Permian Oil and Gas

Apache - Permian Basin Summary

Apache Corporation (APA) is active in the Permian Basin and has 1.6 million net acres under lease.  The company reported that production from this basin was 101,000 barrels of oil equivalent (BOE) per day in April 2012, with approximately 70% of this production composed of crude oil and other liquids.

Apache estimates that oil and gas production from its properties in the Permian Basin will grow at a compound annual rate of 13% from 2011 to 2016.  The company will operate an average of 32 rigs in 2012 and drill 760 wells at a cost of approximately $1.9 billion.

Apache is targeting multiple formations in the Permian Basin including the Wolfcamp Shale, Cline Shale, Spraberry, Yeso, Clearfork, San Andres, Grayburg, Avalon Shale and Bone Spring.

Concho Resources - Q3 2011 - Permian Basin Oil and Gas Update

Concho Resources (CXO) is working on numerous oil and gas formations in the Permian Basin and started drilling a total of 223 gross wells during the third quarter of 2011.  The company reported that 69 of these Permian Basin wells were completed during the quarter, and 154 were in various stages of completion.

Third Quarter of 2011 Summary

New Mexico Shelf – Concho Resources operated ten rigs developing the Yeso, and one rig developing the Lower Abo.  The company drilled 122 wells and completed 55 wells into both these formations during the third quarter of 2011.  Concho Resources also completed 71 wells that were drilled prior to the quarter. 

Texas Permian - Concho Resources operated thirteen rigs during the third quarter of 2011 to develop the Wolfberry formation on the Texas side of the Permian Basin.  The company drilled 74 operated wells on its acreage and completed 12 total wells here in the quarter. Concho Resources also completed 77 wells into the Wolfberry that were drilled prior to the quarter. 

Delaware Basin - Concho Resources operated six rigs targeting the Bone Spring formation during the third quarter of 2011, and drilled or participated in 24 Bone Spring wells.  The company also completed 24 wells during the quarter, and reported average daily production of 8,900 barrels of oil equivalent (BOE) per day from the Bone Spring play, which includes the Avalon Shale, the Bone Spring sands and the Wolfcamp shale.  This was a 59% increase compared to the second quarter of 2011. 

Concho Resources - Second Quarter of 2011 - Permian Basin Operations Update

Concho Resources (CXO) is working on various oil and gas formations in the Permian Basin and drilled a total of 229 gross wells (196 operated) in the second quarter of 2011.  The company reported that 72 of these Permian Basin wells were completed during the quarter, and 157 were in various stages of completion.

Second Quarter of 2011 Summary

New Mexico Shelf – Concho Resources operated twelve rigs developing the Yeso, and two rigs developing the Lower Abo.  The company drilled 131 wells and completed 60 wells into both these formations during the second quarter of 2011.  Concho Resources also completed 52 wells that were drilled prior to the quarter.  The company estimates that it has 2,846 drilling locations on its leasehold here, with 2,113 Yeso locations and 327 Lower Abo locations.

Texas Permian - Concho Resources operated sixteen rigs during the second quarter of 2011 to develop the Wolfberry formation on the Texas side of the Permian Basin.  The company drilled 73 operated wells on its acreage and completed 68 total wells here in the quarter. Concho Resources has 4,449 drilling locations in the Texas Permian, with 1,893 locations into the Wolfberry play on forty acre spacing and 2,444 locations into the Wolfberry play on twenty acre spacing.

Delaware Basin - Concho Resources operated six rigs targeting the Bone Spring formation during the second quarter of 2011, and drilled or participated in 25 Bone Spring wells.  The company also completed 18 wells during the quarter, and reported average daily production of 5,600 BOE per day from the Bone Springs.   Concho Resources estimates that it has 1,464 drilling locations targeting the Wolfbone play.