Pioneer held their 4Q and YE2010 Earnings Call this morning. There was not much new Eagle Ford information but I’ll post my notes and some slides for good measure. Pioneer is reaping the benefits of the Reliance JV, they will spend $110MM in 2011 with Reliance spending 3x that from the drilling carry.
Pioneer spoke to an increase of efficiencies in their Eagle Ford program. 20 days to drill, in many metrics there have been 20% reductions. This is however, offset by a 100% increase in completion costs. Pioneer is continuing working towards ownership of equipment. I cannot think of another company that touts ownership of rigs, frac fleets etc. more than Pioneer. This can be a great thing if it brings down well costs and time metrics.
Pioneer has extensive 3D-seismic and working knowledge of the area from historical programs (Edwards). They are averaging about 5,000′ laterals, with some testing of 6,000′. Pioneer expects 5 additional central gathering plants to be completed in 2011. They exited 2010 at 5MBOEPD. The ramp-up will continue with expected guidance set at 12-15 MBOEPD by YE2011, up to 40-45 MBOEPD in 2013.
Pioneer is a big player in the Sugarkane Corridor, which I believe is the sweetest part of the trend currently. Below is a map of the wells we have production data on.
Keep checking back, I hope to blog on all the big player’s conference calls with a focus on the Q&A sections for insights.
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