Big Money Banks Helping Smaller Oil Companies Drill More in Texas Permian
Oil majors and large independent exploration companies are beginning to dominate the Permian Basin in West Texas, but smaller, private equity-backed companies are still doing a lot of drilling.
Backed by $1 billion from New York private equity firm Apollo Global Management, Double Eagle Development of Fort Worth is preparing to drill five horizontal wells in Midland County and a vertical in neighboring Martin County. The wells target the Spraberry field at depths ranging from 9,000 to 10,600 feet.
The Woodlands-based Rio Oil & Gas, launched with $360 million from Houston private equity firm Quantum Energy Partners, is preparing to drill three horizontal wells on state-owned lands in Reeves County. The wells target the Phantom field of the Wolfcamp formation at depths up to 20,400 feet.