Hit up The Running M and Matamoros in Gonzales?

Sounds good. Definitely possible they put a big bid in and ended the process. The entire package is in the neighborhood of 19,500 net acres. Can't imagine Devon would sell for less than $35,000/nma without letting the process run its course. That would be $683MM and it would be very hard for a private company to make any money with that entry cost (or a public for that matter). Maybe they are planning on building a team up and going public.

aggie028 said:

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Sounds good. Definitely possible they put a big bid in and ended the process. The entire package is in the neighborhood of 19,500 net acres. Can't imagine Devon would sell for less than $35,000/nma without letting the process run its course. That would be $683MM and it would be very hard for a private company to make any money with that entry cost (or a public for that matter). Maybe they are planning on building a team up and going public.

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that's a pretty low bid for that area of the world.

The same Manti in Corpus?

nu awlins ag said:

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The same Manti in Corpus?

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Yes

midland spread to the gulf has narrowed some in the last few days. will be interesting to see this play out. i think the minus 15/16s we saw were a bit of panic selling.

i'm really interested to see how Permian production continues to grow. there's going to be heck of lot more frac offsets and downtime happening.

Devon's Delaware basin business unit VP is speaking at DUG. On the 12k boed well, he said they've done 3 more similar wells since. Did not indicate any details about the completion technique.

Goose06 said:

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Devon's Delaware basin business unit VP is speaking at DUG. On the 12k boed well, he said they've done 3 more similar wells since. Did not indicate any details about the completion technique.

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How many days were they able to produce at that rate?

Goose06 said:

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Devon's Delaware basin business unit VP is speaking at DUG. On the 12k boed well, he said they've done 3 more similar wells since. Did not indicate any details about the completion technique.

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I can guess on their completion technique but won't do so here. I wouldn't think you could sustain those rates for very long....

The only public completion shows acid volume and 1,500 ppf. Doesn't seem like anything special.

aggie028 said:

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Possible but seems unlikely given the size and that Jefferies is marketing it and hasn't started the data room presentations yet.

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In '16 Jefferies had a theory that preemptive bids were pushing the market higher and built a marketing strategy around bringing in preemptive bids. That is how they sold Rock Oil and QStar.

Everyone had heard QStar was coming to market for a few months, but the QStar guys were cagey if you asked them about it, then they were sold.

Definitely possible but haven't seen that happen in a while and they sent the teaser out to everyone.

Manti isn't buying all of the acreage.

I would generally agree with your assessment except for two things. One is the rise of crypto currency and the incredible amount of energy it requires to mine them. The other is that the world is gearing up for war. That will keep energy prices propped up, I believe.

FrecklesDad said:

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I would generally agree with your assessment except for two things. One is the rise of crypto currency and the incredible amount of energy it requires to mine them. The other is that the world is gearing up for war. That will keep energy prices propped up, I believe.

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That initial assessment and OP was made almost 4yrs ago...

This just shows how hard it is to predict the future.

Ag2012 said:

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My dude, you're replying to a four year old post. The bust has come and gone.

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Yes and no. There's still large segments of the industry that haven't recovered.

any mud engineers on here? I have a technical question about lime in drilling mud. TIA

Seems like the job inquiry emails from O&G companies, for IT related jobs has increased significantly over the last few weeks. Hopefully its a good sign that some jobs are coming back. I haven't worked in O&G to know if technology related jobs are first or last to start being brought back.

Not sure if this is the right place for this, but are there any drilling engineers that would be open to talking about a new product my company is working on? Trying to do some market research and would be interested in more opinions. Specifically around drilling data.

Email me at username at gmail.com. If you're in Houston, I'd be happy to buy you lunch/drinks/coffee.

Callon stepping things up a bit with purchase of 29k Ward Co. acreage from XEC.

Yup, they about to get busy....

https://www.forbes.com/sites/ellenrwald/2018/05/25/oil-prices-plummet-after-saudi-arabia-and-russia-signal-intent-to-raise-production/

Was surprised by this news and it appears the markets were as well. Will be interesting to see how our weekly build and this revelation play out in pricing.

Market is down 4% this morning.

I heard some of the offshore drilling contractors are gearing up to start hiring

Cyp0111 said:

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Market is down 4% this morning.

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I can't see them raising output when they said last month they wanted price at $80. Maybe the market share they are losing is prompting this. They should keep the output cut until the Q4. The industry has shown that is can quickly ramp up production if needed.

A lot of optimism for offshore drilling contractors on here... Until the day rates go up these companies will continue to lose money. Look how many 5-7th gen assets are collecting rust. They are basically giving the rigs away and taking loses at current day rates. These companies won't make the preferred work environment list for the next few years until they can pay their bills.

Why not? The are getting pressured to not let this thing run too much.

My guess... they really just want this trend to level out right about where it is. So far US shale is holding the line on disciplined capex spending and the deepwater investment domino is still standing. If the Saudis message that this is the price level, they likely keep those two items in place and get to fill incremental demand at current prices.

If they don't, the risk is a run up to triple digits, then money flows back everywhere and we get another bust in short order.

I thought shale and OPEC would both lose discipline when we crossed 60, so I'm actually pretty impressed at how smoothly this has all worked out (SO FAR).