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Parsley Drills Record Lateral in Q3; Latest Martin County IP30s 'Promising'

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Parsley Energy reported its Q3 2018 results.

Highlights:

• Net oil production increased 9% quarter-over-quarter and 56% year-over-year to 73.5 MBo per day. 

- The company quietly sold off some of its acreage in Reagan County, Texas - click here to access the deal in Shale Experts' M&A Database.

- During the third quarter, the Company spud 46 and placed on production 46 gross operated horizontal wells

Record Laterals / Reduced Costs by -9%

Operational efficiency and a higher proportion of local sand usage drove a 9% quarter-over-quarter reduction in average drilling and completion cost per lateral foot.

Driven by faster drilling and completion operations, Parsley set a new Company record for completed lateral footage in one quarter, placing 46 gross (45 net) operated horizontal wells on production during 3Q18 at an average completed lateral length of approximately 9,400 feet.

Martin County Wolfcamp IP30s 'Promising'

Parsley turned six wells to production in Martin County during 3Q18, comprised of two three-well pads targeting the Wolfcamp A and Wolfcamp B zones in a staggered configuration. Early results from these two-mile lateral wells are promising, with peak 30-day production rates averaging approximately 1,500 Boe per day (77% oil).

One of these projects registered the Company's strongest 30-day oil rate from a three-well pad to date.

Also in Martin County, Parsley successfully utilized recycled water from its initial recycling pilot program during completion operations on one of the aforementioned pads, with reductions in both water sourcing and disposal costs. Following this successful initiative, Parsley intends to scale up its water recycling efforts on a targeted basis over the next several quarters.

Activity Overview

Parsley's working interest on wells placed on production was approximately 98%, with an average completed lateral length of approximately 9,400 feet. Completion activity was weighted toward the Midland Basin, where the Company placed on production 38 gross operated horizontal wells, with the remainder placed on production in the Delaware Basin.

Faster drilling and completion operations translated to a new Company record for completed lateral footage in one quarter despite deliberately reduced equipment utilization as Parsley prioritized adherence to its stated budget. Analogous decisions regarding rig and frac spread utilization may characterize fourth quarter development operations as the Company again intends to emphasize conformity with full-year capital spending expectations.