Located in West Texas and Southeastern New Mexico, the Permian Basin is one of the oldest oil and gas producing basins in the United States. Hydrocarbons formed when the Permian sea retreated to the south leaving behind an elliptically-shaped layer of thick sediment which has been explored and developed in a multitude of zones since the first commercial well was drilled in 1921. The Permian Basin is made up of several smaller basins including the Delaware Basin, Midland Basin and Central Basin Platform. Cimarex operations are focused in the Delaware Basin where the company has a strong land position with multiple horizontal drilling opportunities in the Wolfcamp Shale, Bone Spring Sands and Avalon Shale.
The prolific oil-producing Bone Spring and Wolfcamp formations account for most of the company’s current Permian Basin activity and production. Delineation of the Wolfcamp Shale continues with first infill development planned for 2016. Cimarex continues to see marked improvement in well results due to newer completion techniques and the use of longer laterals.
The Permian Basin accounted for 36 percent of Cimarex’s year-end 2015 proved reserves and 56% of total production.