The continuing success in the Permian and Delaware basins is driving midstream expansion.

IHS reported that Crestwood Equity Partners LP (NYSE: CEQP) is conducting a non-binding open season until Dec. 7 seeking support for the Delaware Takeaway (Delta) system in the Delaware Basin of West Texas.

A 164-mile crude and condensate pipeline header system is planned, originating at a new Crestwood terminal to be built near the town of Orla in Reeves County, Texas. Potential access to end markets include: El Paso, Texas; Midland, Texas; Cushing, Okla.; Houston; and Corpus Christi, Texas.

The planned Delta system will have the capability to batch multiple grades of crude/condensate and initially transport more than 200,000 barrels per day (bbl/d). The project, which is expected to be operational in the second quarter of 2017, may be further expanded based on the results of the open season.

On the Northwestern Shelf of the Permian Basin, there has been a growing horizontal San Andres play developing along the Texas/New Mexico state line. Development projects include Manzano LLC’s rapidly expanding Platang Field program in Yoakum County and its Bronco South Field activity in neighboring Lea County, N.M. The operator has permitted, drilled and completed numerous wells in the area over the last several months.

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1. EOG: Wolfcamp/Delaware Basin Discoveries

Two horizontal Wolfcamp-Delaware Basin wells by Houston-based EOG Resources Inc. (NYSE: EOG) were completed in Section 36-24s-33e in Lea County, N.M.

The #701H Dragon 36 State flowed 2.35 Mbbl of oil, 3.387 million cubic feet (MMcf) of gas and 3.75 Mbbl of water per day through acid- and fracture-treated perforations at 12,633- to 17,194 feet. Tested on a 38/64-inch choke, the flowing casing pressure was 2,298 pounds per square inch (psi). The 17,323-foot well bottomed within one mile to the southeast. The true vertical depth is 12,556 feet.

The offsetting #702H Dragon 36 State produced 2.189 Mbbl of oil, 4.084 MMcf of gas and 4.3 Mbbl of water per day from acidized and fractured perforations at 12,873- to 17,191 feet. Tested on a 38/64-inch choke, the flowing casing pressure was 2,392 psi. The lateral bottomed about one mile to the southwest and the true vertical depth is 12,562 feet.

Most of the horizontal activity in this part of Lea County includes wells targeting or producing from the Bone Spring in Red Hills and Red Hills North fields.

2. Torchlight: WolfPenn Completion

Torchlight Energy Resources Inc.’s (NASDAQ: TRCH) subsidiary, Torchlight Energy Operating LLC, has completed a wildcat on its northwestern Hudspeth County (RRC Dist. 8) project in the Orogrande Basin in West Texas.

According to IHS, it was targeting “WolfPenn.” According to the Plano, Texas-based company, WolfPenn has significant similarities to the Midland Basin portion of the Permian and in particular the Spraberry/Wolfcamp zones.

The company has logged the potential zones and run sidewall cores at #1 University Rich A11. It was drilled to 6,109 feet with casing set to 5,990 feet. It is on a 686.7-acre lease in Section 11, Block A, University Lands Survey.

Torchlight will be analyzing the results to determine the horizontal potential and appropriate completion methods for the well. The #1 University Rich A11 is the first of four planned tests in Torchlight’s Orogrande project.

The next phase of testing will be to drill additional vertical wells to measure the extent of the play as well as horizontal wells to determine flowrates and reserve potential for its 168,000 acres. The leasehold is spread across seven blocks including all of the acreage in blocks A, B, E and F, and most of the acreage in adjacent blocks 2, 3 and 4.

3. BHP Billiton: Phantom Field/Wolfcamp Discovery

Results from a Phantom Field-Wolfcamp well were announced by Melbourne, Australia-based BHP Billiton Ltd. (NYSE: BHP) in Culberson County (RRC Dist. 8), Texas.

The #1H Horseshoe Springs State 113-24X1 flowed 2.907 MMcf of gas, 381 bbl of 50.1-degree-gravity condensate and 1.92 Mbbl of water per day. The 16,650-foot well is producing from acid- and fracture-treated perforations at 9,541- to 16,463 feet. It is on 971-acre Delaware Basin lease in Section 24, Block 113.

4. EOG: Wolfcamp Discovery

A Wolfcamp discovery by EOG Resources has produced 2.478 Mbbl of oil, 3.596 MMcf of gas and 2.99 Mbbl of water per day.

Located in Section 27-24s-33e of Lea County, N.M., #703H Hearns 27 State Com is producing from acid- and fracture-treated perforations at 13,003- to 17,498 feet. It was tested on a 56/64-inch choke and the flowing casing pressure was 1,122 psi. The Johnson Ranch Field well was drilled to 17,650 feet. The lateral of the Delaware Basin well bottomed one mile to the south at a true vertical depth of 12,500 feet.

5. Capitan Energy: Delaware Basin/Wolfcamp Producer

In Culberson County (RRC Dist. 8), Texas, Carlsbad, N.M.-based Capitan Energy Inc. has completed a horizontal Wolfcamp gas well.

The Delaware Basin well is in Section 10, Block 114, PSL Survey, A-7739. The #2H Georgette State flowed 6.11 MMcf of gas, 1.883 Mbbl of 53-degree-gravity condensate and 2.65 Mbbl of water per day. Production is from fractured perforations at 8,630- to 17,996 feet. The Ford West Field well was tested on a 48/64-inch choke with a flowing tubing pressure of 1,987 psi and a shut-in tubing pressure of 2,467 psi. Capitan drilled the well to 18,214 feet out of a 9,190-foot pilot hole. The true vertical depth is 8,301 feet and the lateral bottomed to the north in Section 3.

6. EOG: High-Volume Wolfcamp Wells

Two offsetting Wolfcamp wells were completed by EOG Resources in the Reeves County, Texas (RRC Dist. 8), portion of the Delaware Basin.

The #2101H State Harrison Ranch 57 flowed 1.540 Mbbl of oil, 5.278 MMcf of gas and 3.3 Mbbl of water per day. Production is from acid- and fracture-treated perforations at 10,910- to 15,650 feet. Tested on an unreported choke size, the flowing casing pressure was 900 psi. It is in Section 21, Block 57, PSL Survey, A-4443, was drilled to 15,667 feet, 10,399-foot true vertical, and bottomed about one mile to the south in Section 28.

The #2102H State Harrison Ranch 57 flowed 1.076 Mbbl of crude, 4.175 MMcf of gas and 5.28 Mbbl of water per day from acid- and fracture-treated Wolfcamp perforations at 10,700- to 15,500 feet. Tested on an unreported choke size, the flowing casing pressure was 1,400 psi. The Phantom Field well was drilled to 15,618 feet, 10,192-foot true vertical, and bottomed about a mile to the south in Section 28.

7. BHP Billiton: Phantom Field/Wolfcamp Discovery

A horizontal Wolfcamp completion was announced by BHP Billiton in Reeves County, Texas (RRC Dist. 8).

The #1H State Roberta Regan 57-T2-36 flowed 3.563 MMcf of gas, 1.07 Mbbl of condensate and 3.48 Mbbl of water per day. Production is from fracture treated perforations at 10,200- to 15,011 feet. Gauged on a 48/64-inch choke, the flowing casing pressure was 1,513 psi and the shut-in casing pressure was 2,027 psi The Phantom Field well is in Section 37, Block 57, T2S, T&P RR Co, A-636. It was drilled to 15,157 feet with a true vertical depth of 10,080 feet and bottomed about one mile to the north in Section 36.

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