In the fourth quarter, Laredo exceeded both oil and total production guidances for the fourth consecutive quarter, Pigott points out. In early February, Laredo closed on a bolt-on acquisition to its tier-one Howard County position, adding 1, net acres to increase its operated inventory in Howard County to gross net primary locations in the Lower Spraberry, Upper Wolfcamp and Middle Wolfcamp formations.
The company says it is continuing with developing its acreage on wider interwell spacing. Laredo expects to complete 28 gross The company reports that two of its four active drilling rigs have been deployed to Howard County. A third was expected in early March. Pigott says Laredo is beginning to add more sand to its standard completions design, taking advantage of the low cost of in-basin sand.
In the first quarter, Laredo took a major step toward incorporating the Cline formation into its future Midland Basin horizontal development program, completing two Cline wells. The first is drilling and completion efficiencies, and the second is reduced completion costs achieved by partnering with service companies. The company averaged drilling about 1, feet a day and completing 1, feet a day in Facilities optimized around development and differentiated water infrastructure also have lowered well costs, according to Sheffield.
Pioneer ranks as a top operator in terms of activity and performance, and leads the way with respect to reducing flared or vented gas production. Pioneer, which is drilling four wells per pad with average lateral lengths of 9, feet, placed 77 horizontal wells on production in the fourth quarter. Joey Hall, executive vice president for Permian operations, says Pioneer plans to operate an average of horizontal rigs in the basin in , including five rigs in its southern joint venture area.
It just so happens that Pioneer already is meeting that target. It is important to remove the black eye on the Permian. Cimarex Energy also is reporting success with 8,foot or longer laterals in the Wolfcamp and Bone Spring formations in the Delaware Basin.
In its fourth-quarter operations report, Cimarex noted that it has drilled 38 longer-lateral wells in Culberson County, Tx. Cimarex Energy is operating 10 rigs and two completion crews in the Delaware Basin, and plans to drill and complete 81 long-lateral wells in as part of 15 separate development projects targeting primarily the Wolfcamp formation in Culberson and Reeves counties in Texas and Lea and Eddy counties in New Mexico.
It brought 23 net wells on production in the fourth quarter, including 12 ahead of schedule. Calgary, Alberta— Newsfile Corp.
An additional seven drilled wells are expected to be on production in the first quarter of We are also excited to have resumed drilling our Pembina and Peace River assets in the second half of to further unlock the potential of these areas. Combined with production increases from the success of our development program, we are in a strong position to execute our future development plan and deliver further debt reduction in We expect to announce our full-year guidance on January 24, We are pleased to have successfully completed our development program, which included drilling 35 high working interest wells across our broad, high quality asset base in the Willesden Green, Pembina and Peace River areas.
The final three wells 2. During January, we will drill two additional wells 1. The wells were brought on stream in late December and, as expected, are currently recovering drilling water in advance of first oil production. The fourth well is expected to be on stream in early January. In the fourth quarter of , we abandoned an additional 53 net wells, bringing our totals to wells and km of pipelines net.
We remain on pace to decommission a total of approximately net wells and net km of pipelines during the period. The Company has the following financial oil and gas contracts in place on a weighted average basis:. Combined with production increases from the success of our development program, we are in a strong position to execute our future development plan and deliver further debt reduction in We expect to announce our full-year guidance on January 24, We are pleased to have successfully completed our development program, which included drilling 35 high working interest wells across our broad, high quality asset base in the Willesden Green, Pembina and Peace River areas.
In the fourth quarter of , we abandoned an additional 53 net wells, bringing our totals to wells and km of pipelines net. We remain on pace to decommission a total of approximately net wells and net km of pipelines during the period. The Company has the following financial oil and gas contracts in place on a weighted average basis:.
In addition, PROP Energy 45 Limited Partnership, our wholly owned limited recourse subsidiary that purchased 45 percent of the PROP units from a third party on November 24, , entered into the following financial hedges in conjunction with the acquisition financing:.
A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency conversion ratio of , utilizing a conversion on a basis is misleading as an indication of value.
These non-GAAP measures are described and defined below.
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