Based on 320-acre spacing, the company has identified 62 net potential drilling locations in the third Bone Spring play on 21,300 net acres in Loving, Reeves, Ward, and Winkler counties.
Unproved Bone Spring reserves are estimated to exceed 21 million barrels of oil equivalents: oil comprises 78% and natural gas the remaining 22%.
The company expects to invest approximately $465m to develop the Bone Spring potential in this acreage acquisition.
A horizontal drilling play targeting the third Bone Spring Sands at a vertical depth of 10,500ft-11,500ft, the typical Bone Spring well has estimated ultimate recovery of 400,000boe-500,000boe.
Energen Resources estimates that drilling and completion costs are approximately $7.5m per well.
