Cimarex Energy Co. announced that it has entered into an agreement with Chevron U.S.A. Inc., a subsidiary of Chevron Corporation for the joint development of their combined Delaware Basin acreage located in Culberson County, Texas.
Chief Executive Officer, Tom Jorden said, "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. We look forward to having Chevron as a partner on what will surely be a legacy asset for Cimarex." Cimarex will act as operator of the joint development which covers 104,000 acres.
Chevron will contribute acreage and pay Cimarex approximately $60 million for a 50 percent 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.
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