HEW-TEX SWD INDUSTRY NEWS ROOM
HEW-TEX/OILTON JOINT VENTURE
TERRAIN 32-1 WELL, CREEK COUNTY, OKLAHOMA
Please use the links below to watch the 2 short videos regarding the referenced well.
At 10:00 am this morning, the Terrain 32-1 well was opened up and began pumping. The well has approximately 650 barrels of frac fluid to recover, but the well began producing oil immediately upon turning on the pump.
We are pumping oil and frac fluid up the tubing, but oil is also flowing up the “backside” (between the tubing and the casing). As we recover the frac fluids (9.4 lbs per gallon), it will be interesting to see how the well reacts. We have a temporary flow line unloading into a 500-barrel frac tank, and as you can see, the well is gassing quite a bit and making “heads” of fluid (oil and frac fluid) which causes the flow line to jerk.
Remember, we only have the Redfork and Skinner formations open. We will add the Oswego (best looking sand by log) at some point after this initial production test. At this time, everything looks great! We will continue to keep you posted.
Worldoil.com - By Joe Carroll and David Wethe on 5/9/2019
HOUSTON (Bloomberg) — Chevron is abandoning its $33 billion offer for Anadarko Petroleum, the culmination of a month-long bidding war in which Occidental Petroleum Corp. prevailed over a rival five times its size.
The most ambitious foray of Chevron CEO Mike Wirth’s tenure ended Thursday after the world’s third-largest oil explorer by market value elected not to sweeten an offer that fell out of favor with Anadarko directors. Chevron said it will collect a $1 billion termination fee and plans to increase its share buybacks by 25%.
Anadarko’s board embraced the Occidental proposal as superior on May 6, giving Chevron up to four days to come back with a revised offer. Anadarko was looking for Chevron to match or exceed Occidental’s proposal, people familiar with the matter said Wednesday. However, Chevron indicated that topping its rival’s offer was too risky. Read more…
Occidental Petroleum Corp. Chief Executive Officer Vicki Hollub is on the cusp of winning a David versus Goliath bidding war that has captivated the oil industry.
After making a series of approaches to rival Anadarko Petroleum Corp. about a merger over almost two years, Hollub was outflanked last month when the company embraced a takeover offer from Chevron Corp., despite it being considerably lower than her $38 billion bid.
The University of Alabama-trained engineer didn’t back down. In a series of bold and creative moves that included securing a $10 billion investment from Warren Buffett, Hollub, 59, is back in pole position in the battle for Anadarko. In gaining the stamp of approval from Anadarko’s board on Monday, she has boxed Mike Wirth, her counterpart at Chevron, into a corner with the uncomfortable choice of tarnishing his reputation for financial conservatism or conceding defeat. Read more…
CHICAGO and HOUSTON (Bloomberg) — Occidental Petroleum Corp.’s bombshell investment from Warren Buffett is the culmination of almost two years of on-and-off-again wrangling with Anadarko Petroleum Corp. — a saga that’s, so far, seen the company slip through its fingers several times.
With Buffett in its corner and a higher bid on the table, Occidental finally seems to have the upper hand over Chevron Corp.’s lower, but already agreed on, offer. Anadarko’s board has decided to start talking to Occidental again, and said that its bid could result in a superior proposal.
Occidental’s engagement with Anadarko officially brings the two Texas-based explorers back to the negotiating table again after at least four separate rounds of communication since late 2017, according to people familiar with the matter, who asked not to be identified as the details of the discussions aren’t public. As recently as December, an informal check-in by Occidental had met with a negative response from its potential target: We’re not ready.
Just two months later, Chevron entered the fray and started talking to Anadarko, the people said. It was enough to pique Occidental’s interest, and by March 23 the company had made a $76-per-share offer — including $19 in cash, the people said. Representatives from Anadarko, Chevron and Occidental declined to comment on the talks. Read more…
With its April 26 announcement that it has an agreement-in-principle for the sale of its last remaining assets in the Eagle Ford Shale, Pioneer Natural Resources is on the verge of fulfilling its objective, announced in February 2018, of attaining a new status as a pure Permian Basin play. Whether intentional or not, the company has also just made itself a more attractive takeover target for bigger companies looking to increase their holdings in the world’s hottest oil field.
A map of Permian acreage owned by each major operator, provided by the folks at industry solutions firm DrillingInfo, can be seen at this link. It shows that Pioneer’s assets are concentrated in the Midland Basin, which makes up the Eastern half of the greater Permian region. While the Midland Basin is not currently considered as attractive as acreage in the Delaware Basin in the Western half of the Permian region, potential suitors will look on Pioneer’s big swath of concentrated acreage with great favor. Read more…
Pioneer Natural Resources (NYSE:PXD) announced on April 26 that it was engaged in advanced negotiations to sell the last remaining non-Permian Basin asset in its portfolio, a suite of joint venture properties in the Eagle Ford Shale region of Central Texas. If completed, the transaction to sell the properties to Ensign Natural Resources would complete Pioneer’s two-year transition from a nationwide producer to a pure Permian Basin play.
It’s fair to note that that fact will also have the effect of making the company a more attractive target for a buyout by a larger company in the coming months. With Chevron and Oxy battling to become the acquirer of major Permian producer Anadarko Petroleum, and other majors like Shell, BP and ExxonMobil looking to enlarge their own positions in the Permian region, the industry appears to be headed into a period of rapid consolidation. Read more…
Loving County, population 134, has become a top destination for oil and natural gas drillers. So far this year, about 18 companies have filed for 218 drilling permits, putting the West Texas county on pace to eclipse the 437 drilling permits filed by 35 companies in 2018.
The Permian Basin operations of EOG Resources, Shell and Anadarko account for nearly half of the activity Loving County.
Service companies aren’t too far behind. Carlsbad, New Mexico oilfield wastewater management company Mesquite SWD has filed to drill 30 saltwater disposal wells in Loving County so far this year. Read more…
WorldOil.com : By RACHEL ADAMS-HEARD on 4/16/2019
HOUSTON (Bloomberg) — Solaris Water Midstream, which handles water supplies and disposal for Marathon Oil, is closing in on a deal with another driller as explorers increasingly outsource one of the key components of fracing.
Backed by private equity investor Trilantic North America, Solaris has “a couple” letters of intent with oil producers in the works and expects to be handling the wastewater needs for another driller in the future, Greg Mullin, the company’s senior vice president of commercial, said at a conference in Fort Worth, Texas.
The Permian basin’s budding water business is only getting bigger as oil producers seek to cash in on infrastructure used to transport water to wells and to dispose of it after it’s been blasted into shale rock with sand and chemicals. Private equity-backed companies like Solaris have been buying the assets from drillers to become their service providers. Read more…
Oilfield wastewater disposal volumes are expected to double in the Permian Basin within the next two to three years, a new analysis from global energy intelligence firm Wood Mackenzie shows.
As drilling activity continues to expand in the arid region between West Texas and southeastern New Mexico, hydraulic fracturing has resulted in growing challenges in sourcing water and what to do with wastewater from completed wells. Read more…
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