Parsley Energy Continues Swift Growth with Permian Basin Acquisitions

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Researched by Industrial Info Resources (Sugar Land, Texas)--Parsley Energy (NYSE:PE) (Austin, Texas) is the proud owner of newly acquired property in the horizontal Wolfcamp trend of the Permian Basin, located in West Texas' Glasscock County. The company bought the oil and gas properties for roughly $2.19 million in cash from Mexco Energy Corporation (Midland, Texas), an independent company that acquires, explores and develops oil and gas properties. Industrial Info is tracking $290 million in active projects involving Parsley, an independent oil and natural gas company focused on the Permian.

"Over Parsley's nine quarters as a public company, we have increased production at a 16% compound quarterly growth rate--almost entirely through the drill-bit---and built an asset base and the organizational capacity to support top-tier growth for years to come," said Bryan Sheffield, Parsley's president and chief executive officer, in a conference call this summer.

The five highest-valued existing Parsley leases, in terms of investment, that Industrial Info is tracking in the Permian are each valued at $15 million: the Haystack 6, which involves three 9,300-foot-deep vertical wells; the Curry-Neal 47, which involves three 9,200-foot vertical wells; the Zain 26, which involves three 5,000- to 9,900-foot horizontal wells; the Grace 45-1, with three 9,350- to 9,900-foot horizontal wells; and the Louis, with three 9,625- to 10,000-foot horizontal wells. For more information, see Industrial Info's project reports on the Haystack 6, Curry-Neal 47, Zain 26, Grace 45-1 and Louis leases.

These five leases are among Parsley's properties in the Spraberry trend, which is slightly north of the Wolfcamp in the Permian Basin. Industrial Info's Oil & Gas Production Platform shows Parsley as the operator with the most leases in the Spraberry, but Diamondback Energy Incorporated (NASDAQ:FANG) (Midland) has the single highest-valued project in the works in Spraberry: the $27 million Jaguar Lease drilling program for 2017. In the first quarter, Diamondback plans to drill nine 12,000-foot-deep horizontal wells. For more information, see Industrial Info's project report.

According to a press release from Mexco, the Wolfcamp transaction was part of a sale by several co-owners of 9,140 net acres in Wolfcamp containing 60 net vertical wells, with net production of 270 barrels of oil equivalent, plus five disposal wells and existing infrastructure. "I believe this sale indicates the potential value of certain of Mexco's oil and gas properties, which it continues to hold in the horizontal Wolfcamp area of the Permian Basin," said the president of Mexco in a statement.

The area surrounding the Wolfcamp and Spraberry trends is rife with nearly $6 billion in project activity in the Oil & Gas Production, Pipelines and Terminals industries. The largest Oil & Gas Industry project under construction in the area, according to Industrial Info's Project Platform is Energy Transfer Partners LP's (NYSE:ETP) (Dallas, Texas) $1 billion Lone Star Express pipeline, which will carry natural gas liquids (NGL) more than 500 miles from the Permian to Mont Belvieu, Texas. It is part of a broader expansion, valued in total at between $1.5 billion and $1.8 billion. For more information, see Industrial Info's project report; for details on similar projects, see October 5, 2016, article - Propane Leads Increase in U.S. Petroleum Products Exports.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.