“While it’s one of the oldest fields in the U.S., there are multiple producing formations there, and companies are learning how to optimize horizontal drilling in them," WTRG Economics' James Williams says. "The growth is evidence that they’re figuring it out."
Indeed, as Permian crude production per rig is expected to climb to 98K bbl/day this month, up from 83K a year ago, according to the U.S. Energy Department.
While Pioneer Natural Resources (PXD), for example, is drilling in a 300-ft. thick shale shale formation in Texas' Eagle Ford play, the Permian offers shale depths of 3,500 ft., “so this is why this area has really substantial running room going forward,” COO Timothy Dove says.
Endeavour International (END -9.7%) warns that work to get the Rochelle field back on production is being delayed by weather conditions, and the unanticipated downtime will negatively affect Q1 output.
END confirms that the East (E2) and West (W1) development wells at Rochelle, a gas-condensate field in the UK North Sea, have been fully completed and tied-in to the production manifolds.
Endeavour International (END +3.8%) shares are higher after the E&P company announced an update on the current production from the first well at the Rochelle field and the timing of the start-up of the second production well.
Current gross production from the first Rochelle well is 65M-70M cf/day of gas with an additional 2.5K-3K boe/day of liquids production, 6K-7K boe/day net to END's working interest in the field.
END also reconfirms its Q4 2013 guidance of 12K-13K boe/day.