Oil companies see Delaware Basin as profitable

Oil companies see Delaware Basin as profitable

WEST TEXAS (KWES) - The Delaware Basin is about 10,000 square miles and it's also part of the Permian Basin. But the difference, it's 2,000 feet deeper and so far, it's brought in revenue.

"It's a hot play right now," said Beryl President, Michael Party. "We're seeing a lot of activity, people buying it, leases, people buying other companies out."

Over 160 different oil and gas companies across the state and around the country met in Midland Wednesday for a forum. The forum was held by the American Association of Petroleum Geologists where presenters spoke on topics from the Wolfcamp Shale to targeting oil reservoir areas.

"We're trying to make people aware, disseminating information," said Party. "Midland Basin is getting a little crowded so people have started going to the Delaware Basin."

The forum focused on drilling in the Delaware Basin where it covers areas from Reeves, Eddy, Lea, and Winkler County.

Drilling anywhere in the Delaware Basin can be pretty costly. One acre can range anywhere from $20,000 to $40,000. But some companies are not only seeing that revenue, they're also seeing more job opportunities.

"I've been at ExL since 2010," said ExL Exploration Manager David Grace. "We had about seven or eight maybe ten employees. We have about 40-45 employees now. Both in the field and in the office."

But even with these pricey investments, Party said it's what keeps the West Texas economy going.

"The Permian Basin as a whole, the economics are here. These wells are very good wells, they pay out very quickly, and the rate of return, people can invest money and make anywhere from 40 percent to 80 percent rate of return on their money," said Party.

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