Cimarex Energy has entered into an agreement with Chevron USA, a subsidiary of Chevron Corp, for the joint development of their combined Delaware Basin acreage in Culberson County, Texas. Cimarex will act as operator of the joint development, which covers 104,000 acres.
Chevron will contribute acreage and pay Cimarex approximately US $60 million for a 50% interest in the Cimarex-built Triple Crown gas gathering and processing system and wells drilled on the acreage in 2013. The contract has an eight-year term.
“Collaborative development of this ‘checkerboard’ acreage ownership makes perfect sense. Optimal well placement for both Second Bone Spring wells and longer-lateral Wolfcamp shale tests can now be achieved,” Tom Jorden, CEO of Cimarex, said.