THE 4 MAJOR TIGHT OIL BASINS

The Permian, Eagle Ford, Williston and DJ-Niobrara

ShaleProfile Insights: June 24th, 2019

ShaleProfile Insights: June 24th, 2019

 In this report, we will take another deep dive into the 4 major tight oil basins: The Permian,
Eagle Ford, Williston and DJ-Niobrara, as we did 2 months ago. The reports covers drilling
activity, total oil production and well productivity.

First, how has horizontal rig count evolved?

Horizontal Drilling

During the past 2 weeks 570 rigs were drilling horizontal wells in these four basins, 12
fewer than reported in our previous update 2 months ago, and also slightly lower y-o-y.

How much oil is produced here?

Total Oil Production

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 In the previous dashboard you can see the total oil production in these 4 shale plays, from
early 2012 through the end of February (hz wells only).

Three years ago, the Permian Basin took over the pole position from the Eagle Ford. Now,
it produces as much as the other 3 basins combined. Most basins saw a small drop in output
earlier this year, although upward revisions will correct some of that.

Who are the biggest operators?

Top 5 Operators

Here you can see the total oil production from the top 5 operators in these 4 basins. EOG
is far in the lead, with over half a million bo/d of operated production in these areas. Cono-
coPhillips took a step back since Q4 last year.

During the cold winter months in the north, it just shut in many wells, and completed few
new ones. Part of that production came back online in March.

How do these basins compare in well performance?

Well Performance

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 The previous screenshot shows the average production profile of all the 7,300 horizontal
oil wells that began production in 2017 these 4 basins.

Production data is normalized by lateral length (1,000 feet). The flow-rate vs. cumulative
production plot on the right reveals that on this basis the three top basins performed rather
similarly. The decline in the Permian appears to be the lowest.

The following chart also compares the well performance in these basins, but now as meas-
ured by the cumulative production in the first 6 months, and over time (by production start).

Productivity Over Time

This time, production data is not normalized. The wells in the Bakken are showing the best
performance on this metric, with the 2018 vintage recovering more than 100 thousand bar-
rels of oil in the first 6 months, on average. But with laterals over 10k feet, they are also the
longest.

We are seeing a slight deterioration of well results in the DJ-Basin, as is also visible in the
graph above.

Finally, we want to highlight how Concho's well performance has changed over time. It is the
largest Permian operator of horizontal wells (the combination of OXY & Anadarko would be
larger still!).

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 Concho in the Permian

In the “Concho in the Permian” screenshot , you can see the location and performance of all
the 1,800 horizontal oil wells that Concho operates in the Permian, that began production
since 2012.

The flow rate vs. time chart, and the cumulative version, are shown on the right. This screen-
shot reveals that its well performance improved greatly from 2012 to 2017. The wells that
came online last year did no longer show an improvement.

They are on a path to recover almost 250 thousand barrels of oil in the first 2 years on pro-
duction, on average. They are on a trajectory to double that number, before they have
declined to 20 bo/d.

All the graphs shown today come from our ShaleProfile Analytics service,
which is an online analytics platform filled with interactive dashboards that allow
you to explore the most recent shale oil & gas related data.

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www.shaleprofile.com/trial

Presented on: enelyst.com

Date: June 4th, 2019