Historically a major contributor to overall production growth for Concho, the New Mexico Shelf is a world-class asset with high rate-of-return drilling opportunities. It was this asset that enabled us to go public in 2007, and has supported our growth into other parts of the Permian Basin.
Since 2006, we have drilled more than 1,300 vertical wells on the New Mexico Shelf targeting the Yeso formation. In 2016, we drilled approximately 40 horizontal wells. By applying horizontal drilling and advanced completion techniques, we are expanding the boundaries of this legacy asset and increasing our resource potential. These low-cost, shallow opportunities generate strong economics and free cash flow that we in-turn redeploy to our other core areas.