Independent Oil and Gas

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IOGsi WEEKLY HIGHLIGHTS: May 19, 2022

A total of 20 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 569 and is 245 more new permits-to-drill as compared with the same period a year ago (+75.6%).

COFFEYVILLE RESOURCES (CVR) reported Kansas Common Crude price jumped dramatically by $6.00 / bbl from a week ago to $102.50 / bbl as of May 12, 2022 (+6.2%). Oklahoma Sweet Crude was also up by $6.25 / bbl to $108.75 / bbl (-2.1%). Other oil price postings include Central Kansas Crude $104.25 / bbl (+6.1%) and Eastern Kansas Crude $101.75 / bbl (+6.3%).

SPOT MARKET crude oil (Nymex) for West Texas Intermediate (WTI) crude rose by $3.39 / bbl from last week to $111.40 / bbl (+3.1%). Spot Market natural gas price was also up by 43¢ / MMbtu to $8.13 / MMbtu (+5.6%). HENRY HUB pricing point for natural gas futures contracts as traded on the New York Mercantile Exchange (NYMEX), and trades on Intercontinental Exchange (ICE), was up by $1.48 / MMBtu for the week to $8.26 / MMBtu (+21.8%).

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 51 (+2.0%). There were 49 active drilling rigs in the State a month ago (+4.0%) and 25 rigs a year ago (+104.0%). DRILLING ACTIVITY in Kansas, based on the number of wells spudded, shows that 238 more wells have been drilled this year (496 wells), compared with only 258 wells over this same period in 2021 (+92.2%). Overall drilling activity, as based on IOGsi Scouting Reports, shows 376 wells are currently being followed in various drilling and completion stages, as compared with 192 a year ago (+95.8%).

TOTAL FOOTAGE DRILLED (TFD) this year statewide is estimated to be 1,479,375 ft, compared with 874,118 ft in 2021 (+69.7%). Of the TFD, the Western Ranges of the State has recorded an estimated 1,259,201 ft of wellbore drilled, compared with 730,600 ft in same period in 2021 (+72.4%). An estimated 220,174 ft of wellbore has been cut in the Eastern Ranges of the State this year, compared with 143,518 ft in 2021 (+53.4%).

The number of ACTIVE OPERATORS who have drilled a well for oil and gas in Kansas this year now totals 138, compared with 119 in 2021 (+16.0%). WILDCAT exploratory well activity this year (48 wildcat wells) accounts for about 10.3% of the total number of wells drilled this year and is 17 more wildcats than was drilled in the first 20 weeks of 2021 (+10.3%).

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