Oil and Gas Investor: How to Delaware Today

Securing federal drilling permits, further proving the merits of midspacing wells, making free cash flow, achieving scale and finding an exit or, if not, how to go forward otherwise. Here’s what’s on the minds of oil and gas operators in the Delaware Basin today.

(Source: Tom Fox)

In the northern Delaware Basin in the past couple of months, operators with leases on federal land were rushing to secure their drilling permits. U.S. presidential candidate Joe Biden has said he will forbid new drilling on federal land.

And those leases weren’t cheap. Matador Resources Co. paid up to $95,000 an acre in 2018 in a Bureau of Land Management (BLM) sale.

Bernstein Research senior analyst Bob Brackett reported in early October that, in the 28 months prior to February 2020, the ratio of federal-to-state permits issued in Eddy and Lea counties, N.M., was nearly always less than 60% federal.

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Nissa Darbonne

Nissa Darbonne is author of The American Shales and has been a journalist since 1984, beginning in the oil and gas fields of South Louisiana. She writes for Oil and Gas Investor and is actively involved in Hart's conference agendas.