Upstream Intel 6/2/25
Data as a counter-cyclical asset | Land intelligence | Supreme Court gives go to key Uinta railroad | Lease dispute lawfare
Welcome back to Upstream Intel, Lease Analytics’ weekly roundup of our analysis and insights. As always, we would love to hear from you with news ideas, feedback, and anything else you find interesting.
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Data Drill: Data as a strategic asset
E&Ps turn to land surveillance to find remaining opportunities
As America’s mature basins get picked over, wildcatters and E&Ps alike are dusting off the well logs and bringing modern surveillance to old rocks, Hart Energy reports. Data-rich exploration, from detailed geophysical records to wellbore integrity checks, is driving a renaissance in plays like the Pearsall, Utica, and even the Middle Bakken, where smart mapping turned a 1990s bail-out well into a modern horizontal giant.
The latest success stories, from Comstock’s Bossier delineations to Encino’s billion-barrel Utica bet, show that the path to profitable growth isn’t just about new acreage but about knowing where to look and how to sweat the details.
Operators who combine historical data with modern drilling and completion recipes are squeezing new life from formations once written off as played out. Formentera’s results in the Pearsall and Vital’s success with Barnett-Woodford horizontals prove that opportunity favors those who take the time to re-evaluate old plays with fresh eyes and advanced analytics.
As Pioneer’s Scott Sheffield told Hart Energy, “don’t expect another Spraberry or Wolfcamp to emerge overnight,” suggesting that the real opportunity lies in turning overlooked potential into barrels on the books.
Sophisticated data becomes a new counter-cyclical advantage
Sophisticated data is also emerging as a powerful countercyclical advantage alongside strong balance sheets and low breakeven costs. BPX Energy’s long-term plans in South Texas show how sophisticated data is transforming asset management, refracs, and EOR into a decades-long opportunity. As rig counts fluctuate and deals come under pressure, the right data unlocks the best rock.
It’s not just about more wells; it’s about knowing where to drill and how to thread the needle, sometimes 165 feet from legacy completions. BPX’s field learnings, from offset monitoring to wellbore stability, set them apart in both volume and cost-efficiency. Their triple-digit returns in oily and gassy zones highlight the edge that comes from merging primary and redevelopment drilling with real-time analytics.
As asset valuations bounce between $12,000 and $36,000 per flowing boe/d, the ability to extract insights from petrophysical logs, regional stratigraphies, and complex production data has never been more critical. As the chart above from Novi Labs shows, opportunities abound, if you can spot them. When every barrel and dollar counts, the companies that can manage data complexity are the ones that will thrive.
The Legal Dimension of Operations
Supreme Court restores key railway for Utah oil
The Supreme Court’s decision to restore federal approval for the Uinta Basin Railway marks a major boost for Utah’s oil ambitions. By narrowing the scope of NEPA reviews, the ruling clears a path for infrastructure projects to advance with fewer regulatory hurdles. The railway revives a key export route for the basin’s waxy, low-sulfur crude, a commodity that’s otherwise stranded without a heated rail solution.
The decision also sends a broader signal to the energy sector: infrastructure projects once stalled by indirect impact assessments may now proceed faster. Oil producers see a new window of opportunity to unlock value from unconventional resources. For a basin long challenged by transport constraints, the ruling could catalyze growth and attract fresh capital to the overlooked corners of Utah’s oil patch.
Lease disputes continue flooding into the courts
Lease disputes continue to flood courtrooms across the oil patch, highlighting the friction between operators and royalty owners over cash flows from boom-era wells. The latest dustup comes from the Permian Basin Royalty Trust, which is seeking more than $9 million from Blackbeard Operating for alleged underpayment of royalties.
The trust’s claims, including missing volumes, questionable overheads, and saltwater disposal fees, underscore how opaque accounting and complex lease terms keep royalty fights alive even in otherwise profitable basins.
Meanwhile, energy companies are tangling with the Department of the Interior over lease issues in places like Fort Berthold, pointing to a growing tension between federal oversight and operator rights. Such courtroom battles, from Tarrant County to federal courts, are pushing up the sector’s legal bills.
In Other News:
EOG buys Utica’s Encino for $5.6bn
EOG Resources has struck a $5.6 billion deal to buy Encino Acquisition Partners, instantly transforming itself into a heavyweight in the Utica Shale. The acquisition adds 675,000 net acres to EOG’s existing position, creating a 1.1-million-acre, 275,000 boe/d powerhouse with more than 2 billion barrels of undeveloped net resource.
With the deal funded by a mix of debt and cash, EOG expects immediate accretion, $150 million in annual synergies, and a 5% dividend bump, positioning the company for long-term growth in one of America’s most overlooked shale plays.
North Dakota eases rules on uncompleted wells
The Department of Mineral Resources has extended its uncompleted well deadline through spring 2027 as operators face sub-$65 oil prices that squeeze drilling economics below profitable thresholds.
The waiver replaces the previous one-year completion requirement with quarterly pressure monitoring, giving producers breathing room as four to five operators plan rig drops in response to crude prices hovering around $61.
2024’s best wells sit far from the Permian
While the Permian captured 45% of 2024's top-performing wells, the real winners are rewriting the rulebook in overlooked basins, Novi Labs data shows. Ascent Resources and Encino Energy claimed #2 and #6 with ultra-long Utica laterals that stretch ~22,000 feet.
The Williston quietly delivered 20% of performers through EOG's 19-well program and Devon's multi-basin excellence, proving technical innovation beats trendy geology. Even the Eagle Ford crashed the party with 1776 Energy's six wells landing in the top 15, reminding everyone that execution trumps zip code.
Quote of the Week:
“This acquisition combines large, premier acreage positions in the Utica, creating a third foundational play for EOG alongside our Delaware Basin and Eagle Ford assets. We are excited about high quality acreage with exploration upside, competitive with our current inventory, gained at an attractive price.”
— Ezra Y. Yacob, Chairman and Chief Executive Officer of EOG
What We’re Reading:
Oil Rises After OPEC+ Keeps Output Policy Unchanged. (Hart Energy)
Microsoft feels the pressure of conforming to its net zero commitments. (Wall Street Journal)
The Permian Is Not Done Yet. (Oilprice.com)
Chevron Confirms 200 Permian Layoffs—Not 800. (Hart Energy)
Why many are likely to soon be caught very natural gas short. (Oil and Gas 360)
QatarEnergy, ExxonMobil LNG Project to Start Production This Year. (Rigzone)
Terrific Turner: Oxy's 'Exceptional' Results from Powder River's Turner Sands. (Hart Energy)
Infinity accelerates Marcellus project, weighs slowing of oil-focused work. (Oil and Gas Journal)
Bureau of Land Management Leases 3 Parcels in New Mexico. (Rigzone)
Judge Sees No Harm In BLM Drill Permits Near Colo. Grassland. (Law360)
APA promotes Kochar to vice-president, treasurer. (Oil and Gas Journal)