Concho New Mexico Shelf Properties

Operations Map  | New Mexico Shelf  | Texas Permian

Our Permian Basin operations in Southeast New Mexico represent our most significant concentration of assets. Our year end 2007 estimated proved reserves were 460.8 Bcfe in this basin accounting for 84% of our total net proved reserves and 85% of our proved PV-10. As of December 31, 2007, the wells that we operated accounted for 92% of our proved PV-10 in this core area. As of December 31, 2007, we had 1,518 gross producing wells in Southeast New Mexico. Our 2007 average net daily production from this area was approximately 66.4 MMcfe per day, representing 80% of our total production.

We target two distinct producing areas, which we refer to as the Shelf Properties and the Basinal Properties. The Shelf Properties generally produce from the Yeso (Paddock and Blinebry intervals), San Andres and Grayburg formations, with producing depths generally ranging from 900 feet to 7,500 feet. The Basinal Properties generally produce from the Morrow formation, with producing depths generally ranging from 7,500 feet to 15,000 feet.

Shelf Properties
Our Shelf Properties represented 81% of our year end 2007 total PV-10. We acquired most of these properties from the Chase Group upon closing of the combination transaction. As of December 31, 2007, we had 429.4 Bcfe of proved reserves and 1,243 gross producing wells in this area. In addition, we identified 1,368 drilling locations on our Shelf Properties, with proved undeveloped reserves attributed to 432 of such locations, and 783 recompletion opportunities, with proved reserves attributed to 297 of such opportunities. Our 2007 average net daily production from this area was approximately 58.5 MMcfe per day representing 71% of our total production.

Our properties are primarily located in Eddy and Lea counties, along the Abo-Yeso shelf edge on the northern rim of the Delaware Basin. This east to west trending fairway produces from a succession of stacked pays. The majority of the production in this region is from
the Grayburg, San Andres and Yeso (Paddock and Blinebry intervals) formations.

Basinal Properties
Our Basinal Properties in Southeast New Mexico represent approximately 4% of our year end 2007 total PV-10. As of December 31, 2007, we had 31.4 Bcfe of proved reserves and 275 gross wells producing in this area. In addition, we identified 98 drilling locations on our Basinal Properties, with proved undeveloped reserves attributed to 58 of such locations, and 39 recompletion opportunities, with proved reserves attributed to 34 of such opportunities. Our 2007 average net daily production from this area was approximately 7.9 MMcfe per day, representing 10% of our total production.