Updated company profiles for the following have been posted under the Watch List Tab:
> Approach Resources (AREX)
> Comstock Resources (CRK)
> Concho Resources (CXO)
AREX, CRK and CXO
AREX, CRK and CXO
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: AREX, CRK and CXO
Pioneer Natural Resources Co. (PXD) adding to my belief that AREX and CXO are worth a hard look.
PXD reports:
Strong 24-Hr IP Rate From Northern Wolfcamp B Well in Martin County… –
Pioneer announced that it has placed on production its first hz Wolfcamp B interval
well in Martin County. The Mabee K #1H well posted a 24-hr peak natural flow IP
rate of 1,572 BOE/d (77% oil) with a 6,671 ft lateral length and 27-stage hybrid frac.
The 24-hr IP rate for the Mabee K #1H well compares favorably with Pioneer’s hz
Wolfcamp B interval well in Midland County, the DL Hutt C #1H completed in
January (see our May 2nd note). The DL Hutt well posted an initial 24-hr peak IP rate
of 1,693 BOE/d (75% oil) with a 7,380 ft lateral length and 30-stage hybrid frac.
Normalizing the lateral length of the Mabee well to the longer lateral length of the
DL Hutt well implies a comparable 24-hr IP rate for the Mabee well of 1,739 BOE/d.
We would note that the Mabee well is located ~30 miles north of the DL Hutt well
and ~50 miles north of Pioneer’s first two hz Wolfcamp B wells in the Giddings area.
EOG also has a aggressive Wolfcamp horizontal drilling program underway.
PXD reports:
Strong 24-Hr IP Rate From Northern Wolfcamp B Well in Martin County… –
Pioneer announced that it has placed on production its first hz Wolfcamp B interval
well in Martin County. The Mabee K #1H well posted a 24-hr peak natural flow IP
rate of 1,572 BOE/d (77% oil) with a 6,671 ft lateral length and 27-stage hybrid frac.
The 24-hr IP rate for the Mabee K #1H well compares favorably with Pioneer’s hz
Wolfcamp B interval well in Midland County, the DL Hutt C #1H completed in
January (see our May 2nd note). The DL Hutt well posted an initial 24-hr peak IP rate
of 1,693 BOE/d (75% oil) with a 7,380 ft lateral length and 30-stage hybrid frac.
Normalizing the lateral length of the Mabee well to the longer lateral length of the
DL Hutt well implies a comparable 24-hr IP rate for the Mabee well of 1,739 BOE/d.
We would note that the Mabee well is located ~30 miles north of the DL Hutt well
and ~50 miles north of Pioneer’s first two hz Wolfcamp B wells in the Giddings area.
EOG also has a aggressive Wolfcamp horizontal drilling program underway.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: AREX, CRK and CXO
Concho Resources (CXO) 18 recent HZ Bone Spring wells had 30-day average rates of 750 boe/d (71%
oil), performing above typecurve. A stacked lateral was completed and producing to expectations.
oil), performing above typecurve. A stacked lateral was completed and producing to expectations.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: AREX, CRK and CXO
8:50AM Approach Resources reports temporary curtailment of production due to third-party facility power failure; expects second quarter 2013 production to range from 8.7 MBoe/d to 9.1 MBoe/d, compared to prior guidance of 9.3 MBoe/d to 9.6 MBoe/d (AREX) 26.71 : Co reported that its production has been curtailed due to a power outage at the Phillips 66 Sweeny, Texas refinery. The co's NGLs currently flow to the Sweeny refinery and fractionation complex through DCP Midstream's processing plants in the Ozona, Texas area and through Chevron Pipe Line Company's EZ Pipeline. Power has been restored to affected fractionation units at the Sweeny complex. Co estimates that production of ~ 5.2 MBoe/d has been curtailed since May 11, 2013, due to downtime caused by the power outage, and expects a full return to service by the end of this week. Before the curtailment, the co's production for second quarter 2013 was averaging ~ 9.7 MBoe/d. As a result of the curtailment, the co expects second quarter 2013 production to range from 8.7 MBoe/d to 9.1 MBoe/d, compared to prior guidance of 9.3 MBoe/d to 9.6 MBoe/d.
Note what I have underlined. The reduction in NGL production is "temporary" and no big deal. Most important news is that they are on-track to top 10,000 boepd in the 3rd quarter and an exit rate over 11,000 boepd. - Dan
Note what I have underlined. The reduction in NGL production is "temporary" and no big deal. Most important news is that they are on-track to top 10,000 boepd in the 3rd quarter and an exit rate over 11,000 boepd. - Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group