The Wolfberry has been an area of increased activity lately with companies like Linn and Callon buying in, Berry and Concho adding acreage, and Pioneer and Clayton Williams ramping up 2010 activity. It makes sense for companies considering relatively low well costs around $1MM-$1.5MM, the oil-weighted price differential, and multiple oil producing horizons even outside of the Wolfberry trend (Strawn, Ellenburger, etc.). And today, Petroleum Development Corp announced they want in too.
Petroleum Development Corporation announced they acquired approximately 8300 net acres in the Wolfberry trend for $45MM plus their producing Michigan Gas assets from an undisclosed seller. The Michigan assets are shallow gas producers from the Antrim shale, typically no more than 2500′ and were valued by the seller at $30MM. PDC had interest in approximately 210 gross, 146.5 net wells in Michigan. Below is a map of the Michigan PDC operated wells. These wells produced 1.4 Bcfe net for PDC in 2009.
The acquired Wolfberry acreage has 72 producing wells and PDC expects it to add an average of 900 Boe/d over the next twelve months. PDC has identified 1200 drilling locations on the Permian acreage at 40 acre spacing and will commence drilling in the 4Q2010 with a one rig program.
Expect to see more public companies acquiring interest in the Wolfberry in attempts to add reliable oil production to their portfolio.
We will be keeping track as always of all things Wolfberry in the Wolfberry Unconventional Update. We will also be adding the Wolfberry to the Drillinginfo Unconventional Platform in the future.
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