More On The Chevron - Noble Energy Deal -- Rigzone; WTI With Nice Jump -- July 21, 2020

CVX-Noble Energy: This may be the best analysis yet of this deal. It's a huge deal. Link here at Rigzone.

According to Chevron, the acquisition will add approximately 18 percent to its year-end 2019 proved oil and gas reserves at an average acquisition cost of less than $5 per barrel of oil equivalent (boe) and nearly 7 billion barrels of risked resources for less than $1.50 per boe.

The figures are based on Noble’s proved reserves at the end of 2019.

Chevron stated the deal boosts its U.S. onshore portfolio with assets in the DJ and Permian basins. The company pointed out the 92,000 acres in the Permian are “largely contiguous and adjacent” to its existing assets.

Moreover, it noted the agreement includes an integrated midstream business and established position in the Eagle Ford. Outside the U.S., Chevron will gain a large-scale, producing presence in the Eastern Mediterranean in Israel as well as West Africa assets in Equatorial Guinea.

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Back to the Bakken

Active rigs:
 

$41.97	7/21/2020	07/21/2019	07/21/2018	07/21/2017	07/21/2016
Active Rigs	11	55	67	59	31

One well coming off the confidential list -- Tuesday, July 21, 2020: 51 for the month; 51 for the quarter, 497 for the year:

• 37268, loc/NC, CLR, Kate 15-19HSL, Big Gulch, no production data,

RBN Energy: Permian well shut-ins wind down but natural declines extend oil, gas downturn.

Associated natural gas production out of the Permian Basin rebounded sharply a few weeks ago, indicating production curtailments that went into effect in May in response to low crude oil prices are coming back online. Just as abruptly as gas production dived in early May, it lurched upward in late June, nearly back to where it was before the shut-ins began. But the rig count has continued falling to a record low, and indications are that many of the wells drilled over the past few weeks have not been completed. The meager drilling and completion activity suggests that the natural declines of existing wells, which were temporarily exaggerated by the shut-ins, will now be felt — and felt for as long as rig counts remain depressed — not just in the Permian but also in other oil-focused basins. Daily gas production volumes in the Permian in the past 10 days or so already are slipping, despite shut-ins tapering. Today, we examine the latest production trends in the Permian and what it will mean for the gas production outlook.