Pioneer Natural Resources brought on 58 Eagle Ford wells in the first half of the year and expects to bring on 78 wells in the second half. Production growth will be weighted to fourth quarter due to a shift from single-well to multiple-well pad drilling.
Only 45% of wells drilled in 2012 were drilled from pads, but that will grow to 80% in 2013. Wells drilled from pads take longer to bring to production, so the shift has delayed production growth. It takes Pioneer 100-120 days from the time of first spud to production from a three well pad.
Pad drilling saves time and costs, but it results in more lumpy production growth. Pad drilling saves $600,000-700,000 per well and will allow Pioneer to drill at a level similar to 2012 with two fewer rigs.
Production growth slowed in the second quarter, but will pick up again in the second half of the year. Production grew to an average of 38,000 boe/d in the second quarter from 37,000 boe/d in the first quarter.
Watch for results from Pioneer in regard to testing 40-acre pilot wells and 10,000 ft horizontal laterals in certain areas.
The company continues to expand the use the white-sand proppants and now publicizes a savings of $1.1 million per well compared to wells completed with ceramic proppant.
Read the full press release at pxd.com