Here is a pre earnings season update on the Permian Basin position and operations of Cimarex Energy (XEC):
Acreage – 448,000 net acres
2011 drilling – 175 gross or 125 net wells
Cimarex is targeting various formations in the Permian Basin including the Wolfcamp, Avalon Shale, Bone Spring (first, second and third) and Cisco or Canyon Shale.
Second and Third Bone Spring
- 54,000 net acres in New Mexico.
- Drilled and completed 53 wells since entering play in 2009.
- Thirty day initial production rates have averaged 595 barrels of oil equivalent (BOE) per day, with 82% oil content.
- Well costs ranged from $4.8 million to $5.2 million.
- Cimarex Energy is operating seven rigs.
- Daily production is averaging about 10,500 BOE per day.