Pioneer is also operating 15 vertical rigs in the Spraberry field during 2013, which are expected to drill approximately 300 wells. These rigs are required to meet continuous drilling obligations. Approximately 90% of the 300 wells in the 2013 vertical drilling program are expected to be completed in the deeper Strawn and Atoka intervals. Pioneer drilled 75 vertical wells in the third quarter and placed 86 vertical wells on production. With 15 rigs running, vertical production is expected to decline in 2013 by 10%. The Company expects to reduce its vertical rig count going forward, allowing it to devote more of its capital to higher rate of return horizontal drilling.Third quarter production from the entire Spraberry/Wolfcamp area averaged 79 MBOEPD. This included an increase in horizontal production to 8 MBOEPD and a decrease in vertical production to 71 MBOEPD. Third quarter production was impacted by the conveyance of 3 MBOEPD to Sinochem as part of the southern Wolfcamp joint venture transaction and the loss of approximately 1 MBOEPD due to the Midkiff/Benedum gas processing system rejecting ethane as a result of low ethane prices. Production for the fourth quarter is forecasted to grow to 85 MBOEPD to 88 MBOEPD as a result of placing approximately 45 new horizontal wells on production during the quarter.
Pioneer Natural Resources Reports Third Quarter 2013 Financial And Operating Results
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