- the Delaware has more upside than any unconventional play in the lower 48
- the Delaware is deeper than Midland, and this provide unique well pressures in Loving and Lea counties
- these results are why Suntrust loves this area
- we are just starting to figure out how good the Delaware is, and how far reaching the play will become
Well results show much better production at the high end of the curve. As in all plays, some wells grossly under perform.
More importantly, is the very large oil production on the high end.
We focused on locations using more than 10 million pounds of proppant and/or more than 1,000 pounds per foot. This seems to be a base case or low end of enhanced completions. It also provided inclusion of wells that have a shorter lateral length.
Only wells completed after October of 2015 were included. The slide above has four locations producing more than 500 KBO. These wells had a well life of 9 to 13 months. These are better than most anywhere, and seem to be isolated to EOG. Nine locations produced more than 400 KBO. 28 wells produced more than 300 KBO. The total enhanced completions within this time frame were 311.Summary:
In summary, the Delaware has seen less activity than most other US unconventional plays. Operators continue to increase spending in the Delaware. There is more de-risking and downspacing to assess. This increased risk could provide more up or downside.
Recent results show there could be something special in the Delaware, and we do not know which intervals and how large an area it encompasses. Although oil prices may remain low, the Delaware should continue to increase production. We believe the Delaware is one of the best areas to be. Concho, EOG, and Cimarex are just a few names that seem well placed going forward.