A handful of Permian Basin producers known for their oil output are moving to test the Barnett Shale and other gassy zones on their acreage as stronger commodity prices support delineation.
Most recently, Pioneer Natural Resources CEO Scott Sheffield said last week the company would begin testing the Barnett and Woodford formations deep in its Midland subbasin acreage next year.
“It’s important to understand what we have, where natural gas prices may end up long term,” Sheffield said at the Barclays CEO Energy-Power Conference, noting that returns from the gassier formations may not be as good as those in the Spraberry-Wolfcamp oil plays. [Wow!]
He also said that while the formations have been tested on the eastern and western edges of the Midland, they have yet to be delineated in the deeper parts of the subbasin.
Other oil-heavy operators, including Occidental Petroleum, Continental Resources, and Diamondback Energy have filed permits with Texas regulators this year to drill the Barnett. Occidental has also filed permits to drill the Devonian and Mississippian plays as well, regulatory data show.
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