Scott Sheffield of Pioneer Natural Resources spoke at the DUG Eagle Ford on Tuesday. I thought it was one of the more intersting presentations because he spoke to more than just Pioneer Eagle Ford operations. He spoke at length about his pessimstic view of natural pricing, why it will stay at $4, and also to the Pioneer Spraberry operations.
Spraberry activity is at an all-time high with 170 rigs. Sheffield calls it the number one play in the US and a few operators have paid $15-$20k/acre recently. Pioneer has been talking about their ramp-up all year, they are currently at 25 rigs and will be at 40 rigs by 2012. He said they are obviously in this for the long haul, and by 2020 they will have about 100 MBopd.
A few other intersting notes, he is hopeful that the Spraberry may become a hot horizontal play. There have been more than a couple operators testing horizontal wells out there, I believe Concho is one of them, Pioneer another. With Sheffield’s view of gas prices being pretty bleek short term, he theorizes that the Spraberry/Wolfberry trend will only get more popular as operators chase oil, frac more stages, and open more zones.
Below is a quick look at how active Pioneer really is out there this year. These are the 2010 Spraberry permits, over 500 so far. It is coloredy by date issued, over 95 have been issued since the beginning of September alone.
Check the Wolfberry Unconventional Update for more things Wolfberry and Permian Basin.