U.S. Map

Southern Delaware Basin

In July 2016, the Company purchased one-half of the seller’s interest in approximately 12,100 gross undeveloped acres (~ 5,000 net acres) for up to $25 million in the Southern Delaware Basin of Texas, currently one of the most active and economically attractive oil and gas basins in the United States (the "Acquisition"). Since the closing of the Acquisition in late July 2016, we and our partner have increased our leasehold footprint to approximately 6,800 acres, net to Contango. As of December 31, 2017, we currently estimate that we have proven reserves of 55.5 Bcfe and close to 400 gross drilling locations, initially targeting the Wolfcamp A, Wolfcamp B and Second Bone Spring formations. Substantially all of the locations can accommodate 10,000 foot laterals. As previously disclosed, during 2017 we brought our first four Southern Delaware Basin wells on production (two in the Upper Wolfcamp A, one in the Middle Wolfcamp A, and one in the Lower Wolfcamp A), with an average maximum 30 day initial production rate (“IP”) of 968 Boed (72% oil).

West Texas


In mid-December 2017, we brought our fifth horizontal well on production, the Crusader #1H, targeting the Lower Wolfcamp A. This well was drilled to a total measured depth (“TMD”) of 20,275 feet, including a 10,184 foot lateral, and was completed with 50 stages of fracture stimulation, reaching a 30-day average IP of 389 Boed (67% oil). Our sixth well, the Ragin Bull #3H, targeting the Lower Wolfcamp A, was spud in November 2017. This well was drilled to a TMD of 20,570 feet, including a 10,325 foot lateral, and was completed with 50 stages of fracture stimulation. Production began in January 2018, and the well reached a 30-day average IP of 716 Boed (67% oil).

Our seventh well, the River Rattler #1H, our first Wolfcamp B test, was spud in December 2017. This well was drilled to a TMD of 20,710 feet, including a 10,275 foot lateral, and was completed with 50 stages of fracture stimulation. Production is expected to begin in mid-March 2018. We continue to identify cost efficiencies in our drilling efforts, as evidenced by the fact that the Ragin Bull #3H and River Rattler #1H have been our most efficient wells to date, taking only 27 days from spud to TMD.

Our eighth well, the Ragin Bull #2H, our second Wolfcamp B test, was spud in January 2018. This well was drilled to a TMD of 20,624 feet, including a 10,344 foot lateral, and is currently waiting on completion with 50 stages of fracture stimulation. There have been multiple Wolfcamp B wells adjacent to our leasehold that have been put on production recently by our offset operators, thereby derisking the Wolfcamp B in the area and providing encouragement for the development of that formation on our acreage.


Specifics of our acreage are as follows:

  • Located in western Pecos County, Texas.
  • Primary focus is three benches (Wolfcamp A, Wolfcamp B and emerging Bone Springs formations), all of which have proven to be productive in the area by offset operators, thereby providing us with the equivalent of 40,800 "effective" gross acres over the three formations.
  • Average Wolfcamp interval of approximately 400 feet and Bone Springs interval of approximately 2,000 feet.
  • 400 gross potential locations spread over the three potential formations that offer excellent returns, even at current commodity prices and current estimated drilling and completion costs - using internally estimated average production type curves based on offset operations data and assuming drilling of 10,000 foot laterals.
  • Additional upside exists in future downspacing and additional zones being delineated within the thick Bone Springs section and/or Middle and Lower Wolfcamp intervals.
  • Acreage is adjacent to and surrounded by current horizontal Wolfcamp activity.
  • Active offset operators included Halcon, Diamondback, Oxy, and Concho Resources, among others.
  • Existing infrastructure in place to service development of asset.
  • No significant near term expirations.