CALGARY, Alberta (Nov. 19, 2024) — Enverus Intelligence® Research (EIR), a subsidiary of Enverus, the most trusted energy-dedicated SaaS company that leverages generative AI across its solutions, has released a report that explores the resource potential of the Known Potash Leasing Area in the Delaware Basin of New Mexico. EIR dives into regulatory hurdles, potash operator mine workings and the quantification of inventory quality and depth within the area.
“Drilling restrictions stemming from potash mining in New Mexico’s portion of the Delaware Basin have traditionally been viewed as a notable challenge for operators in the area,” said Shili Yang, EIR research associate and author of the report. “Our assessment concludes that the challenges are more manageable than previously thought, as advancements in drilling technologies, increased cooperation between potash miners and oil producers, and permitting of drilling islands help open up formerly risked-off drilling locations in parts of Lea and Eddy counties to oil and gas development.”
“Our updated analysis has added an incremental 1,000 well locations that break even at $50/bbl or less, increasing by 4% our estimate of remaining drilling sites in the Delaware Basin,” Yang said.
Key takeaways from the report:
- Parts of the Delaware Basin in New Mexico formerly were considered off limits for drilling because of potash mining operations. Energy companies and regulators recently have made significant progress through cooperative development agreements, permitting of drilling islands and long-lateral development.
- EIR increased by 4% its estimates of remaining drilling locations in the Delaware Basin that break even at or below $50/bbl WTI.
- Several energy companies will gain hundreds of drilling sites because of EIR’s reassessment.
- EIR’s estimates of remaining drilling sites have since increased by several hundred locations for multiple energy companies.
EIR’s analysis pulls from a variety of Enverus products including Enverus Intelligence® Research and Placed Well Analytics.
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About Enverus Intelligence® Research
Enverus Intelligence® | Research, Inc. (EIR) is a subsidiary of Enverus that publishes energy-sector research focused on the oil, natural gas, power and renewable industries. EIR publishes reports including asset and company valuations, resource assessments, technical evaluations and macro-economic forecasts; and helps make intelligent connections for energy industry participants, service companies and capital providers worldwide. Enverus is the most trusted, energy-dedicated SaaS company, with a platform built to create value from generative AI, offering real-time access to analytics, insights and benchmark cost and revenue data sourced from our partnerships to 95% of U.S. energy producers and more than 40,000 suppliers. Learn more at Enverus.com.
