Concho Resources (CXO) is active exclusively in the Permian Basin and reported that 98% of the company’s 332.5 million barrels of oil equivalent (BOE) of proved reserves are located here. The company is operating 32 rigs on its acreage and has allocated $1.35 billion in capital for the Permian Basin in 2011. This will cover the drilling of 896 wells during the year.
Yeso - Concho Resources is developing the Yeso on its New Mexico shelf acreage, and has drilled more than 650 wells here since entering the play. The average well in the Yeso costs $1.7 million and is drilled vertically to between 5,000 to 7,000 feet. The company is allocating 48% of its 2011 capital budget here. Concho Resources estimates that it has 2,156 drilling opportunities in the Yeso and another 333 locations in the Lower Abo.
Wolfberry - Concho Resources is developing the Wolfberry on its Texas Permian Basin oil and gas acreage, and estimates that it has 1,742 drilling locations into this formation. The company plans to drill 260 wells here in 2011 at an average cost of $1.6 million.
Bone Spring - Concho Resources is developing the Bone Spring on the company’s 150,000 net acres in the Delaware Basin. The company estimates that it 968 drilling locations into the Bone Spring and another 133 locations into the Avalon Shale and Wolfcamp formations.