Rig Count up in The Permian – Which Sponsors are there?

Overall drilling activity picked up in The Permian Basin during the past five months. Horizontal, oil-directed rigs increased by 63, which represents 50% of the total increase across the country, according to the U.S. Energy Information Administration (EIA). 

An increase in drilling activity, does not necessarily translate into a future increase in production says the EIA. They point it out it does mean that producers are on the hunt for new production in the Permian’s tight oil formations, which are stacked in multiple layers. Horizontal oil-directed rigs are primarily used to drill in these tight, low-permeability formations expected to produce oil.

2013 saw the number of rigs in the Permian Basis increase to the point of passing those active in both the Eagle Ford in South Texas and Williston Basin of North Dakota, two other tight oil plays.

By the end of last year, the Permian had 215 active rigs compared to 173 and 164 for the Eagle Ford and Williston Basin, respectively.

According to the EIA, that trend continued into this year. The Permian Basin saw an increase four times that of the Eagle Ford and Williston Basis combined.

Which energy direct investment sponsors are active in the Permian Basin?

Adageo Energy, Bradford Energy Capital, LLC, and Reef Oil and Gas Companies are three sponsors offering direct energy investments through independent broker dealers that have or are participating in the Permian Basin.