Cimarex Energy (XEC) is active in the Permian Basin and has 448,000 net acres under lease. The company is currently operating 12 rigs in the basin and plans to increase this to between 15 and 16 by the middle of 2011.
Cimarex Energy reported average daily production of 173.7 million cubic feet of natural gas equivalents per day from its properties in the Permian Basin. This production was composed of 68.8 million cubic feet of natural gas, 2,941 barrels of natural gas liquids and 14,541 barrels of crude oil per day.
During the first quarter of 2011, Cimarex Energy drilled and completed 26 gross or 19.7 net wells in the Permian Basin, up from 11 gross or 9 net wells in the same quarter in 2011. The company has 23 gross or 18.1 net wells waiting on completion or in the process of being completed.
Cimarex Energy spent $155 million in capital here during the quarter and expects to spend a total of $730 million in 2011. This level of spending will allow Cimarex Energy to drill 185 gross or 135 net wells in 2011.
Cimarex Energy is targeting the Bone Spring, Paddock, Abo and Wolfcamp formations on its Permian Basin acreage. The company is also evaluating the Avalon and Cisco/Canyon shale formations in the Delaware Basin and has 125,000 net acres with possible exposure to these plays.