During the fourth quarter 2007, production from the company’s New Mexico Wolfcamp gas project increased 24% from 1,251 equivalent barrels of oil per day (boepd) to 1,551boepd, due to more consistent well results and timing of completions.
As of February 1, 2008, the company estimates that its Wolfcamp production has increased an additional 10% to approximately 1,700boepd due to new wells. Production from the Barnett shale gas project increased only 1%, from 1,669boepd to 1,678boepd, during the fourth quarter 2007 due to limited take-away capacity.
The company estimated that its net daily production was approximately 7,400boepd as of February 1, 2008, which is a 10% increase over fourth quarter 2007 average net daily production.
The fourth quarter 2007 increases were partially offset by a 1% decrease in the company’s long-life Permian Basin oil projects, from 3,014boepd to 2,995boepd, due to normal decline on base production, and an 8% decrease in its South Texas gas properties from 526boepd to 483boepd.
The company estimates that its Barnett shale production has increased an additional 37% to approximately 2,300boepd due to the completion of new wells and increased take-away capacity related to pipeline expansion and additional compression, as of February 1, 2008.
