Forget the Permian Basin - Watch This Small Shale Play PR Newswire LONDON, August 12, 2014 LONDON, August 12, 2014 /PRNewswire/ -- The Permian basin is quick becoming the most watched shale basin in the country, with company after company snapping up acreage and drilling aggressively. Companies like Occidental Petroleum, Pioneer Natural Resources, Apache Corporation, and Energen Corporation, all have significant acreage in prolific parts of the Permian basin. Oil rigs are shifting away from other plays and into the Permian basin, setting up West Texas for a period of rapid growth in the years ahead. The Permian is now producing more oil than any other region in the United States. But the problem is that once the field becomes crowded, and investors pour money into high-profile drillers, it becomes harder to find bargains. Growth becomes factored into the share price, with expectations of future revenues already accounted for. To avoid running with the crowd, it is often useful to find operators that have plays outside of the limelight. Crude Energy, a small company based in Dallas, TX, could be a different investment vehicle. It holds acreage in the Permian along with some of its bigger competitors, and it has had success in the Wolfcamp shale in particular. But the small company is also focusing on drilling in lower cost areas that are lesser known. The successful completion of its well in the Hardeman basin is an example of that strategy. The project is located near the Texas border with Oklahoma, and it offers similar geological features as the Permian basin. However, the area has not experienced drilling activity even remotely close to the levels of what more prominent shale formations see a little further south. Crude Energy reported positive results after drilling its Cottonwood #1H prospect in the Hardeman basin. The company is nearing completion of a well in Hardeman County, TX, only a few weeks after it announced its plans to begin drilling. The Cottonwood #1H prospect was drilled to a depth of 12,166 feet, and Crude Energy said that it encountered oil and gas in multiple payzones. The oil bearing zone spanned 673 feet, according to a press statement, between depths of 10,497 feet and 11,170 feet. In all, the operation drilled through eight fracture systems. It hopes to build on the success from its Cottonwood project and drill more extensively in the Hardeman basin. Crude Energy is not publicly traded, but accepts investment from accredited investors. James Burgess Oilprice.com SOURCE Oilprice.com Contact: +44(0)20-3239-4080
Forget the Permian Basin - Watch This Small Shale Play
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