Wolfcamp shale estimate makes waves

The Permian basin’s Wolfcamp Shale is estimated to hold continuous oil in place reserves of more than 20 billion barrels, a new estimate released by the U.S. Geological Survey (USGS) late on Tuesday revealed.

Based on present geological knowledge of the Wolfcamp Shale formation, the volume of oil in place would be “nearly three times larger than that of the 2013 USGS Bakken-Three Forks resource assessment,” the USGS said, adding that it was “the largest estimated continuous oil accumulation that USGS has assessed in the United States to date.”

Commenting on the estimate, the bureau’s programme director, Walter Guidroz, said, “even in areas that have produced billions of barrels of oil, there is still the potential to find billions more.” Located in the Midland portion of the Permian Basin, the Wolfcamp play is also estimated to contain some 1.6 billion barrels of natural gas liquids and to hold associated gas reserves of 453 bcm (16 tcf).

Occidental Petroleum earlier this month splashed USD 2 billion in cash on 142 square kilometres of Permian acreage. That same month, Earthstone Energy acquired Bold Energy’s assets and undeveloped acreage, expanding its Midland footprint to around 108 square kilometres. In October, Anadarko said it would shift its attention from the Eagle Ford play to the Permian basin.