Back to top

Analyst Blog

Dallas-based Pioneer Natural Resources Co.’s (PXD - Analyst Report) first horizontal Wolfcamp Shale well –Mabee K #1H - in Martin County, Texas commenced production. 

A 27-stage hybrid fracture stimulation over the well’s perforated lateral length of 6,671 feet was used to complete the Mabee K #1H. The well had an initial 24-hour peak natural flow rate of 1,572 barrels of oil equivalent per day (Boe/d), with 77% oil content.
 
Per the company, the initial 24-hour peak natural flow rate for the Mabee K #1H well is comparable to the initial 24-hour peak natural flow rate for the DL Hutt C #1H well in the adjacent Midland County, Texas. The DL Hutt C #1H was the first well in the horizontal Wolfcamp Shale B interval that was brought online with an initial 24-hour peak natural flow rate of 1,693 Boe/d with 75% oil content. 
 
The DL Hutt C #1H was completed using a 30-stage hybrid fracture stimulation over the well’s perforated lateral length of 7,380 feet. Upon standardization of the lateral length of both the wells, it was established that the the comparable 24-hour peak natural flow rate for the Mabee K #1H well would have been higher than the DL Hutt C #1H well at 1,739 Boe/d.
 
Located about 30 miles north of the DL Hutt C #1H well and 50 miles north of Pioneer’s first two horizontal Wolfcamp Shale B interval wells in the Giddings area in Upton County, the Mabee K #1H well reveals the prospect of the 900,000 gross acres that Pioneer holds in the Spraberry/Wolfcamp leasehold position.
 
The Spraberry/Wolfcamp play is estimated to hold a net resource potential of over 4.6 billion barrels oil equivalent. Currently, Pioneer has seven horizontal rigs running in the southern part of the play, where it has joint interest agreement with Sinochem. During the second quarter of 2013, the company intends to boost its horizontal rig count in the northern part of the play to five rigs from one rig. Further, in 2014, additional rigs are expected to be employed in both the northern and southern parts of the play.
 
Pioneer carries a Zacks Rank #3 (Hold). However, there are other stocks in the sector that appear more rewarding for the next few months. These include the Zacks Rank #1 (Strong Buy) stocks of Dawson Geophysical Company (DWSN - Snapshot Report), InterOil Corporation (IOC - Snapshot Report) and Exterran Holdings, Inc. (EXH - Snapshot Report).  

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
CLAYTON WIL… CWEI 117.30 +1.78%