Texas Permian

Operations Map  | New Mexico Shelf  | Texas Permian

We acquired the majority of our properties in this area in the Henry Properties acquisition.  At December 31, 2009, our estimated proved reserves of 77.2 million barrels of oil equivalent (“MMBoe”) in this area accounted for 37% of our total net proved reserves. During the 4th quarter 2009, our average net daily production from this area was approximately 7.5 thousand barrels of oil equivalent per day (“MBoepd”), representing 24% of our total production.

As of December 31, 2009, on the Company’s Texas Permian assets 1,795 drilling locations were identified, with proved undeveloped reserves attributable to 966 of such locations.  Of these drilling locations, 1,658 target the Wolfberry play.

For the year ended December 31, 2009, the Company drilled 120 wells (117 operated) on its Texas Permian assets, with a 98% success rate on the 54 wells that had been completed by December 31, 2008. 

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. We also operate properties on the Central Basin Platform where the Grayburg, San Andres and Clearfork objectives are shallower, typically encountered at depths of 4,500 to 7,500 feet. The reservoirs in these formations are largely carbonates, limestones and dolomites.