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Lynn Helms - Director's Cut

Jun 14, 2019

Lynn HelmsOil Production
March 43,144,557 barrels = 1,391,760 barrels/day 
April 41,735,647 barrels = 1,391,188 barrels/day
(All-time high was Jan 2019 - 1,403,808 barrels/day)

Gas Production
March 87,952,264 MCF = 2,837,170 MCF/day
April 85,866,784 MCF = 2,862,893 MCF/day  (New all-time high)

The drilling rig count has become very stable in the mid-sixties. Operators have shifted from running the minimum number of rigs to incremental increases and decreases based on gas capture, completion crew availability and oil price. Current operator plans are to hold the rig count steady or perhaps 2-5 fewer rigs second half of 2019 depending on oil price, workforce and infrastructure constraints.

The number of well completions has become variable again due to oil price, gas capture, workforce and weather: February 66 (Final) March 62 (Revised) 
April 78 (Preliminary).

Estimated wells waiting on completion is 962 (Down 6).

Lower crude oil price, gas capture, workforce, and competition with the Permian and Anadarko shale oil plays for capital continue to limit drilling rig count. Utilization rate for rigs capable of 20,000+ feet is 55-65% and for shallow well rigs (7,000 feet or less) 40-50%. Drilling permit activity is normal. Operators continue to maintain a permit inventory that will accommodate varying oil prices for the next 12 months.

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