Tall City Exploration’s ‘Simple’ Yet Technical Permian Basin Approach

Tall City Exploration CEO Mike Oestmann divulges the Permian producer’s recipe for success and why he believes the company has only “scratched the surface” so far in the southern Delaware Basin.

Jennifer

Pallanich

Hart Energy

Tue, 05/31/2022 - 11:10 AM

Tall City Exploration’s ‘Simple’ Yet Technical Permian Basin Approach

Tall City Exploration is also fighting to keep costs down, CEO Mike Oestmann said May 17. “Controlling cost is a constant challenge for us,” he said. “We’re fighting inflation, just like everyone else.” (Source: Hart Energy)

FORT WORTH, Texas—Having drilled about 10% of its potential Delaware Basin well locations, Tall City Exploration III expects to exit the year with over $400 million in annualized EBITDA.

Tall City President and CEO Mike Oestmann told attendees of Hart Energy’s DUG Permian Basin and Eagle Ford conference and exhibition in mid-May that the company’s success to date stems from adhering to five principles. The company has taken a technical approach to the wells it’s drilled so far in the area. The focus, he said, has been on economic wells tapping “vast” resources in the basin.

“What we’re trying to do is simple in the abstract, with a lot of difficult technicalities along the way,” he said.

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Chart reflects yearly performance.

Jennifer Pallanich

Jennifer Pallanich is Hart Energy's senior editor for technology. She has reported on the technology that fuels oil patch exploration, development and production for more than two decades.

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