Corporate History
In 2008, we commenced the drilling of or participated in a total of 243 wells (199 operated), 211 of which had been completed as producers and 31 of which were in progress and one of which was unsuccessful as of December 31, 2008. We also participated in 242 gross recompletions (226 operated), 220 of which had been completed as producers, 17 of which were in progress and five of which were unsuccessful as of December 31, 2008. In addition, we increased our average daily production from 25.2 MBoepd in the fourth quarter 2008 to 30.0 MBoepd in the Second quarter 2009. Concho's total proved oil and natural gas reserves at June 30, 2009 were 154.5 million barrels of oil equivalent (“MMBoe”), a 13% increase over year end 2008 proved reserves. Production for 2008 totaled 7.1 MMBoe, an increase of 41% as compared to 5.0 MMBoe produced in 2007.
Our core operating areas are located in the Permian Basin region of Southeastern New Mexico and West Texas, the largest onshore oil and gas basin in the United States. We refer to our core operating areas as the New Mexico Permian and Texas Permian. Our core operating areas had estimated year end2009 net proved reserves of 205.8 MMBoe, which accounted for 97% of our total estimated net proved reserves. At December 31, 2009, we owned interests in 8,676 gross wells in our core operating areas, of which we operated 6,988 (gross wells). At December 31, 2009, in our core operating areas, we had identified 3,387 drilling locations, with proved undeveloped reserves attributed to 1,642 of such locations, and 1,545 recompletion opportunities, with proved reserves attributed to 368 of such opportunities.
The Permian Basin is one of the most prolific producing oil and gas regions in the United States. It underlies an area of Southeastern New Mexico and West Texas approximately 250 miles wide and 300 miles long. Commercial accumulations of hydrocarbons occur in multiple stratigraphic horizons, at depths ranging from approximately 1,000 feet to over 25,000 feet. This basin is characterized by long life shallow decline reserves.
