The Permian Basin is an attractive operating area due to its multiple stacked hydrocarbon-bearing formations that are prospective for horizontal development. The basin is further characterized by a favorable operating environment, high oil and liquids-rich natural gas content, significant in-place midstream infrastructure, a well-developed network of oilfield service providers, long-lived reserves with consistent geologic attributes and reservoir quality and historically high development success rates. According to the Energy Information Administration of the U.S. Department of Energy, the Permian Basin is the most prolific oil producing area in the United States, accounting for 25% of total U.S. crude oil production during September 2016.
Jagged Peak has approximately 75,000 net acres, targeting the oil-rich southern portion of the Delaware Basin located on large, contiguous blocks in the adjacent counties of Winkler, Ward, Reeves and Pecos, with significant original oil-in-place within multiple stacked hydrocarbon-bearing formations. We specifically targeted the Southern Delaware Basin due to the abundant amount of oil-in-place, stacked pay potential, low breakeven prices, attractive well economics, favorable operating environment and in-place midstream infrastructure.
Based on the wells we have drilled to date and wells drilled by other operators, we believe the Lower Wolfcamp A, Upper Wolfcamp A, Wolfcamp B and 3rd Bone Spring Sand formations are significantly delineated across our acreage. The top of the Wolfcamp formation ranges from approximately 8,850 feet to 11,420 feet, and the top of the Bone Spring formation ranges from approximately 8,600 feet to 10,900 feet. We also believe that significant additional development opportunities exist on our acreage in the Brushy Canyon, Avalon Shale, 1st Bone Spring Lime, 1st Bone Spring Sand, 2nd Bone Spring Sand, 3rd Bone Spring Lime and Wolfcamp C formations.
2,000 identified drilling locations
37.7 MMBOE Proved Reserve
75,000+ net acres
Based on the wells we have drilled to date and wells drilled by other operators, we believe that significant additional development opportunities exist on our acreage and promise continual growth for years to come.