Verdun Oil Company, a privately-held operator, plays a significant role in the oil and gas industry, focusing primarily on the prolific Eagle Ford Shale and Giddings Field. With an expansive asset base of 285,000 net leasehold acres, Verdun has established itself as a key player in both oil and condensate production. The company boasts a production rate of 90,000 barrels of oil equivalent per day (MBoepd), with a substantial inventory of high-return drilling opportunities. Through its robust infrastructure, strategic acquisitions, and commitment to operational excellence, Verdun consistently delivers strong cash flows, leading the way in well productivity and cost efficiency. Verdun’s disciplined approach to development, combined with a focus on environmental stewardship, positions the company for continued growth and success in the competitive energy market.
2024 Drilling Information
Here is the record count of “wells drilled” by month in text format for all months:
- January 2024: 2 wells drilled
- February 2024: 4 wells drilled
- March 2024: 7 wells drilled
- April 2024: 0 wells drilled
- May 2024: 8 wells drilled
- June 2024: 2 wells drilled
- July 2024: 4 wells drilled
- August 2024: 3 wells drilled
- September 2024: 1 well drilled
Here is the summary of the drilling contractors and rigs by record count:
- Patterson 273: 16 wells drilled
- Cactus 159: 12 wells Drilled
- AKITA 522: 3 wells drilled
Here is the summary of the county by record count:
- LA SALLE: 13 wells drilled
- MCMULLEN: 4 wells drilled
- ATASCOSA: 3 wells drilled
- LIVE OAK: 3 wells drilled
- IRION: 3 wells drilled
- DIMMIT: 2 wells drilled
- KARNES: 2 wells drilled
- DE WITT: 1 wells drilled
Data Download Center
Verdun Wells Drilled 2022
Verdun Oil Company natural gas operations and strategy:
- Production and Curtailment:
- Verdun is currently curtailing over 10 MBoepd of dry gas production due to weak market conditions, specifically citing weak Henry Hub pricing. Unconstrained, their total production could exceed 100 MBoepd. They plan to open up 10,000 Boepd of curtailed gas volume at their Giddings Austin Chalk asset by the end of 2024(Verdun Oil Company Pres…).
- Natural Gas Volumes:
- More than 90% of Verdun’s Eagle Ford natural gas volumes are processed by major companies like Kinder Morgan, Enterprise, Targa, and Energy Transfer. Verdun takes the majority of the residue gas in-kind and sells it at Houston Ship Channel (HSC) benchmark pricing(Verdun Oil Company Pres…).
- Flaring and Environmental Impact:
- Verdun flares less than 1% of their total natural gas production, highlighting their commitment to reducing environmental impact(Verdun Oil Company Pres…).
- Infrastructure:
- They have significant natural gas compression capacity with over 344 MMcfpd of compression in place, and more than half of this capacity is company-owned. This results in cost savings and operational efficiency(Verdun Oil Company Pres…).
Verdun Oil facilities and infrastructure:
- Central Production Facilities (CPFs):
- Verdun owns and operates 83 Central Production Facilities (CPFs), each handling approximately 16 wells. This infrastructure supports efficient field operations and allows for cost-effective future development.
- Saltwater Disposal (SWD) Wells:
- The company owns and operates two saltwater disposal wells with integrated water gathering systems that have a capacity of over 30,000 barrels of water per day. This infrastructure plays a crucial role in water management for production operations.
- Gathering and Sales Lines:
- Verdun has over 500 miles of company-owned gathering and sales lines tied into their CPFs. This pipeline network helps ensure efficiency, cost savings, and flexibility in transporting oil, gas, and produced water.
- Additional Facilities and Assets:
- Verdun owns 1,815 acres of surface area, which is used to support their field operations.
- The company operates 78 frac ponds with a total capacity of over 37 million barrels of water, providing water for completion operations.
- Verdun has three field offices that are strategically located to facilitate efficient operations across their footprint, along with three equipment yards stocked with company-owned materials like valves, pipes, and other critical parts.
- Compression Infrastructure:
- Verdun owns 60 compressors with a total compression capacity of 344 MMcfpd (million cubic feet per day). More than 54% of the compression horsepower used is owned by the company, resulting in significant annual cost savings of $15 million to $20 million.
- Operational Efficiency:
- The extensive infrastructure in place allows Verdun to ramp up activity and production with minimal capital outlay for additional facilities. They also utilize remote operation centers for 24-hour surveillance of their assets, ensuring operational efficiency and safety(Verdun Oil Company Pres…).
In conclusion, Verdun Oil Company has demonstrated its strength and resilience in the competitive oil and gas landscape through strategic acquisitions, high-quality assets, and industry-leading operational efficiency. With a robust portfolio in the Eagle Ford Shale and Giddings Field, the company is well-positioned to capitalize on future growth opportunities while maintaining a strong focus on environmental stewardship and safety. Verdun’s ability to consistently generate significant free cash flow, manage through commodity price cycles, and optimize its infrastructure sets it apart as a leader in delivering long-term value for stakeholders. As the company continues to expand its operations and enhance well productivity, it is poised for sustained success in the evolving energy market.
