E Bakken Update: Tracking Oil E&Ps With The Lowest Breakeven Prices - Part 2

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Reeves County continues to have one of the lowest breakeven oil prices in the US. There is upside to Reeves' producers as the play is relatively new. Operators are well positioned even with lower for longer oil prices.

Occidental (OXY) has been the most active. It is followed by names like Concho (CXO), Anadarko (APC), Apache (APA), and EOG Resources (EOG). Concho is the top oil producer although it does not have the largest number of completions. Most of the activity has been to the northeast, but compared to the Midland Basin it is still a mystery. There are several intervals over many sections untested, and this is why an operator like Apache (APA) can make one of the biggest discoveries in years. The Permian Basin is its focus, with a very large and growing leasehold.

(Source: Apache)

It has more than 1.7MM net acres in the Permian, and 420,000 in the Delaware Basin. It has the 3rd greatest Permian foothold, and is also the 3rd largest producer. 

(Source: Apache)

Almost all of its acreage is in the Alpine High. This is the large contiguous position in the southwest. It was once thought the Alpine couldn’t support unconventional development. We now know the shelf is stable, and this high pressure Barnett/Woodford target is not all natural gas. This source rock produces very little water, which makes the play as prolific as any other in the country. It contains an estimated 75 Tcf of natural gas and 3 billion bbls of oil. Only 19 locations have been completed by Apache, so we are unsure how far the play advances to the northeast.It is possible operators like Silver Run (SRAQ) (SRAQU), Concho (CXO), and Clayton Williams (CWEI) could have Alpine leasehold but it will take time to tell.

(Source: Welldatabase.com)

The map above provides a more exact location of Apache production. It provides its northern, eastern and Alpine High prospects. It has acreage all around Reeves County, and the north has several productive intervals including the Bone Spring. It is on the border of the gas and oil prone areas.

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Data for the above article is provided by welldatabase.com. This article is limited to the dissemination of general information pertaining to its advisory services, together with access to additional ...

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