Concho Texas Permian Properties

Operations Map  | New Mexico Shelf  | Texas Permian

At December 31, 2010, our estimated proved reserves of 100.5 million barrels of oil equivalent (“MMBoe”) in this area accounted for 31% of our total proved reserves. During the fourth quarter 2010, our average net daily production from this area was approximately 13.7 thousand barrels of oil equivalent per day, representing 25% of our total production.

As of December 31, 2010, on the Company’s Texas Permian assets 1,800 drilling locations were identified, with proved reserves attributable to 1,094 of such locations.  Of these 1,800 drilling locations, 1,742 target the Wolfberry play.

During 2010, we commenced drilling or participated in the drilling of 313 wells, of which 225 were completed as producers, one was unsuccessful and 89 were in various stages of drilling and completion at December 31, 2010.

The primary objective in the Texas Permian area is the Wolfberry in the Midland Basin. “Wolfberry” is the term applied to the combined Spraberry and Wolfcamp target interval which is typically encountered at depths of 7,000 to 10,500 feet. The Wolfberry is comprised of a sequence of basinal, interbedded shales and carbonates.