Drilling Down: Texas drilling permits fall by one-fifth in a week

Drilling permit filings in Texas fell by one-fifth in one week’s time as crude oil prices continue to plunge.

The price of West Texas Intermediate dropped to an 18-year low of $20.09 per barrel last week during a price war and the coronavirus pandemic that has wiped out demand.

Some 58 companies filed 170 drilling permits from March 18 to 24. Those numbers fell to 44 companies filing 137 permits one week later.

Irving oil major Exxon Mobil filed led the companies filing with 22 permits for horizontal drillings projects in the Permian Basin’s Midland and Loving counties.

Midland oil company Diamondback Energy was not very far behind with 19 permits for horizontal drilling projects in Howard, Pecos and Martin counties.

Permian Basin

Midland oil company MCM Energy Partners filed for three drilling permits in Midland County. The company plans to drill three horizontal oil wells targeting the Spraberry field down to a total depth of 12,000 feet.

Eagle Ford Shale

Houston exploration and production company Marathon Oil remains a top player in South Texas, where it plans to drill eight horizontal wells on four leases in Karnes County. The oil wells target the Eagleville field of the Eagle Ford geological formation at a total depth of 12,000 feet.

Haynesville Shale

There were no horizontal drilling permits filed in the Haynesville Shale of East Texas, but Houston oil company Castleton Resources plans to drill a vertical well in Rusk County. The oil well targets the Minden field of the Travis Peak formation down to a depth of 11,050 feet.

Barnett Shale

There were no horizontal drilling permits filed in the Barnett Shale of North Texas, but Mansfield oil company Zachris plans to drill two vertical wells in Clay County. The oil wells target the Clay County Regular field at depths of 350 and 600 feet.

Conventionals

New Braunfels exploration and production company Ranger 40 Petroleum plans to drill five vertical wells for a saltwater disposal project in Reeves County. The five injection wells target the Jess Burner field of the Delaware formation down to a depth 5,900 feet.

Source: houstonchronicle.com