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Concho Resources Inc. Provides 2012 Operational Update And Increases 2013 Production Guidance


During 2012, Concho was once again one of the most active drillers in the Permian Basin. The Company drilled or participated in 840 wells and exited the year operating 30 rigs, half of which were drilling horizontally. “A major new theme that emerged in 2012 was our horizontal development efforts across our portfolio,” said Tim Leach. “I expect Concho’s horizontal activity will continue to increase as areas like the Delaware Basin and other emerging opportunities evolve into full-scale development.”

The table below summarizes the Company’s gross drilling activities by core area for the fourth quarter and full-year 2012:
  Total Wells 1   Operated Wells   Completed Wells
4Q 2012   FY 2012 4Q 2012   FY 2012 4Q 2012   FY 2012
New Mexico Shelf 73 360 29 251 85 348
Delaware Basin 45 154 29 87 47 134
Texas Permian 78 326 77 319 78 316
Total 196 840 135 657 210 798

1 Includes five wells that were plugged and abandoned in 2012.

The success of Concho’s acquisitions and 2012 exploration and development program resulted in the addition of over 3,300 new gross drilling locations, bringing the total to 12,269. The following table highlights 2012 year-end gross drilling locations and estimated proved reserves by core area.
    Gross     YE Proved Reserves (MMBoe)
Locations 2011   2012
New Mexico Shelf: 2,083 210.3 224.5
Yeso (Vertical) 1,044
Yeso (Horizontal) 676
Other 363
Delaware Basin: 4,212 49.7 81.7
Avalon shale 1,016
Bone Spring sands 2,462
Other 734
Texas Permian: 5,974 126.5 141.0
Wolfberry 40 acres 1,955
Wolfberry 20 acres 2,486
Shallow Wolfcamp 1,410
Other 123
Total 12,269 386.5 447.2

During 2012, the Company increased its Delaware Basin drilling inventory by over 2,300 after taking into account the 154 Delaware Basin wells drilled in 2012. The inventory in the Delaware Basin does not include any locations in the southern Delaware Basin where the Company has an active exploration program. It also does not significantly include any locations targeting zones in the Delaware sands or Penn shale, which the Company plans to further test during 2013.

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