Cimarex Energy (XEC) has 45,000 net acres in the Permian Basin that are prospective for the Bone Spring formation. The company has drilled and completed 45 wells into the second and third Bone spring formation since entering the play in 2009.
Cimarex Energy is operating six rigs targeting the Bone Spring and reported that wells here produced an average of 590 BOE per day during the first thirty days of production. Well costs range between $4.8 million and $5.2 million.
Cimarex Energy reported that gross production from the two Bone Spring formations was just over 7,000 BOE per day in January 2011. The company disclosed the initial production results of three recent wells completed into the Bone Spring formation.
Southern California 29 Federal 17H – 680 BOE per day.
Southern California 29 Federal 18H – 667 BOE per day.
Johnson 33-21 2H – 470 BOE per day.