Midland, Texas-based Concho Resources Inc. (NYSE: CXO) drilled 115 operated wells and participated in 24 nonoperated wells during the first quarter of 2010. Currently, Concho operates 21 drilling rigs in the Permian Basin.
Eight of Concho’s rigs are operating in New Mexico; seven of the rigs are drilling Yeso wells and one is drilling Lower Abo wells. The remaining 13 rigs are drilling on the Wolfberry play in Texas.
On its New Mexico Permian assets, Concho drilled 63 wells, 55 of which were operated, with a 100% rate of success on 27 producing wells.
On its Texas Permian assets, Concho drilled 57 wells, 56 of which were operated, with a 96% rate of success on 21 producing wells.
On the Lower Abo oil play, Concho drilled six Lower Abo wells, four of which were operated, with a 100% rate of success on two producing wells. As of Mar. 31, the company has drilled 28 wells, 16 of which were operated, on the Lower Abo play.
Net to Concho’s interest, the company’s Lower Abo wells produced approximately 1,700 barrels of oil equivalent per day during the first quarter.
Additionally, Concho participated in 12 Bakken wells during the first quarter, with the company’s net production from the Bakken play averaging approximately 1,000 barrels of oil equivalent per day.
Concho chairman Timothy A Leach says, “We believe that our focus in the Permian Basin has enhanced the profit margins of our operations, allowed us to build a large inventory of high return, low risk projects and has given us a strong growth trajectory.”
During the first quarter, Concho increased production to 3.2 million barrels of oil equivalent, a 28% increase over the first quarter of 2009 and 14% increase over 4Q09.
Concho is a U.S. independent oil and natural gas company with operations focused in the Permian Basin.
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