DENVER, June 24, 2013 /PRNewswire/ -- Cimarex Energy Co. (NYSE: XEC) today announced that it has entered into an agreement with Chevron U.S.A. Inc., a subsidiary of Chevron Corporation for the joint development of their combined Delaware Basin acreage located in Culberson County, Texas.
Chief Executive Officer, Tom Jorden said, "Collaborative development of this 'checkerboard' acreage ownership makes perfect sense. Optimal well placement for both Second Bone Spring wells and longer-lateral Wolfcamp shale tests can now be achieved. We look forward to having Chevron as a partner on what will surely be a legacy asset for Cimarex." Cimarex will act as operator of the joint development which covers 104,000 acres.
Chevron will contribute acreage and pay Cimarex approximately $60 million for a 50 percent interest in the Cimarex-built Triple Crown gas gathering and processing system and wells drilled on the acreage in 2013. The contract has an eight-year term.
About Cimarex Energy Denver-based Cimarex Energy Co. is an independent oil and gas exploration and production company with principal operations in the Mid-Continent and Permian Basin areas of the U.S.www.cimarex.com This communication contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are more fully described in SEC reports filed by Cimarex. While Cimarex makes these forward-looking statements in good faith, management cannot guarantee that anticipated future results will be achieved. Cimarex assumes no obligation and expressly disclaims any duty to update the information contained herein except as required by law. SOURCE Cimarex Energy Co.