Cimarex Energy Co. Provides Production Guidance and Capital Plan for 2014; Provides Drilling Update
The company currently has four downspacing pilots planned in 2014, two in the Wolfcamp D in Culberson County and two Wolfcamp pilots in Reeves County. A four-well, 80-acre spacing pilot in the Wolfcamp A in Reeves County is now underway and drilling will commence on the first four-well, 80-acre spacing pilot in Culberson County later this month. A stacked lateral pilot is currently drilling in Culberson County to determine whether the Wolfcamp D and C can be completed and produced as separate intervals. Another pilot planned in Reeves is designed to simultaneously test both downspacing and stacked lateral spacing in the Wolfcamp A. Drilling will commence on this six-well pilot during the first quarter. The company announced that its first Wolfcamp A test in Culberson County, Texas, the Twenty Grand 26 Fee #1H, had an average 30-day peak production rate of 1,251 barrels of oil equivalent (BOE) per day including 672 barrels of oil per day (54%). The well was drilled using a 5,000-foot lateral and an upsized completion (20-stage frac). As anticipated, this well yielded a significantly higher percentage of oil than wells producing from the deeper Wolfcamp D horizon, which yielded 26% oil. Additional Wolfcamp A wells are planned in Culberson County in 2014. The company also announced that the Marmot 55-14 Unit #1H in Reeves County, Texas, was completed to the Wolfcamp B/C and had an average 30-day peak production rate of 6.4 MMcfe per day including 465 barrels of oil per day (44%). Cimarex has also completed and begun production testing of a Wolfcamp A well in Ward County, Texas. Both of these wells were completed using upsized fracs. Going forward, it is expected that all of the company's Wolfcamp wells will be completed with upsized fracs (approximately 20 frac stages per 5,000 feet of horizontal section). In addition, Cimarex is drilling extended lateral Wolfcamp wells in Culberson, Reeves and Ward Counties.