CP Exploration has entered into a Farmout and Joint Development Agreement in the Permian Basin with a top 5 US Oil Company covering 3,388 HBP acres in six contiguous sections, initally targeting the Wolfcamp A & B
CP Exploration (CPX) has entered into a Farmout and Joint Development Agreement in the Delaware Basin. The Farmout covers 3,388 HBP acres in six contiguous sections, initially targeting the Wolfcamp A & B. After drilling a minimal number of horizontal wells, CPX will earn a significant majority Working Interest. Full development of both benches will result in 69 horizontal wells, ranging from 5,000’ to 7,500’ in length.
In addition to its technical team with over 250 years of experience in unconventional exploration and development, CPX has assembled an Operations Team that includes a number of individuals with tremendous experience drilling and completing successful Wolfcamp wells in the Delaware Basin. CPX is committed to hiring valued service companies with respected HSE programs, and thus, has engaged some of the most qualified field service personnel and contractors. Additionally, CPX has negotiated a cost effective water infrastructure solution and product takeaway arrangement.
CPX has projected the Delaware Basin project to be profitable, even at today’s reduced commodity prices. CPX has successfully acquired assets protected from price volatility, such as Mineral Fee acreage in the Rockies and long-term leases with high NRI’s in East Texas. These types of acquisitions allow the company to invest capital in strategic growth, as opposed to projects with weakened economics. In the near-term, CPX plans to continue its growth, especially in the Delaware Basin, and is actively pursuing multiple opportunities.