Pioneer Natural Resources had planned to grow its rig count to 14 in 2012, but 25% of the company’s development was set for dry gas. With natural gas prices below $3/mmbtu, Pioneer is backing off and delaying the two new rigs until 2013. The company still plans to have 19 rigs running by 2015.
Production also made a considerable jump in the fourth quarter. The company produced more than 20,000 boe/d, compared to 14,000 boe/d in the third quarter. Gathering constraints are being eased and more companies are seeing significant production jumps.
The company’s well costs are expected to run $7-8 million per well in 2012 and the white sand, instead of ceramic, proppant will be used in 50% of the company’s wells. White sand saves the company $700,000 per well.
The company’s midstream partnership with Reliance Industries will also complete three additional central gathering plants in 2012. That will bring the total number of gathering plants to 11 across the company’s acreage.
Read more at the Pioneer Natural Resources Eagle Ford page.