Energen Sees Further Cost Savings In 2015

(RTTNews) - Oil and gas company Energen Corp (EGN) on Wednesday said it expects to realize additional well-cost savings of 15 percent to 25 percent in the last nine months of 2015 in the Permian Basin as a result of further drilling and completion service cost reductions and drilling efficiencies.

The company said this is in addition to the 10 percent drilling and completion service cost savings already included in its 2015 drilling and development capital budget of about $1 billion. Energen rebid its service contracts at the end of March 2015.

"Drilling efficiency gains are being felt particularly in the Delaware Basin, where our drilling team is making excellent progress in reducing the number of days to drill," said CEO James McManus.

"All of these cost savings and efficiency gains will impact our capital and, possibly, our drilling plans for 2015. We currently are assessing the impact of these cost reductions...," McManus said