Permian Basin – A Target Rich Environment
The Permian Basin, located in west Texas and southeastern New Mexico, has been recognized as one of the most prolific onshore oil and natural gas producing regions in the United States. It is characterized by an extensive production history, mature infrastructure, long reserve life and hydrocarbon potential in multiple formations. Even with fluctuating commodity prices the Permian Basin has maintained a strong drilling rig count. Laredo’s Permian activities are centered on the east side of the basin approximately 35 miles east of Midland, Texas in primarily Glasscock and Reagan Counties. Today, Laredo has over 140,000 gross acres (with a majority of it being contiguous) and of which 85% is HBP.
The principal focus of Laredo’s horizontal drilling activities is an oil play (that also includes a liquids-rich natural gas component) that involves both the Wolfcamp (Upper, Middle, and Lower) and the Cline formations. Secondary targets include the Spraberry, Canyon, Strawn and ABW intervals. In total, over 12 viable landing points have been identified throughout the stratigraphic section (~ 4,500 ft. thick) as being prospective for development.
The gathering of extensive high quality data, coupled with development of in-house technologies, has allowed Laredo to optimize its drilling portfolio. The early acquisition of 3D seismic data and the obtainment of a significant number of cores has enabled Laredo to model and map the upside potential so multi-zone co-development prioritization can occur throughout the property set.