Category: Baystreet Newswire
Date: Tuesday, July 22, 2014
DALLAS, TX / ACCESSWIRE / July 22, 2014 / Crude Energy, an independent exploration and production company based in Dallas, TX, seeks to build on its string of successful drilling projects with the announcement of its new White Wolf Prospect.
The 640-acre site is located near Midland in West Texas, one of the most oil-rich regions in the country.
Crude Energy just announced that it is opening up its White Wolf Prospect to accredited investors, who can profit from the drilling operation that is set to begin in August.
Crude plans on drilling at a total depth of 9,220 feet. The target will be the prolific Wolfcamp section, which ranges from 5,770 feet down to 7,300 feet. Although Wolfcamp is the primary target, the company has secondary objectives in the Cisco/Canyon Sand Series at 7,300 feet, the Strawn Lime section at 7,900 feet, the Mississippian at 8,400 feet, the Fusselman at 8,700 feet, the Montoya at 8,800 feet, and finally the Ellenburger at 9,170 feet.
"Crude Energy has terrific geological intelligence on the prospect, and is confident that we will successfully produce hydrocarbons from the White Wolf for a long time. There are multiple layers of liquids, which should provide a great return on investment," said Crude Energy’s President Parker Hallam in a press release. "The Permian Basin is some of the best acreage in the world, and Crude Energy is perfectly positioned to take advantage of it," he added.
Crude Energy’s operations in the Permian Basin are part of the reason the region is making such a dramatic comeback. The Permian basin is now the most prolific oil producing region in the United States, with producers such as Devon Energy, Pioneer Natural Resources and Chevron leading the pack. That comes from the U.S. Energy Information Administration, which took an in depth look at the impressive revival in oil and gas production in West Texas.
The Permian Basin has been producing oil and gas for around a century, but it went into a period of decline in the latter half of the 20th century. Over the last five years, however, oil and gas production in formations like the Sprayberry, Wolfcamp, Bone Spring, Glorieta and Yeso, and Delaware has surged.
The numbers reflect this success. In 2007, the Permian basin only produced 850,000 barrels per day, which is not a trivial amount. But by 2013, oil production jumped to 1.35 million barrels per day. That is enough to put the Permian Basin in the top spot in terms of oil production across the country. Last year, the Permian accounted for 18% of total U.S. oil production.
Early flow rates in the Permian are comparable to the Eagle Ford in South Texas, and the Bakken in North Dakota –two regions that tend to get a lot more press coverage.
And the word is out on the Permian, which accounted for 50% of the additional rigs that entered into operation in the first quarter of 2014.
But it is not as if all of the formations within the Permian are proving to be so productive. The top three – the Sprayberry, the Wolfcamp, and the Bone Spring formations – alone account for almost three-quarters of the growth in the Permian Basin over the last several years.
And it is in the Wolfcamp that Crude Energy is making moves.
Crude Energy acquired over 3,000 acres in the Wolfcamp in April, and has talked up the potential of its acquisition.
"Our White Wolf Prospects offers investors a tremendous opportunity to take advantage of Crude Energy’s incredible position in one of the world’s most productive oil formations. We are confident that our drilling operation will be completed in a few short weeks, and will yield the results we are expecting," Crude’s President Parker Hallam said in a statement.
Crude Energy will begin drilling in its White Wolf Prospect in August, and has set an estimated completion date for October.
By. James Burgess of Oilprice.com
SOURCE: Crude Energy