The West Texas Midland Basin heated up during the second quarter with a number of deals, including a big transaction by Devon Energy Corp. (NYSE: DVN).

Devon said June 15 that it would sell assets it had been shopping in the Midland Basin in two deals valued at $858 million. Pioneer Natural Resources Co. (NYSE: PXD) was the buyer of the company’s northern Midland positions.

So far in 2016, the Oklahoma City-based company has closed or announced noncore deals worth $2.1 billion and Devon expects to top its guidance of $3 billion in sales.

In April, Parsley Energy Inc. (NYSE: PE) agreed to acquire southern Delaware and Midland basin acreage from undisclosed sellers for $359 million. A month later, the Austin, Texas company was back with another deal for more acreage in the Delaware Basin for $280.5 million in cash.

Parsley also raised its full-year production guidance by about 1,500 barrels of oil equivalent per day and boosted its planned capex to $410 million-$460 million in 2016.

Also in April, Callon Petroleum Co. (NYSE: CPE) agreed to acquire certain Midland Basin assets from three private entities for $220 million in cash and 9.3 million shares of its common stock. The assets are operated by Big Star Oil and Gas LLC.

Torchlight Energy Resources Inc. (NASDAQ: TRCH) also said in April it will purchase Midland Basin assets covering about 12,000 gross (7,999 net) acres. The acreage covers 19 contiguous sections with as many as 300 horizontal drilling locations targeting the Wolfcamp A and B.

The Plano, Texas-based company signed an agreement with McCabe Petroleum Corp. to purchase a 66.66% working interest in the properties for an undisclosed amount. Torchlight will also take over operations.

Texas, Midland Basin, Garza County, Ellenburger, Strawn, Glasscock County, Spraberry, Wolfcamp, Lario Oil & Gas, Midland County, Trail Ridge Energy Partners, Martin County, Smith Production, Lynn County, Reagan County, Hudspeth County, Orogrande Basin,

1. Shenandoah Resources: 5/23/16

Midland, Texas-based Shenandoah Resources LLC has completed a workover in the Garza County (RRC Dist. 8A), Texas, portion of the Midland Basin.

The #3 Fletcher Lott A was drilled to 8,850 feet and was tested pumping 109 barrels (bbl) of 37-degree-gravity oil, 26 thousand cubic feet (Mcf) of gas and 1.92 Mbbl of water per day. Production is from acid-treated commingled Strawn perforations at 8,167 feet to 8,273 feet, Mississippian at 8,343 feet to 48 feet and Ellenburger at 8,535 feet to 85 feet.

The Vern-Mag Field well is on a 530-acre West Texas lease in Section 1, George N. Fletcher Survey, A-438. According to IHS, the well was originally tested in November 2015 pumping 159 bbl of 37-degree-gravity oil per day from acidized perforations Ellenburger perforations at 8,535 feet to 85 feet.

2. RSP Permian: 5/13/16

A RSP Permian Inc. (NYSE: RSSP) subsidiary, based in Dallas, completed two offsetting Midland Basin-Spraberry Trend Wolfcamp producers in Section 9, Block 36, T3S, T&P RR Co Survey, A-396 of Glasscock County (RRC Dist. 8), Texas.

The #1H Woody 4 flowed 1.055 Mbbl of 42.3-degree-gravity oil, 798 Mcf of gas and 1.351 Mbbl of water daily from fracture-treated perforations at 8,764 feet to 13,500 feet. The flowing tubing pressure was 900 pounds per square inch (psi) when tested on a 48/64-inch choke. The 13,780-foot, 8,419-foot true vertical, well's lateral bottomed one mile to the northwest in Section 4.

The #2H Woody 4 flowed 1.155 Mbbl of oil, 1.044 MMcf of gas and 1.44 Mbbl of water per day. Tested on a 48/64- inch choke, the flowing tubing pressure was 460 psi. Production is from a fracture-treated zone at 8,977 feet to 13,713 feet. The horizontal leg is parallel to #1H Woody 4, and it bottomed at 13,993 feet, 8,695 feet true vertical.

3. Lario Oil & Gas: 5/12/16

Lario Oil & Gas Co. has drilled a horizontal Wolfcamp oil well in Midland County (RRC Dist. 8), Texas.

The Denver-based company's #101WB Peggy pumped 2.086 Mbbl of 42-degree-gravity oil, 2.185 MMcf of gas and 1.713 Mbbl of water per day.

The well is producing from fracture-treated perforations at 10,326 feet to 19,297 feet. The extended lateral was drilled to 19,380 feet, 9,215 feet true vertical, out of a 10,387-foot pilot hole.

Lario's venture is on a 1,284-acre Midland Basin lease in Section 8, Block 37, T3S, T&P RR Co Survey, A-905. The 9,800-foot leg bottomed to the southwest beneath Section 17.

4. Trail Ridge: 3/8/16

Trail Ridge Energy Partners II LLC, based in Grapevine, Texas, has completed a horizontal Wolfcamp well in Martin County (RRC Dist. 8), Texas, almost five miles southeast of other horizontal production.

The #291H East Willow Lakes was tested flowing 1.615 Mbbl of 41-degree-gravity oil, 1.632 MMcf of gas and 3.28 Mbbl of water per day. Production is from perforations at 9,318 feet to 17,586 feet. The well was drilled to 17,686 feet, 9,120 feet true vertical. It was tested on a 1 1/2-inch choke and the flowing tubing pressure was 325 psi.

The well is in the Spraberry Trend in the Midland Basin on a 720-acre West Texas lease in Section 29, Block 36, T1S, T&P RR Co Survey, A-209. It bottomed more than 1.5 miles to the southeast in Midland County.

5. Smith Production: 3/3/16

A remote Midland Basin well was completed by Smith Production Co. in Lynn County (RRC Dist. 8A), Texas.

The #1 Eskimo Pie 4 flowed 35 bbl of 38-degree-gravity oil per day through acid-treated Spraberry perforations at 7,404 feet to 20 feet. The flowing tubing pressure was 202 psi when tested on a 6/64-inch choke. It was drilled to 9,700 feet and is on a 160-acre West Texas lease in Section 4, Block O, H&OB RR Co Survey, A-1369.

The discovery apparently extends Smith Field about seven miles to the northwest. This Spraberry oil pool, which straddles the Lynn/Dawson county line, currently produces from 10 wells.

6. PCORE: 2/11/16

Dallas-based PCORE Exploration & Production II LLC has completed its first horizontal Midland Basin-Wolfcamp discovery in Reagan County (RRC Dist. 7C), Texas.

The #1HB Lone Wolf 12 produced 1.095 Mbbl of 44.2-degree-gravity crude, 1.332 MMcf gas and 2.29 Mbbl of water per day. Production is from fracture-stimulated perforations at 8,808-13,671 feet. Gauged on a 54/64-inch choke, the flowing tubing pressure was 410 psi.

The Spraberry Trend well was drilled to 13,818 feet and is in Section 12, Block C, L&SV RR Co Survey, A-925. The true vertical depth is 8,787 feet and it bottomed one mile to the north-northwest.

7. Torchlight Energy: 11/12/15

Torchlight Energy’s subsidiary has completed a wildcat on its northwestern Hudspeth County (RRC Dist. 8) project in the Orogrande Basin in West Texas.

The well was targeting "WolfPenn," which has significant similarities to the Midland Basin portion of the Permian and in particular the Spraberry/Wolfcamp zones, according to Torchlight.

The company has logged the potential zones and run sidewall cores at #1 University Rich A11. The well was drilled to 6,109 feet with casing set to 5,990 feet. It is on a 686.7-acre lease in Section 11, Block A, University Lands Survey.

Torchlight will be analyzing the results to determine the horizontal potential and appropriate completion methods for the well. The leasehold is spread across seven blocks including all of the acreage in blocks A, B, E and F, and most of the acreage in adjacent blocks 2, 3 and 4.

The #1 University Rich A11 is the first of four planned tests in Torchlight's Orogrande project. The next phase of testing will be to drill additional vertical wells to measure the extent of the play as well as horizontal wells to determine flowrates and reserve potential for its 168,000 acres.

For information contact Larry Prado, activity editor, at lprado@hartenergy.com.

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