resources CEO Tom Ward, who’s made finding wealth in under-performing plays his signature quest. MNR operates 936,000 acres, 4,500 wells producing 65 MBOED, and 2,000 undeveloped drilling locations in Western Okla., Southern Kans., and the Texas Panhandle. The company last month launched an IPO, raising $190 million on its first trading day on the NYSE. Not one to let grass grow under his feet, Ward set out to score a bonanza of his own—and he found it in the Anadarko. In an all-cash $815 million deal with Houston-based Paloma Partners, MNR will now add 62,000 net acres, 32 MBOED in production, and 31.5 MMBOE in reserves to its position in the Stack and Merge. To quantify remaining drilling inventory across key North American shale plays, Envrus covered the Delaware, Midland, Eagle Ford, DJ, Scoop/Stack, Bakken, Marcellus, Powder River, Utica, Haynesville, and Montney. The report estimates six years of Tier 1 at today’s activity levels but added “Ample Tier 2-4 inventory should alleviate fears of a structural decline in U.S. production or activity levels over the next 15 years.” What do you think? Learn more about REC and our oil and gas consulting services in the Anadarko at https://lnkd.in/eAebAz8.