Pioneer Natural Resources Company (PXD - Free Report) announced that it has brought online 16 horizontal wells across its northern acreage, of which 10 are Wolfcamp Shale interval wells and six are Spraberry Shale wells in Midland, Martin, Andrews and Upton counties.
Amongst the six Spraberry Shale wells, four started production in late October or early November. Currently, the wells are flowing back fracture stimulation water and therefore yet to reach 24-hour peak initial production rates.
The Spraberry Shale interval wells are positioned at shallower depths than the Wolfcamp Shale interval wells and can flow back fracture stimulation water for 30–60 days before attaining initial peak production rates due to lower subsurface pressure.
Pioneer also announced that it has placed on production its fourth horizontal Wolfcamp D interval well on its northern Spraberry/Wolfcamp acreage in the Midland Basin in west Texas. The company’s third horizontal Wolfcamp B interval well in Midland County was also commissioned.
Further, the company announced that its first three horizontal Wolfcamp B interval wells on University Lands Block 2 in Reagan County in the southern Wolfcamp joint venture (JV) area of the Midland Basin have also started production.
Pioneer believes that robust results from its Spraberry/Wolfcamp Shale drilling program further substantiates the significant oil resource potential across the company’s northern Spraberry/Wolfcamp acreage and southern Wolfcamp JV area in the Midland Basin.
Jointly, these plays cover about 900,000 gross acres, which is estimated to hold recoverable resources of over 4.6 billion barrels of oil equivalent.
Pioneer carries a Zacks Rank #3 (Hold). However, there are other sector stocks – SM Energy Company (SM - Free Report) , Western Gas Partners LP (WES - Free Report) and Abraxas Petroleum Corp. (AXAS - Free Report) – that hold a Zacks Rank #1 (Strong Buy) and are worth buying now.