The New Well is Part of an Initial Nine-Well Drilling Program in the Delaware Basin
DALLAS–(BUSINESS WIRE)–Private oil and gas company CP Exploration (CPX) announced today that it has begun drilling the Durham Smith Fuente 209HL, its third horizontal well in Reeves County, Texas. The Durham Smith Fuente 209HL follows the successfully drilled and soon-to-be-completed Durham Smith Fuente 204HU and the successfully drilled and completed Durham Smith Fuente 201HL, which had an initial production rate of 3.436 million cubic feet per day (mmcfd) and 708 barrels of oil per day (bopd). The three wells target the Upper Wolfcamp unconventional reservoir and are part of an initial nine-well horizontal drilling program. The company expects to drill at least three additional horizontal wells in 2016.
Focused solely in the Delaware Basin, CPX operates assets on more than 5,000 acres in Reeves County. The company is led by an experienced management team with a long history of working together in the energy business, drilling and producing successful wells across numerous basins in the United States. The team includes CPX President and CEO Tom Powell; Chief Operating Officer Randy Holt; EVP and Director of Exploration Jeff Blass; and EVP and Director of Reserves and Planning Jay Thrash.
“The depth and experience level of our management team means that we have very long-term relationships with many of the key players in our operating area, which in turn has led to very strong deal flow for us, allowing us to participate in large-scale acquisition and development projects,” said CPX President and CEO Tom Powell. “In addition to having a strong understanding of deal structure, the CPX team has a deep knowledge base in geology and engineering and has found ways for us to reduce our finding costs, significantly increasing our resource estimates for these wells.
“We believe that the Delaware Basin is the best unconventional resource play in the country. We are committed to continuing to deploy capital here and are excited to move forward with our drilling program, creating value through the drill bit.”
Founded in 2007, CPX is co-located in Dallas and Lafayette, Louisiana. The company is privately funded by management and private investors. Since its inception, CPX has completed five divestitures — four in the Bakken and one in the Permian — for a more than six-time return on investment.