SPEAKER: Richard Ball, Detring Energy Advisors

 

SUBJECT:  “The Permian Basin, still a beast despite lower for long pricing?”

Abstract: The expansive Greater Permian Basin contains the Midland, Delaware, Val Verde and Marfa sub-basins.  While each of these sub-basins holds varying degrees of oil and gas development potential, the Midland is mainly responsible for jumpstarting recent drilling activity. During the 1950s, production from the Wolfcamp and Spraberry Formations began in the basin. Since then, activity has fluctuated with the price of oil and advent of technologies. During the past 8 years, increase in activity has drastically accelerated during the “Shale Gale,” as horizontal drilling and hydraulic fracturing techniques have become more efficient and cost-effective.

This presentation focuses on the structural and stratigraphic history of the Midland and Delaware Basins. We will share data and analyses from our internal assessment of what factors are driving the Wolfcamp, and Spraberry/Bone Spring plays. Our evaluation included hand-declining over 9,000 wells’ production curves, conducting geologic analyses and defining multiple type curve areas.  The study encompasses geology, geography, performance and hydrocarbon content of each hydrocarbon bearing zone with current industry activity.

The Midland and Delaware Basins were primarily filled by sediments from the surrounding highlands. Midland Basin wells show a higher GR and lower Resistivity response towards the basin center and away from the Central Basin and Eastern Shelf platform-supported margins.  This is indicative of sediments becoming finer-grained away from the stable margins. In the Delaware, the basin becomes gradually shallower to the south, while the 3rd Bone Spring Carbonate thickens into the basin.  This thickening corresponds to some of the best returns noted in our Type Curve Analysis.

During this talk we will look into the best areas to drill within these basins, the break-even prices for each basin, and how these basins stack up against other basins?

BIO:  Richard is a Certified Petroleum Geologist who worked both conventional and unconventional reservoirs with Chevron for 10 years, including onshore US, Gulf of Mexico Shelf/Deep Water, and West Africa Shelf. Richard is currently Treasurer on the AAPG Executive Committee as he serves as Councilor for the AAPG Division of Professional Affairs (DPA). Mr. Ball is a proud graduate of Stephen F. Austin State University and the University of Louisiana at Lafayette, where he earned his B.S. (2005) and M.S. (2007), respectively.  He joined Detring Energy Advisors at the end of 2016 as the Vice President of Geology and has assisted the company in growing into the small-cap (Petro Divest Advisors) and mid-stream (Baird partnership) advisory spaces.