Permian Basin

We have been focused on the development of our Southern Delaware Basin acreage in Pecos County, Texas (“Bullseye”).

Since July 2016, we and our 50% working interest partner in the Southern Delaware Basin have increased our leasehold footprint from approximately 5,000 undeveloped acres, net to Contango, to approximately 8,000 acres, net to Contango. As of December 31, 2019, we estimate that we have proved reserves of 43.3 Bcfe (75% oil, 90% total liquids) in our West Texas region. We believe substantially all of the potential drilling locations on this acreage can accommodate 10,000 foot laterals.  

During the three months ended December 31, 2019, we brought three wells online in the Southern Delaware Basin, the Iron Snake #1H, the Breakthrough State #1 H and the Old Ironside #1H, all of which are located in NE Bullseye. In January 2020, we brought one additional NE Bullseye well online, the State Spearhead #1H. NE Bullseye is expected to be a more productive and higher oil cut area that our Bullseye area and will be the focus of future capital spending in the area when we decide to become more aggressive in allocating capital to our drilling program.
 As of December 31, 2019, we had twelve wells producing from the Wolfcamp A, five wells producing from the Wolfcamp B, and a sixth well drilled in the Wolfcamp A which was completed in January 2020. Our West Texas production during the three months ended December 31, 2019 was approximately 8.3 Mmcfe per day.