Concho Resources Inc CXO

Concho Resources Inc., incorporated on February 22, 2006, is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company's four operating areas include the Northern Delaware Basin, the Southern Delaware Basin, the Midland Basin and the New Mexico Shelf. As of December 31, 2016, the Company's operations were focused in the Permian Basin, which underlies an area of Southeast New Mexico and West Texas approximately 250 miles wide and 300 miles long. The Permian Basin is an oil and natural gas producing region in the United States and is characterized by multiple producing horizons and enhanced recovery potential. The majority of the rigs running in the Permian Basin are drilling horizontal wells. As of December 31, 2016, the Company produced approximately 55.1 million barrels of oil equivalent (MMBoe) of oil and natural gas.

Commercial accumulations of hydrocarbons occur in multiple stratigraphic horizons, at depths ranging from less than 1,000 feet to over 25,000 feet. As of December 31, 2016, all of its 720 MMBoe total estimated proved reserves were located in its core operating areas and consisted of approximately 59.5 % oil and 40.5 % natural gas. As of December 31, 2016, the Company had estimated proved reserves in the Northern Delaware Basin area of 234.3 MMBoe. The Northern Delaware Basin is characterized by a thick, resource-rich hydrocarbon column that lends itself to multi-zone development. It leverages horizontal drilling and completion technologies to target multiple producing formations that comprise the Avalon Shale, Bone Spring and Wolfcamp. These formations produce from 6,500 feet to 13,500 feet for its targeted activity. During the year ended December 31, 2016, it commenced drilling or participated in the drilling of 80 (55 net) wells in this area.

As of December 31, 2016, the Company had estimated proved reserves in Southern Delaware Basin area of 108 MMBoe. Across its Southern Delaware Basin acreage position it primarily targets the Bone Spring and Wolfcamp formations, which generally range from 4,700 feet to 13,500 feet in depth. During the year ended December 31, 2016, it commenced drilling or participated in the drilling of 41 (30 net) wells in this area. At December 31, 2016, it had estimated proved reserves in Midland Basin area of 191.4 MMBoe. Its primary objectives in the Midland Basin area are the Spraberry and Wolfcamp formations, which are encountered at depths of 7,500 feet to 11,500 feet. On its Midland Basin assets, the Company is continuing to develop the Wolfcamp and Spraberry formations with horizontal drilling, utilizing multi-well pad sites and extended lateral development. During the year ended December 31, 2016, it commenced drilling or participated in the drilling of 86 (47 net) wells in this area.

As of December 31, 2016, the Company had estimated proved reserves in New Mexico Shelf area of 186.1 MMBoe. Within this area its primary objectives are the Yeso, San Andres and Grayburg formations, with producing depths ranging from approximately 900 feet to 7,500 feet. As of December 31, 2016, the Company continued its horizontal drilling of the Yeso formation. During the year ended December 31, 2016, it commenced drilling or participated in the drilling of 42 (38 net) wells in this area.