Plains Exploration and Production (PXP) has 21,400 net acres under lease in Texas that is prospective for the Granite Wash. The company is operating five rigs here and expects to keep the rig count level for the balance of 2011.
Plains Exploration and Production said that production from the Granite Wash averaged 13,620 barrels of oil equivalent (BOE) per day during the second quarter of 2011. This was 52% sequential and 139% year over year production growth. The company expects to exit 2011 producing 17,000 BOE per day from the Granite Wash.
Plains Exploration and Production has allocated 16% of its $1.5 billion capital budget to developing the Granite Wash in 2011.
PXP Granite Wash Assumptions
- 1.1 million BOE per well.
- Average well cost of $8.2 million.
- 152 drilling locations.
- Resource potential of 119 million BOE.
- Finding and development costs of $9.79 per BOE.