It has never been more important to become efficient in optimizing your land position as it is today in the Permian. Oil and natural gas activity is higher in the Permian Basin than in any other U.S. resource play, and for good reason. Ten of the top 15 counties for oil and natural gas production are in the Permian, and eight of the top 15 counties approved for new drilling permits in the past year are there, too. Over the last year and a half, land has been snatched up, farmed out or assigned at staggering rates. Early movers picked opportunities quickly, driving up the cost and speed of entry for others.
However, whether on the fringe or in the heart of the Permian, the economics of getting into the Basin remain favorable. With a healthy breakeven price compared to other plays, there is a reason why it is so hot.
For companies looking to expand their position in the area or companies looking for a way in, it is crucial to have your land team ready to quickly go from evaluating potential acreage to closing the deal. If this takes you weeks or months, you’re opening yourself up to competitive pressures guaranteeing higher prices or lost deals.
Luckily, there are tools that provide you with the data you need to act on opportunities fast and turn what used to take weeks into days or even hours. With tools like Drillinginfo LandTrac Leases, and Lease Assignments that quickly allow you to determine whether acreage is open or held by production, identifying the “where” has never been easier. In addition, with the ability to see this land data in context with other crucial datasets like production you can determine not only if land is open but whether the economics make sense to continue your due diligence.
Once you find available acreage you want to acquire, the process of running title needs to be just as fast and efficient. Visiting county courthouses to find the legal documents you need is not going to cut it. While you are making travel plans, other companies are using digital courthouse records to get a head start. Companies using tools like DI Courthouse can not only reduce or sometimes eliminate travel expenses they are able to conduct more thorough research since documents are indexed and highly searchable.
Check out this case study by Drillinginfo that walks through how a top five E&P company operating in the Permian was able to secure a dominant position in the Basin all while reducing their cost of acquiring acreage.
Silas Martin, Director, Data Acquisition & Enhancement, DrillingInfo, spent the better part of a decade in the courthouses and title offices of East Texas and has field experience in: TX, LA, AR, MS, OK, KS, PA, OH, WV, CO, WY, UT, CA, ND, MT, MI, and NM.