Permian Basin 2017

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PERMIAN BASIN: KEY PLAYERS 20 | November 2017 | veloped acreage on about 11,850 net acres in the core of the Northern Delaware Basin in Lea County from GMT Exploration Co. LLC. In December 2016 a subsidiary of Centen- nial Resource Development Inc. completed the acquisition of leasehold interests and related upstream assets in Reeves County in the south- ern Delaware Basin from Silverback Explora- tion LLC and Silverback Operating LLC, a press release stated. The acquired acreage included about 35,500 net acres. Chevron Chevron is the Permian Basin's largest net acreage holder with about 2 million acres, according to the company's website. Production in the area could expand eightfold to 700,000 bbl/d of oil within a decade. In 2011 the company produced its 5 billionth barrel from the region. In 2016 the company reported production of 90,000 net (Chevron share) barrels of crude oil, 327 MMcf of nat- ural gas and 29,000 bbl of NGL daily, accord- ing to information on the company's website. By year-end 2018, nine drilling rigs will join the 11 that Chevron already has in the Permian, according to the company. In addition, in an effort to protect the Perm- ian, the company uses more brackish than potable water, targeting deeper aquifers that contain water not suitable for human consumption or agricul- tural usage. The company also uses centralized water facilities and pipelines to reduce truck traffi c and associated emissions in the area. Cimarex Energy Cimarex operates in the Delaware Basin with mul- tiple horizontal drilling locations in the Wolfcamp Shale, Bone Spring Sands and Avalon Shale. The Bone Spring and Wolfcamp formations account for most of the company's current Perm- ian Basin activity and production, according to the company's website. Delineation of the Wolfcamp Shale continued with its fi rst infi ll development in 2016. Cimarex also saw improvement in well results due to newer completion techniques and the use of longer laterals. In 2015 the Permian Basin accounted for 36% of Cimarex's year-end 2015 proved reserves and 56% of total production, the website stated. According to the company's second-quarter 2017 report, production from the Permian Basin averaged 644.7 MMcfe/d in that quarter, a 27% increase from second-quarter 2016, and the com- pany is operating eight rigs in the region. Cimarex brought 11 gross (10 net) wells on production in the Permian region during the second quarter, and there were 27 gross (13 net) wells waiting on completion as of June 30, the report stated. Of the $296 million Cimarex invested in exploration and development during the second quarter, 53% was allocated to the Permian Basin. Concho Resources Inc. Concho Resources is focused in the Permian Basin of southeast New Mexico and West Texas, operat- ing in the Delaware and Midland basins. The com- pany is a top 15 oil producer in Texas and operates more than 6,200 wells in the Permian. A 2015 com- pany fact sheet also stated that Concho is the No. 1 producer of oil and No. 3 producer of natural gas in New Mexico. The company's Delaware assets total about 940,000 gross acres. The company's Delaware focus is on the oil-prone Bone Spring Formation, which includes the Avalon Shale, three Bone Spring sand- stone zones and the Wolfcamp Shale. Since 2010 Concho has drilled about 700 horizontal wells in the Delaware Basin, targeting six distinct zones, the company stated on its website. Based on the company's well results, Concho has identifi ed about 12,000 horizontal drilling loca- tions in the northern Delaware Basin targeting six pay zones, the website stated. Concho added 12 horizontal wells in the northern Delaware Basin with at least 30 days of production during sec- ond-quarter 2017 and an average lateral length of 6,045 ft, according to the company's second-quar- ter report. The average peak 30-day and 24-hr rates for these wells were 1,394 boe/d (66% oil) and 1,700 boe/d, respectively. The company has six rigs drill- ing in this basin. Concho's southern Delaware Basin, located in Reeves, Ward and Pecos counties in Texas, added

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