Chevron pre­par­ing to ramp up projects in the Permian Basin

Houston Chronicle - - TEXAS INC - By Ser­gio Chapa STAFF WRITER ser­[email protected]

Oil gi­ant Chevron is pre­par­ing for a large round of drilling in the Permian Basin of West Texas.

The Cal­i­for­nia oil com­pany filed 12 drilling per­mit ap­pli­ca­tions with the Rail­road Com­mis­sion for hor­i­zon­tal drilling and hy­draulic frac­tur­ing projects on its DR State Wise Unit lease in Cul­ber­son County.

Lo­cated off FM 652 be­tween Guadalupe Moun­tains Na­tional Park and the town of Orla, all 12 drilling projects tar­get the Ford West field of the Wolf­camp ge­o­log­i­cal for­ma­tion down to a depth of 9,000 feet.

Chevron closed 2018 with a nearly $14.9 bil­lion profit on $166.3 bil­lion of rev­enue. The com­pany at­tributes part of those prof­its to a pro­duc­tion in­crease in the Permian Basin where it holds more than 2.2 mil­lion acres of leases.

With a large pres­ence in Hous­ton, Chevron filed for 124 drilling per­mits in Texas last year. The com­pany’s nearly 2,300 Texas leases pro­duced nearly 28.9 mil­lion bar­rels of crude oil, more than 116.6 bil­lion cu­bic feet of nat­u­ral gas and nearly 5.4 mil­lion bar­rels of con­den­sate dur­ing the first 11 months of 2018.

Permian Basin

The re­cently formed salt­wa­ter dis­posal op­er­a­tor Water­field Mid­stream is get­ting busy in the Permian. Water­field plans to de­velop five salt­wa­ter dis­posal wells spread through­out Martin County. The leases for the salt­wa­ter dis­posal wells are named af­ter the Mediter­ranean is­lands of Si­cily, Cor­sica, Elba, Capri and Corfu. All five in­jec­tion wells tar­get the Devo­nian ge­o­log­i­cal layer at depths vary­ing from 13,000 to 14,800 feet.

Ea­gle Ford Shale

Tulsa oil com­pany Pro­tégé En­ergy III is pre­par­ing to drill three wells in Karnes County, the most pro­lific crude oil pro­ducer in the Ea­gle Ford shale of South Texas. Pro­tégé plans to drill three hor­i­zon­tal wells on its Lit­tlepage-McBride lease about 13 miles south­west of Karnes City. Two of the wells tar­get the Ea­gleville field of the Ea­gle Ford for­ma­tion and the other tar­gets the Su­garkane field of the Austin Chalk for­ma­tion.

Hay­nesville Shale

Only three drilling per­mit ap­pli­ca­tions were filed for hor­i­zon­tal wells in the Hay­nesville Shale of East Texas. Tanos Ex­plo­ration, a Tyler oil and gas com­pany, plans to drill a pair of gas wells on its Blocker-San­ders-Moore-Un­der­wood lease in Har­ri­son County. Hous­ton oil com­pany Rock­cliff En­ergy plans to drill a gas well on its McLof­flin HV Unit D lease in Har­ri­son County. All three projects tar­get the Carthage field of the Hay­nesville Shale down to to­tal depths vary­ing from 11,183 to 12,000 feet.

Bar­nett Shale

Only one drilling per­mit ap­pli­ca­tion was filed for a hor­i­zon­tal well in the Bar­nett Shale of Texas. Mon­tague op­er­at­ing com­pany Bra-De Oil & Gas Op­er­at­ing LLC is seek­ing per­mis­sion to drill an oil well on its Or­ton A Unit lease in Clay County. The hor­i­zon­tal drilling project tar­gets the Newark East field of the Bar­nett Shale down to a to­tal depth of 7,000 feet.

ABOVE: Work­ers op­er­ate pad sites where a drilling rig will cre­ate three to six wells next to each other at a Chevron project in Mid­land.

Staff file pho­tos

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