Concho New Mexico Shelf Properties

Operations Map  | New Mexico Shelf  | Texas Permian

This area represents our most significant concentration of assets and our year end 2010 estimated proved reserves of 192.9 million barrels of oil equivalent (“MMBoe”) in this area accounted for 60% of our total net proved reserves. During the fourth quarter 2010, our average net daily production from this area was approximately 32.6 thousand barrels of oil equivalent per day, representing 60% of our total production.

As of December 31, 2010, on its New Mexico Shelf assets, the Company identified 2,897 drilling locations, with proved reserves attributable to 742 of such locations.  Of these 2,897 drilling locations, 2,156 target the Yeso formation. 

During 2010, we drilled or participated in the drilling of 270 wells in this area, of which 227 were completed as producers, none were unsuccessful and 43 were in various stages of completion and drilling at December 31, 2010.

Within this area we target two distinct producing areas, which we refer to as the Yeso assets and the Lower Abo assets. The Yeso assets generally produce from the Blinebry and the Paddock formations, with producing depths ranging from approximately 4,000 feet to 7,500 feet.

The Lower Abo is a horizontal oil play just north and northeast of the Yeso assets in Lea, Eddy and Chaves Counties, New Mexico. The Lower Abo play is found at vertical depths ranging from 6,500 feet to 10,000 feet and is being developed utilizing horizontal drilling techniques and advanced fracture and stimulation technology.