The U.S. Geological Survey has released a fact sheet (U.S. Geological Survey Fact Sheet 2016-3092, November, 2016) which describes its assessment of technically recoverable mean resources of 20 billion barrels of oil and 60 trillion cubic feet of gas. These recoverable resources are located in the “Wolfcamp” shale in the Midland Basin part of the Permian Basin Province, Texas. This resource appears to be 3 times larger than the resources identified in the Bakken play in North Dakota.
The Permian Basin is home to more than 3,000 wells and has been producing oil and natural gas liquids since the 1920’s. This discovery is a reminder that even in basins that have produced billions of barrels of oil, improved technology enables even more reserves to be located and extracted.
BRI has identified the Permian Basin as an important area for potential asset acquisition. This assessment is based on the marginal well quality of existing Permian wells, especially relative to the well quality of the Bakken and Eagle Ford Formations. The Company intends to research this development, determine if it changes the play’s potential, and determine if suitable opportunities exist to create long-term value for BRI.