• Oilfield News

    Few Bargains Left In Permian Basin

    A few months ago, a small Fort Worth driller sold off tens of thousands of acres it had cobbled together in West Texas, earning a $2.8 billion fortune for drilling prolific wells during the worst oil bust in a generation.

    Oil rigs drill into the Permian Basin outside of Midland Saturday Sept. 17 2016.  Michael Ciaglo Houston Chronicle .jpgArmed with a $400 million private equity investment, Double Eagle Energy Permian wants to build another foothold in the world's hottest oil field, aiming to drill its first wells on new property early next year. But this time, buying and flipping gushing oil land in the Permian Basin is going to be much more difficult and expensive.

    "The availability of land is diminishing every day," said Garrett Martin, Double Eagle's senior vice president of engineering in Fort Worth. "Everyone wants to be there. Nothing out there is cheap anymore."

    Over the past few months, the pace of transactions in the Permian Basin has slowed dramatically amid a combination of turbulent oil prices and the oil industry's buying spree in West Texas earlier this year, which consolidated large swaths of land and left behind a much smaller amount of contiguous acreage suitable for drilling sideways for thousands of feet underground, a technique used to plumb once-inaccessible rock formations.

    The rush of geologists and...

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    EEOC Files Complaint Against Horizontal Well Drillers LLC

    The federal Equal Employment Opportunity Commission filed a complaint Wednesday against a Purcell-based drilling contractor, alleging it discriminated against job applicants older than 40 and those who had filed workers' compensation claims.

    The commission said Horizontal Well Drillers LLC violated federal age and disability discrimination laws in its hiring process, including putting notations on job applications about family medical history, age and previous disability or workers' compensation claims.The commission said Horizontal Well Drillers LLC violated federal age and disability discrimination laws in its hiring process, including putting notations on job applications about family medical history, age and previous disability or workers' compensation claims. The infractions date to at least 2012, the complaint said.

    Through a representative, company officials said they were reviewing the complaint Wednesday afternoon with their attorneys and had no immediate comment.

    The EEOC complaint said a former CEO at the company, Steve Akerman, reviewed all applications for rig positions, including derrickhand, motorhand and floorhand. Staff highlighted portions of the applications dealing with age, medical and family medical history, and the CEO separated the applications into two piles. Applications that didn't...

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    Virginia Wants Out Of New Offshore Oil, Gas Leasing Plan

    Virginia Letter.pdf Gov. McAuliffe Letter
    Virginia Letter.pdf, 99KB
    Gov. Terry McAuliffe, reversing field on a controversial issue, has asked federal officials to take the ocean waters off Virginia out of contention for oil and gas leases.

    Gov. Terry McAuliffe has asked federal officials to take the ocean waters off Virginia out of contention for oil and gas leasesThe governor’s office disclosed McAuliffe’s position Thursday, making public a letter that he wrote last week to Kelly Hammerle, national program manager for the U.S. Bureau of Ocean Energy Management. McAuliffe asked that Virginia not be included in the 2019-24 Outer Continental Shelf...

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    Sanchez Energy Makes $105M Eagle Ford Land Sale

    Houston-based oil and gas exploration company Sanchez Energy is selling 39,500 acres in the Eagle Ford Shale oil field for $105 million, the company said.

    Sanchez Energy Selling 39,500 Acres In Eagle Ford PlayThe sale involves Sanchez’s Javelina region, which stretches across La Salle and Webb counties, an area full of mostly dry natural gas.

    “Over the last eighteen months we leased approximately 70,000, largely contiguous, net acres in the dry gas window of the Eagle Ford,” said Tony Sanchez, III, Sanchez Energy’s CEO. “This transaction accelerates the value of the asset, while building our liquidity and providing value to our shareholders.”

    Sanchez has more than 350,000 acres in the Eagle Ford Shale.

    In January, Sanchez along with Blackstone Group LP bought 318,000 acres from Houston-based oil and gas explorer Anadarko Petroleum in a $2.3 billion deal. The land — which is nicknamed “Comanche” — is located in Dimmit, Webb, La Salle, and Maverick counties.

    Earlier in August, Oklahoma-based Devon Energy sold 20,000 acres and midstream assets to Houston-based Penn Virginia Corp. for $205 million. In January, Denver-based SM Energy sold at least 37,500 acres and some midstream assets in the Eagle Ford to a subsidiary of the privately-held Venado Oil and Gas LLC of Austin for $800 million.

    Source: READ MORE AT ROUGHNECK CITY NEWS ⇨

    Oklahoma Oilfields Gain Recognition

    Oklahoma's growing oil fields gained national recognition this week when the U.S. Energy Information Administration added the Anadarko Basin to its weekly Drilling Productivity Report.

    Continental Resources Inc. is among the most active drillers in Oklahoma's STACK play, a part of the Anadarko Basin.The weekly snapshot of industry activity highlights the country's most active drilling areas. The Anadarko Basin — which includes the STACK and SCOOP fields — is the third most active in the country.

    "The Anadarko Basin has a long history of hydrocarbon production and, in recent years, has seen an increase in activity mainly from two areas commonly known as the STACK and SCOOP plays," EIA said in a statement this week.

    The productivity report also includes information on the Permian Basin in west Texas and southeast New Mexico, the Eagle Ford in south Texas, the Haynesville in east Texas and northwest Louisiana, the Niobrara in Colorado and Wyoming and the North Dakota Bakken.

    Also this week, the EIA combined its reports on the Marcellus in Pennsylvania area and the Ohio-area Utica into one group the agency now lists as Appalachia.

    EIA recognizes the Anadarko as 24 counties in western Oklahoma and five counties in the Texas Panhandle. The region accounts for about 450,000 barrels of oil per day, 5.7 billion cubic feet of...

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