Denver-based Cimarex Energy said it also is realizing improved well productivity through relaxed spacing in Delaware Basin. In Reeves County, Cimarex’s Dixieland and Big Sky developments with spacing of 8 wells per section are outperforming legacy projects of 12-to-14 wells per section. Thomas Jorden, chairman and CEO, said benefits include enhanced capital efficiency, reduced operational risk, optimized net present value per section, and more sustainable volumes and free cash flow. Jorden said, “We’ve learned a tremendous amount about well-to-well interference, and we’re further looking to optimize.”
Cimarex reaffirmed full-year guidance of $650 million to $750 million for capital expenditures. Oil production in 2021Q2 was 72,700 b/d (high end of expectations) with 237,100 boed. Cimarex is now running 5 rigs in Permian Basin with plans to average 2 completion crews in second half of 2021. Cimarex also reported Aug. 5 a 54 percent decline in Permian high-pressure flaring intensity in 2Q.