Friday, March 25, 2011

Wolfberry Play- the Monarch of Permian Basin!!

In the recent days, the oil and gas industry sees many oil-weighted plays grooming up.. One such play is Wolfberry play- The Monarch of Permian Basin!!

The Wolfberry play is named after the two main productive formations, the low-permeability Wolfcamp and Spraberry. The Wolfberry play is spread across Midland, Upton, Martin, Howard, Glassock, Andrews and Reagan counties of Permian Basin. Rig count has increased noticeably in Glasscock and Andrews counties in West Texas over the last 90 days as both private and public operators ramp Wolfberry programs. The activity in the Wolfberry has recently increased, spurred by the current relatively strong oil prices. The active participants in the Wolfberry play include Berry Petroleum, Linn Energy, Energen and PDC Energy.

PDC Energy is planning a 25-well drilling program in the Wolfberry in 2011 and anticipates continued production growth. Linn Energy’s 2011 capital program of $480 million has two distinct components: high rate-of-return liquids-focused drilling in the Granite Wash and Permian Basin Wolfberry trend and low-risk, low-cost projects. The capital program calls for drilling 45 horizontal Granite Wash wells and more than 130 Wolfberry wells in the Permian Basin.

The Wolfberry Economics
The Wolfberry has moderate rate of return with low risk. The Wolfberry play has gained better interests now than when oil was $147 a barrel in 2008. The 2010 production metrics of Wolfberry play had hit ~$120,000/daily boe as against ~$100,000/daily boe in 2008. 

The economics of the Wolfberry well is as follows: 
  • Multiple zones: Spraberry, Wolfcamp, Strawn, Clearfork
  • EUR 100-140 MBOE
  • Capital Costs: $1.5 - $1.75 million
  • IRR: 35% - 70%

Here is the Wolfberry opportunity available for sale! 

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