Permian Basin 2017

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PERMIAN BASIN: KEY PLAYERS 18 | November 2017 | Callon Petroleum Co. Callon Petroleum operates in Midland, Howard, Upton and Reagan counties in the Midland Basin and in Ward and Pecos counties in the Delaware Basin. The company reported proved reserves of 91.6 MMboe at year-end 2016 (78% oil and more than 47% proved developed), according to Callon's 10-K report. As of June 2017, the company had 205 gross (151.1 net) horizontal wells producing from seven established fl ow units in the Perm- ian Basin, Callon's second-quarter report stated. The company entered the Midland Basin in 2009, focused on vertical drilling at the time, and tran- sitioned to horizontal development in 2012, per the company's 10-K. In May 2016 Callon acquired certain assets in the Midland Basin operated by Big Star Oil and Gas LLC, including about 17,298 gross (14,089 net) surface acres, primarily located in Howard County, Texas, with additional acreage in Martin, Borden and Dawson counties, Texas, a press release stated. In October 2016 Callon acquired 6,904 gross (5,952 net) acres primarily located in Howard County, Texas, in the Midland Basin within its WildHorse operating area from Plymouth Petro- leum LLC, according to a press release. In February 2017 Callon acquired about 16,700 net surface acres in Ward and Pecos counties, Texas, in the southern Delaware Basin from American Resource Development LLC, a press release stated. In the company's Midland County operating area (consisting of Midland, Ector, Martin and Andrews counties), the company began horizon- tal development in 2013. It has existing horizontal production from six distinct fl ow units from four shale zones (a fourth was added in 2016). In Callon's Howard County operating area, it has existing horizontal production from three shale zones. The company acquired these assets from the Big Star acquisition in 2016. The company's Upton/Reagan County operat- ing area began horizontal development in 2012. It has existing horizontal production from four fl ow units across three shale zones. In Callon's Ward County operating area, it has existing horizontal production from both the Wolf- camp A and B shale zones. Centennial Resource Development Inc. Centennial Resource Development Inc. is an inde- pendent oil and natural gas producer with assets in the core of the Delaware Basin in West Texas and Southeast New Mexico. The company has about 88,000 net acres and more than 2,000 drilling loca- tions (about 59% oil) located primarily in Reeves County, Texas, and Lea County, N.M, according to Centennial's website. The company reported second-quarter 2017 total production of 29,664 boe/d and 17,435 bbl/d of oil, an increase of 61% and 66%, respectively, compared to fi rst-quarter 2017, according to the company's second-quarter report. Centennial added a sixth drilling rig in Reeves County during the second quarter and expects to continue operating its six-rig drilling program for the remainder of 2017, the report stated. The com- pany planned to move one rig to Lea County during the third quarter to begin development activity on its recently acquired GMT acreage. Furthermore, Centennial expects to drill and complete 65 to 75 gross wells during 2017, the report stated. In June Centennial completed the acquisition of interests in producing horizontal wells plus unde- Callon has drilling operations at "Carpe Diem" in Midland County. (Photo courtesy of Callon Petroleum)

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