Growing in A
New PlayNorthern Delaware, New Mexico
About the PlayPermian
The Northern Delaware basin, which is located within the greater Permian area, has been drawing a lot of attention and for good reason. The geology with 5,000 feet of oil-rich stacked pay creates outstanding well economics. We closed on our two acquisitions in May and June of 2017, giving us a strong foundational footprint in the region where we've begun developing the Wolfcamp and Bone Spring plays.
"While we expect to pursue additional trades and grassroots leasing, this bolt-on achieves the scale necessary for efficient long-term development in the basin," said CEO Lee Tillman in March 2017 following the announcement of the acquisition of Black Mountain assets. The acreage is estimated to hold approximately 1.45 billion BOE of total resource potential.
Latest Activity1Q 2018
Our Northern Delaware production averaged 16,000 net boed in 1Q 2018. We brought nine gross Company-operated wells to sales in Eddy and Lea Counties, seven of which had average 30-day initial production rates of 1,460 boed (69% oil). In the last six months, Marathon Oil has added 165 risked gross Company-operated locations with an average working interest of 65% through trades and a small bolt-on acquisition. The Company is currently benefiting from its Midland-Cushing basis swaps. Open positions include 10,000 bopd hedged at a discount of less than $1 to WTI for the second half of 2018 and all of 2019.
A return to New Mexico
CEO Lee Tillman was an invited keynote at the 2017 New Mexico Oil & Gas Association's Annual Conference. Read his remarks about the Company's entry into the Northern Delaware.
Using Best PracticesHydraulic Fracturing
In combination with advanced horizontal drilling technology, fracking makes it possible to develop oil and gas resources that were previously inaccessible.