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 Activity2Q 2018
Our Northern Delaware production averaged 17,000 net boed in 2Q 2018. We brought 13 gross Company-operated wells to sales in the Malaga area in Eddy County, a mix of development and appraisal wells with an average 30-day initial production rate of 1,130 boed (61% oil). Drilling efficiencies enabled us to reduce our rig count from five to four in the second quarter, without changing our full-year guidance of 50 to 55 gross operated wells to sales. In June, we executed an agreement with San Mateo for water gathering and disposal in Eddy County, which will significantly reduce unit production costs.
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.