Dallas-based Pioneer Natural Resources Co.’s (PXD - Free 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 - Free Report
) , InterOil Corporation
and Exterran Holdings, Inc.