During the second quarter of 2012, the Company drilled or participated in 89 wells (88 operated) on its Texas Permian assets with a 100% success rate on the 31 wells that had been completed by June 30, 2012. In addition, during the second quarter of 2012, the Company completed 57 wells that were drilled prior to the second quarter of 2012.
At June 30, 2012, on its Texas Permian assets, the Company had identified 5,772 drilling locations, including locations associated with the Three Rivers acquisition, with proved undeveloped reserves attributable to 1,786 of such locations. Of these 5,772 drilling locations, 2,064 target the Wolfberry play through 40-acre spacing, 2,629 target the Wolfberry play on 20-acre spacing, 927 target the Wolfcamp vertically in Irion and Schleicher Counties and the remaining drilling locations target other objectives. The Company recently began testing a horizontal Cline shale exploration concept in the northern Midland Basin and as of June 30, 2012, had not included any potential drilling locations across its approximately 74,000 gross (51,000 net) acres in Terry and Hockley Counties.
Delaware BasinDuring the second quarter of 2012, the Company drilled or participated in 39 wells (20 operated) with a 100% success rate on the 6 wells that had been completed by June 30, 2012. Of the 39 wells drilled, all were horizontal, which included 30 Bone Spring sand wells, 1 Avalon shale well, 5 Wolfcamp shale wells and 3 Delaware sands wells. In addition, during the second quarter of 2012, the Company completed 22 wells that were drilled prior to the second quarter of 2012. The Company’s net production in the second quarter of 2012 from horizontal Delaware Basin wells averaged approximately 13,850 Boepd, an increase of 12% over the first quarter of 2012 and a 147% increase over the second quarter of 2011.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts