Northwest Shelf of the Permian Basin
Riley Exploration Permian, Inc. (NYSE American: REPX) is a Permian Basin focused oil and gas company with its operations located in the Northwest Shelf, primarily in the prolific Wasson Field complex in southern Yoakum County, Texas, and the Yeso Trend in northern Eddy County, New Mexico. These areas on the shelf have produced over 3 billion bbls of oil over the past century from primary depletion, infield drilling, waterflooding and tertiary CO2 injection. The company produces from the shallow carbonates of the Yeso Group and San Andres Formation using horizontal drilling and completion techniques to access more of the reservoir compared to historical vertical drilling methods. REPX has a proven track record of success on the Northwest Shelf, with a strong focus on operational excellence and capital efficiency.
The San Andres formation and the Yeso group carbonates have several distinct advantages in both reservoir quality and economics over shale plays and provides very attractive production rates, ultimate recovery (EUR) and strong rates of return with some of the lowest finding and development costs in the industry. This is due to several factors:
Reservoir Quality:
- Massive continuous carbonate reef/ramp complex with structural and stratigraphic closure (oil trapping)
- Moderate depth (4,000' average compared to most shales at 8,000-12,000')
- Thick productive intervals (>200')
- Greater porosity than shales (more oil in place)
- Much higher permeability (ability to produce the oil from the rock at higher rates); also results in much shallower declines vs shales
- High EUR's (several wells over 1 mmbo EUR)
Economics:
- Oil dominated revenues
- Lower drilling costs
- Lower frac and completion costs
- Contiguous acreage position allows for efficient infrastructure for operations
- Attractive production rates and low decline production