American Oil and Gas Reporter - PBIOS 2014 Official Program Guide - 134

Permian Basin Reports

Concho Resources has 1.2 million gross acres and 5,500 operated wells producing in
the Permian Basin, which totaled an average of 107,800 barrels of oil equivalent a day
during the second quarter. In its northern Delaware Basin area in Eddy and Lea counties, N.M., and Culberson County, Tx., the company reported 31 new wells with at least
30 days of production each by the end of the quarter set production records with average 30-day rates of 931 boe/d.

tal and 16 vertical wells in the second quarter in the Yeso. Sixteen wells were brought
on production, adding 1,578 bbl/d oil
and 3.351 MMcf/d of gas to the field
(2,137 boe/d). The 10 horizontal wells
completed last year in the Cedar Lake area
still are among Apache's best Yeso wells,
producing approximately 3,700 bbl/d as a
result of installing lift upgrades during the
second quarter, the company reports.
Apache also continues to operate three
rigs in the Pecos Bend and Waha fields in
the Delaware Basin. Seven wells were
spudded in Pecos Bend during the second
quarter: two in the Second Bone Spring,
four in the Third Bone Spring, and one in
the Wolfcamp formations, according to the
company's earnings report.
"We had impressive results in the
Bone Spring of the Delaware Basin,"
Farris relates, "with several new wells coming on in Reeves and Loving counties, including the Robin 8 well, which had a 24hour rate of nearly 1,200 bbl/d oil."
Apache has 500,000 gross (215,000
net) acres in the Delaware Basin, much of
it in Reeves, Loving and Ward counties.
Farris says Apache's Wolfcamp wells
cost about $7 million each, while Bone
Spring well costs have come down a little, putting them in that same range.

Delaware Basin
Like Pioneer and Apache, Concho Resources has a huge position in the Permian Basin and is operating in a variety of
plays. Executive Vice President Jack
Harper says Concho has 1.2 million gross
acres and 5,500 operated wells producing
in the basin. The company's average Permian production in the second quarter totaled 107,800 boe/d.
Concho is operating 34 drillings rigs,

134 THE AMERICAN OIL & GAS REPORTER

23 of which are in the Delaware Basin. The
company divides its Delaware Basin
acreage into north and south, and Harper
says the two areas are geologically different.
The company has 17 rigs drilling in the
northern Delaware Basin, which he describes as the "state-line area" dividing
Texas and New Mexico, and includes
Culberson County in the Lone Star State
and Eddy and Lea counties in New Mexico. The focus in the southern Delaware
Basin is the Upper Wolfcamp in Texas'
Reeves and Pecos counties, where Concho
has six rigs drilling, according to Harper.
"The early development in the northern Delaware Basin targeted the Avalon
Shale," he states. "Companies leveraged
data collected drilling the Avalon to discover new resources. We now have seven
unique zones on our northern acreage,
down through the Lower Wolfcamp. Our
primary focus right now is the Second
Bone Spring."
Concho started drilling or participated
in 134 gross wells (107 operated and 107
completed as producers) in the second
quarter. That included 75 wells in the
Delaware Basin. Of those 75, 53 were
Bone Spring Sand wells, 14 were Wolfcamp Shale wells, five targeted Brushy
Canyon, and three were Avalon Shale
wells. Harper reports net production in the
second quarter from horizontal Delaware

Concho Resources is operating 34 drilling rigs in the Permian Basin, including 23 in the
Delaware Basin. The company started drilling or participated in 134 gross wells in the
second quarter, including 75 in the Delaware Basin. Its net second quarter production
from horizontal Delaware Basin wells averaged 49,100 barrels of oil equivalent a day.

American Oil and Gas Reporter - PBIOS 2014 Official Program Guide

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