Independent Oil and Gas

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IOGsi WEEKLY HIGHLIGHTS: June 30, 2022

A total of 42 new oil and gas DRILLING PERMITS were issued in Kansas this past week by the KANSAS CORPORATION COMMISSION (KCC). This brings the year-to-date total of new drill locations issued to 801 and is 318 more new permits-to-drill as compared with the same period a year ago (+65.8%). A total of 392 permits have been granted this year to operators working in the Eastern Ranges of the State (48.9%) and 409 permits to operators in the Western Ranges (+51.1%).

COFFEYVILLE RESOURCES (CVR) reported Kansas Common Crude price rose slightly by $1.50 / bbl from a week ago to $96.00 / bbl as of June 30, 2022 (+1.6%). Oklahoma Sweet Crude was also up by $1.50 / bbl to $102.25 / bbl (-1.6%). Other crude oil price postings include Central Kansas Crude at $97.50 / bbl and Eastern Kansas Crude at $95.00 / bbl.

SPOT MARKET crude oil (Nymex) for West Texas Intermediate (WTI) crude was up by $1.50 / bbl from last week to $105.72 / bbl (+1.5%). Spot Market natural gas price dropped by 63¢ / MMbtu to $5.59 / MMBtu (-10.1%). HENRY HUB pricing point for natural gas futures contracts as traded on the New York Mercantile Exchange (NYMEX), and trades on Intercontinental Exchange (ICE), also declined by $1.62 / MMBtu for the week to $6.66 / MMbtu (-13.3%).

The total number of active DRILLING RIGS in Kansas, either scheduled, moving to, or currently on drill sites, was up by one from a week ago to 56. There were 54 active drilling rigs in the State a month ago (+3.7%) and 30 rigs a year ago (+86.7%). DRILLING ACTIVITY in Kansas, based on the number of wells spudded, shows that 286 more wells have been drilled this year (672 wells), compared with only 386 wells over this same period in 2021 (+74.1%). Overall Kansas oilfield activity, based on IOGsi Scouting Reports, shows 388 wells are currently being followed in various drilling and completion stages, compared with 235 a year ago (+65.1%).

TOTAL FOOTAGE DRILLED (TFD) this year in Kansas is estimated to be 1988,974 ft, compared with 1,291,591 ft in 2021 (+54.0%). Of the TFD, the Western Ranges of the State has recorded an estimated 1,678,647 ft of wellbore drilled, compared with 1,0094,491 ft in same period in 2021 (+53.4%). An estimated 310,327 ft of wellbore has been cut in the Eastern Ranges of the State this year, compared with 197,100 ft in 2021 (+57.4%).

The number of licensed ACTIVE OPERATORS who have drilled a well in Kansas this year now totals 162, compared with 142 in 2021 (+14.1%). WILDCAT exploratory well activity this year (75 wildcat wells) accounts for about 11.2% of the total number of wells drilled this year and is 1920 more wildcats than was drilled in the first 26 weeks of 2021(+36.4%).

For more news, see “WEEKLY NEWS” and “NEW DISCOVERIES” under the Red Top News banner.