Concho Resources Inc.
) recently entered into an agreement with
Mexco Energy Corporation
) to focus on the development of the Bone Spring formation in
southwestern Lea County, New Mexico.
Per the agreement, the duo will develop the acreage using
horizontal drilling and multi-stage fracture stimulation. The
first two horizontal wells of the prospective twelve will target
the Avalon shale portion of the Bone Spring zone. Concho will pay
62.5% of the cost to drill and will have a 50% working interest
(37.5% net revenue interest).
Concho Resources Inc. is an independent oil and natural gas
company engaged in the acquisition, development, exploitation and
exploration of oil and natural gas properties. The company's
conventional operations are primarily focused on the Permian
Basin of Southeast New Mexico and West Texas. In addition, the
company is involved in a number of unconventional emerging
As of Dec 31, 2012, the company owned interests in
approximately 1.3 million gross (745,000 net) acres in New Mexico
and Texas Permian, alongside proved reserves of 458 million
barrels of oil equivalent.
In August, the company reported stable second quarter numbers.
The bottom line rose 25.6% year over year owing to higher prices
boosting revenues. Higher production at the same time also helped
During the second quarter, production from the horizontal
Delaware Basin grew 37% over the previous quarter driven by both
the northern and southern Delaware Basin. The company is also
steadily expanding its presence in Wolfberry in the Midland
The company currently holds a Zacks Rank #3, which is
equivalent to a short-term Hold rating. However, there are other
stocks in the oil and gas sector such as
China Petroleum & Chemical Corp.
SM Energy Company
), which hold a Zacks Rank #1 (Strong Buy) and are expected to
CONCHO RESOURCS (CXO): Free Stock Analysis
MEXCO ENERGY CP (MXC): Get Free Report
SM ENERGY CO (SM): Free Stock Analysis Report
CHINA PETRO&CHM (SNP): Free Stock Analysis
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