Corporate History
In 2009, we drilled or participated in 361 wells (314 operated) and 163 recompletions (150 operated), and we increased our average net daily production from 25.2 thousand barrels of oil equivalent per day (“MBoepd”) in the fourth quarter of 2008 to 30.6 MBoepd in the fourth quarter of 2009. At December 31, 2009, Concho had identified 3,695 drilling opportunities, with proved undeveloped reserves associated with 1,793 of such opportunities. Concho's total proved oil and natural gas reserves at December 31, 2009 were 211.5 million barrels of oil equivalent (“MMBoe”), a 54% increase over year end 2008 proved reserves. Production for 2009 totaled 10.9 MMBoe, an increase of 54% as compared to 7.1 MMBoe produced in 2008.
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. At December 31, 2009, we owned interests in 9,202 gross wells in our core operating areas, of which we operated 7,135 (gross wells). At December 31, 2009, in our core operating areas, we had identified 3,695 drilling locations, with proved undeveloped reserves attributed to 1,693 of such locations, and 1,547 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.
