Caller's Oil & Gas Report For Oct. 4, 2011

Eleven well permits were reported in the Caller's Oil & Gas Report. The most significant of those are two 21,000 ft permits by Pioneer Natural Resources. Both wells were permitted in Live Oak County, with one in the Sugarkane field and one in the Eagleville field. Longer laterals are the trend in shale  plays. Drilling an extra foot or thousands of feet is much more efficient than drilling multiple wells. Of course, there is a point of diminishing returns due to technical limitations, but operators are routinely drilling 10,000 ft laterals in other shale plays.