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Fast Eddy

Rex Tillerson bought XTO in 2009 for $41 B; it didn't turn out too well, if I recall.

Not to be undone, Tillerson waited 8 years for the shelling to stop, then paid $6.6 B for 275,000 acres in Eddy County, New Mexico from the Bass Brothers. Not to take anymore unncessary chances, Tillerson then fled Exxon for Washington, DC in 2017.

The company figures there is an incredible 60 billion barrels of oil in place under the Bass land. Really? "Yes." Come on, really? "Yes. Yes!" says spokeswoman Suann Guthrie. Sure only 3.4 billion barrels of it is recoverable now, but with better technology and higher oil prices there's no telling how long the region will keep giving.

Woods became Tillersons successor in half truths in 2017 and declared Exxon was going to produce 1 MM BOEPD from the Permian by 2022, then 2024 and well, the gas monster's got its ass and Bone Springs well decline is eating its lunch. By the end of 2023, six years after its bold statements, Exxon was up to 650 BOPED in the Permian. It now believes it can get to 800,000 BOEPD before 2027 with "greater frac technology and re-fracs. Maybe.

This was before its proposed acquistion of Pioneer over in Saudi America.

Being a major, integrated corporation in America has its privileges and one of those is being able to lie whenever you want. About anything. Its a talent that, by the way, earns a $36 MM per year salary.

Some folks take offense at that sort of thing, however, and on the left is a humdinger of lawsuit about it all, which you can click and skim thru if you want. Its pretty cool !

In Eddy County on the original BOPCO/Bass 275,000 acres...things are beginning to look a lot like the XTO thing and going down hill, it seems.

The first half of 2023 its Eddy County production was down 20.6%, this inspite of $75 oil and some months of $6 natgas. 63% of all its Eddy County production comes from the 2nd Bone Springs bench and the Wolfcamp A bench. The Bone Springs 2 bench is pressure depleted to hell and gone.

But the Wolfcam A, B and X-YZ, or whatever they call it, is still keeping them in the hunt. Sorta.

In Eddy County, Exxon's gassy oil wells have become oily gas wells. If this continues it is most certainly going to meet its 1MM BOEPD targets much sooner than it would proably like, particularly with natgas below $2.

Remember... on 275,000 acres, in Eddy County, Exxon can drill 50,000 foot laterals if it wanted to but, if they are, it doesn't seem to be helping much. Its IP180's in Eddy County appear to be getting worse by 10% per year (2021-2023).

Lets hope that Exxon will come tearing out of the chute when it closes its Pioneer deal, but then there is THIS about Pioneers well quality in Saudi America, and a whole host of lies about this buy, too...

"Remember, a pat on the back is just 18 inches from a kick in the ass."

Rex Tillerson



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