We’ve been active along the Gulf Coast since the mid-90s. Today, nearly one-third of our production comes from this area. This activity involves most of the major producing trends in South Texas, including the Frio, Wilcox and Lobo plays. Our largest investment in South Texas in 2008 will be the Frio Trend. We have an interest in more than 60,000 acres in this trend.
We have been very successful in a joint venture in Kenedy County with ExxonMobil adjacent to our existing Sarita Field. Since the formation of this JV in 2005, we have drilled 23 successful wells, and we have a similar inventory of drilling locations. This area of activity covers about 2,700 gross acres. In 2007, we formed a 40,000-acre joint venture with a private company that covers land south and east of our existing ExxonMobil JV. Drilling here is planned in early 2008.
In the Val Verde Basin of West Texas, we have an interest in nearly 130,000 gross acres with active drilling operations and nearly 75 MMcfe/d of production.
In East Texas, we have an interest in 30,000 net acres, of which 11,000 acres are associated with a joint venture with a private company.
In our onshore Gulf Coast operations, we balance development drilling of lower risk opportunities with some higher risk, higher impact exploration tests.
At year-end 2007, we owned an interest in about 350,000 gross acres and about 650 gross producing wells primarily along the Texas Gulf Coast.
|
 |
