PNR to stay the course in Spraberry-Wolfcamp in 2016

Pioneer Natural Resources Co., Irving, Tex., plans a preliminary 2016 capital program of $2.4-2.6 billion, allowing the company to maintain overall production growth boosted by its Spraberry-Wolfcamp acreage.

The company expects that its full-year 2015 capital budget expenditures will remain consistent with its previously forecast budget of $2.2 billion.

PNR’s preliminary 2016 production growth forecast is 10-15% compared with 2015 production levels. The company continues to forecast compound production growth of more than 15%/year—with oil growth of more than 20%/year—during 2016-18, assuming the addition of 2-3 rigs/year during 2017-18.

In the Spraberry-Wolfcamp, PNR says it expects to continue operating 18 horizontal rigs, of which 14 units will be in the Northern Spraberry-Wolfcamp and 4 units in the Southern Wolfcamp joint venture area, because well returns in the area continue to be positive in the current commodity price environment.

The company says its horizontal rig count in the Eagle Ford shale is being reduced to 4 rigs in January 2016 from 6 rigs in 2015, and could potentially decrease further as the year progresses if low commodity prices continue to adversely affect well returns.

PNR expects fourth-quarter 2015 production at 213,000-215,000 boe/d, which is above the top end of the company’s previously reported production forecast of 206,000-211,000 boe/d because of better-than-expected well results with its Spraberry-Wolfcamp horizontal drilling program.

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